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Personal Finance

Personal Saving

First, many people buy products spontaneously without planning to buy them in advance. That is, they buy a product or service, and decide to buy it, only immediately before they make the actual purchase. Most of us fall prey to unplanned spending every now and then. Retailers put a lot of effort to encourage unplanned spending. Take for example the sweets at the checkout of the supermarket, or the sales table in the middle of the toy store. Temptations like these make it much harder to control spending. Of course, these are many more examples how retailers can motivate people to make unplanned purchases. Luckily, there are many ways to limit these kinds of expenditures. You can, for example, make a shopping list before going to shop, hold less money in your pockets to decrease the tendency to buy food items on your way home, or leave your credit card at home when visiting the shopping mall. Besides, never go shopping when you are hungry. It makes you vulnerable to buying unplanned food items and overfilling your cart.

Second, people tend to think it is more difficult for them to save money now (and spend less) than it will be in the future. For example, they want to go out of dinner this evening, they want to buy their partner a sweet gift, or they are planning to do something nice in the weekend. Obviously, in the short term people are aware and think of many things they want to spend money on. When they think about the future, they don’t know yet what they will be doing by then. As such, they are less aware of the temptations they will be facing in the future that might prevent them from saving more. Hence, they think it will be easier to save in the future. The point is, however, that they will also think this in a few months from now. Consequently, people tend to postpone saving more all the time. One way to avoid postponement is by committing yourself now to increase your savings rate at a certain point in the future. For example, you may want to consider arranging that a greater percentage of your monthly salary is automatically transferred to your savings account from a certain point in the future.

Spring Investment Property Form Guide

Size up the investment property market

To make sure you’re backing a winner – and getting the best value – you’ve got to research extensively. Ensure you’re across all the investment property magazines and websites for general property purchase tips and strategies and then do as much investigation into the market/markets you’re exploring as possible. Talk to local real estate agents and local residents and read as much about the local area as you can. The more you know, the more well-informed a purchase you’ll be able to make.

Hunt like a pro

To make the most of your time and find the right property as quickly as possible, take a serious approach to your property pursuit. Plan your Saturdays thoroughly and set up a system for documenting the properties you’ve seen, the agents you’ve met and the sale prices of the properties you’ve been watching.

Get in front with a pre-approval

There’s nothing worse than finding the right property only to miss out because you haven’t got your finances in order. Before you do anything this buying season, speak to us about your borrowing options and to get your pre-approval organised. Having a pre-approval also gives you a clear idea of your price range, so you don’t waste time looking at properties you can’t afford.

Steps To Control Your Financial Future

Learning how to significantly raise money can dramatically change your life. All it takes is commitment toward the power and independence that come from knowledge. This may not be a difficult task for some people to achieve with money; however, it is for others who have no money or source of income. People who are struggling to survive are not concentrating on investments.

The first key to put some extra dollars in your pocket is positive results. All it takes is a commitment to save money. Just as every pound you lose maintains the willpower you need to stay on a diet, every dollar you actually save will reinforce your commitment to financial success. This means understanding your needs to remain financially balanced.

The second key is to understand how financial experts and institutions operate. Keep in mind for which these people work. No stock broker will tell you to take money out of your stocks and invest in real estate. Your banker will never tell you to take money out of your savings account and go see a precious metal dealer, even if he or she foresees a weakened or devalued dollar.

This does not make them a bad person. They have a job to do and are regulated by various government agencies. Their primary job is to keep their institutions afloat and to see things from a professional prospective. Not to go out of their way to give you the big picture. Although they want your business, be aggressive and ask questions. Never forget that banking, securities, real estate, and insurance are among the most competitive industries on earth.

The third and final key is to structure your spending. Before making a major purchase, research the product or service and get a better idea of what the item should cost by setting a fixed amount aside for that purpose. Paying a few extra cents or even dollars now and then should not do much damage, however, convenience or some other benefit of making the purchase then and there warrants paying a little more. Realistically, overpaying on major purchases can mean significant loss of future purchasing power.

You get nothing for the additional money you spend. That money becomes a higher gross profit to merchants, and less for you to invest or to spend on yourself or your family and friends. In order to get in motion and make your money work for you, identify the assets you already have and maximize your return on them. Be prepared to set both short-term and long-term goals and develop plans for achieving them. This type of commitment can reveal where the best opportunities lie during both good and bad times and teach you how to make money no matter what the economic conditions are.

Mistakes Most Investors Make

Improper Asset Allocation

Most investors have their assets dispersed with several advisors and several financial firms. No single advisor knows what the other is doing resulting in an uncoordinated portfolio. One advisor in firm A might be selling the very asset that an advisor in firm B is buying. Unless there is one coach reviewing the entire portfolio, then your money is not coordinated.

Your asset allocation should always reflect your current position in life, your current goals, future, feelings and family characteristics. When your hard earned money is scattered to other advisors and institutions, you alone are left to properly manage your portfolio. Many individuals are not trained to monitor this correctly and consistently. Unfortunately, the overall plan suffers.

Improper Correlation Within Investments, Managers and Funds

Without saying, each investment needs to be excellent on its own. The investment, manager, or mutual fund needs to have a strong track record (I like a ten-year record). You might be able to select quality investments. That’s not the problem. Where the breakdown occurs is knowing how these investments interrelate. This is nearly impossible to track when one advisor is doing one thing, and a different advisor is doing just the opposite.

Let’s think about a recipe analogy. You might have the best ingredients to make your favorite dish. You might even have quality chefs at your beck and call, ready to make this dish for you. If you put all of these chefs in the same kitchen, but don’t let them know what the other is doing, a culinary disaster awaits. You can see that the likelihood of your dish coming out correctly is very low, no matter how good the ingredients were. Same is true with your investment portfolio.

Failure to Monitor the Consolidated Portfolio

You know life is not static. Life is constantly changing. Whether it’s your job, children, the economy, world events, new laws, unplanned expenses (and the list goes on and on), your world constantly moves. Your entire portfolio needs to be dynamic as well. When market forces move, the properly managed portfolio needs to move with it. I am not talking about day-trading, but rebalancing when and where appropriate. Additionally, your goals, future, feelings and family characteristics are changing as well. Every day is either a day closer to your goals, or not.

Having your assets scattered makes it nearly impossible to properly monitor your portfolio based on your changing life. With the technology and tools available, along with the new “open architecture” available at full service financial institutions, you are better off hiring one advisor to help you monitor your portfolio. This trusted advisor will coordinate all of your “eggs” and not put them in the same “basket.” He/she can manage your diversified portfolio to meet your goals, future, feelings and family characteristics and make sure your entire portfolio works in unison to make your dreams come true.

In conclusion, years ago, many firms were limited to the solutions they could individually bring to the client. Many had their own proprietary funds or investments, which may or may not have been in your best interest. Today, full service firms have an “open architecture” and are able to go out into the market place and bring any solution to you that is appropriate. For your strong consideration, only hire an advisor who can go anywhere in the marketplace without limitation!

Automatic Bill Pay

You also need to consider whether you will pay any of your recurring bills via any if your crest cards. If this is the case, you will want to make a note of that on your list if bills that you are creating in step number 1 above.

The tracking System. To complete this step, you will need to create a bill pay tracking sheet that you will set up to record and monitor that all of your bills are in fact being paid automatically via your bill payment plan.

Set up your and record your method of bill pay automation for each of your bills. You will note whether the bill will be paid through a recurring bill pay set up in your online banking system, or via ACH through your creditor, or whether you will have the monthly charge for any of your bills automatically charged to your credit card.

Don’t keep this a secret. Take the time to show your spouse or close family member how your system works and where you keep your bill pay tracking system notebook. This Bill pay tracking system notebook will serve as a road map to loved ones should you ever need them to step in for you if you become ill, etc.

Track your payments. In this all important step you will need to review all of your automated payments to see that they were automatically paid in the correct amount due by the intended date and by the proper bill pay automation method. You will see that this is indeed the lost important step and activity that you will take in your automated payment system.

Reasons to Use a Community Bank

Executives Stay Local

With a national entity, you never know where its executives and managers are located. With a community bank, however, you can rest assured knowing that its executives live locally, are easily accessible and are invested in the community.

Productive Investment

Nationwide institutions set aside a substantial part of their resources for speculative trading on Wall Street. This provides a nice return for them but does nothing for their clients or the local economy. Smaller banks don’t rely on such investments, instead choosing to work to turn client deposits into loans.

Personal Qualification Criteria

Larger institutions that lack local roots usually operate on an impersonal qualification criterium when determining a candidate for a loan. Conversely, community banks are open to taking into account family history and personal character when deciding upon a loan. Individual circumstances actually matter to local banks and they’ll spend time to consider them.

Shorter Wait Times

Looking to receive swift acceptance for a new loan request? Community banks should work in your favor. Since all executives and employees are located locally, they are able to make such decisions with haste. Megabanks are slowed down by their loan approval committees, which are scattered across multiple states.

Control Individual Money Pursuit

  • You have to designate your money efficiently. For the event, I had to replenish myself consistently with water and food throughout the race. I also took care of myself to avoid physical injuries and abrasions while participating in the walk. This is congruent to budgeting because I had to stay conscious of my energy level and refresh my body as necessary. Relating this to financial planning, it’s more efficient to manage your income if you prioritize what’s significant to you, to avoid spending money carelessly on things that don’t bring you happiness. Manage the income your have currently.
  • A plan provides groundwork to build detail steps that point the way to reaching your goal. When I located a system on the Internet for my level, I was relieved. This system supported me, and I didn’t feel alone. This plan showed me what to do. It helped me stay focused and line up detail points in the plan to build up to the actual event. Money management also has thorough steps such as saving money monthly. A savings account’s total can acquire an important purchase or serve as financial security for the unexpected. Overall, in-depth proactive actions regarding money management will basically progress to financial security in the short-term. In the long-term, it can be prosperous retirement security. To summarize if you follow specific steps consistently, you will gain the prize you set out to achieve. Believe in the course of action. My most favorable quote is that it’s not about the destination it’s about the process and how you will grow through it. I prepared for the charitable event for months, and some days were difficult. I also sweated profusely during training in the summer’s humidity. Yet I continued my process. After hours of practice on a weekend day in August, I hurt myself and was forced to stop for one week. During this time, I doubted if I could reach my goal. However, I trusted that everything was in order and maintained my plan as needed. This is similar to personal finances in the sense that when you create a financial plan and stick to it, life sometimes takes you in a different direction. When this occurs it’s important to continue to believe and adjust as necessary. Active money management and using money as a tool to support the life you want to live is the same as preparing to participate in a marathon.
  • Some adults believe that money management is too difficult and that they are the only person that doesn’t know how to do it successfully. I’m here to remove that myth. I have proven that money management is a learned skill if you are open to the teaching and adjust your routines as necessary.

Just as I completed a walk for a worth objective you can certainly gain profitable money management skills. The best part is that when you have reached your financial goals you won’t have blisters to show for your efforts.


How To Become A Millionaire

Make a decision to become financially independent

The foremost tip you must follow is to set yourself a clear objective that you are going to be financially independent. Becoming rich is not a matter of luck or an accident. It is normally loaded with lots of hurdles and you must have the passion to overcome those obstacles to obtain your objective.

Comprehend in what manner money works

Most of us would not have studied about investment or finance in our school days. We even would not have considered learning about balancing our checkbook. In order to become an expert in these aspects, you must comprehend and explore what successful rich people had done. You should attend seminars; take part in classes related to those subjects.

Have a predefined objective

Do not set goals which are unattainable. Have some goals with clear vision. For instance, you can fix a particular date, that on that day, you will clear off all your debts and become financially independent. Likewise, make yourself a promise that each month you will be saving a particular amount of money.

Expand your budget

A budget or a financial plan is normally a collection of aspirations & dreams. It is a chart of your destination as how you wish to utilize the money for the benefit of your family. Hence devise a budget with clear goals. Evolve your budget with more financial goals which will ultimately lead to prosperity.

Curtail your expenditure

Reducing your expenditure is a vital strategy which you must follow so as to become financially independent. A majority of the successful millionaires lead their lives less than their means, which you must also pursue.

Start investing and augment your assets

You must begin investing and increase your assets in the form of stocks & buildings. These assets will increase the value your wealth into manifolds over a period of time.

Trading Strategies for Ensuring Profit

Penny Stock Trading Strategies

Penny Stock Trading Strategies help to determine the best conditions for trading in penny stocks which are regular stocks that are trader are fairly low prices (approximately $5 or less per share). These stocks are usually not listed on any security exchange market even though there is permission to include them. Due to the nature of costs associated with these securities, small businesses involve themselves in their trade. The trading volume for these stocks are also low. Some may consider this as being quite a profitable opportunity in terms of stock trading, but there are considerable risks involved in the trade of penny stocks. It is therefore advised that their trading be taken with adequate caution as low costs of the shares should not cloud your judgement on selecting the best strategy to minimize losses.

Swing Trading Strategies

This trading strategy is suitable for traders who are discretionary in their approach. The success of the trading activity in this strategy depends on the extent of discretion exercised by the trader. This strategy is based on the concept that holding tradable assets for a certain duration could reap profits due to the “swing” or change in the prices of the assets. Traders can keep this position for durations that are longer than day trading holding time and shorter than buy and hold investment positions that generally last a couple of years. When using this strategy, traders often utilize mathematical rules for estimating the best conditions for buying and selling. This also helps in eliminating the involvement of emotional biasness, subjectivity, and excessive manual efforts that are otherwise common in the swing trading approach. Risks in this strategy are mainly dependent on the nature and extent of market speculation involved.

FX Trading Strategies

Forex trading strategies comprise a group of analytical rules and methods that are used for determining the best conditions for selling and / or buying currency pair at a specific time. These strategies are planned with the help of two specific aids, namely, news and current events that have an impact on foreign exchange rates and charting tools designed for technical analysis. Any trader who has dealt in foreign exchange is aware that with such high fluctuations and unstable dynamics of the currency market, there are only two ways of planning these strategies – speculation and hedging. Due to the nature of trading involved in this market, it is usually advised to make use of automated trading systems where traders can “teach” the system to monitor the market as per his own strategic methods and detect favourable trading conditions. The only alternative to this approach is to get a person to manually monitor the minute changes on the screen and make appropriate analyses and calculations based on the changes.

How to Save Money Shopping

Pick your shopping friends wisely

Not all shopping buddies should accompany you during your shopping errands. If you have friends who are shopaholics you are better off avoiding them than going with them to the mall. Friends who are shopaholics will love it when you spend money since it makes them feel better about their own purchases. Instead of going to the mall with such people you should hook up with some friends who will give you their honest opinion rather than put you under pressure to purchase unnecessary items.

Look out for items on sale

Looking out for items on sale is one of the effective methods on how to save money on your everyday shopping bill. A sale means that a store is selling certain items at a cheaper price. Sometimes you can wait for an item to go on sale to avoid paying too much for it.

Avoid being tempted by sales

Unseasoned shoppers are often tempted to purchase items they do not need just because they are on sale. Even if an item is super-cheap do not buy it if you will never use it. If you feel tempted to buy items on sale but you do not even know how you can use them, leave the store immediately and only come back if you are sure you need them.

Shop out of season

Waiting for items to go out of season is one of the effective techniques on how to save money when shopping. Bathing suits are basically cheaper in winter while coats are cheaper in summer. You should structure your shopping trips in such a way that you can find great deals well in advance.

Do not be afraid to haggle

If you think you are getting a bad deal on something just because you have seen it being sold at a cheaper price elsewhere talk to the salesperson. While this may make you nervous or uncomfortable it could save you lots of cash at the end of your shopping trip.

Track your spending

Keep track of everything you buy to help monitor your daily spending habits. You can keep a notebook for tracking all your transactions. While this may seem daunting and boring it will give you the greatest insights into how you are using your money and whether the money is going where you actually need it to go.