There are many fine financial and wealth building resources available today. Here are a few of our favorites:
Personal Finance Education Resource
Beginner Info About Mutual Funds
Building wealth – it’s a topic that sparks heated debate, promotes quirky “get rich quick” schemes and drives people to pursue transactions they might otherwise never consider. “Three Simple Steps To Building Wealth” may seem like a misleading title, but it isn’t. While these steps are simple to understand, they’re not easy to follow.
The Steps
Basically, building wealth boils down to this: To accumulate wealth over time, you need to do three things:
1. You need to make it. This means that before you can begin to save or invest, you need to have a long-term source of income that’s sufficient enough to have some left over after you’ve covered your necessities.
2. You need to save it. Once you have an income that’s enough to cover your basics, you need to develop a proactive savings plan.
3. You need to invest it. Once you’ve set aside a monthly savings goal, you need to invest it prudently.
Getting on Track
Step1: Making Enough Money
This step may seem elementary, but for those who are just starting out, or are in transition, this is the most fundamental step. Most of us have seen tables showing that a small amount regularly saved and compounded over time can eventually add up to substantial wealth. But those tables never cover the other sides of the story – that is, are you making enough to save in the first place? And are you good enough at what you do and do you enjoy it enough that you can do it for 40 or 50 years in order to save that money? (For related reading, see Understanding The Time Value Of Money and Delay In Savings Raises Payments Later On.)
To begin, there are two types of income – earned and passive. Earned income comes from what you “do for a living,” while passive income is derived from investments. This section deals with earned income.
Those beginning their careers or in the midst of a career change can think about the following four considerations to decide how to derive their “earned income”:
1. Consider what you enjoy. You will perform better and be more likely to succeed financially doing something you enjoy.
2. Consider what you’re good at. Look at what you do well and how you can use those talents to earn a living.
3. Consider what will pay well. Look at careers using what you enjoy and do well that will meet your financial expectations.
4. Consider how to get there (educational requirements, etc.). Determine the education requirements, if any, needed to pursue your options.
Taking these considerations into account will put you on the right path. The key is to be open-minded and proactive. You should also evaluate your income situation annually.
Step 2: Saving Enough of It
You make enough money, you live pretty well, but you’re not saving enough. What’s wrong? There’s only one reason why this occurs: your wants exceed your budget. To develop a budget or to get your existing budget on track, try these steps:
1. Track your spending for at least a month. You may want to use a financial software package to help you do this. If not, your checkbook is the best place to start. Either way, make sure you categorize your expenditures. Sometimes just being aware of how much you are spending will help you control your spending habits. (For more insight, see The Beauty Of Budgeting and The Indiana Jones Guide To Getting Ahead.)
2. Trim the fat. Break down your wants and needs. The need for food, shelter and clothing are obvious, but you also need to address less obvious needs. For instance, you may realize you’re eating lunch at a restaurant every day. Bringing your own lunch to work two or more days a week will help you save money.
3. Adjust according to your changing needs. As you go along, you probably will find that you’ve over- or under-budgeted a particular item and need to adjust your budget accordingly.
4. Build your cushion – you never really know what’s around the corner. You should aim to save around three to six months’ worth of living expenses. This savings prepares you for financial setbacks, such as job loss or health problems. If saving this cushion seems daunting, start small. (Learn how to save for the unexpected. Read Build Yourself An Emergency Fund.)
5. Get matched! Contribute to your employer’s 401(k) or 403(b) and try to get the maximum your employer is matching. Some employers match 100% of the participant’s contribution, and this can be a big incentive to add even a few dollars each paycheck. (To learn more, read Making Salary Deferral Contributions – Part 1 and Part 2.)
The most important step is to distinguish between what you really need and what you merely want. Finding simple ways to save a few extra bucks here there could include programming your thermostat to turn itself down when you’re not at home, using plain unleaded gasoline instead of premium, keeping your tires fully inflated, buying furniture from a quality thrift shop and learning how to cook. This doesn’t mean that you have to be thrifty all the time: if you’re meeting savings goals, you should be willing to reward yourself and splurge (an appropriate amount) once in a while! You’ll feel better and be motivated to make more money.
Step 3: Investing It Appropriately
You’re making enough money and you’re saving enough, but you’re putting it all in conservative investments. That’s fine, right? Wrong! If you want to build a sizable portfolio, you have to take on risk, which means you’ll have to invest in equities. So how do you determine what’s the right exposure for you? (Confused about risk? Read Determining Risk And The Risk Pyramid.)
Begin with an assessment of your situation. The CFA Institute advises investors to build an Investment Policy Statement. To begin, determine your return and risk objectives. Quantify all of the elements affecting your financial life including household income, your time horizon, tax considerations, cash flow/liquidity needs and any other factors that are unique to you.
Next, determine the appropriate asset allocation for you. Most likely, you will need to meet with a financial advisor unless you know enough to do this on your own. This allocation will be based on the Investment Policy Statement you have devised. Your allocation will most likely include a mixture of cash, fixed income, equities and alternative investments.
Risk averse investors should keep in mind that portfolios need at least some equity exposure to protect against inflation. Also, younger investors can afford to allocate more of their portfolios to equities than older investors, as they have time on their side. (To read more, check out Asset Allocation Strategies, Five Things To Know About Asset Allocation and Achieving Optimal Asset Allocation.)
Finally, diversify. Invest your equity and fixed income exposures over a range of classes and styles. Do not try to time the market. When one style (e.g., large cap growth) is underperforming the S&P 500, it is quite possible that another is outperforming. Diversification takes the timing element out of the game. A qualified investment advisor can help you develop a prudent diversification strategy. (For more insight, see Benchmark Your Return With Indexes.)
Conclusion
Building wealth over time depends on the successful execution of three steps: 1) having enough income, 2) saving an adequate portion of that income and 3) investing what you save prudently. Getting on the path that leads to wealth begins with a thoughtfully constructed plan and diligent execution of that plan. An investor who stays on that course should in time find that he or she is successfully building wealth.
by William Artzberger
Debt is like a contagious disease. The more delay you make in addressing your debt crisis, and more unruly you become in your financial behavior, greater the problem turns out to be. However, if you follow some proper and judicious debt management policies, you can surely contain your debt levels. You can take the help of professional debt experts as well as you can initiate efforts on your own humble way to get rid of debt. You can obtain debt consolidation program as well as debt settlement program on your own.
Debt management with professional help
It is often seen that many of you take professional help to get away with your debt crisis. The professional agency analyzes your financial situation and thereafter offers some realistic solution for you. The professional agency negotiates with the creditors on your behalf and come out with some way out for you. Since the professional agencies or the debt repairing companies are into this business for considerable period of time, they are better positioned to negotiate with the creditors on your behalf. In debt settlement they reduce your total outstanding debts substantially so that you can pay off the debts instead of going into bankruptcy.
DIY debt management
Another way to get out of debt is to opt for do it yourself (DIY) debt management program. Here the idea is to fix your debt problem on your own, without taking any professional help. This is because you are the person who know your financial situation best. In DIY debt management, you do not need to explain to a third party about the debts that you actually owe, you need not have to reveal information about the loans that you have taken out or you would not need to disclose information about your income, insurance policies and investments. While managing your debts on your own, you can take the help of debt calculators. By inserting certain information in debt calculator, you come to know your monthly payment amount and you also come to know the actual time that you take to repay all your debts.
Debt consolidation converts your multiple unsecured debts into single monthly payments. You can directly negotiate with the creditors to reduce the monthly amount by stretching the debt-repayment time. Another smart option to reduce your debts is to opt for debt settlement program. In this program, you can directly negotiate with the creditors to considerably reduce your total outstanding debts.
However, while going for DIY debt settlement, you need to be very honest and should not provide any false information to the creditors. Again, it is also advisable that you should not agree to plan which you can’t afford to pay.
This is a Guest post from Marlon Powell who writes on finance related matters such as debt consolidation, settlement and other aspects of handling debts and managing finance for http://www.debtconsolidationcare.com/
Although many cultures view homeschooling as the only option for teaching children, it is not free. It costs hundreds of dollars to buy current textbooks for each subject, and the higher the grade the more expensive the materials become in most cases. Even purchasing textbooks and resources used can cost a lot of money, especially if you have more than one child and children at several different grade levels. Is homeschooling affordable for your family?
The Cost to Homeschool
You have to consider more than just the cost of textbooks when you decide to homeschool your children, and many of these need to be included in a monthly, semi-annual, or annual family budget. For instance, many states require that the family attend ongoing education courses (often called CLE) each year in order to be eligible for state-approved education. This can cost hundreds each year, but without it your child’s education is not recognized by the state.
It is great to find textbooks at a cheaper rate, such as buying used textbooks or older editions, but eventually you will come to a place where you need answer keys or teacher guides in order to make sense of what they are learning. As a homeschooling parent, you are responsible for teaching them what they need to know, so you have to be sure that you can understand it yourself. Upper grades are difficult for the student to master, but they are nearly impossible for the average parent to decipher based on memory alone (such as algebra, for instance).
Implications to Society
Parents of homeschooled children are often frowned upon in society, and this type of social stigma can be harder for kids to handle than parents. Make sure that the kids are active in extra-curricular activities offered by the homeschooling umbrella, community teams, church-related activities, or other ways to keep them involved with their peers. Since most of these cost money, you will need to do your own homework and find out what your budget can handle.
Without some sort of outlet for the kids to meet other kids, they cannot make friends with other children their own age. This is important for their development, emotional and psychological, and without interaction they will not know how to handle college and the workforce later in life. Introduce them to kids at church, society events, family reunions, and through other methods whenever possible so that they learn how to form friendships and deal with conflicts from an early age.
Moving Toward Graduation
Many states require that children take standardized tests in order to gauge their learning level or to graduate. Examples of these include PSAT, AP, SAT, CAT, ACT, and similar tests, but they vary based on what state you live in and where your umbrella comes from. They cost money to take, and they are required for specific grade levels. Tests such as the SAT and ACT have to be taken and a minimum grade requirement is necessary before your child can graduate high school.
In some states, a GED-style test may be required in order to prove that your child has the skills necessary to move into college. You can pay a tutor to get your child ready for the test if you have any doubts, much like a high school guidance counselor’s role. You are also responsible for applying to different colleges, and many colleges charge for each application. Homeschooling parents must pay this cost out of pocket, in addition to searching for scholarship opportunities, grants, and other financial assistance whenever necessary.
Conclusion
Is homeschooling affordable? For some parents, it is the perfect option, allowing them to teach curriculum that they believe is best for their own respective families. To others, the cost is too much to manage, and they are forced to fall back on other alternatives, such as public school or private education. It is all a matter of research and personal opinions, and a strong commitment to the highest standards of education for each child.
Melanie Wymer is a staff writer for rangehoodhq.com, a site that offers advice and reviews on range hoods. She is also an Advanced Honors high school graduate with more than ten years of homeschooling experience. She has two years’ experience as a homeschooling parent of two children, with two more to teach in the near future.
With the economic recession and rising prices, we need to find means on how to save money. One way to do so is to reduce your energy usage. Aside from cutting down costs on your electric bill, you can get to help the environment too.
Below are four easy ways to save money on your electric bill:
1. 
Use energy efficient appliances. One of the best ways to reduce energy consumption is to replace older appliances with those that are more energy efficient. Did you know that appliances such as your microwave, stove, and refrigerator consume a lot of energy? Your fridge alone uses about 20% of electricity in the household. There are appliances being sold in the market today which are energy efficient so try to ask around and look for them. It may sound expensive but if you look at things on a long-term basis, you will be able to save on electricity. Make sure that the doors of your refrigerator and freezer are shut properly and set them up to the warmest settings to save on energy.
2. Switch from incandescent light bulbs to compact fluorescent light bulbs or CFLs. Doing so would actually let you save $35 for energy costs over the projected 10-year life of the bulb. Aside from using lesser energy than conventional bulbs, CFLs also generate less heat. They initially cost more than regular bulbs but they use less than 1/3 of the amount of power and they can last longer.
3. Unplug all electronic devices and appliances before leaving the house. When you go somewhere else, make sure that you never leave your electronics and appliances unplugged. Did you know that this can actually drain more power even if they are not being used? Gadgets such as your cellphone charger or microwave use energy and generate heat when they’re kept attached to the power source. Standby power for appliances which are not in use accounts for 5% to 10% of residential electricity (Lawrence Berkeley National Laboratory). So better plug those devices into a power strip that can be turned off when not in use. Overall, this may let you save a dollar or two on your next electricity bill.
4. Do not overuse your air conditioner. Did you know that 50% of your household energy consists of cooling, heating, and cooking? So never overuse your air conditioner. Instead, use a thermostat which you can program in order to cool the air off your home for several hours before you come home and then have it programmed to go off when you sleep at night to save on energy. You can also use attic and ceiling fans for circulating air and make your house feel cooler.
This is an article written by the writer of FindSecuredCards.com. A website that offers the best Secured Credit Cards online, as well as a helpful financial blog.
Most would consider food, clothing, and shelter to be the most essential needs that we all require to live comfortable. For the most part food and clothing are relatively easy to come by and at a reasonable rate; however finding a good, safe place to live can be a greater challenge.
Purchasing a house or property can be a good investment but also very costly. With so many people out of work and facing the threat of pay cuts or job loss it is not a realistic option for everyone.
For many the more realistic option is renting.
There are many choices to consider when looking for a rental property ‚ –houses, apartments, property–as well as many different ways to find it. Referrals are a great way to start the rental hunting process. Friends and family are often full of opinions and advice when it comes to finding a place to live and they can often refer a realtor or property management company that can help you find the perfect place to call home. Perusing the newspaper or Internet as well as specific neighborhoods that you are interested in is also a great way to find potential properties.
The Internet is also a great resource for looking up specific properties, realtors or property managers to see if they will meet your needs. For example if there is a property management company that you would like to use, such as Transglobe, you can visit their website for an overview of Transglobe properties & services.
Just like buying a house, it is important that the rental property fits your needs as well as your budget. There are more choices than ever when it comes to renting a house and even though you probably won’t be living there for the rest of your life, you are still signing a lease and legally and financially obligating yourself for the duration. When you are happy with the property and the terms of your lease you’ll be that much closer to making your new house a home.
They say you have to spend money to make money, but it’s also true that a penny saved is a penny earned. One of the best ways to build your wealth isn’t to invest in a high yield CD or anything like that but rather to save as much as possible on common expenditures like traveling. With fuel costs continuing to rise, traveling this summer and beyond is looking to be more expensive than it ever was. The last time gas prices rose this high the airline instituted massive fees from everything to checked baggage to what used to be complimentary snacks. So far, many of those “one time” fees have yet to disappear; in fact, most airlines are instituting new fees. One area in which people can save money when traveling is on food. If you happen to be flying on an airline that is a little stingy or pricey with their snacks and then consider bringing your own food. Common food items like potato chips and sandwiches are safe to bring through security and by making your own food at home you can avoid the pricey airline food. Just remember not to take any beverages through security, though. Currently, the TSA still is not allowing any liquids greater than 3.4 ounces (100mL) beyond security checkpoints, so if you’re really dying for a drink either buy one on the plane or airport food court. Once you get through security passengers are welcome to purchase sodas or water to bring onto their flight from the terminal food courts in most airports.
One of the best ways though to save money when traveling is to use reputable travel sites like those operated by TravelShark. TravelShark, formerly SwiftRank, is one the leading global travel networks. Operating thousands of hotel booking sites, TravelShark makes it easy to save money when booking a hotel or planning a vacation.
The key to saving money when booking a hotel is to book far in advance and if possible in the off season. If you don’t mind traveling during times that are not considered peak for a region then you can get some great rates. For instance, California is a popular travel destination in the early summer months, but if you plan a trip for February or Mach then you can save hundreds on airfare alone. You might have to make a few small sacrifices but with these tips you can be on your way to building your wealth.
Photos by UggBoy & Mightykenny
A lot of people are experiencing hard times financially, and they do not believe that they have the means to go on a vacation this summer. It is not necessary that people leave town in order to enjoy themselves on their vacations; they can have a good time right in their home towns in what has been come to be known as a staycation. A staycation can be easy to plan.
How to Find Fun Things to Do
Practically every city in the country has a website. These websites are the places to go to find out what is going on in the city. For example, those who are looking for an inexpensive event to attend may click on the city website’s link to the museums in the area.
A list of museums comes up, and people can click on the link to the museum of choice. From there, they will be taken to the museum’s website where they can find out how much it costs to see the museum’s exhibits. If the price is to these people’s liking, they can plan accordingly to visit this particular venue.
Another way to find free or inexpensive events to attend is by performing a search on a search engine. All people need to do is type in words to the effect of “find free events,” and several results will come up. These events will commonly advertise on the Internet, and people can find out what the events are about as well as how to get there.
Credit Cards That Make Saving Money Possible
• Some credit cards offer rewards for those who pay their balances in full every month.
• Another great perk offered by Chase is the ability to receive credit scores from all three credit bureaus every month. (Consumers are only entitled to receive a free credit report from each credit bureau once every year.)
• Those who obtain a Disney rewards credit card receive discounts on entry to the theme parks, on merchandise in the stores and they can purchase their Disney vacations with 0 percent financing.
• Credit cards such as Capital One offer customers cash rebates for purchasing their items with the credit card. American Express Blue Cash and Discover also give people hefty cash rewards for utilizing their credit cards.
• Some credit cards, like Discover, give their customers gift cards that double the amount they earned in cash back rewards. These cards can be used at the store of their choice.
• Sports-related credit cards give customers the ability to earn points when they make purchases with the cards. These points entitle them to free tickets to games and maybe even access to the VIP lounges.
Unsecured Credit Cards
Those who are having money troubles may have those troubles because they have experienced a bankruptcy. In that case, they may not be able to qualify for the credit cards listed above. The alternative for these people is to acquire unsecured credit cards.
Unsecured credit cards are credit cards that do not have anything backing them as collateral. People with low credit scores can qualify for these credit cards if they agree to pay a higher interest rate. This will not necessarily be a problem for those who acquire them if they make the determination that they will pay their balances in full every month.
Unsecured credit cards can help people enjoy their staycations, because they allow them to pay for things without having to carry around a lot of cash. If they use them to purchase only the items they know they can afford, they will also begin to rebuild their credit.
The story may seem familiar: the consumer is looking to buy some sort of big ticket item. A car, truck, or perhaps an RV. Whatever. The Internet and various companies have sprung up over the past couple of decades which facilitates these types of transactions. In fact, companies like Ebay, Craigslist, and a number of smaller auction sites, have not only opened up marketplaces, they have legitimately created a world wide trading zone allowing one to purchase just about anything they might desire.
Now enter the “too good to be true” deal. The saying is a familiar one as well. If it sounds too good to be true, it probably is. Combine this with the facilities available online, and the environment is now created for scam operators to take advantage of buyers simply looking for an exceptional bargain.
The following list outlines just a few of the most glaring conditions one should be aware of when in the market for a big ticket item:
Jessica Bower is a freelance writer who believes in getting the best deals and keeping the web free of scams. She works with My Credit Group to make this possible.
Parents want to make sure that their children have the knowledge and skills necessary to build productive and successful lives. Few parents apply that same question to their own life. Do they have the education they need to achieve success in their career ? In many cases the honest answer to that question is no.
Many people with associates or bachelors degrees are able to enjoy a certain level of success within their company or agency. However they are beginning to realize that without a masters or even doctorate, they will only be able to advance to a certain point.
This is a case where the evolution of society and business is actually helping those workers who need to go back to school. The proliferation of professional schools and universities offering online degree programs makes it much easier for people to get a masters degree without having to quit their current job. They can study for a masters in finance online while working in a bank or securities agency. They can earn an advanced health care or business degree by taking some weekend or evening classes and complete the rest of their coursework through email and online lectures. They can even take exams on the web.
With digital technology making it possible to take classes online or even to get a degree from a faraway school without having to relocate, the opportunity to get that masters degree and advance in one’s career is available to virtually everyone.
