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Mostrando entradas con la etiqueta Finance Tips. Mostrar todas las entradas
Mostrando entradas con la etiqueta Finance Tips. Mostrar todas las entradas
5 Tips to Create a Successful Home Based Tip #1 Dedicate a specific number of hours per day to Spend on Your Home Business.First decide what your business hours are and then stick to them. You need to set a strict business schedule that works for you and you clients, and you need to follow your schedule with the same dedication and consistency that you would if you had a boss looking over your shoulder. You should not start working then decide it’s too nice a day and go fly a kite; you must have more self discipline that that if you want your home based business to succeed. So set you hours and stick to your schedule like a sticker on your car, you need a razor blade to get that sticker off. You need to stick to your home based business schedule that much! Tip #2 Treat Your Home Based Business is Like a Job. You want create a separate bank account for your business, get a telephone line and/or email specifically for your home business. Treat your Home Business as if it Were your Job. You will not want to mix your personal life in with your business life. Try to separate a room as a home office for your business and set specific work hours when the doors to that office open and close. You have the freedom to work when you want and for how long, but you should treat it like a real business with real working hours, if you want to succeed. Tip #3 Advertise, Market, Network & Advertise More for a Home Based Business. Especially for your Home based business advertising, marketing, networking and more advertising is paramount to your success because unlike a store front, no one will know where you are. So, you have to get the word out and the internet is a great place to start. Also, local newspaper ads if you have a product or service that can be used locally will work, but networking and going to meetings or even your child’s ballgame can bring in the beacon. Remember to always carry your business cards and always leave literature in your car in case you run into a prospective buyer. Never, ever stop marketing yourself and your home based business. There are many different mediums for advertising and you must spend a little on each one until you’ve found the correct formula for your business. Tip #4 Even a Home Based Needs Financing or some type of Business Loan. If you are reading this than you are looking in the right place for financing as Accommodative Financial Solutions has been known to help people just like yourself get unsecured loans and lines of credit needed to help start you home based business, or to keep it going. For more specifics on how to obtain of a Home Business Loan for Yourself, Click Here. Tip #5 Honesty & Integrity will keep your clients coming back for more. If you want customers to trust you, then you must be honest and sincere. Great costumer service is a necessity when having a home business as you are not a big monopoly and you must treat each and every client as though they are your only client. Make sure to follow through on promises, stick to contractual obligations and believe in the old saying “The customer is always right”. By behaving in such a professional manner, your clients will want to give you repeat business over and over again. And if you don’t have a product or service that is reusable, by sticking to these rules you will get referral business which is the word of mouth that you’ll find can bring your business over the top and running profitably for years to come. Thank you for visiting Accommodative Financial Solutions, America’s #1 Rated Unsecured Home Based Business Loan Consulting Company! 10 Common Savings Mistakes 1. Not getting the best rateIt pays to shop for virtually everything -- even your money market or savings account. Do an online search rather than simply plunking your money down at your local bank. Yes, we’re only talking about a difference of a few tenths of a percentage point, but look at it this way: In the time it takes you to drive to the bank, you can search hundreds of interest rates online.2. Ignoring inflationIf you think a tank of gas will be the same price when you’re 50 as it was when you were 20, think again. You can do the math yourself or you can go to a professional advisor, but you need to factor inflation into your savings. Either way, you need to know how much your money will be worth down the line so you know how much money you’ll really need.3. Saving on the fly on an unrealistic budgetSaving is a lifelong commitment. You can’t make it a priority one month and then forget about it for the rest of the year. Guys who win the savings game make it part of their everyday lives. That means keeping an eye on expenses on a monthly basis and putting any surplus you have into your savings. But even more than that, it means discipline. Successful savers don’t tap into their savings unless it’s a real emergency. And if they do, they replace what they “borrow,” including interest.4. Not setting concrete goalsIt’s almost impossible to save without concrete goals. The idea is to figure out how much you need and to get there. If you don’t have a goal, you won’t be able to measure success and you won’t be able to chart progress. You may have had a great year, but if you don’t know what you need to contribute to your savings, you won’t know if you can really afford that toy, or if you need to duplicate that great year just to get on track.5. Saving 10% post- rather than pre-taxMost financial planners tell you to save 10%, but too many guys do so after tax, which means that they really aren’t saving 10% of their income. Like so many things in finance, it’s your gross -- not your net -- that counts. If you only save based on your net income, you’ll take a big drop in quality of life when it comes time to retire.6. ProcrastinatingGuys who don’t save give lots of different reasons for their negligence. But they are negligent if they don’t save. No matter how old you are, you need to take control of your money, and saving is a big part of that. So when should you start? Today. Most 25-year-old guys plan to start when they’re 30; most 30 year olds plan on starting when they’re 35. Get the picture? Guys procrastinate, which means they never start. Don’t be that guy.7. Relying on a gimmickA bank that rounds all your debit card purchases up to the nearest dollar and puts the “change” into a savings account or gives you 1% back isn’t really helping you save. It’s helping itself to your business and allowing you to become complacent about savings. These aren’t plans and they don’t work as such. Yes, they’re nice, and every little bit counts, but you can’t count on a commercial to take care of you in the future.8. Spending too muchIt’s hard to say it, but saving doesn’t just mean planning -- it means cutting spending. If you set a goal for a monthly contribution (which you should), you may need to cut expenses to meet it. But even if you don’t need to cut expenses, you should take a look to see if you can. After all, just because you can afford to take cash out of an ATM outside of your network (and absorb the transaction fee), it doesn’t mean you should. While that’s just one example, it’s a $2 to $5 fee that you might be running up several times a month. Think about what that extra money could do in your investment portfolio.9. Not taking advantage of your company’s 401(k)This is a tax-deferred investment, but strangely, a lot of guys miss it. Some guys even don’t even take advantage of it at companies that match their contributions, which means that they miss the opportunity to literally double their savings. But no matter where you work, you need a retirement savings plan because it allows you to save your money without paying taxes on it until you withdraw it. If your company doesn’t offer a 401(k), talk to your bank.10. Carrying too much credit debtIf you’re putting money aside while carrying a balance on your credit cards, you’re not saving at all. At the end of the day, you’re still losing money. Why? Chances are that the money in your savings account isn’t earning interest in the same league that credit card companies are charging you for carrying a balance. In other words, you might tuck away $1,000 at 5% interest, but a balance of $1,000 on your plastic ticking away at 18% means that you’re in the red. The best thing to do is pay off that balance, and then start saving.save the smart waySaving isn’t about how much you make, even though a lot of guys say that they’ll save when they make more money. In fact, saving is about attitude more than anything else. Yes, we all like our toys, buying drinks for the guys and treating the ladies to dinner, but if we don’t live and save within our means, we’ll be out on our own with nothing to show for it. Don’t let that happen to you.Resources: http://www.fool.co.uk/news/Comment/2005/c050218d.htm http://moneycentral.msn.com/ http://seattletimes.nwsource.com/html/businesstechnology/2002714343_pfsaving01.html Preparing To Sell Your House If you’re getting ready to sell your house, you have two options when it comes to preparation: On the one hand, you can forgo some of the money you’ve built up in equity and simply list your house as is. Alternatively, you can make some little improvements that will help you maximize your profit. Here are some tips to help you decide what to fix before you list your home. Paint the doorIt sounds small but -- along with the yard -- your front door is where potential buyers generate their first impressions of how much your home is actually worth. Just how much painting your door will pay off is hard to say (nobody buys a house because of a front door), but plenty of buyers pass on a house that looks, well, crummy. Since the front door sets the tone, you won’t have that problem, which means that your house won’t spend too much time on the market -- a factor that could force you to drop the price by thousands of dollars. Depending on the door and the paint you select, you’re probably looking at less than a couple hundred bucks (for a really high-end paint) and an afternoon of labor.Finish off small do-it-yourself projectsThe idea here is to make your house look complete to a prospective buyer (after all, people pay less for a work in progress). Again, your costs are going to vary based on the projects that you need to finish. Updating your light switches might only cost a few bucks at your local hardware store; whereas completing work on a finished basement might cost several thousand dollars. But completing what you’ve already started is pretty much a “must do.” Why? Well, something that looks incomplete will give the buyer an excuse to lowball his offer or a reason not to buy at all.Clean away clutterThis may not even apply to the home itself, but to furniture and other unsightly items. The buyer won’t pay for what he can’t see, so arrange your home to show off the space. Anything that gets in the way of giving your home a clean, crisp look just has to go. If you insist on keeping some of these items, you’re looking at a monthly charge at a local storage locker. Storage rates will vary by size and area, but you shouldn’t pay more than a fraction of rents in your area because, well, you could just rent another place for your possessions. On the other hand, if it’s just clutter, throwing it out won’t cost a thing.Maximize storageEven if you have plenty of closets, cabinets and cupboards, you should make the most of them by installing space-saving devices. Why? Well, simply put, you can never have too much storage space. Even if you can’t fill the space, a prospective buyer (who has often looked at more than a few places and wondered where he’ll put all of his stuff) will see the value of what you’ve done. But the key to making this work is doing more with less. In other words, building a new closet isn’t a solution. Hanging an extra rod in an existing closet for clothes you don’t wear as much is the kind of project you’re aiming for. With some tools, some free time, a little cash, and a trip to the hardware store, you’ll find more than a few pre-made kits that will help you save space in your storage areas.Restore featuresHome fixtures and other works of craftsmanship suffer from wear and tear. Fix them up by cleaning them, touching up paint or replacing broken pieces to give your house a fresh, clean look. Obviously, in terms of scope, this can be a broad area as some guys have homes with imported fixtures that are custom-made and fixing those irregular pieces probably isn’t the way to go. But if your banister is looking a little worn out, go to your local hardware store and price out a new one. Again, don’t opt for something too nice (you’ll only pay for something the next guy might want to remove), but if you pick something tasteful and new, you’ll get the buyer thinking offer rather than pass.Fix the exterior of your homeNot every buyer will walk through your doors. In fact, more than a few people simply drive around neighborhoods checking off homes from their lists based on the exteriors. In other words, people can and do judge books by their covers. The solution? Touch up the paint, clean the gutters, fix any siding issues on windows, the roof or shutters, and generally make sure that your home has curb appeal. Again, the idea here is to minimize costs. While a broken shutter might be pricy to repair, it’s probably worth doing, but don’t let yourself get into situation where you’re replacing all of your shutters because you think a buyer (who you don’t know) is going to like them. The costs will vary, but you need to spend what you have to make your home’s exterior is both unified and appealing.improvement not overhaulWhile you may not need to take advantage of all of these tips, chances are that more than a few will be useful in selling your home. But remember, you’re selling a home, not living in it forever. The idea is to add value, not make yourself happy. So don’t go overboard and spend too much on items the next guy will simply discard. Ask yourself what would please you as a buyer, not you as an owner.Resources: http://www.bbc.co.uk/homes/property/selling_sellingtips.shtml http://www.audrie.com/house_sellers_tip_outside.htm http://www.bankrate.com/bosre/news/homeimprovementguide/10cheapies2.asp?caret=16 Insurance Company Scams It’s easy to trust your insurance company to act in your best interest. After all, the term “insurance” is supposed to give you some peace of mind. But the bottom line is that insurance companies are in it for one thing: profit. While they might call their use of loopholes to pad their pockets “good business,” I call it “scamming.” I’ve broken these scams up into three categories -- home, car and health -- to help you be aware of all the ways in which insurance companies may try to pull the wool over your eyes. homeThe company’s adjuster doesn’t give you the best estimateDon’t make the mistake of thinking that an adjuster works for you. He doesn’t. Adjusters make money by saving the company money, not by helping you. You have the right to your own adjuster, and your contract should tell you this, but no insurance employee will point this out for you. So when you demand your own independent adjuster, you must be firm.You are forced to buy extra policies because you live in a high-risk areaUnfortunately, the type of coverage you could end up needing the most may not be included in your area. For example, if you live in a flood zone, your standard policy probably won’t cover flood insurance. In other words, you need an “extra” policy. Clever, huh? Whether or not you buy it is completely up to you, but remember to read the fine print on your policy before making a decision. Assuming that you’re automatically covered is a recipe for disaster.A bad credit report increases your premiumsIt may sound strange, but insurers use your credit report to calculate your premiums. Like with so many financial affairs, it pays to keep an eye on your credit score, pay your bills on time and borrow only as much as you can afford. Now you have another good reason to check your credit report and stay on top of your finances: to maintain low insurance premiums.carYou aren’t given the best priceBeing told that you’re getting the best price on your auto insurance isn’t exactly information that you can take to the bank. Remember: A salesman is giving you this information, so it pays to be just as wary when you’re buying auto insurance as you are when you’re buying the actual car. To find the best price, use an agent, double check his work with another agent, and finally, check their estimates against quotes you find online.You end up paying twice when you cancel your policyYou’ll probably change auto insurance more often than any other type of insurance, and when you do, you need to keep your eye on the ball. Most policies require you to cancel in writing with proper 30-day notice, but check your policy to be sure or you could end up paying two premiums in the same month.The company encourages you to use its mechanicInsurance companies will want you to go with their mechanic to keep their costs down, but you don’t have to do this. They can make suggestions, but you’re entitled to use your own mechanic as long as he makes repairs at a reasonable rate.healthYou are encouraged to take supplemental policiesMany companies will try to make you believe that supplemental policies are necessary. This is not always true; in fact, the services that the supplemental policies cover may already be covered by your current health insurance plan. Get absolute verification from your policy carrier before you buy a supplemental.You are led to believe you aren’t covered after you lose your jobIf you have health insurance through work, you might not necessarily lose your benefits right away when you lose your job. If your company employs more than 20 people, a law called COBRA allows you to stay covered for 18 months after you leave -- at your own expense. Check with your HR director at work to find out how COBRA works so you can stay covered while you look for a new job.You believe the insurance company’s decision is finalMany states allow you to appeal an insurer’s decision to an independent review board. If your state doesn’t let you do this, you can always fight the insurance company in court. But before you hire a lawyer, remember that all states regulate insurance; find your state insurance regulator’s website and learn what your rights are. And keep in mind that if you want to challenge a final decision by an insurer, whether you go to court or a review board, you’ll need to act quickly, as most insurers and states set strict deadlines for filing an appeal.avoiding insurance scamsYou’ve probably noticed that dealing with insurance companies involves a lot of homework. Well, you’re right. Truth be told, it can almost be a full-time job. While doing so much work may not be fun, it will save you money in the long run. You must remember two things. First, document everything. Second, the squeaky wheel gets the grease. The more you show them that you’re not going to back away, the more likely they will give you what you are rightfully entitled to.Resources: http://www.momscape.com/articles/protecting_yourself_when_you_deal_with_insurance_companies.htm http://www.nachi.org/homeinsurancetips.htm http://www.collision-insight.com/company/insurtip.htm http://www.edmunds.com/apps/vdpcontainers/do/vdp/articleId=45093/pageNumber=1 http://www.healthinsurance.org/consumertips.html http://money.cnn.com/pf/101/lessons/16/page4.html http://www.insurance4usa.com/insurancetip49.cfm http://info.insure.com/health/claimdenial.html 5 Things You Didn't Know You Could Buy At Auction
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How To Find A Financial Advisor Sound, professional advice can make the difference between an early retirement and working long past your prime. It can also mean the difference between saving big bucks at tax time or hurting big when the tax man comes calling. Finally, getting professional guidance can mean peace of mind when the bills come or when you’re struggling to make ends meet. Whether you’re building your assets, minimizing your liability or managing your money, a good financial advisor is critical. Here’s how to find the best one for you. Know when you need adviceFinancial affairs are simply too complicated to go through alone. That doesn’t mean that every guy needs a full-time money manager, but at some point in your life, you will need financial advice. If you’re buying a life insurance policy, you’ll need financial advice. After all, you’re asking the question: How much will my loved ones need in my absence? If you’re planning your estate or opening a retirement plan, you’re in the market for financial advice. Going through life changes, such as marriage, divorce, buying or selling property, the death of a parent, or getting a major inheritance are all situations where a financial advisor can be beneficial.Unfortunately, there’s no numerical point where having a consultant becomes a “must have.” As a rule of thumb, you need not bother with a financial advisor if your income level is below $100,000. But when precisely you should hire a financial advisor after that depends on how good you are at managing your financial affairs and how much gain a financial advisor can give you compared to his cost. Once you find that you have a high level of income or a surplus of disposable income, it’s probably worth talking to a few financial advisors to see how they can help you manage your money. Target the right specialistYou have to know what you want. Define your needs beforehand so you can find the perfect person to provide you with the exact help you're looking for. The term “Financial advisor” actually refers to a broad category, so you need to narrow your search by field. While there are specialists who only focus on matters of retirement or insurance, you should find a firm that can help you fit all of your needs.One stop shopping is important here because someone other than you needs a clear idea of the big picture, although bigger firms might use a team of specialists to help you. But if you’re consulting a financial advisor for a one-time transaction, make sure they have experience in that specialty by looking at their past or current client load. Check them outJust like hiring any professional, you’ll want to see your financial advisor's credentials, such as degrees and licenses. When you see those credentials, verify them by making a few phone calls or checking online with your state to make sure they are not fraudulent. If they’re selling investment advice and they manage assets in excess of $25 million, they must file an ADV form with the Securities and Exchange Commission -- ask to see it. If they are below the $25 million mark, ask to see their state form equivalent; most states require financial planners to file papers with them. Finally, ask them what, if any, professional organizations they belong to -- any financial planner will belong to at least one. Do yourself a favor and check that organization’s website to make sure it’s legit.Interview your advisor, not the other way aroundDon’t forget: you are his boss. An interview with a financial advisor means that he should be trying to sell you on his services and be able to determine your needs. You should use your interview time to determine if he’s someone you can work with. Prepare a list of questions for him, like how he gets paid (some charge a fee, others take a cut of the deal), what experience he has, and how he would handle specific situations. Treat him like a potential employee. Find out how long he’s been in his line of business. Over three years is good, but five years or more is ideal.Make the first hour of your meeting an open discussion period. You should be addressing your needs and questions, getting references, and getting an overall feeling of the advisors investment philosophy. Get advice from friends and other professionalsOne of the best ways to find a financial advisor is to go by word of mouth. While you can always ask people you’re close to, they may not have enough savvy to help you find the right guy. If you’ve found a particularly good professional, say a lawyer, it pays to ask him who he’d recommend -- he might even use the same guy. Good professionals tend to know other good professionals, so if you’ve found one, you’ve probably found a network. You just have to ask.Find an advisor that suits your needs/philosophyHe can be the best advisor in the world, but if you can’t stand him, it won’t work. Likewise, he could have a brilliant strategy for complicated off-shore investments, but it won't work if you’re looking to play it safe. Working with an advisor is a personal relationship experience, which means that you need to click with him both philosophically and personally. You don’t have to agree on everything and you don’t have to be best friends, but you do need to be coming from the same place and you need to share some of the same values.don't pick just anybodyPicking the right financial advisor can and should be a relatively difficult and laborious process. While these tips will help you sort through the less-than-stellar candidates and spot the real gems, the truth is that there is no substitute for the hard work required in finding and interviewing the right people. It’s your money, and a healthy round of research will help you make the most of it -- You only get one shot at picking the right financial advisor.Resources: http://www.fool.com/news/mft/2005/mft05060105.htm?npu=y http://www.fool.com/retirement/retireeport/2001/retireeport010416.htm - Retirement http://www.wiseradvisor.com/university-article~artId~122~title~before-picking-a-financial-advisor-ask-the-right-questions.asp http://www.freemoneyfinance.com/2005/07/how_to_choose_a.html Things You Should Always Buy Online These days, you can buy virtually anything online, from clothing to electronics, and from wine to cars. For some items you’ll probably always want to go to a brick and mortar store, but for a lot of purchases you’ll want to buy online either because the price can’t be beat or because of the convenience of not having to leave your house. Here is an outline of items that are good to buy online. PharmaceuticalsYou see a lot of online ads for pharmaceuticals, and while some guys may be wary of buying their medication on the internet, the truth is that it is both safe and legal to do. Just keep a few concerns in mind.First, you need a prescription. Sites that offer prescriptions without a doctor’s consultations are putting you in physical danger, so steer clear of them. Second, you need to deal with a reputable operator to make sure that the drugs you’re buying are of the highest quality and that you are in fact getting what you paid for. When it comes to finding a reputable operator, you should ask your doctor for a recommendation because he is in a position to verify the claims of the operator. Once you’ve done those things, buying medication online can be extremely cost-effective, convenient and discreet. Think about it: Buying your pharmaceuticals online means that you don’t have to wait in a line at the drugstore in fear of running into your business colleague with your embarrassing hemorrhoid prescription in your hands. By buying your meds online, you can maintain your privacy -- and dignity. Professional technical equipmentThese days, there is very little difference between professional-quality electronics sold in stores and devices bought online, other than the difference in price. While you can find top-line stuff at your local electronic store, the truth is that such places are usually best avoided.You'll find a limited selection and increased prices at your local expensive retail store when your in the market for a top-of-the-line, high-definition video camera or a mixing console. It's cheaper and more effective to shop for the same camera or mixing unit online where you can find the best price and avoid being lied to by a salesman. Online shopping allows you to read reviews and check design specs in the comfort of your own home. Cell phonesThe business of cell phones works like any other business: The more middlemen there are in the deal, the greater the cost will be for the consumer. No matter where you live, you’ve probably seen dozens of stores with names like Sprint, Verizon, T-Mobile, and Cingular. If you walk into one of these stores you’ll get a plan with one of those companies, but you’ll also pay a hidden cost to a store owner.If you buy your cell phone plan online you’ll be able to take the middleman out of the equation, because you’ll be dealing directly with the cell phone carrier. Plus, your online shopping will allow you to make an easy side-by-side comparison of all plans. Event ticketsIt’s sad but true: There isn’t much competition for event tickets. Whether you’re going to the big game or a hot concert, the price is pretty much set. That shouldn’t stop you from going online to buy your tickets. For one thing, buying tickets online means you don’t have to wait in a line out in the cold for ticket sales to open.Online ticket buying has other peripheral advantages: You can usually see which seats are taken by looking at a virtual map. Also, if you’re planning on taking your girl to a concert, you can buy the tickets and then do a quick search for a romantic restaurant nearby. Yes, you may pay a slight surcharge for tickets online, but the convenience is unbeatable. TravelThe best travel deals are most always found on the internet. This is because if you don’t buy online, you’re paying someone somewhere to act as your travel agent. This could be the person at the airline, at the hotel or an actual travel agent -- the fact is, all those people cost money.While these employees used to be able to access information that was restricted to the general public, today they do a job that you can easily do yourself. In fact, airlines and hotels would rather let you walk through their computer systems and pass the savings on to you than hire an extra employee. So take advantage, book online and save big bucks on your next trip. PornWalking into a store to buy a porno isn’t exactly a thing guys take pride in doing. As any guy knows, there’s tons of porn online -- no matter what you’re looking for. And finding accurate reviews is no problem either.Here’s something you might not know though: You can protect your privacy in a more important way when shopping for porn online by using an anonymous payment card, which you can now buy at major retail establishments. This means you don’t ever have to give anyone your credit card number. An added bonus is, if you buy porn online, you can protect your privacy by using a password for your computer. In other words, your wife or girlfriend won’t find your porn stash tucked away in the closet. the power is in your handsWhile price and convenience are often the most cited reasons for shopping on the internet, the truth is that the best part of online retail is the accessibility of information. With a few keystrokes, a world of information on your purchase is at your finger tips.Give yourself a few seconds and you’ll have the range of prices for a given item, product reviews, and where to buy it. Personally, I prefer to use a service like Froogle, to compare that information, but most search engines give you that kind of value-added search for free. Remember: An informed buyer is a smart buyer. Resources: http://www.healthyplace.com/Communities/Depression/treatment/antidepressants/online_pharmacies_2.asp http://www.jr.com/ http://www.proaudiosuperstore.com/ http://www.letstalk.com/ http://shopper.cnet.com/Cell_phones/2001-3504_9-0.html http://www.ticketmaster.com/ http://www.tickets.com/ http://www.travelzoo.com/ www.onetravel.com http://www.pppcard.net/ https://www.purevanilla.com/ Preparing For Big-Ticket Expenses Life is full of major expenses, and while some are unexpected, other big-ticket items such as a house, a new car, and other big purchases can be seen from a mile away. While these expenses might put a strain on you and your wallet, the truth is that if you can see them coming, you can plan accordingly and prepare yourself properly. Here’s how: preparing a budgetJust as you might set a budget for a night out on the town or a bachelor party, you’ll want to set yourself up with a budget for your big-ticket item. You’ll want to start with an idea of what you can afford to pay (either all at once or financed over time) and compare it with what you’ll have to pay. Once you have an idea of your budget you’ll want to make sure you do three things:1 - Assess your work futureIt might not always be possible, but you should think about your work future. Nothing is for certain: Your company might be sold or if you have a performance review coming up soon, it might be a good idea to hold off on making a big-ticket purchase.If you’ve been at the company for a while, you should be able to trust your sixth sense to know if something is up. If you haven’t been on the job a long time, it might not be a good idea to buy a big-ticket item right away, regardless of what you hear, the logic being that a newer employee, (who has been there less than a year) is always more at risk of losing his job. 2 - Make sure you don’t tap into emergency fundsEmergency funds are for emergencies. A big-ticket item is not considered an emergency. You’ll want to save your emergency reserve for something awful, like a death in the family, illness or sudden unemployment. So, when you budget for your big-ticket purchase, remember to leave your emergency money alone.3 - Save money in advance of your purchaseThe best thing you can do is save before you spend. In other words, just because you have a budget doesn’t mean you need to buy right away; wait a little. Test out your budget, and make sure you can live with it. Put the money that you’re not spending into a savings account and watch it grow before you make your purchase.tips and timesHere are some big-ticket items and the best times to buy them, along with a few tips to make your big expense more of a success than a stress.Real estateWhen to buy: Shop when most others aren't. Few people buy their homes in the winter. While there are lots of theories on why this is so, none of them should stop you from buying in the snowy season. Demand is lower because fewer people are buying, which means prices come down. Sellers who are still in the market during wintertime tend to be more motivated because selling at an off-time indicates a need to sell, which also drives prices down. Finally, things don’t always look as good in winter, which means you won’t pay for curb appeal, which will further drive the price down.When budgeting for real estate, don't overlook all the additional expenses that come with a house. You’ll have to consider maintenance, property taxes, closing costs, inspections, and a whole host of other expenses that pop up. This means you’ll either need extra cash on hand or you’ll need to downsize the house you’re looking for to make up the difference. Otherwise, an unexpected cost could ruin your budget. But remember: when buying a house, you should always expect a few unexpected costs. CarWhen to buy: Saving on cars often means shopping at the right time. Hitting a dealer at the end of the year, when the next year’s models are rolling in, means he has to drop prices or the factory has offered rebates. Either way, you save, and you get a brand new car.Useful tip: Figure out your monthly payment before you buy. If you’re comparing sticker prices, you won’t have any idea what you’re spending because the loans will be different. What you need to do is work backwards. Figure out the monthly payment you can afford then find the car and the dealer that can make that happen. AppliancesWhen to buy: Use layaway plans. If you don’t need the item today, it might pay to use a layaway plan, particularly if there’s no interest assessed. A perfect example for a big-ticket item that should be bought on layaway is an air conditioner. Buy it in the winter when you don’t need it and get the store to hold it until the heat arrives.Useful tip: Buy energy-saving appliances. You’ll save money in the long run (something you should also consider in your budget), but you might even get a rebate, tax break or money back on your utility bill for buying green. TravelWhen to buy: Book as far ahead as possible. Unless it’s truly last minute travel, your best bet is almost always to buy early. While this gives you plenty of time to save, plan a budget and look for deals, it also means locking in a great airfare and hotel price.Don’t assume that because you have 10 days vacation you need to spend them all on an expensive trip. If you’re heart is set on an expensive vacation, go ahead and book it, but for fewer days. Remember: It’s your vacation, so the idea is to be happy. The best scenario is you having a great trip and not being stuck with a great bill afterwards. Useful Tip: Treat a vacation as one sum expense that incorporates such things as your flight, amenities and food as part of the purchase. If you don’t include everything in your budget, you’ll likely end up blowing way more money than you expected. Consider going places where your travel dollar goes further. For example, if you have your heart set on Europe, consider central and Southern Europe over say England or France. take the time to plan it outA big-ticket item doesn’t have to be a big headache. Yes, there can be lots of stress involved in making the purchase and it can be hard to stretch your dollar, but if you plan ahead and plan conservatively you should come out on top of the game.Resources: http://www.savingadvice.com/forums/archive/index.php/t-87 www.fpanet.org http://www.fool.com/car/car.htm http://www.ourfamilyplace.com/homebuyer/budget.html http://www.fpanet.org/public/tools/lifeevents/purchases-bigticket.html How To Take Advantage Of Home Equity If you own a home, you may find yourself in a financial catch-22 of being cash-poor and house-rich. According to the Federal Reserve Board, nearly 47% of household assets are tied up in the primary residence. While homes can be great investments, they can also hoard cash that you might need for something else. Here are two ways to get at that cash and some tips on what you should use it for. what is home equity?Equity is the value that you own in your home. If you have a mortgage, equity is simply the value of the home (determined by market price) minus the amount you owe. As the value of your home increases or as you pay off your mortgage, your equity grows.Home equity loanA home equity loan, also known as a second mortgage, involves borrowing money that you already paid into the house. You can take out a loan for a fixed period of time with a fixed payment schedule.Home equity line of creditIn contrast to a home equity loan, a line of credit is more like opening up a credit card with your house as collateral. The value of the home (and usually the percentage of the value that the creditor is willing to lend on) minus the mortgage determines the credit line. That number represents the amount you can borrow at any one time.Other factors like those on your credit report help the lender determine your ultimate line of credit. Repayment schedules for home equity credit range from fixed to variable; likewise, rules regarding minimum balances will also vary depending on the lender. tips on using home equityPay off credit cardsA lot of guys pay off their high-interest credit cards with their home equity. This is a sound idea, which essentially consists in swapping high-interest debt for low-interest debt. Better still, interest on home loans is tax deductible. The danger in paying off your credit cards with equity comes if you do it too often. Doing it once can help you get back on track, but doing it every few years means you'll never have a chance to build equity and make money on your investment.Invest in home improvementHome improvement is a way to take equity out and (hopefully) increase it. Of course, the success of your plan depends on how much value the improvement really adds. If you're adding a single element to your home, you'll probably use a home equity loan. But if you're making a series of improvements over time, it's best to consider the home equity line of credit.Save toward retirementHome equity is often the best way to fund a retirement, so the more you have, the better. Retirees with significant but not substantial savings often make retirement work because they own their home outright. That means no more mortgage payments, which reduces cost of living. For retirees who own all or most of their home but have less in savings, there is the opportunity to cash out by selling and buying a smaller home or condo.Finally, retirees who own their homes outright but are cash-strapped can use a reverse mortgage (essentially letting the bank buy the house back while they live in it). The point is that building equity is always a good thing, but the more equity you have, the more options you create. Invest in stocks/propertyThere's a high temptation to use equity that is "just sitting there" for investments. A common investment is income property, but stocks are also a possibility. People who own their homes outright are probably best-suited to take this risk because they won't find themselves overcome by a series of loan payments. If you have a mortgage and you take out equity to buy rental property, you have three loans to repay. Two are manageable; three can be a disaster. If you choose stocks over income property, you may avoid loan payments, but your risk of losing everything goes up.Pay off medical/education billsMedical bills can often be as crippling as the illness. While taking home equity out to repay those bills doesn't make you money, it can ease the financial burden by lowering your interest rates.By contrast, paying for your education can be a great way to use your equity to invest in yourself. But before you take out a home equity loan, make sure that the rate you'll be paying is lower than the going rate for student loans. use equity to your advantageThere are a lot of good things that you can use your home equity for, even if they don't appear on this list. What's important is that you don't use your home equity to buy consumables like a vacation or a nicer car.And even if you use your home equity wisely, you must always remember that you are postponing your debt, so ultimately, you have to make your choice knowing that you could end up paying more in the long run. Resources: http://realtytimes.com/rtcpages/20000203_financial.htm http://www.fool.com/homecenter/refinance/refinance07.htm money.cnn.com http://www.bankrate.com/brm/news/bank/20030801a1.asp?prodtype=loan How To Maximize Your Discretionary Income No matter how much money you make, you can always use a little more. But the truth is that you aren't always able to increase your income or cut costs. That's when it's time to look into ways to maximize your discretionary income, which is what you have to work with after taxes. That said, here are some ways to make certain that you're getting the most bang out of your income buck. Set up direct depositsDirect deposits can save you money in two ways. First, your bank may waive some fees if you bank electronically. But the real savings comes with control. By putting a percentage of your paycheck into a checking account automatically, you limit the psychological effect of payday and you don't spend every last cent printed on your check as some other guys do.Contribute to your 401(k)Saving is always good, but 401(k) saving is even better. First, you get to put the money away before taxes, so you lower your tax liability. But better than that, a lot of companies match employee 401(k) contributions, which means you get to literally double your money (up to a preset limit).Roll over your retirement money if changing jobsYou don't have to take your 401(k) with you when you leave your job, but there's really no good reason to leave it there. You have two options: either have the account transferred to your new employer or to an individual retirement account (IRA). The goal here is to bundle your funds (although the investment should remain diverse) because interest grows based on the total principal (meaning that the bigger the principal, the more interest you should earn). Just make sure that the transfer doesn't go through you, but rather directly to the new account manager, to avoid tax liability.Take advantage of company benefitsBenefits can be one of the best ways to stretch your salary. A company with a strong health plan that offers a low co-pay can more than make up for a lower salary. Some companies have employee-dining plans that allow you to eat subsidized meals. Other companies offer life insurance to employees at reduced rates, while some public companies make their stock available to employees at reduced rates. The thing to remember is that there's more to salary than straight dollars and cents; sometimes a lower paying job with great benefits can make you more money in the end.Keep saving 10% to 15%A lot of guys don't save at all, which is a mistake. But some guys who save also make a mistake: they put away the same amount every month no matter how much they make. Experts say that you should try to save between 10% and 15% of your income, which means that as your salary rises, so too should your contribution to your savings account.Reevaluate your plan contributionAs market conditions change, so too should your 401(k) plan contribution. Since you're not going to get access to this money for years or possibly decades, you should be looking for slow, steady growth. In other words, you don't want a large chunk of your money tied up in any one sector. Stay on top of your investments by getting quarterly investment reports from the plan administrator and move with an eye toward diversity.ask yourself this:Are there better days for you to receive your paycheck?The answer to this requires a personal point of reference, so it pays to know yourself. If you're a party guy, it's probably better to receive your paycheck on a Monday rather than a Friday. Yes, you'll still party, but knowing that you won't get your money until after the weekend should make you less tempted to overspend. make your money workIt's easy to say that the next raise will take care of all of your financial worries. But that's seldom the case.Financial concerns, or rather avoiding them, have more to do with managing your salary than with the total paycheck. A sound strategy will help you manage your current situation and put you in a position to take advantage of your next raise. Resources: http://www.bankrate.com/brm/news/advice/20040514a1.asp Inflation 101 You hear people moan about it all the time. “Must be inflation,” is said quite often by the guys at the office. But what exactly is inflation, and more importantly, how does it affect your finances? While inflation is mostly a concern for economists, it’s also something you can and should know a few things about. Here’s your primer on inflation -- what it is, how it affects you and how to guard against it. what is inflation?Simply put, inflation is an increase in the average level of prices over time. While it usually happens slowly, it can occur overnight, which is both unusual and catastrophic for the economy. Generally speaking, there will always be inflation, so the worry of the government is not how to stop it, which is impossible, but how to keep it at a steady, manageable pace. Likewise, your concern shouldn’t be whether inflation is there, but how to stay ahead of the curve.The best way to understand inflation is with an example, for which I’ll use a CNN.Money.com calculator. The tool was built to measure the inflation of children’s allowances, but it can be used for anything -- let’s say a pint of beer costs $5. That might seem like a good price to you, but how do you know if you’re overpaying or getting a deal? Using the calculator, you discover that 20 years ago the same beer would’ve cost you $2.81. In other words, the price of beer has almost doubled in the past two decades. Now, here’s the fun part. Let’s say you make $40,000 a year; 20 years ago, your salary would have been $22,446.81. If you divide your salary by the price of a beer, you’ll learn that at $5 a pint, you’re better off than you were 20 years ago. Today, you can buy 8,000 pints, whereas 20 years ago, you could only buy 7,988. So, historically speaking, $5 is a good price for a pint because you get more today than you did then. That’s why we measure inflation, and that’s how you know if you’re getting a good deal. how is inflation measured?Inflation is measured by the government using the Consumer Price Index (CPI). Economists commonly refer to the CPI as the change over time in the price paid for a basket of goods, which means that it’s a representative list of things the average person needs to buy on a regular basis. The list includes food, housing, clothing, medical costs, transportation, recreation, education, and miscellaneous expenses. However, the list excludes investments, such as bonds and stocks.For the typical guy, the list will give an average picture of rising or falling prices. The trouble is that there’s no such thing as the “typical” guy. The CPI will only tell you that the nation is suffering from inflation; it won’t say precisely how you are affected. To determine that, you need to know how much you paid for goods and services in previous months. For example, take a look at your fuel bill: The CPI may indicate that there is a 1% jump in the price of gas, but that doesn’t really mean anything to you until you check your own numbers. If you’re paying 5% more for gas than you were a few months ago, you’re suffering at what is likely the higher end of the gas inflation scale. But gas is just one example. One way to be certain that you’re keeping your expenses in line is to check your totals against the national averages. You won’t be able to stop your costs from rising, but if you can keep your costs from growing faster than the rest of the country’s, you’ll be ahead of the game. what causes inflation?Virtually every major economist has a theory about what causes inflation, from increasing demand for goods, which pulls prices up, to decreasing supply, which causes scarcity and also drives prices up. The truth is that all the theories are right in some ways and wrong in others. But none of that matters much when you’re the guy caught in the throes of inflation. For the individual, inflationary spikes -- no matter what the cause -- mean only one thing: trouble.You’ll see prices jump on everything from food to gas, but don’t expect help from your boss. His costs will go up too, which means your wages will likely stay the same. But there is something you can do: Get a new savings account. Interest rates typically rise with inflation -- though not as much. The trouble is that few banks do you the favor of offering you the higher yield. If you open a new savings account, however, you’ll get the most recent rate. Likewise, if you have money to invest, an inflationary period is a good time for bonds. what is deflation?Deflation is the exact opposite of inflation. In other words, it’s a drop in prices. While it may sound great, it’s not the best news because it typically means that the value of everything you own could fall. So what should you do when there’s deflation? For starters, it’s probably not the time to get a new job because you’ll likely have to take a pay cut -- it’s one of those times where you need to focus on staying where you are and justifying your salary. Assuming you can do that, the next thing you should do is take advantage of the drop in prices. If you can afford it, this is the time to buy a home because you’re timing the market. Not only will you get a good deal on the price of the house, but you should also be able to lock in a low mortgage rate.beating inflationThe simple truth is that no matter how hard you try, you’ll never avoid the adverse effects of inflation. But that doesn’t mean you should give up. In fact, it means that you should work as hard as you can to educate yourself on the matter. Why? Well, with billions of dollars on the line, major investment banks employ armies of economists just to track inflation. Of course, those companies can afford to lose a few million if the economy turns south. But for you, an economic downturn could be catastrophic. Knowing what inflation is, how it works and how you can limit its effects could help you keep your finances safe if the economy tanks.Resources: http://economics.about.com/od/helpforeconomicsstudents/f/inflation.htm http://cgi.money.cnn.com/tools/allowance/allowance_101.html http://www.bls.gov/cpi/cpifaq.htm#Question_1 http://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp http://en.wikipedia.org/wiki/Inflation http://www.smartmoney.com/ask/index.cfm?story=19981102 When To Buy Brand Names vs. Knockoffs Saving money is always a good thing. There is nothing wrong with being financially conscientious at times and buying second-tier or discounted items rather than big-name brands. As with most things, however, some exceptions do exist; in certain cases, brand names are definitely your best bet. Find out which products are worth big bucks and which ones aren’t. Bottled waterAmong man’s most basic needs, water is a very common supermarket purchase. The bottled water industry is so lucrative today that more brands and variations of the stuff exist than ever before. As long as it does not appear tinted or impure when you grab it from the shelf, go for the generic brand; it can add up to a surprising savings each month.MilkThere isn’t a huge difference between brand names such as McArthur or store versions for a lesser price. The USDA regulates the homogenizing process necessary to bottle and sell milk, so there is no reason why you shouldn’t save a few bucks by opting for the store brand.KnivesThis is a touchy category for many. On the one hand, only a moderately experienced amateur chef would be likely to notice and have an appreciation for a world-class set of cutting instruments. Therefore, one could argue that lower-end, inexpensive cutlery is the way to go for guys who don’t do that much cooking. If you prepare meals a few times a week, however, it is a much smarter move to invest in good brand-name knives. You only need one or two versatile, high-quality pieces, such as a Henckels Santoku, rather than an entire set of cheap plastic ones you will have to replace every few months.Athletic shoesThis is a category in which you should really spring for a reliable brand name. Whether you exercise occasionally or run marathons on a regular basis, injury prevention is key. High-quality athletic shoes are designed to offer you support and keep injuries at bay, so avoid cheap knockoffs at all costs.Cordless phonesWith the advent of cell phones, home-based cordless phones have fallen by the wayside in the last few years. The good news is that prices have gone down considerably. Then again, you don’t need a high-end model, either. Opt for a brand with a reliable warranty, such as GE, but there’s no need to get their most expensive model.MedicationsMost major pharmaceutical companies have subsidiaries that distribute generic versions of their products. These no-name versions can be 50% to 75% cheaper than their brand-name counterparts, and since the U.S. Food & Drug Administration regulates and monitors these products for your protection, there’s generally no reason why you shouldn’t choose them.When it comes to prescription drugs, the smartest thing to do is to ask your doctor if generics are an option. Ask your pharmacist for his opinion as well, and if both agree that the generic brand is just as good, go for it. Once in a while, both may tell you to not cut corners on a particular medicine for your condition, but health care professionals will generally work with you to help you save a few bucks. ComputersIn the late '90s, computers were much more costly than they are today. If you had a little know-how and patience, you could save a bundle by building your computer from generic parts and loading your own operating system. In today’s global economy, however, that approach is probably a waste of time.Dell, the world’s No. 1 manufacturer of personal computers, has set the tone in terms of prices, and its peers have followed suit for the most part. Today, computers are so relatively inexpensive that most IT professionals will advise customers to replace rather than repair them. Don’t waste hours toying with drivers, optical drives and countless operating system reinstalls; simply go with a brand name and a good warranty. TiresWith most auto makers competing for market share by boasting warranties that range from 36 months to 10 years, consumers are only responsible for maintenance in a few basic areas -- one of which is tires. When it comes to high-performance, speed-demon types or if you live in an area where snow and ice are common, specialty tires are probably a good bet -- even though they’re a bit pricey.On the other hand, for your day-to-day routine, most manufacturers have subsidiaries or partners that put out off-brand versions of their more recognized product lines. You can typically save about one-third of the price by buying reliable tires from KUMHO, an award-winning company that supplies Formula One race cars all over the world. The key is to have access to an independent tire specialist who won’t try to push you toward his own brand. brand name vs. no nameMastering the art of allocating your financial resources is hardly easy -- whether it is for milk or tires. The idea is to learn to stretch money a little bit on certain items so that you will have the resources to buy something you really want or some cash stashed away for a rainy.Investing In Bonds Most guys will tell you that bonds are safe investments for retirees and little old ladies; and most guys are wrong. Bonds offer an alternative to investing in stocks and (depending on the economy) may even outperform stocks. Having some bonds in your portfolio is a good way to make money and it's a great way to diversify. Here's what you need to know before you invest in the bond market. the basicsWhat is a bond?A bond is just another word for a loan. When you buy a government or corporate bond, you're simply lending that entity money for a specified period of time. When the term of the bond ends, you get back the money plus the agreed upon interest.How does a bond work? Unlike private loans, say the kind you make to your neighbor, there's a market for bonds. That means that at any given time, the price for a bond can fluctuate. Still, the face value remains the same, as does the rate (known as the coupon). What changes through time is the yield, which is the total amount you would receive when the bond expires (coupon rate divided by price). But with the bond market changing, you have the chance to increase your yield by picking up discounted bonds (a bond selling below its face value). A bond selling above its face value may still be a good buy, but remember that the yield will be less than what it would have been if you bought it at face value. What types of bonds are available?Bonds vary based on the issuer. The most stable bonds are U.S. government bonds or Treasury bills. These bonds are backed by the full faith and credit of the U.S. government, which means that they are not likely to default.Moving up the risk ladder, are municipal bonds. Local governments issue these bonds to finance public works projects. They tend to be low-risk and, therefore, are low-yield, but to help these governments raise money, many of these bonds are exempt from federal taxes (as well as state and local taxes for residents). That means that while you may not earn as much, you won't pay for your profits in tax. Finally, there are corporate bonds. These bonds carry more risk but offer more reward. Corporate bonds are rated so you'll have an idea of relative risk, but like stock, even blue chips can go bust. the risksInflation and interest ratesA major risk with bonds is inflation. Long-term bonds are particularly susceptible to inflation because interest payments are fixed (what might be a good rate today could be a lousy rate tomorrow). Likewise, changing interest rates affect bond prices.Typically, bond prices move against interest rates. For example: higher interest rates lower bond prices because the demand for the old bonds falls away with higher-yielding new bonds. Naturally, prices only matter to people who sell their bonds before maturity; although there is certainly an opportunity cost to be paid as well. Calling a bondBonds differ from most private loans in one key aspect: the issuer sets the terms. Many issuers reserve the right to call the bond (these bonds typically offer a higher coupon). If a bond is called, the issuer need only pay back par value (face value) to the buyer. This usually happens when interest rates fall. While you can't always predict interest rates, you can ask about the likelihood of a given bond being called before you buy.The credit riskCompanies can and do go bust. Even local governments go bankrupt. When you loan money to a friend, there's a chance he might not be able to repay you. Bonds have that same risk. However, unlike stocks, bonds don't vanish if a company goes bankrupt; bond holders become creditors. But the likelihood of getting back even par value is slim to none.have a planLong-term or short term?If you're buying your own bonds and not using a bond fund, you'll need to ask yourself what your goals are. If you want a steady stream of income, it's best to buy short-term bonds (the logic being that it's easier to predict interest rates in the short term). By contrast, those looking to increase their capital will do best by investing in long-term bonds (if their bet pays off).Diversify your bonds or consider a bond fundJust like with stocks, it's important to spread your investments around. You don't want to be too heavy in any one sector (or, in this case, type of bond as well). You can do this on your own or you can look into a bond fund, which works in much the same way as a mutual fund for stocks.Ladder your portfolioIf you've ever bought a CD (Certificate of Deposit), you know about laddering. The goal is to give yourself money to reinvest each year on the theory that market conditions change. Thus, while some of your bonds might be taking a hit, others will be performing at their peak. You do this by buying bonds of varying terms, say from one year to 10 years. When the one-year bond expires, you put that money into a 10-year bond. As each bond expires, you reinvest it by filling the missing hole in your portfolio.get your bondsBonds are seldom as sexy as stocks. Most guys want to know what the (stock) market did on a given day. But bonds, depending on the type you buy, can be a better way of helping you achieve your financial goals.It may not be exciting to know that your money will likely earn 7% over the next 10 years, but when it's your money on the line, you may not want any excitement at all. Resources: http://money.cnn.com/pf/101/lessons/7/ http://moneycentral.msn.com/content/Investing/Buyingbonds/P39105.asp http://www.fool.com/bonds/bonds01.htm http://personal.fidelity.com/products/fixedincome/firisksoffixed.shtml.cvsr
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