ABA Education Foundation's Get Smart about Credit Program Motivates
Consumers
WASHINGTON, Oct. 8 /PRNewswire-USNewswire/ -- To help consumers combat
feelings of powerlessness common during an economic crisis, the ABA
Education Foundation is encouraging consumers to stay A.C.T.IVE by taking
the A.C.T. Credit Pledge.
The A.C.T. Credit Pledge is part of the Get Smart About Credit program
and calls on consumers to:
A- Assess your debt by using your credit report to find out how much
you owe. Often consumers, forgetting to include student and car loans, owe
more than they thought. Your credit report will give you the exact amount.
C- Check your credit report for errors. If you find errors, contact the
credit reporting agency and request a correction. With lending standards
tightening, consumers will need to have a good to excellent credit score to
get a loan.
T- Take the information and create a plan. Set up a budget along with a
payment plan to help pay down debt. Consider increasing payments to lower
debt faster and avoid financing charges.
"During tough economic, those with the most debt buckle first,"
explains Laura Fisher, ABA Education Foundation director. "Address your
fears head on by taking a look at your debt level and credit habits. The
A.C.T. Credit Pledge is a move out of neutral into drive."
Consumers can download and sign the A.C.T. Credit Pledge as a physical
symbol of their commitment. The new pledge is part of the Get Smart About
Credit program, which includes the annual Get Smart About Credit Day, to be
held this year on Oct. 16. An estimated 90,000 young people will learn the
dos and don'ts of credit when thousands of bankers visit classrooms across
the country.
Declaring that now is the time for financial literacy, Fisher added
that even in a healthy economy, people without personal finance skills
often idle in neutral.
Tuesday, October 14, 2008
Money Worries? Get A.C.T.IVE
Thursday, October 2, 2008
Smart Choices Can School Students in Financial Planning
Bills.com suggests 8 ways to get straight As in student borrowing.
San Mateo, CA (PRWEB) September 10, 2008 -- As the nation's economy continues its crunch, millions of college and university students across the United States are enrolling in school and borrowing thousands of dollars. Bills.com president Ethan Ewing has eight suggestions for how students can maximize those loans.
Two-thirds of college students graduate with some student loan debt, averaging $19,237 in 2003-2004, the most recent year with full data available. About 10 percent of parents also borrow money for their student's education, adding up to a cumulative parent loan debt of $16,317.
Ewing suggests students remember these eight points to make the most of their financial well-being, with loans or without:
1. Keep tabs on credit. Credit scores determine interest rates on private loans. Parents and students should check their credit ratings - for free - once a year (available at www.annualcreditreport.com or by calling the three credit reporting bureaus). Paying bills on time, building a steady employment history and being alert to possible identity theft will help support a good credit rating.
2. Borrow only what you need. Some students automatically borrow as much as they can qualify for. Instead, calculate needs and borrow only to cover them. If the lender sends a check for more than is needed, ask for a corrected check. "All loans must be repaid, and spending the money now on a vacation, furniture or clothing will only hurt in the future," Ewing said.
3. Do not charge. The average college student has thousands of dollars in credit card debt. With extremely high interest rates (typically 15 percent to 30 percent), accumulated credit card debt is difficult to pay off. While in school, use discipline to live within your means. It is also wise to use loan funds, rather than credit cards, to pay for school-related expenses such as textbooks. The interest will be lower, as well as tax-deductible.
4. Pay on time. Paying all bills -- including loans -- on time is the No. 1 way to protect a credit rating and save money. It is more important than ever today, when a late payment on one account can send interest rates and payments skyrocketing on other accounts.
5. Use resources. Some employers and professions have perks that include student loan repayment. After graduation, working adults can check into these programs, which can include monthly assistance, one-time payoffs and matching funds. "Those who qualify for one of these programs and do not take advantage of it are effectively turning down free money," Ewing cautioned.
6. Take tax benefits. Most new graduates can deduct up to $2,500 per year in student loan interest payments. The deduction phases out for taxpayers with annual incomes between $55,000 and $70,000 ($115,000 to $145,000 for those filing joint returns). Ask a tax advisor to check your tax return to be sure you get all the education-related deductions and credits for which you qualify.
7. Pay more if possible. Additional payments are permitted on most student loans. The more you pay, the faster you will be free of the loan. If you have credit card debt, be sure to weigh early repayment on your student loans against the benefits of early repayment on your card balance. The interest rate on the student loan will most likely be lower than on a credit card.
8. If you cannot pay. If you absolutely cannot make your loan payment, immediately call the lender. "Lenders would rather work with you than risk a defaulted loan," Ewing said. Your credit rating will hold up better if you postpone payments for a while than if you default. Damage from defaulting could prevent you from buying a home or car or getting a job, apartment or insurance for years to come. If total debt is insurmountable, seek help from a reputable debt resolution advisor.
"By making the right decisions on student loan borrowing, today's students can more quickly get on the road to financial freedom," Ewing said. "Just as important as academic history, a good financial history paves the way for future success."
About Bills.com (www.bills.com)
Based in San Mateo, Calif., Bills.com is a free one-stop portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt relief assistance, insurance, mortgages and other loans. As the online portal to Freedom Financial Network, LLC, the company has served more than 40,000 customers nationwide since 2002 while managing more than $1 billion in consumer debt. Its RSS feed is available at http://www.bills.com/news_releases/.
Bills.com holds the No. 257 spot on the Inc. 500 list for 2008, and the No. 3 spot on Entrepreneur Magazine's Hot 100 list of the fastest-growing U.S. companies. Bills.com also was named a finalist as "most innovative company" in the American Business Awards in 2008. Company co-founders and co-CEOs Andrew Housser and Brad Stroh were named to the Silicon Valley/San Jose Business Journal's "40 Under 40" list in 2008, and are recipients of the Northern California Ernst & Young 2008 Entrepreneur of the Year Award.
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Friday, September 26, 2008
Financial Mistakes You May be Making
Author: Steve Gillman
All of us make financial mistakes, and research in the new fields of evolutionary economics and behavioral economics are starting to explain why. It will be good to have this knowledge someday. But in the meantime, here are five of the more common money mistakes you may be making, so you can start correcting them now.
1. Making A Competition Of Financial Decisions
Trying to "beat" anyone else in a financial transaction is a bad habit, unless you are playing poker or negotiating a business or investment deal. The first people to buy new technology get to show it off, but they also get the worst version at the highest price. If you "win" at an auction it means you paid more than anyone else was willing to pay. Looked at that way it doesn't seem so smart.
Evolutionary economics explains why we feel this need to "win." It developed as a way to gain a better position in the tribe, which increased one's survival odds thousands of years ago. This tendency of ours is of very little value in a modern economy, so ignoring such urges is wiser.
2. Believing You Are Owed Something
Nobody owes you a thing unless you have a contract or a promise. Dwelling on what is "owed" to you is a financial mistake because it gets in the way of doing what is necessary. And why does anyone owe you a thing? For example, health insurance came to be expected of large employers based on nothing more than the fact that many provided it. Had enough companies provided cars to employees, we would think we are "owed" a car by our employer.
Forget what is "owed" to you. Just work honestly to get what you can. Ask for a raise, but if you're not paid enough, find another job. Collect that unemployment benefit if it's available, but don't think others have an obligation to provide your income for you. Once you stop looking for your "due" you can start looking at how to make money and create what you need for yourself. Usually this means seeing what others want, and finding a way to provide it for a paycheck or a profit.
3. Believing Value Is About Prices
Suppose a television normally sells for $900 and is on sale for $400. Is that a good value? Most people may think so, but the value of personal items is measured by what the individual user needs. If you're as happy with a $200 television, then the other is over-priced from your perspective. Such personal purchases are worth only what it makes sense for you to pay. If a $20,000 car is worth just $3,000 to you, then that's that (and you don't buy it).
4. Believing Value Is All About You
I once saw a man lose $30,000 by pricing his home too high and leaving it empty for years - one of the more common financial mistakes. With investments, value has nothing to do with what you think a thing is worth. The only important measure is what the market will pay for it.
People often confuse personal consumption items with investments, thinking, for example, that a car is an investment. A $22,000 kitchen remodeling project isn't an investment either, if future buyers will pay only $10,000 more for the home afterwards. The owner might like to think it added $30,000 in value, but his ideas are irrelevant. He better enjoy that new stove and cupboards, because they were not investments, but a $12,000 personal purchase (that's his net loss).
5. Believing High Profits Are Unfair
In any honest sale, the price is fair, or it wouldn't have been paid. Consider if your own house had a market value of $400,000 and you wanted to sell it. Would you lower the price to make it more "fair?" Not likely, so why expect any business to charge less than what the market dictates?
How much profit is made on something is entirely irrelevant to what its value is. Your choice is to buy it or not. It's a financial mistake to waste time complaining about a profit you would gladly accept if you were on the other side of the transaction. The truth is that you wouldn't buy it if it wasn't a fair price, and nobody (in a free country) is forcing you to. Spend your energy looking for a better alternative or finding ways to make more money instead.
Wednesday, September 24, 2008
Manage Money and Earn More
Author: wang y. wei
The way to manage money and earn more is more than just a single way concept. Not only does managing money mean being able to keep money per se, but also to be able to mobilize the money that we have to the direction in which we intend them to go. This includes investment, business ventures, and leisure activities.
More Saved, More Resources
Though it is quite confusing to understand how one may be able to earn more when he is saving more and not the other way around, the concept of the former dictates the effect.
Being able to save more will give you more freedom to allocate the money in what business and endeavor one seeks to have. In conjunction with the previous statements, managing money does not only mean saving, but being able to have the resources to move about. In
this case, having more money in the bank or floatingly available enables you to use them for businesses or leisure.
The Power Of Capital
Should you choose to invest your earnings and savings on a business venture, one thing that limits one's capability to start off with the desired business is the capital needed. Though most businesses require a substantial amount of money, these are the big establishments which require a corporation of several investors with investments in the millions.
As a private businessman or entrepreneur, one may start with a personal business of a small nature such as handcrafted items or services, and work your way up from there. Once you start rolling in the Benjamins, you are on your way to choose your path to either retain your business or go higher up the economic chain.
Capital and the way to manage money and earn more in the process is a tricky and risky thing to do though. Be prepared to accept a losing business as well.
Wholesale Concept
Another concept which enables you to earn more is to keep a wholesale concept in mind at all times. This is simple defined as being able to see that the more you acquire in a single deal, the more you save, and the more you save, the more you are able to use that savings for other businesses or other requirements, therefore cutting down on the total projected expenses.
It may not be always be the case for many, especially if one has a very limited capital to invest. Nevertheless, what is more important is that one is able to work efficiently in one's own means of production and not depend on floating bonds and loans as these are the usual causes of a business to stay stagnant and not earn due to the interests.
It is quite daunting to manage money and earn more, with the consistent juggling of resources and risks to achieve at something without foolproof success. However, a properly set management and a little bit of luck will definitely rake in big rewards to the whole process. Starting small and working up rather than starting with big things right away is crucial to the
learning process and the tricks and trade as well in business handling. This is what will matter especially when the competition becomes tighter in the higher business environment.
Tuesday, September 23, 2008
5 Easy Steps to Being Poor
Author: Sherry Ridge
What is poor? Just a few of the dictionary definition indicate that it is “lacking material possessions”, “of, relating to, or characterized by poverty”, “Meager”, and/or “small in worth.” Others think it is noble to be poor and ensures you a place at the pearly gates. Some say it’s the amount of money you earn. My 20 year old earns less than $10,000 a year and yet lives on his own, paying rent, utilities, gas, food, etc. Being poor is not the amount of money you make, but what you are choosing to do with it. Time and time again we hear success stories of families flourishing on what the government says is poverty level, yet they pay their bills on time, they provide for their families and manage to save a little. They may not have everything they WANT but they do have everything they NEED. What differentiates them from the actual poor is how they view money, how they manage their money and the financial decisions they make. They do not follow the steps listed in this article.
Being poor in America today is easier than you thought...we have come up with 5 easy steps that will guarantee that you and your family are/remain poor. Follow them and you can be assured that your dreams won’t come true.
1. Do not look at the cost of items you purchase in terms of total cost of time and money. So many times we make emotional purchases that in the long run cost us more than we ever imagined. Buying on time, using credit to purchase items always cost more than the price tag lists.
2. Buy items on credit terms for as long as the creditor will allow. We look at our purchases in terms of the monthly amount, we seem to want to make the payment as small as possible, to fit our monthly budget and again don’t look at the bottom line, final number as to what that car, TV, house, sofa, etc. really cost.
3. Save just to spend it. Saving money in a 401K plan, mutual fund, money market account, saving account, need to have a purpose and should not be taken out for any other reason. We advocate that families need to set money aside for upcoming expenses and this should be in an account that has easy access with no penalties to withdraw; it only comes out when the bill comes due. Retirement accounts are for retirement only, not for a vacation, new furniture, car, etc. It should never be touched until you reach the goal that you saved for...retirement.
4. Spend money as you get it, don’t have a budget. A budget is a financial plan to succeed! We don’t see this valuable tool for what it is, instead many view it as liability, a burdensome. You will never succeed financially if you don’t know where your money is going and if you don’t plan your spending.
5. Give money away. When you have a limited income you have no business loaning money to friends, family etc. and/or co-signing for others. Remember the old saying... “No good deed goes unpunished.” You also should not be giving your hard earned cash to your Madison Avenue creditors in the way of interest on your debt.
If you think that being poor is not the lifestyle for you then all you need to do is buy items you actually need/use, buy these using cash and not on credit terms, have savings/investing plan and follow it, know where every penny comes from and goes to, lastly don’t loan money you can’t afford to flush down the toilet and never sign your name for someone else’s spending.
Monday, September 8, 2008
Money Myths Of The Poor
From tender age, we were exposed to myths about money and myths of being rich. Be it from our parents, brothers, sisters, relatives, or friends. The myths that we have determine our financial well being in our adult lives.
I call them myths because they are not true. Or, at least they are not giving you the complete picture.
We can't blame our parents for the myths in us. They already gave us the best they could. And don't forget that times change. Things were true then may not be true today.
If you want to move ahead financially, you have to be aware of the myths that you have about wealth and money. And do not let the myths stop you from living a wealthy life.
Money Myth 1: Work hard and you'll be rich.
Many of us think that by having a job with a big company would ensure that we're on the path to financial freedom. With so many layoff announcements, we might be out of job anytime. I'm not saying that you'd be one of them but the fact is there is no job that is guaranteed.
Recently, my friend was laid off in less than a month in his new job. Having a job is merely helping you to cope with daily expenses, providing you shelter, food and clothing. Do not be misled that a job or your employer will turn you into a rich and wealthy person. No one cares more than you about your wealth.
Money Myth 2: Saving is good.
When I was small, I was told by my mother that I must learn to save. I thank my mother for inculcating the habit of saving in me. The habit of saving helps me to develop discipline. Many people think that when they save enough, one fine day they'll be rich.
But is saving alone enough to make you wealthy?
I came to realize that if I only depend on my savings to get rich, I'd have to wait for a long time. That's the problem with savings, it takes a long time for you to get rich. Saving alone is not enough. You have to learn to invest your money in other investment vehicles to grow your money faster.
Money Myth 3: Debt is evil.
The other common myth about money is debt is bad. Did your parents ever tell you that borrowing was bad? Mine did. Not all debt is bad, actually. It depends on how you spend your loans that you're getting. If you take a credit card loan to buy a flat plasma TV, it's a bad debt. On the other hand, if you take loans to start a business or invest in real estate, the debt is good.
If debt is bad, can you imagine what would happen to companies if they are not allowed to take loans from the banks? As a general rule, if you use debts to buy things that increase in value over time, they are good debts. You must know whether the debt you're taking is good or bad.
Money Myth 4: You need money to make money.
When I ask my friends what's stopping them from starting their own business, the common answer is "I don't have money. And it takes money to make money." I do agree that it takes money to make money. But does it really to be your own money?
Everybody has limited resources when it comes to achieving our financial goals. I do not expect you to have everything when you plan to build your own business. You might need financial backing, manpower, expertise, or a coach to guide you. If you lack resources in any areas, find the resources. Someone else will definitely have it. It does take money to make money, but you can use OPM - other people's money.
Money Myth 5: Investing is risky.
Many think that investing is risky because they lack education in investing. Investing itself is not risky if you know how to control the risks. Most of us invest based on a tip from a friend or broker without doing our own research. When you lose money, you say that investing is risky. And you tell yourself that you'll never invest again.
To be frank, everything we do has a risk in it. Learn to manage risks by educating yourself. You can educate yourself by attending seminars, reading books, or even from the Internet.
Money Myth 6: Wealth reflects in material possessions.
Material possessions reflect your level of wealth. This is a misleading measurement. Someone who is driving a Porsche might not be rich and he might highly in debt.
Wealth does not reflect in material possessions. Wealth is a state of mind. Wealth is how fast you can become rich if you're stripped of everything. As Henry Ford once said after he was asked what he would do if he lost all his fortunes, "I'll become a millionaire again within five years."
We possess one or more of the above myths, consciously or unconsciously. But what is more important is to be aware of the myths and replace the myths with facts. By doing this will tremendously improve your financial well being.
ABOUT THE AUTHOR
PT Cheng is the owner of FinanciallyRich. Get excellent tips on how to be your own boss, have more money, and free time. For future articles, subscribe to his FREE newsletter at http://www.financiallyrich.com/subscribe.asp and receive a BONUS report.
Sunday, September 7, 2008
1000 Ways to Make Money
Some ideas you may consider to earn extra money:
1. Produce Christmas cards which are printed on the front with, for example, "Happy Christmas from the Smith Family". Or, instead of the name 'Smith', pick one of the dozens of other popular surnames. Sell packs of these cards by direct mail to people listed in telephone directories.
2. Make money from renting out expensive children's toys. The toys you rent out will include remote controlled models and computerised games. Use a little van to deliver the toys to customers. Paint in toy town colour scheme. Call the van a toy mobile or similar suitable name.
3. Introduce to your region a service which mounts maps for businesses. Keep a stock of local, national and international maps. Mount these maps in a professional manner to suit the wall space available at offices. Send out leaflets about your services to office managers.
4. Bring out a regular publication for ambitious amateur musicians. This publication might include ads from : 1) Employers seeking musicians. 2) Retailers selling equipment accessories and supplies. 3) People selling used equipment. 4) Musicians seeking to make contact with other musicians. Also publish interesting editorials and letters.
5. Design and manufacture kits for making models with cocktail sticks, for example: model churches, castles, windmills, houses, etc. Buy the cocktail sticks in their unpacked state from the manufacturer. Sell your kits by mail order from ads in craft magazines or distribute to model shops.
6. Establish a directory of products no longer made. This directory might include sections on toys, novelties and household goods. Design the directory for business people and inventors who want to know both what has been made before and what ideas might be revived and/or modified.
7. Make cotton gloves especially designed for coin collectors. The gloves prevent the grease and moisture from fingers getting onto coins. Package the gloves and sell them from ads in coin collecting magazines or distribute to shops which sell collectible coins.
8. Bring out a correspondence course about how to write cookery books. The course might include information about: How to devise recipes, how to present them in written form and what makes a successful cookery book. Produce a prospectus and advertise in women's magazines.
9. Begin a business which rents out large and expensive astronomical telescopes to householders who want to develop their interest in astronomy. Publicise your service at the local astronomy society and use local advertising to attract clients.
10. Set up a company which produces a compendium of strip games, for example: Strip poker, strip snakes and ladders, strip lotto, strip snap, and strip ludo. Sell by mail order from adverts in X-rated magazines.
These are some of the methods to earn money with small or no investment,for more information visit
"http://n.1asphost.com/rachuts/money.htm"
About the Author
The author is a free ebook collector for the past 3 years and has a grand collection of 3700 free ebooks on different topics to his credit.You can visit my homepage at
"http://n.1asphost.com/rachuts/money.htm"
Friday, September 5, 2008
10 MORE Ways to Make Money with your Digital Cameras
Here are some ideas to make money with your camera:
1. Pet photos - advertise a Pet Photography business where you photograph pets with their owners. Most owners won't struggle to take a photograph with their pet all by themselves. You can be the one who makes it easy on them. Not only can you charge for the service and your time, but you can offer the photograph in it's digital form or as a print that you can mail to them later - either created by your own photo printer or by a photo processing service.
2. Fishing contests - be around at the end of a fishing contest to take photographs of the contestants that didn't even think about bringing a camera. Most fishermen are more concerned about fishing than carrying cameras, and most fisherman also want a picture of their stringer full of fish or the big one that they're going to have mounted.
3. Parades - be in position to get great shots of folks and floats in the parade and sell the prints back to the individuals or to their family members. The folks who take part in the parades are often way to busy to take pictures before or after, so someone who captures them in action might really be doing them a favor - and a profitable service.
4. Landmark and tourist photographer - if there's a famous landmark in your area, offer your photography services to tourists who want their photo taken in front of it. Even if the tourists are carrying a camera and get someone else to take their photo, often the camera won't be digital with a display so it means the tourists won't know how the picture turns out until they're long gone. With your digital camera, you should be able to show them it's a good picture.
5. Graduations - preschool, high school, or college graduations offer dozens, if not hundreds of opportunities to capture a significant moment in someone's life. If the family members of the graduate aren't located in as good a location or don't have as good a camera as yourself - you'll have even greater opportunity at getting the shots they couldn't.
6. Holiday Family Postcards - offer your services to families that want their picture taken and put on a postcard that they can send to their extended family and friends. By using your digital camera you can not only get photo-postcards through online photo-processors, but you can make the prints available in your online gallery and have the customers refer their extended friends and family there to purchase a larger print if they desire it.
7. Photo Novelty Items - take photographs of people that want the pictures of themselves of their loved ones imprinted on coffee mugs, mouse pads, keychains, tee-shirts, and other items. Usually you can find suppliers of such photo-transfer merchandise and equipment in business opportunity publications, such as "Mind Your Business 101: How to Select & Start Your Own Business"
8. Used Car Photos - work out an arrangement to take snapshots of cars for used car dealers who don't have photographs of their current inventory. If any of the car dealers don't have websites that need photographs you could, provide an additional service by learning how to make and maintain a website of their inventory.
9. Promotional slideshow production - taking digital photos of a convention, church, business, college campus, or other promotable location - you can create a digital slideshow on Video CD or DVD for your customers to promote their business, organization, or event.
10. Newborn photo service - parents of newborns are some of the busiest people in the world. Advertise your services on an on-call basis so that you can take informal snapshots for the growing family either before they leave the hospital, or after they get home. This way both parents and the child(ren) can be in more of the pictures all together, and the parents have one less thing to try and figure out.
About The Author
C.S. Deam is a small business owner. His eBook Leverage Yourself Out of the Rat Race is available for immediate download at www.LinkertonPublishing.com where you can sign up for FREE E-Courses & Newsletters to help you on your path to self-employment.
CSDeam@LinkertonPublishing.com
Thursday, August 28, 2008
Business Management and Saving Money
Business Management and Saving Money: "One of the best ways to increase revenue is to do so by cutting back on unnecessary expenses."
Read More......Friday, August 1, 2008
Money
What about that money? Ever gotten that view from others that you only think about money? Do not worry. Money is not the root of all evil, it is actually a good thing.
Some say that money lead to all sorts of evil actions and is the reason for many friendships going wrong. Well, I agree that it is the things that you can do with money that you should focus upon, but money in it self is no evil.
Ever witnessed a wealthy person mugging a person on the street? No, bet you have not. But those that do not have any money can rob another person to get more money, that is different, cause it is the lack of money that makes a person do such a thing.
Often we get a bad conscious thinking of money and we should not have these bad feelings since money is a natural and good thing.
Just think about all the stuff you can do with money. You can buy yourself a great home, a nice car. You can put your kids through school and give to charity. With enough money you can go on fantastic holidays abroad and visit Disneyland with your family.
What about doing good in your local neighborhood? Or give money to your local soccer team or your kids team?
There so many good things that can be done with money so money in it self is NOT a bad thing and if you ever thought that, think again.
It is the lack of money that is a bad thing and remember that you still have a life to live when you are pursuing all that cash.
Do not ever forget to live your life in your quest for more money. If you do not, you will be sitting there old and rich wondering where your life went and realizing that it is to late for you to spend all that hard earned money.
Source: Ezine Read More......
Saturday, July 26, 2008
Saving for retirement or education?
By Justin Lim
With women having children later in life, many parents are reaching retirement at the same time their children are starting university, making saving for both significantly more difficult than it was a generation ago, according to research by Putnam Investments.
The study, ‘College or retirement? How to balance two of life’s biggest savings goals’, found the difficulties of saving for retirement while at the same time contributing to education costs has been exacerbated by the rising cost of education.
Putnam Investments head of retail Peter Walsh said while the study originated in the US, there was clear evidence that Australians were having to deal with the same issue.
“It’s common for parents in the US to have a ‘college fund savings account’ to pay for their children’s college education, and Australian parents are increasingly offering the same secondary and tertiary education support for their children as the cost of education rises dramatically.”
According to Walsh, older parents may not be able to support their children’s education without having a detrimental effect on their own retirement lifestyle.
“More and more Australian parents plan to support their children through university, including paying for fees and covering living costs, and financial advisers are likely to get questions from their clients about putting funds aside to help with this,” he said.
The US study showed that while students are taking on more debt, parents were also doing their part, often by drawing down their home equity and retirement accounts.
“To ensure they don’t jeopardise their own future, parents must actively decide how to split their available resources and stick to a plan that meets both goals part way,” Walsh said.
Source: moneymanagement.com
Managing Your Debts for Better Living
Debts are a common thing. Many people acquire a loan for something important. Mortgage loans are also ordinary, as they enable people to be able to purchase their dream houses.
If you have debts and are looking for the best solution for it, here are good tips to follow so you can manage that debt and continue living life as you do.
1. Assess your debts.
Check all the billing statements sent to you and the amount your creditor is asking in payments. If you see any conflicts or wrong entries, dispute them accordingly. You then make a substantial computation, including interests and other charges.
2. Make a plan.
Decide as to how long you intend to pay your debts. If you can do it in a year or earlier than that, you can choose that scheme because the scheduled interest to pay is relatively lower. But you’ve got to consider your everyday living expenses as well. It wouldn’t be good to pay your debts alone and leave nothing for your personal needs.
3. Budget accordingly.
Now that you have arrived at your total debt amount, you now have to budget your expenditures. Determine the exact amount you have to pay monthly, in accordance to the span of time you are supposed to have paid the entire debt. Then make the loan repayment amount the first priority in your budget.
Thursday, July 10, 2008
Earn extra money: Become a translator
If you have language skill, you can benefit from that and earn extra money. Usually there's a sworn translator, it's an official one and required for legal documents. Or you can be the "unofficial one", for example: translating handbook for college students or translating novels, etc. Even you can translate movies.
Here in my city, Jakarta, we can go to language course based on which language you want to study. If you want to study English, you can go to British Council. If you want to study Germany, you can go to Goethe Institute, or if you want to study Hindi or maybe to get Hindi translation, you can go to Mahatma Gandhi Center.
Maybe for English, Germany, or French, they are common language in the world. But what if the market needs language translation from the not common languages? Yes, you can consider that to brand your position as a translator. If you can speak Arabic, you can give Arabic translation for Islamic books. Or, as Hindi movies are played in some of Indonesian television channels, you can give Hindi translation as the service to TV stations.
And as translator, you can do the job from your home. The materials can be sent through fax or e-mail. A friend of mine can earn at least $500 for every movie she translates.
Thursday, June 26, 2008
Appliance purchase guide for penny pinchers
Appliance purchase guide for penny pinchers: "Here are a few tips to help you purchase appliances that will make your life more convenient without necessarily bleeding your pockets dry."
Read More......Thursday, June 5, 2008
Control High Interest Debt
When people don’t manage their money well, they get in financial trouble. It’s a cycle. They run short of cash, that’s why they borrow. Then they’re not able to stick to a budget so they can’t pay the debt.
Reasons why people get into serious debt are:
- Unemployment
- High cause of medical bills
- Settling divorce finances
- Spend-aholic or could not control spending
- Wasn’t able to save
- Not in the know on financial and credit matters
When talking about health, prevention is always better than cure. That’s the same with your money, better to save for a rainy day.
Here are some tips:
- Make a budget and do your best to stick to it. When it’s payday, have an amount allotted for the bills that have to be paid as soon as possible. This includes setting aside some for credit card debts.
- Save 10% of your salary for emergency. You don’t know what could happen the next day, next week or next month.
- When you have a choice of buying a purchase for a lower and practical price, then go for that one. Think, think, think before investing on something.
- If you have to borrow, research on the loan. Study the interest rate and the penalty fees. Then after borrowing, make a budget of how much you can save so that you can pay when called for.
It is common understanding that when you take out a loan, you repay the principal. The principal is the amount that you borrowed plus the interest.
You can control your credit card debt by looking at the interest rates of any loan you’re considering to sign up for before doing so. Interest rates vary and it is practical that you get one where you wouldn’t lose as much.
As much as possible, have at least one or two credit cards. Too much credit cards in your wallet can indulge you in buying something you don’t really need. You just buy it because you know you can. However, you’re not sure if you can pay off your debt when the occasion arises.
If you want to cut down on high credit card bills, you can:
- Pay cash instead
- Limit yourself on charging. Record it and do your best to not exceed that amount. You must always, always keep track.
- Choose the credit card which offers the lowest interest rate and has no annual fee.
- Just because you’re getting a free gift or a discount on a purchase, you’ll sign up for that credit card. This is their marketing strategy for possible customers.
- Most importantly, pay bills on time. This is for you to avoid late charges, plus additional interests.
Just bear this in mind: if you don’t pay on time then it would be reflected on your credit history. This could result to you having a hard time borrowing the next time. Banks and other credit lenders check your credit history before they grant your loan. Creditors look at the recent two-year history and those who have credit record that contains a lot of late payments, delinquencies or defaults may not be able to get the loan.
To put it simply, in order for you to invest, the best advice we could give is to choose the right loan.
Look for the lowest interest rate. The interest that you save can be spent on other investments.
Studies show that by increasing your monthly payments, it can shorten the payment term on your loan. The longer you wait, the higher the interest you’re paying. Besides, signing up for a shorter payment term equals less agony when it comes to coming up with the money to pay the debt.
The key is maximizing your net worth by minimizing your liabilities and maximizing your assets. Know how much you have and strategize on how you can increase it without losing much of it just to pay for debts.
Business Debt Consolidation
1. Business debt consolidation companies have the ability to include your revolving, term, and equipment loan debts in their refinance process. Included in the plan is to show you how to effectively configure your mode of payment in accordance to your business income.
2. Just like personal debt consolidation, it also gives you the ability to reduce the number of your lenders. Instead, you only have to pay one company, once a month. This would eventually help you manage your business better.
3. Business debt consolidation companies have the ability to accommodate debts as much as $150 million. That is a big amount when compared to a personal debt consolidation plan that extends to only as much as a hundred thousand.
4. Business debt consolidation companies can help you be free of debts without declaring bankruptcy. These companies use effective techniques to ensure that you are on the best path towards pushing your business upwards. And being debt-free the first major step of it all.
5. Some business debt consolidation companies help businesses maintain and ensure good working relationships between their creditors, suppliers, and vendors. With their system in place, they would make sure that the harmony between these players is fully sustained.
6. Business debt consolidation companies propose a good solution to all your financial problems. They also have the ability to provide the answer to troubles that would otherwise need to be settled in courts. These companies have an out-of-court resolution technique as a part of their services.
7. Business debt consolidation restructures your debts effectively it can even assure you of good business cash flow amidst the payments you make to your different creditors. The firm devises a system where in both creditors and debtors would benefit.
These are ways on how a business debt consolidation company works. They are specifically handling commercial establishments to handle their debt problems. This is because they have the system, the expertise, and the resources to help even the big players in the economy today.
A Closer Look at Bankruptcy
Chapter 7 bankruptcy isn't available to everyone, though. You may won't benefit from it if in the past six to eight years, you have benefited from a bankruptcy discharge. Likewise, if after examination of your income, expenses, and overall debt, it was found out that the other type of bankruptcy proceeding is more appropriate, then you can't insist on pursuing this kind. Veterans who are now disabled and who incurred their debt at the time of their active duty are almost automatically allowed to file. In addition, those people whose debts are caused by running a business are qualified as well. For those people not belonging to any of these categories, certain criteria must be met.
The criteria have been affected by the new rules imposed on bankruptcy. One of the considerations is your current monthly income which in turn will be compared against the median income for a family of similar size in your state. This isn't your income at the time of your filing. Instead, it is your average income for the past six months before filing. Social Security benefits like retirement and disability benefits aren't included in the computation. If your income appears to be enough to support the other type of bankruptcy proceeding in spite of permitted expenses and payments for child support, tax debts, and others, liquidation bankruptcy is unfortunately not allowed.
An additional requirement for both types of bankruptcy is completion of credit counseling conducted by an agency recognized and approved by the United States Trustee’s office. This helps you look closely at the situation at hand and identify if bankruptcy is really essential. This allows you to see several possibilities of informal repayment which you may have overlooked in the past. Even if such is obviously impossible, counseling remains a major requirement. Furthermore, completion of post-counseling is required after the proceedings. This aims to teach you financial management to avoid encountering the same situation in the future. The bankruptcy discharge will not be released unless this is fulfilled.
Bankruptcy may be beneficial for both the debtor and creditor. This is a way of recognizing one’s responsibilities and mistakes that led to the financial difficulty. The entire process takes into consideration both parties’ interests and leads to the development of an action plan that fulfills them. As such, this law shouldn't be abused by any debtor thinking that a court is there to intervene.
Wednesday, May 28, 2008
Appliance Purchase Guide For Penny Pinchers
Not too many people consider their electric bill whenever they purchase appliances. However, for the money-conscious individual, being able control the electric bills is a great way to save money. Here are a few tips to help you purchase appliances that will make your life more convenient without necessarily bleeding your pockets dry.
1. Consider the appliance’s energy efficiency rate. Most appliance stores post their wares’ energy efficiency rates along with the wares themselves. These rates tell the consumer how much electricity they would expect to use with these appliances.
Make sure that you consider how much electricity the appliances will consume before you purchase them. This should be one of the factors to consider when shopping around for appliances. Although you may not feel it directly, an appliance that hemorrhages electricity will make a serious dent in your bill every month.
2. Consider your needs. While it isn't a guess at all to buy what you want, think hard and deep if the appliance in front of you is something you truly need. If it isn't something you truly need, then you might want to back off from it. Far too often, people purchase things that they don't really need. Aside from being a nuisance in the home-and something that eventually gets relegated to the garage-these things only waste electricity.
3. Go for gas if possible. If you are trying to save on electricity, you'll want to stay away from appliances that produce heat using electricity. These appliances are among the most energy consuming ones around because they produce that heat by a process that is both wasteful and inefficient.
For example, electric irons, curling irons, electric stoves and other such appliances waste electricity more than most other appliances. Instead of using electric stoves, why not stick to a gas stove. Gas stoves are more energy-efficient and won't make your electric meter spin like a top.
If you must use such appliances, make sure to schedule their use so that they are efficient. Avoid having to heat them up only to let them cool down again and using them again. If the appliance has to start from a cold start it will use up a tremendous amount of energy.
4. Go for florescent bulbs. Incandescent bulbs are one of the most wasteful types of appliances in the home. The incandescent bulb is wasteful because it not only produces light, it also produces heat. This means that the energy it uses doesn't all go to light. In fact, the light bulb only uses about 10% of its energy for light. The rest is wasted on heat.
A Rough Guide To Saving Money On Clothes
In your effort to save money in everything that you do, it is important that you learn how to shop for clothes properly. Furthermore, by shopping for clothes properly, you could decrease your overall expenditures from as little as 10% to as much as 30%.
Saving money on clothing is simple, all you need to his follow a few tips and live them out in your experience. Here are some of these tips which will help you reduce your expenditures on clothes shopping.
1. What you want and what you need. There is a big difference between what you want and what you need. When it comes to clothes, you will need to balance both to keep yourself happy. If you look beneath the labels, you will find that many clothes are basically of the same make, quality, and style. The only difference is the inexplicable price bump due to its label.
If you are one that shops for labels you may consider slashing the number of branded clothes in your wardrobe by half. This way you still get to enjoy those branded clothes while getting equal quality clothes from generic brands. These brands could be just as good or even better then ones with expensive labels. So do consider them.
2. Look out for sales. Mark your calendars and find out when the season sales hit. The sales can save you as much as 70% off retail prices. This is a great way to get chic clothes at lower prices. You could schedule your shopping sprees on these periods. And knowing in advance when the sales are held will help you prepare enough money for these seasons.
You could contact your local department store to find out when they have sales schedule. They would be more than happy to let you know when they have events scheduled. You can also ask from store to store so that you have a complete list of shopping options during sales season.
3. Buy out of season. One of the best ways to get cheap clothes is to buy out of season. This means you should buy your summer wear during the winter when prices for summer wears are rock-bottom. Conversely, you could choose to buy winter wear during summer sales when these clothes are also rock-bottom in price.
By buying out the season he could stand to save as much as 60% from normal prices. This way you can get great clothes at a lower price without having to sacrifice quality or even brand name. It is a great way to indulge in good clothes without having to break the bank.
Wednesday, May 21, 2008
A Quick Primer On How To Save Money
So next time you see that sparkling jewel that costs a few thousand dollars, think hard and deep if you really need that thing. You will need a whole deal of self-control; but in the end, it's all worth it when you're trying to save up
2. Buy generic. Branded items cost twice as much as generic items. However, this doesn't mean that they are necessarily better in quality. Your goal now is to reduce the number of branded items you purchase and increase the number of generic brands on your list.
3. Spend within your means. Building wealth is equivalent to being able to spend less than you earn. No one builds wealth by spending more than they are capable of earning. It doesn’t matter if you earn $10,000 or if you earn $5,000, if you spent more than you earn you are still a poor person.
4. Try it before you buy it. Before taking something home for good, make sure you try it and understand the implications of owning such a thing. Don't forget to factor in maintenance costs, insurance, and operating costs before making your decision. This way you are able consider all the implications of your purchase before you regret your decision.
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