• Personal Finance

    Ways to Teaching Your Young Child About Money

    What is money? Children quickly learn mom and dad use money to buy stuff, but they usually lack the understanding of where that money comes from.

    • It can be helpful to give them an example of bartering. Explain that long ago, a person might have traded a horse for a cow. But having money allows someone to buy a cow, even if that person doesn’t want a horse in exchange.
    • Discuss with your children about how people have jobs and work so they can earn money to pay for a house, car, clothing, entertainment, and other expenses.
    • Make the point that money is a medium of exchange. You have likely exchanged a certain number of hours of your time to earn $100. You then spend that $100 on goods or services worth $100.
    • Show them all the different types of money, including coins, and explain the values.

    Let them earn … Read the rest

  • Personal Finance

    Being Broke and Being Poor

    The misunderstanding and abuse also reflect in their financial attitudes. Since financial attitudes determine financial altitudes, most people are hardly able to achieve any meaningful financial success all through their adult life, despite being very hardworking, because they have wrong financial notions, and deceptive financial mentalities and philosophies. They just cannot excel in their finances because their mindsets are hostile to the accumulation of material riches and wealth.

    This is why it is important that you ascertain that your mindset is hospitable to wealth creation prior to aspiring to becoming rich. Among the most unpopular financial terms that are misunderstood are the phrases ‘being broke’ and ‘being poor’. It is imperative that you understand these concepts and how they are related so that you can take advantage of the knowledge in your journey to financial success because they are neither synonyms nor interchangeable phrases.

    Being broke means having no money … Read the rest

  • Debt

    Other Cost of Debt

    Perhaps enticed by these products, you spurge left and right, swiping your credit cards as though there is no tomorrow. Remember the movie Confessions of a Shopaholic? Sometime, people tend to be guilty about it. However, the reality is that our life is not a movie that someone must direct us what to do to make it a happy ending.

    More than the financial costs of debt, there is one factor that is detrimental if left unheeded and unsolved. This may cost more than your wealth simply because nobody can buy it. When you lost a thing, you say, “it’s just a thing, I still can buy it.” But when the emotion is involved, it’s something that is serious and it needs careful attention.

    When you are unable to pay your debts on time due to financial scarcity and whatnot, it leaves you feel desperate and not in control of … Read the rest

  • Personal Finance

    Psychology of Retirement

    Retirement in the models described above is simply quitting your job. Retirement can be thought of as leaving a job or task to do another task. People rarely sit around and do nothing unless they are not able to do any work. People will want to find something to do, no matter what it is and whether they are paid for it or not.

    A better definition of retirement is doing what you love and having control over your resources. Do you have to suffer for 50 years to do what you love? Many people talk of “paying your dues”. Why not do what you love now? Yes, there are many responsibilities to consider, and doing what you love means being much more mindful of how things get done, how things are paid for and who gets affected. Doing what you love is hard for most people because it means

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  • Personal Finance

    Cash Advance Lenders

    In order to get a car title loan, the individual must own their own car. For those who do own the ‘pink slip’, they often would rather not put their vehicle at risk. A secured loan in default results in the loss of property. Most people need their vehicle to get back and forth to work. It takes a certain kind of desperation for a person to risk their vehicle in order to solve a financial emergency.

    Pawn shops work for people who have valuable personal items can pawn them off for a percentage of their fair market value. It is important to understand the terms and conditions of these secured loans so you don’t lose your property. Like car title loans, a pawnbroker will sell the property to collect on the loan as well as make profit from it.

    When people think about short-term loans, they often consider a … Read the rest

  • 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 … Read the rest

  • Personal Finance

    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

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  • Debt

    Zombie Debts

    The principle behind this business deal is simple. All debts at some point of time become uncollectable as they have passed the time period laid down in the statute of limitations. This time period could range from 3 to 7 years. This period varies from state to state. At this point collection companies who wish to make some money from this deal will buy the debt at a fraction of its value. It can be understood that older the debt the less its market value. Thus a debt over 8 years will cost a fraction of the money that would be paid for a debt that is 3 years old.

    In earlier times the collection agents had a free field and could use any method to recover the outstanding debt. This could include threats and intimidation. However The Fair Debt Collection Practices Act passed in 1996 has put a premium … Read the rest

  • Personal Finance

    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 … Read the rest

  • Personal Finance

    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 … Read the rest