by Crystal Paine
In today’s money-driven society, teens are constantly bombarded by magazines, television ads, and peer pressure which make them feel less than ideal if they do not wear the latest clothing style and drive a “cool” car. Briefly visit your local mall and you will observe multitudes of young people who shop as if credit cards have no maximum spending limit. With all this push for extravagance, is it even possible to raise your teens with money sense and save them from making serious financial mistakes?
Although I have yet to have teenagers of my own, I was blessed to be raised by parents who taught me from a young age to be a wise steward of money. Let me share some things my parents did to instill in me that money is a limited resource and must be spent with care.
1. Start Early
Just because your child is too young to have a real job, does not mean it is too early to start teaching basic financial principles. From the time we were little, we always received an “allowance” from our parents. We only received this money if we had done all of our daily/weekly chores. This taught us that money is not free; it is earned.
2. Set An Example
You cannot expect your teens to wisely spend money if you do not set a good example for them. Do your children see you buying things on credit because you want them now and do not have the patience to wait until you are able to save up enough money? My dad was an excellent example in this area. Before making any large purchase (such as a car), he first decided what he could afford. Then, he began shopping around. Sometimes it would take him close to a year to find what he was looking for, for the price he wanted to pay. His patience always paid off and it left an indelible impression upon me.
3. Don’t Buy Everything For Them
It is easy for many parents to want to “help teens out” by buying most everything for them. But, is this truly “helping”? When your teenager enters the real world on their own, they are going to have some hard lessons to learn if you always bought everything they needed and wanted for them. As soon as we were able to begin earning money, my dad had us start paying for some of our own things such as clothes, gifts for other people, things we wanted, and so on. Because my parents did not buy everything for us, it taught me the value of hard work, to think before I spend, and to look for the best buy.
4. Teach Your Teens the Value of Hard Work
In a day when laziness is rampant, teach your teens instead the importance of being a hard worker. What you work for, you usually appreciate more. If your teenager has worked hard to buy themselves a car, it can be almost guaranteed that they will appreciate it more and take better care of it.
5. Train Your Teens to Think Before They Spend
This might seem like a no-brainer, but learning to think before I spend has literally saved me hundreds of dollars over the years. Teach your teens to ask themselves at least three questions before making any purchase:
1) Do I have the money on hand to pay for this?
2) Do I need this?
3) Can I buy this somewhere else for less?
Oftentimes, in asking these questions, I will talk myself out of making the purchase! I will realize I don’t really have the money to pay for it or I don’t need the item. Other times, I will think of a way I can purchase this item for less.
6. Encourage Your Teens to Get the Best Buy
In addition to asking these questions, also train your teens to look for the best deal. It is amazing what variation in prices you will find out there. For instance, the water pump burst on one of our vehicles recently. When we took it into auto shop for repair, they said that we would have to take it to a more specialized shop, since the engine would need to be taken out in order to replace the water pump. The first price we were quoted was $775. Knowing that was out of our current budget, my husband began calling around to different body shops. One place quoted him around $500 another quoted him a little over $300. By calling around to find the best deal, we are going to be saving hundreds of dollars on this repair job.
Article Source: http://EzineArticles.com/?expert=Crystal_Paine
Saturday, July 4, 2009
Medical Receivables Financing
by Afra AmirSanjari
The Rx for Ailing Cash Flow
The current adverse financial structure of the healthcare industry has placed hospitals, medical groups, private practitioners and other providers in a perilous position. Cumbersome and bureaucratic third party billing systems with long time-to-collection waiting periods have resulted in inconsistent cash flows and limited capital for growth. Nationwide, two-thirds of physicians work in practices that are set up as small business. Payment cuts 18% over four years, together with soaring malpractice premiums and other overhead costs, have threatened to put such practices out of businesses. More than 50% of doctors have deferred plans to purchase much-needed new equipment, and 30% either have laid off staff or are planning layoffs in the near future.
What Factoring "Is Not:"
• A Loan - Factoring is the sale of your medical claims for services already delivered
• Offered By Banks - Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks.
Why not simply pick up the phone and call a bank for a loan to get through the crisis? Many of you already tried that and have been surprised to find that the average practice may not have sufficient credit and assets with which to secure adequate working capital. Additionally, the traditional banking loan application and approval process is long and involved. Debt is created for the practice to repay, and personal guarantees are required. The practice becomes less desirable for resale or acquisition.
Unlike bank lines that can tie up all of your assets, factoring involves only your third party medical claims
• No collateral other than accounts receivables
• No financial guarantees
• Unlimited amount of dollars
Factoring provides working capital without adding debt to your balance sheet. There is no predetermined maximum limit. This working capital arrangement is not limited in amount as many bank products are nor is it subject to banking "regulations."
Surveys of physicians have identified the following immediate needs:
The creation of solid dependable cash flow
Decrease in the reimbursement interval between the time service is provided and payment is received
Increase in the overall percentage of claims collected
Reduction in administrative costs
Ready availability of cash for new equipment, expansion of office space, the addition of new partners, and practice marketing
This “wish list” would be complete if access to this working capital could be created debt-free. The physician practice would then have the financial freedom to focus on business growth and patient satisfaction, instead of focusing on how to meet the next payroll or malpractice premium payment. Is such a solution possible? Fortunately, the answer is YES!
Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.
http://www.peacockcapital.cominfo@peacockcapital.com
Article Source: http://EzineArticles.com/?expert=Afra_AmirSanjari
The Rx for Ailing Cash Flow
The current adverse financial structure of the healthcare industry has placed hospitals, medical groups, private practitioners and other providers in a perilous position. Cumbersome and bureaucratic third party billing systems with long time-to-collection waiting periods have resulted in inconsistent cash flows and limited capital for growth. Nationwide, two-thirds of physicians work in practices that are set up as small business. Payment cuts 18% over four years, together with soaring malpractice premiums and other overhead costs, have threatened to put such practices out of businesses. More than 50% of doctors have deferred plans to purchase much-needed new equipment, and 30% either have laid off staff or are planning layoffs in the near future.
What Factoring "Is Not:"
• A Loan - Factoring is the sale of your medical claims for services already delivered
• Offered By Banks - Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks.
Why not simply pick up the phone and call a bank for a loan to get through the crisis? Many of you already tried that and have been surprised to find that the average practice may not have sufficient credit and assets with which to secure adequate working capital. Additionally, the traditional banking loan application and approval process is long and involved. Debt is created for the practice to repay, and personal guarantees are required. The practice becomes less desirable for resale or acquisition.
Unlike bank lines that can tie up all of your assets, factoring involves only your third party medical claims
• No collateral other than accounts receivables
• No financial guarantees
• Unlimited amount of dollars
Factoring provides working capital without adding debt to your balance sheet. There is no predetermined maximum limit. This working capital arrangement is not limited in amount as many bank products are nor is it subject to banking "regulations."
Surveys of physicians have identified the following immediate needs:
The creation of solid dependable cash flow
Decrease in the reimbursement interval between the time service is provided and payment is received
Increase in the overall percentage of claims collected
Reduction in administrative costs
Ready availability of cash for new equipment, expansion of office space, the addition of new partners, and practice marketing
This “wish list” would be complete if access to this working capital could be created debt-free. The physician practice would then have the financial freedom to focus on business growth and patient satisfaction, instead of focusing on how to meet the next payroll or malpractice premium payment. Is such a solution possible? Fortunately, the answer is YES!
Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.
http://www.peacockcapital.cominfo@peacockcapital.com
Article Source: http://EzineArticles.com/?expert=Afra_AmirSanjari
Friday, July 3, 2009
Why Winning the Money Game Takes Discipline and Personal Finance Secrets Are Worthless
by Ariel Pryor
Are you sick of hearing countless schemes and gurus whispering the need for personal finance secrets? The truth is none of those fancy plans are needed. The following article will explain why winning the money game takes discipline and personal finance secrets are worthless.
Today's economic landscape is filled with advice about how you should best invest your money, whether in the stock market, a marketing scheme, precious metals investing, real estate, or some other fancy plan for creating wealth. Have you ever noticed that they usually mention very little about the risks involved in such ventures, often making it seem that they are sure bets and your financial rewards await all those who even try.
Well the reality of these investment schemes for wealth building is often very different. The stock market can drop, companies can go out of business, the market can fall out from under real estate, businesses can fail, the list is endless. Any personal finance advice that doesn't involve sensible research on your part, responsibility for your money and your choices, and financial discipline is to be avoided.
Don't misunderstand me. I am not averse to risk and winning the money game involved managed risk on a continual basis for true success. But the truth about personal finance is that there are very few true secrets, and if there are any at all, it is the sound advice that has resounded as common sense for generations.
Winning the money game and creating financial increase in your life requires discipline and attention to your finances. Spend less money than you earn each month, and do not live beyond your current means. I believe in big dreams, huge dreams in fact, but winning the money game requires living in your reality of now while you work to create your reality of tomorrow.
Personal finance is not about the next big secret investment that will earn you tons of money fast. Rather with sound financial practices and following the rules of money you will be able to increase your wealth over time regardless of your current income or situation. Sound practices of saving, and creating value in all your interactions will head you in the right direction towards winning the money game every time.
Budget your time, create a financial goal that will inspire you and have the discipline to take action towards your goal each and every day. Simple disciplines that have profound consequences on your personal finances.
Ariel Pryor is a credit expert who counsels and helps people with Really Bad Credit to get the loans and credit cards and begin rebuilding their credit. If you found this article helpful, let me help you save money and time finding your next Loans for Bad Credit.
Article Source: http://EzineArticles.com/?expert=Ariel_Pryor
Are you sick of hearing countless schemes and gurus whispering the need for personal finance secrets? The truth is none of those fancy plans are needed. The following article will explain why winning the money game takes discipline and personal finance secrets are worthless.
Today's economic landscape is filled with advice about how you should best invest your money, whether in the stock market, a marketing scheme, precious metals investing, real estate, or some other fancy plan for creating wealth. Have you ever noticed that they usually mention very little about the risks involved in such ventures, often making it seem that they are sure bets and your financial rewards await all those who even try.
Well the reality of these investment schemes for wealth building is often very different. The stock market can drop, companies can go out of business, the market can fall out from under real estate, businesses can fail, the list is endless. Any personal finance advice that doesn't involve sensible research on your part, responsibility for your money and your choices, and financial discipline is to be avoided.
Don't misunderstand me. I am not averse to risk and winning the money game involved managed risk on a continual basis for true success. But the truth about personal finance is that there are very few true secrets, and if there are any at all, it is the sound advice that has resounded as common sense for generations.
Winning the money game and creating financial increase in your life requires discipline and attention to your finances. Spend less money than you earn each month, and do not live beyond your current means. I believe in big dreams, huge dreams in fact, but winning the money game requires living in your reality of now while you work to create your reality of tomorrow.
Personal finance is not about the next big secret investment that will earn you tons of money fast. Rather with sound financial practices and following the rules of money you will be able to increase your wealth over time regardless of your current income or situation. Sound practices of saving, and creating value in all your interactions will head you in the right direction towards winning the money game every time.
Budget your time, create a financial goal that will inspire you and have the discipline to take action towards your goal each and every day. Simple disciplines that have profound consequences on your personal finances.
Ariel Pryor is a credit expert who counsels and helps people with Really Bad Credit to get the loans and credit cards and begin rebuilding their credit. If you found this article helpful, let me help you save money and time finding your next Loans for Bad Credit.
Article Source: http://EzineArticles.com/?expert=Ariel_Pryor
Avoid Financial Disaster with Good Planning
By: Gbeminyi
It’s tough to get by financially in today’s fast-paced life. With mortgages, car notes and massive amounts of credit card debt, most people struggle to get by from month to month.
With most people doing what they can just to pay their bills, few people are prepared for the unlikely event of a financial disaster. They come in many forms; a storm like Hurricane Katrina, a loss of job, or a sudden illness can break anyone who isn’t prepared for an unexpected interruption in their financial life. But it isn’t all that difficult to make preparations that will help you in times of a money crisis.
All it takes is a bit of planning ahead of time.
Here are a few things that will help you be prepared for the unexpected:
Get an ATM/Debit card - You may not regularly use cash or have a need for a debit card, but there are some circumstances where it may be necessary. People from New Orleans who were temporarily displaced by Hurricane Katrina would have benefited from having access to cash even while away from home. If you don’t use one regularly, get one anyway and keep it in a safe place.
Sign up for direct deposit - With direct deposit, you will know that your paycheck will be in your bank account even if you cannot, for whatever reason, physically get to your bank. This will help you in the event of illness or natural disaster that may have your local bank temporarily closed.
Sign up for online bill paying - You can pay bills even if you aren’t at home via the Internet. You don’t have to use the service, but it may come in handy at a time when you least expect it.
Save some emergency cash - Financial experts recommend that you save at least three months’ worth of financial expenses. That’s difficult, but every little bit can help. Try to cut back on a few unnecessary items, such as that tall latte you buy every day. It adds up, and you never know when you may need to access that emergency cash.
Set up a home equity line of credit - Unlike a home equity loan, which provides you with a lump sum of cash right away, a home equity line of credit provides you with cash that you can use a little at a time, and only when you need it. If you don’t actually take any money out, you don’t have monthly payments. But if an emergency strikes, you’ll have cash available. This can be particularly helpful if you find yourself out of work for a short period of time. Your bank won’t lend you money when you are out of work, so plan ahead of time and the money will be ready when you are.
A little bit of planning can go a long way when a financial emergency strikes. If you plan for it now, you will have fewer worries later.
Article Source: http://www.articlesbase.com/finance-articles/avoid-financial-disaster-with-good-planning-1008803.html
It’s tough to get by financially in today’s fast-paced life. With mortgages, car notes and massive amounts of credit card debt, most people struggle to get by from month to month.
With most people doing what they can just to pay their bills, few people are prepared for the unlikely event of a financial disaster. They come in many forms; a storm like Hurricane Katrina, a loss of job, or a sudden illness can break anyone who isn’t prepared for an unexpected interruption in their financial life. But it isn’t all that difficult to make preparations that will help you in times of a money crisis.
All it takes is a bit of planning ahead of time.
Here are a few things that will help you be prepared for the unexpected:
Get an ATM/Debit card - You may not regularly use cash or have a need for a debit card, but there are some circumstances where it may be necessary. People from New Orleans who were temporarily displaced by Hurricane Katrina would have benefited from having access to cash even while away from home. If you don’t use one regularly, get one anyway and keep it in a safe place.
Sign up for direct deposit - With direct deposit, you will know that your paycheck will be in your bank account even if you cannot, for whatever reason, physically get to your bank. This will help you in the event of illness or natural disaster that may have your local bank temporarily closed.
Sign up for online bill paying - You can pay bills even if you aren’t at home via the Internet. You don’t have to use the service, but it may come in handy at a time when you least expect it.
Save some emergency cash - Financial experts recommend that you save at least three months’ worth of financial expenses. That’s difficult, but every little bit can help. Try to cut back on a few unnecessary items, such as that tall latte you buy every day. It adds up, and you never know when you may need to access that emergency cash.
Set up a home equity line of credit - Unlike a home equity loan, which provides you with a lump sum of cash right away, a home equity line of credit provides you with cash that you can use a little at a time, and only when you need it. If you don’t actually take any money out, you don’t have monthly payments. But if an emergency strikes, you’ll have cash available. This can be particularly helpful if you find yourself out of work for a short period of time. Your bank won’t lend you money when you are out of work, so plan ahead of time and the money will be ready when you are.
A little bit of planning can go a long way when a financial emergency strikes. If you plan for it now, you will have fewer worries later.
Article Source: http://www.articlesbase.com/finance-articles/avoid-financial-disaster-with-good-planning-1008803.html
How to Achieve Family Flexibility in Times of Financial Flux
by Rosemary Lichtman, Ph.D.
As Leo Tolstoy put it in Anna Karenina, "Happy families are all alike; every unhappy family is unhappy in its own way." What about other family traits? Are families who are flexible all flexible in the same way? And are rigid families each set in their own ways?
Today, families are being shaken up in record numbers as financial turmoil hits home. With all the job-related uncertainties facing them, families must be able to make changes in order to adjust to the current economic climate. They may even need to adapt to role reversals when a husband experiences a job loss and the family must depend on the wife's wages alone.
Even before the current recession, women made up close to one-half of the work force. This percentage will likely increase since men held over 80% of the over 6 million jobs that have already been lost since last November. With more and more companies faltering and failing, the unemployment rate continues to rise, reaching 10% in some areas - the highest levels in over 25 years. As more men lose their jobs, the financial responsibilities of families are increasingly falling on the already burdened shoulders of women. When a woman becomes the sole breadwinner, the dynamics of the relationship change for everyone - husband/father, wife/mother and children. And as the family deals with the job loss, domestic stability may crumble and tensions climb. But it doesn't have to be that way. Women can make adjustments at home that will help the family adapt to the turbulent changes in society.
Here are six tips to help you, and other women, combat the reorganization your family life may be facing as the economy continues to impact everyone.
1. Educate yourself about family finances. Get involved with the family budget as you seek out ways to reduce your expenses. Keep track of minor expenditures that can add up, like dinners out, entertainment and credit card interest rate costs. Think outside the box as you educate yourself on new possibilities open to you. They may involve dramatic changes like downsizing your home, selling possessions or even giving up plans for early retirement.
2. Expect a husband who has lost his job to have an emotional reaction. It's normal to feel frustrated, tense and anxious at this time. But look for signs of more serious emotional changes such as depression, anger, or feelings of worthlessness. Stress can lead to dysfunctional responses like excess drinking, gambling or acting out. Acknowledging the common effects of job loss will help you avoid conflicts over minor issues.
3. Schedule family meetings to discuss changes you want to make. Get together to decide what needs to be done and who is best able to take on the responsibility of household chores. Involve your teenagers and emerging adult children so that they know what is expected of them. Take help from the family, especially if you are a Sandwiched Boomer. Everyone will feel better when they are doing their fair share. Present these challenges as a way to increase family resolve as you distinguish between wants and needs.
4. Let go of control. For many women, you are likely juggling work and parenting responsibilities already. Figures from the Bureau of Labor Statistics indicate that two-thirds of women with children under 18 work outside the home. Now is the time to prioritize and simplify. Don't hesitate to ask your husband for more help with housework and the kids. Let go of how you did things before and allow your husband to do it his way. And have realistic expectations. It need not be perfect, as long as it gets done. Trust your family as you do yourself. Set reasonable standards, not ideal ones.
5. Take better care of yourself. Discover how to nourish yourself and set aside the essential time for this. Take a walk, stop to watch a beautiful sunset, listen to soothing music. Practice deep breathing to relax and positive imagery to improve your mood. Reach out to your friends for support. Draw on your spiritual connection for grounding as you find your center.
6. Stay optimistic and flexible. Redefine the crisis you are facing as a challenge and your fears as opportunities for change. Review how you have solved other major problems before. Focus on what you can do about solutions even though you didn't create the problem itself. Remind yourself of all you are grateful for as you rebalance your life. Don't give up when things don't work out as you originally expected. Instead, put your Plan B in place.
There will be new perspectives and positives that come out of this ordeal for you and your whole family. Be proud of how you all are rising to the challenges. Recognize your strengths, assets, resources and the foundation of the family that will carry you through this transition. Change comes when you least expect it. The realities of the economy may eventually improve the careers of women even more than feminism alone did. In the meantime, your flexibility will serve you in good stead.
Article Source: http://EzineArticles.com/?expert=Rosemary_Lichtman,_Ph.D.
As Leo Tolstoy put it in Anna Karenina, "Happy families are all alike; every unhappy family is unhappy in its own way." What about other family traits? Are families who are flexible all flexible in the same way? And are rigid families each set in their own ways?
Today, families are being shaken up in record numbers as financial turmoil hits home. With all the job-related uncertainties facing them, families must be able to make changes in order to adjust to the current economic climate. They may even need to adapt to role reversals when a husband experiences a job loss and the family must depend on the wife's wages alone.
Even before the current recession, women made up close to one-half of the work force. This percentage will likely increase since men held over 80% of the over 6 million jobs that have already been lost since last November. With more and more companies faltering and failing, the unemployment rate continues to rise, reaching 10% in some areas - the highest levels in over 25 years. As more men lose their jobs, the financial responsibilities of families are increasingly falling on the already burdened shoulders of women. When a woman becomes the sole breadwinner, the dynamics of the relationship change for everyone - husband/father, wife/mother and children. And as the family deals with the job loss, domestic stability may crumble and tensions climb. But it doesn't have to be that way. Women can make adjustments at home that will help the family adapt to the turbulent changes in society.
Here are six tips to help you, and other women, combat the reorganization your family life may be facing as the economy continues to impact everyone.
1. Educate yourself about family finances. Get involved with the family budget as you seek out ways to reduce your expenses. Keep track of minor expenditures that can add up, like dinners out, entertainment and credit card interest rate costs. Think outside the box as you educate yourself on new possibilities open to you. They may involve dramatic changes like downsizing your home, selling possessions or even giving up plans for early retirement.
2. Expect a husband who has lost his job to have an emotional reaction. It's normal to feel frustrated, tense and anxious at this time. But look for signs of more serious emotional changes such as depression, anger, or feelings of worthlessness. Stress can lead to dysfunctional responses like excess drinking, gambling or acting out. Acknowledging the common effects of job loss will help you avoid conflicts over minor issues.
3. Schedule family meetings to discuss changes you want to make. Get together to decide what needs to be done and who is best able to take on the responsibility of household chores. Involve your teenagers and emerging adult children so that they know what is expected of them. Take help from the family, especially if you are a Sandwiched Boomer. Everyone will feel better when they are doing their fair share. Present these challenges as a way to increase family resolve as you distinguish between wants and needs.
4. Let go of control. For many women, you are likely juggling work and parenting responsibilities already. Figures from the Bureau of Labor Statistics indicate that two-thirds of women with children under 18 work outside the home. Now is the time to prioritize and simplify. Don't hesitate to ask your husband for more help with housework and the kids. Let go of how you did things before and allow your husband to do it his way. And have realistic expectations. It need not be perfect, as long as it gets done. Trust your family as you do yourself. Set reasonable standards, not ideal ones.
5. Take better care of yourself. Discover how to nourish yourself and set aside the essential time for this. Take a walk, stop to watch a beautiful sunset, listen to soothing music. Practice deep breathing to relax and positive imagery to improve your mood. Reach out to your friends for support. Draw on your spiritual connection for grounding as you find your center.
6. Stay optimistic and flexible. Redefine the crisis you are facing as a challenge and your fears as opportunities for change. Review how you have solved other major problems before. Focus on what you can do about solutions even though you didn't create the problem itself. Remind yourself of all you are grateful for as you rebalance your life. Don't give up when things don't work out as you originally expected. Instead, put your Plan B in place.
There will be new perspectives and positives that come out of this ordeal for you and your whole family. Be proud of how you all are rising to the challenges. Recognize your strengths, assets, resources and the foundation of the family that will carry you through this transition. Change comes when you least expect it. The realities of the economy may eventually improve the careers of women even more than feminism alone did. In the meantime, your flexibility will serve you in good stead.
Article Source: http://EzineArticles.com/?expert=Rosemary_Lichtman,_Ph.D.
What Does a Good Financial Advisor Look Like?
by Garrett Maddox
So many people in America don't know how to plan for their future. Unfortunately, that puts them at risk to be taken advantage of by financial advisors that are out to make a quick commission. Those are the ones that talk a great talk, sign you up, and you never see or hear from them again unless they want to sell you something. I think those people should be taken out back and given a good whoopin' (Can't you tell I am from Texas?)
Don't feel discouraged, there are advisors out there that want to help you. Here are a few ways you can arm yourself so you don't get taken advantage of.
1. Does the advisor take the time to explain everything to you? Even if you don't have questions, they should take time to educate you on the process so you won't have any surprises; i.e. all expenses you are paying for their services.
2. Does the advisor ask you how often you would like to be contacted? Everyone is different when it comes to this. Some like once a year and others are once a quarter. It really doesn't matter, but they should contact you as often as you want. However, be reasonable. They can't realistically call you daily or weekly. Remember, they have other clients to serve.
3. Ask your friends about who they work with. If they love their advisor, they will tell you volumes of good stuff about them. If they can't think of anything good, beware!
4. Trust your gut. If you aren't comfortable signing on the dotted line, don't. Discuss your hesitation with the advisor you are talking to. If they still try to push you into something....RUN, Forrest, RUN!!!!
5. Check out the advisor's website for more information. If they don't have one, check out the firm's site.
6. Ask questions. Ask questions. Ask questions. If they throw out a term you don't understand, don't nod your head and glass over it. Tell them to stop and explain it in kitchen English. If they are a good advisor, they will continuously ask if you have any questions.
7. Do they ask you a lot of questions? Great advisors usually don't talk much because they are asking you questions so they know more about you to make proper recommendations. If they talk most of the time, they aren't a good listener. Do you want to work with someone who won't listen to you? I'm thinking no.
When it all comes down to it, you need to make sure that the advisor you want to work with is someone you feel has your best interest at heart. With a few appointments with them, you will be able to tell.
Garrett Maddox is The Singing Financial Advisor in Houston, Texas. His financial planning practice is primarily focused in The Woodlands. A second generation financial advisor, he is passionate about educating his clients on how to reach their financial goals. He doesn't sing his financial advice, but hosts social events for his clients and guests where he entertains them with his vocal talents. For more information about his practice visit his website at http://www.garrettmaddox.wrfa.com or call (281) 893-6020
Article Source: http://EzineArticles.com/?expert=Garrett_Maddox
So many people in America don't know how to plan for their future. Unfortunately, that puts them at risk to be taken advantage of by financial advisors that are out to make a quick commission. Those are the ones that talk a great talk, sign you up, and you never see or hear from them again unless they want to sell you something. I think those people should be taken out back and given a good whoopin' (Can't you tell I am from Texas?)
Don't feel discouraged, there are advisors out there that want to help you. Here are a few ways you can arm yourself so you don't get taken advantage of.
1. Does the advisor take the time to explain everything to you? Even if you don't have questions, they should take time to educate you on the process so you won't have any surprises; i.e. all expenses you are paying for their services.
2. Does the advisor ask you how often you would like to be contacted? Everyone is different when it comes to this. Some like once a year and others are once a quarter. It really doesn't matter, but they should contact you as often as you want. However, be reasonable. They can't realistically call you daily or weekly. Remember, they have other clients to serve.
3. Ask your friends about who they work with. If they love their advisor, they will tell you volumes of good stuff about them. If they can't think of anything good, beware!
4. Trust your gut. If you aren't comfortable signing on the dotted line, don't. Discuss your hesitation with the advisor you are talking to. If they still try to push you into something....RUN, Forrest, RUN!!!!
5. Check out the advisor's website for more information. If they don't have one, check out the firm's site.
6. Ask questions. Ask questions. Ask questions. If they throw out a term you don't understand, don't nod your head and glass over it. Tell them to stop and explain it in kitchen English. If they are a good advisor, they will continuously ask if you have any questions.
7. Do they ask you a lot of questions? Great advisors usually don't talk much because they are asking you questions so they know more about you to make proper recommendations. If they talk most of the time, they aren't a good listener. Do you want to work with someone who won't listen to you? I'm thinking no.
When it all comes down to it, you need to make sure that the advisor you want to work with is someone you feel has your best interest at heart. With a few appointments with them, you will be able to tell.
Garrett Maddox is The Singing Financial Advisor in Houston, Texas. His financial planning practice is primarily focused in The Woodlands. A second generation financial advisor, he is passionate about educating his clients on how to reach their financial goals. He doesn't sing his financial advice, but hosts social events for his clients and guests where he entertains them with his vocal talents. For more information about his practice visit his website at http://www.garrettmaddox.wrfa.com or call (281) 893-6020
Article Source: http://EzineArticles.com/?expert=Garrett_Maddox
Thursday, July 2, 2009
Four Investments Carry 'Government' Asset Protection - But With Limitations
by Shane Flait
Protecting your assets from unfair or unjust complaints is an important part of financial and estate planning. But before constructing a comprehensive asset protection plan, you should know what protection the government offers for 4 investment categories. Below, I overview from whom you are - and are not- protected and some limitations for these 4 investments categories: qualified plans, life insurance, annuities, and your homestead.
Qualified plans carry protection under bankruptcy Qualified plans are the tax-advantaged plans whose rules are regulated by the federal government. These plans are geared to induce people to save a portion of their working income for use during retirement. They include all the defined-benefit and defined-contribution employer retirement plans. I include your IRAs - traditional or Roth versions - with them, too.
These plans carry federal protection against creditors under bankruptcy. They don't carry protection against government tax claims or domestic relation claims associated with divorce or child support.
All the employer retirement plans have unlimited creditor protection in bankruptcy. Your personal IRA or Roth IRA is protected but only up to $1 million dollars - unless it was fully funded by a rollover from a company plan.
The remaining investment protections of these are regulated by the state. But the amount and nature of the protection varies with each state. So you need to check your own state's rules. Nevertheless you should be aware of what the issues are for each investment.
Qualified plans - short of bankruptcy claims For any legal action short of bankruptcy, your state law determines how much protection your qualified plan assets have. State laws vary on protection offered for:
* plan withdrawals,
* inherited plans to beneficiary
Most states will exempt qualified plan assets but only while they're in the retirement account. Some states, though, limit the exempt from creditor actions. The limit may be $200,000 or what is 'reasonably necessary' to support the owner and his or her dependents while satisfying some of the creditors' claims. Of course, the phrase 'reasonably necessary' promotes litigation by claimants.
Your IRAs can be vulnerable. Depending on how must protection your state gives to individual IRAs, your assets may be better off in your company plan than rolled over into your IRA.
Life insurance and Annuity Protection Again, these are regulated by your state's laws. Some will protect the cash surrender value of life insurance as well as annuity payments from creditor claims. Other states will restrict protection only for a beneficiary's interest necessary for his support.
As an example, those states with good asset protection protect the owner's cash value against creditors of the owner. Bad states will either not protect the life insurance at all, or just protect proceeds that are paid to beneficiaries when the insured dies. In the latter case, the beneficiary really has little protection since the creditor can gut the cash value of the contract leaving little or nothing for the beneficiary.
Likewise, exemptions for annuities don't always protect the owner's cash value in the annuity. So, to benefit by the exemption, the owner has to annuitize the annuity and start taking payments. Also if there's a state exemption allowing annuity payments for your "support", beware that this may leave you with a very small amount.
Homestead exemptions The extent to which your homestead - i.e. your main living residence- is protected is determined by your state's Homestead Act; and this varies greatly among the states. So you'll need to check out your state's limit.
Realize that your vacation or second home isn't protected by a state homestead exemption. And a homestead exemption doesn't protect you from a federal tax lien.
An estate planning conflict with state exemptions Generally, for state exemptions to protect you, the protected asset must be held in your own name. But then, those assets are trapped in your estate for purposes of federal estate taxes. And for large estates, the federal estate taxes can take up to 55% of the value of those assets.
So the wealthy should forget about state exemptions in favour of transferring their assets to trusts or other entities for the benefit of their heirs. These devices may be better for protecting them from future creditors as well as the ravages of federal estate tax.
Remember, you'll find very little or no protection under government exemptions for claims against you for taxes and domestic relations orders - such as child support. Such claims affect the majority of people. Nevertheless these 4 investment categories above can be helpful in your asset protection program for some of your assets.
Shane Flait is a writer and consultant on financial, legal, tax, and retirement issues. He explains the issues and gives you workable strategies to accomplish your goals. Find out more and get a free report on Managing Your Retirement => http://www.easyretirementknowhow.com/FreeReportandSignUp.htm
Article Source: http://EzineArticles.com/?expert=Shane_Flait
Protecting your assets from unfair or unjust complaints is an important part of financial and estate planning. But before constructing a comprehensive asset protection plan, you should know what protection the government offers for 4 investment categories. Below, I overview from whom you are - and are not- protected and some limitations for these 4 investments categories: qualified plans, life insurance, annuities, and your homestead.
Qualified plans carry protection under bankruptcy Qualified plans are the tax-advantaged plans whose rules are regulated by the federal government. These plans are geared to induce people to save a portion of their working income for use during retirement. They include all the defined-benefit and defined-contribution employer retirement plans. I include your IRAs - traditional or Roth versions - with them, too.
These plans carry federal protection against creditors under bankruptcy. They don't carry protection against government tax claims or domestic relation claims associated with divorce or child support.
All the employer retirement plans have unlimited creditor protection in bankruptcy. Your personal IRA or Roth IRA is protected but only up to $1 million dollars - unless it was fully funded by a rollover from a company plan.
The remaining investment protections of these are regulated by the state. But the amount and nature of the protection varies with each state. So you need to check your own state's rules. Nevertheless you should be aware of what the issues are for each investment.
Qualified plans - short of bankruptcy claims For any legal action short of bankruptcy, your state law determines how much protection your qualified plan assets have. State laws vary on protection offered for:
* plan withdrawals,
* inherited plans to beneficiary
Most states will exempt qualified plan assets but only while they're in the retirement account. Some states, though, limit the exempt from creditor actions. The limit may be $200,000 or what is 'reasonably necessary' to support the owner and his or her dependents while satisfying some of the creditors' claims. Of course, the phrase 'reasonably necessary' promotes litigation by claimants.
Your IRAs can be vulnerable. Depending on how must protection your state gives to individual IRAs, your assets may be better off in your company plan than rolled over into your IRA.
Life insurance and Annuity Protection Again, these are regulated by your state's laws. Some will protect the cash surrender value of life insurance as well as annuity payments from creditor claims. Other states will restrict protection only for a beneficiary's interest necessary for his support.
As an example, those states with good asset protection protect the owner's cash value against creditors of the owner. Bad states will either not protect the life insurance at all, or just protect proceeds that are paid to beneficiaries when the insured dies. In the latter case, the beneficiary really has little protection since the creditor can gut the cash value of the contract leaving little or nothing for the beneficiary.
Likewise, exemptions for annuities don't always protect the owner's cash value in the annuity. So, to benefit by the exemption, the owner has to annuitize the annuity and start taking payments. Also if there's a state exemption allowing annuity payments for your "support", beware that this may leave you with a very small amount.
Homestead exemptions The extent to which your homestead - i.e. your main living residence- is protected is determined by your state's Homestead Act; and this varies greatly among the states. So you'll need to check out your state's limit.
Realize that your vacation or second home isn't protected by a state homestead exemption. And a homestead exemption doesn't protect you from a federal tax lien.
An estate planning conflict with state exemptions Generally, for state exemptions to protect you, the protected asset must be held in your own name. But then, those assets are trapped in your estate for purposes of federal estate taxes. And for large estates, the federal estate taxes can take up to 55% of the value of those assets.
So the wealthy should forget about state exemptions in favour of transferring their assets to trusts or other entities for the benefit of their heirs. These devices may be better for protecting them from future creditors as well as the ravages of federal estate tax.
Remember, you'll find very little or no protection under government exemptions for claims against you for taxes and domestic relations orders - such as child support. Such claims affect the majority of people. Nevertheless these 4 investment categories above can be helpful in your asset protection program for some of your assets.
Shane Flait is a writer and consultant on financial, legal, tax, and retirement issues. He explains the issues and gives you workable strategies to accomplish your goals. Find out more and get a free report on Managing Your Retirement => http://www.easyretirementknowhow.com/FreeReportandSignUp.htm
Article Source: http://EzineArticles.com/?expert=Shane_Flait
Financial Advisers - Your Country Needs You!
by Roger Bourdon
In times of recession more and more people seek out good financial advice. Interestingly enough, there are fewer Financial Advisers in the UK than ever before but demand for financial advice has never been higher. So now is an excellent time to train to become a Financial Adviser and to build your own business and inherent job security. A successful investment and pension adviser will earn a six figure sum after competent advisor status is achieved.
To become a Financial Adviser and have the ability to give customers advice on all their financial needs such as pension planning, investment advice and wealth management, you first of all need to be qualified. Now there are many companies offering financial services courses to enable you to become a fully qualified Mortgage Broker, Insurance Broker, Business Protection Adviser, Equity Release specialist, Financial Adviser or Independent Financial Adviser, so choose your training company carefully. Don't just choose on the basis of price, but look carefully at their credentials.
Firstly are they FSA registered? You want to ensure your training is delivered by someone recognised and regulated by the industry. Does the company have a body of trainers and not just one? You don't want to suffer a situation that the course you have looked forward to has been cancelled because the trainer is off sick. Can they offer you a full range of courses? You want continuity of training as you progress from one qualification to the next. Do they have a successful track record? You need to find an organisation that not only has experience of training, but is successful at what it does. Do they offer free training days so you can see what's involved before you commit yourself to that career? Only if the company satisfies these criteria is it worth looking at the company further.
Last year New Leaf Training, the training division of New Leaf Distribution, successfully trained over 1,400 people in a variety of financial courses such as CeMAP (Certificate in Mortgage Advice and Practice), CeRER (Certificate in Regulated Equity Release), CeFA Certificate in Financial Advice and the new Diploma for Financial Advisers (DipFA).
New Leaf Distribution is an academy of learning backed by over twenty two years experience servicing the insurance industry. Mark Hobbs is the founder of the company and has developed financial training modules and programmes that will drive you towards a pass in your chosen area. New Leaf's principle is not to focus on revising the course, but to teach the key areas students need to understand in order to pass the exams. Revision courses are not providing the essential ingredients, as to pass you need to really understand the principles. These are what New Leaf teaches best and does so in a positive and motivated environment.
They are not simply interested in just getting you through your qualification, but in providing training by one of their twelve qualified trainers in a dynamic environment that encourages innovation and entrepreneurial spirit. Furthermore when you need advice and support in finding the right position they will be there for you. Moreover, they will continue to train you until you pass, so you know the support you need will always be there for you.
New Leaf have won the most prestigious award for training from the IFS School of Finance and are Ministry of Defense approved to train staff leaving the Armed Forces - high approval indeed. Needless to day they FSA authorised (you can check them out on the FSA website - http://www.fsa.gov.uk (their FSA number is 460421)
If you are interested in a career in financial services then contact New Leaf Training on 01702 431130 and quote CCFS to be enrolled on a completely free training day when we will go through some serious training to cover the mortgage and financial advisor qualifications and look at all the available opportunities open to you.
Get your free day NOW - by calling 01702 431130 and quoting CCFS
Article Source: http://EzineArticles.com/?expert=Roger_Bourdon
In times of recession more and more people seek out good financial advice. Interestingly enough, there are fewer Financial Advisers in the UK than ever before but demand for financial advice has never been higher. So now is an excellent time to train to become a Financial Adviser and to build your own business and inherent job security. A successful investment and pension adviser will earn a six figure sum after competent advisor status is achieved.
To become a Financial Adviser and have the ability to give customers advice on all their financial needs such as pension planning, investment advice and wealth management, you first of all need to be qualified. Now there are many companies offering financial services courses to enable you to become a fully qualified Mortgage Broker, Insurance Broker, Business Protection Adviser, Equity Release specialist, Financial Adviser or Independent Financial Adviser, so choose your training company carefully. Don't just choose on the basis of price, but look carefully at their credentials.
Firstly are they FSA registered? You want to ensure your training is delivered by someone recognised and regulated by the industry. Does the company have a body of trainers and not just one? You don't want to suffer a situation that the course you have looked forward to has been cancelled because the trainer is off sick. Can they offer you a full range of courses? You want continuity of training as you progress from one qualification to the next. Do they have a successful track record? You need to find an organisation that not only has experience of training, but is successful at what it does. Do they offer free training days so you can see what's involved before you commit yourself to that career? Only if the company satisfies these criteria is it worth looking at the company further.
Last year New Leaf Training, the training division of New Leaf Distribution, successfully trained over 1,400 people in a variety of financial courses such as CeMAP (Certificate in Mortgage Advice and Practice), CeRER (Certificate in Regulated Equity Release), CeFA Certificate in Financial Advice and the new Diploma for Financial Advisers (DipFA).
New Leaf Distribution is an academy of learning backed by over twenty two years experience servicing the insurance industry. Mark Hobbs is the founder of the company and has developed financial training modules and programmes that will drive you towards a pass in your chosen area. New Leaf's principle is not to focus on revising the course, but to teach the key areas students need to understand in order to pass the exams. Revision courses are not providing the essential ingredients, as to pass you need to really understand the principles. These are what New Leaf teaches best and does so in a positive and motivated environment.
They are not simply interested in just getting you through your qualification, but in providing training by one of their twelve qualified trainers in a dynamic environment that encourages innovation and entrepreneurial spirit. Furthermore when you need advice and support in finding the right position they will be there for you. Moreover, they will continue to train you until you pass, so you know the support you need will always be there for you.
New Leaf have won the most prestigious award for training from the IFS School of Finance and are Ministry of Defense approved to train staff leaving the Armed Forces - high approval indeed. Needless to day they FSA authorised (you can check them out on the FSA website - http://www.fsa.gov.uk (their FSA number is 460421)
If you are interested in a career in financial services then contact New Leaf Training on 01702 431130 and quote CCFS to be enrolled on a completely free training day when we will go through some serious training to cover the mortgage and financial advisor qualifications and look at all the available opportunities open to you.
Get your free day NOW - by calling 01702 431130 and quoting CCFS
Article Source: http://EzineArticles.com/?expert=Roger_Bourdon
Change the Way You Think and Live a High Income Life
by Raymond Aaron
Most people laugh at the idea that living a high income life is possible for them, seemingly at the flip of an internal switch. It is hard to think that they could be living the life they dreamed of by following a simple plan and changing the way they think.
Most of us are at places in our lives where a few small changes in us would drastically alter our lifestyle. Unfortunately, we somehow think that we are too old to change the way we look at problems. We even fear changing so much that it paralyzes us in other areas of our lives.
Even the thought of changing how we view things sends us into a panic, but it is most necessary to make corrections in our selves after self-reflection. Self-reflection is a difficult task to master. It is also a very necessary tool in accomplishing one's goals.
First, change how you see or think about goals and goal setting by understanding that the purpose of setting goals is to accomplish them. Instead of becoming a goal setter, become a goal accomplisher. This will be the beginning of changing how you see things.
Most people think it is impossible to will your way to financial success. Imagine the world without personal computers. If Bill Gates had simply given up on his dreams and goals, where would we be? Gates willed his way to the top of the computer industry for many years. Was he smarter than us? Perhaps, but he believed his goals to be real and attainable, and they were.
By now, every American is fully aware that we are in a global economic crisis. Families are forced to make decisions that sometimes alter their quality of life. Getting out of debt, or making financial decisions based on managing their debt is the best way for families to make it.
Managing debt can be as simple as paying off all small balance credit accounts. Once this task is completed, you can choose to continue paying balances down or save a few dollars and pay off major credit balances. The key in this scenario is not what we are doing, but the fact that we are doing something at all.
Managing debt can also mean not opening new credit accounts when you have what you really need already. Caring for one's family is not at question here, but if there are items that you could live without for now, it would be well worth it to do so. By not adding debt to your current situation, you are actively pursuing being debt free.
Whether you are looking to improve your financial picture or starting from scratch, living a high income lifestyle is attainable with a few actions. We must repeat those actions, or good habits, so often that they become second nature. By changing the way we see debt, or goal accomplishment, we will notice dramatic changes in your lives.
http://www.giftfromraymond.com has been teaching his true wealth secrets for over a quarter-century so you can double your income doing what you love.
Article Source: http://EzineArticles.com/?expert=Raymond_Aaron
Most people laugh at the idea that living a high income life is possible for them, seemingly at the flip of an internal switch. It is hard to think that they could be living the life they dreamed of by following a simple plan and changing the way they think.
Most of us are at places in our lives where a few small changes in us would drastically alter our lifestyle. Unfortunately, we somehow think that we are too old to change the way we look at problems. We even fear changing so much that it paralyzes us in other areas of our lives.
Even the thought of changing how we view things sends us into a panic, but it is most necessary to make corrections in our selves after self-reflection. Self-reflection is a difficult task to master. It is also a very necessary tool in accomplishing one's goals.
First, change how you see or think about goals and goal setting by understanding that the purpose of setting goals is to accomplish them. Instead of becoming a goal setter, become a goal accomplisher. This will be the beginning of changing how you see things.
Most people think it is impossible to will your way to financial success. Imagine the world without personal computers. If Bill Gates had simply given up on his dreams and goals, where would we be? Gates willed his way to the top of the computer industry for many years. Was he smarter than us? Perhaps, but he believed his goals to be real and attainable, and they were.
By now, every American is fully aware that we are in a global economic crisis. Families are forced to make decisions that sometimes alter their quality of life. Getting out of debt, or making financial decisions based on managing their debt is the best way for families to make it.
Managing debt can be as simple as paying off all small balance credit accounts. Once this task is completed, you can choose to continue paying balances down or save a few dollars and pay off major credit balances. The key in this scenario is not what we are doing, but the fact that we are doing something at all.
Managing debt can also mean not opening new credit accounts when you have what you really need already. Caring for one's family is not at question here, but if there are items that you could live without for now, it would be well worth it to do so. By not adding debt to your current situation, you are actively pursuing being debt free.
Whether you are looking to improve your financial picture or starting from scratch, living a high income lifestyle is attainable with a few actions. We must repeat those actions, or good habits, so often that they become second nature. By changing the way we see debt, or goal accomplishment, we will notice dramatic changes in your lives.
http://www.giftfromraymond.com has been teaching his true wealth secrets for over a quarter-century so you can double your income doing what you love.
Article Source: http://EzineArticles.com/?expert=Raymond_Aaron
Islamic Banking - Key Differences of Components Within a Financial Statements of an Islamic Bank
By Ken Low
Let us look at the key differences in presentation of financial statements between conventional an Islamic banking.
Statement of Financial Position (Balance Sheet)
In conventional accounting, the balance sheet has these few components, namely assets, liabilities and owners' equity. In Islamic banking, there is one additional component called "equity of unrestricted investment account holders".
In conventional banking, an asset is defined as an item with future economic benefit attached to it regardless whether there is legal control by the reporting bank. For Islamic banking, however, an item can be taken as an asset only when the Islamic bank has legal right to hold, use or dispose of the item.
The other unique feature is the "equity of unrestricted investment account holders". This additional component is to satisfy the set of customers who invest on the basis of mudarabah which calls for any losses to be borne by the investors (the customers themselves). It is therefore, important to disclose sufficient information to demonstrate the measures taken by the bank to ensure that the interests of this set of customers are considered as part of the strategy of the bank. In conventional banking, they will be treated as liabilities instead.
There are 2 forms of mudarabah contracts:-
Mudarabah Mutlaqah - This is the "unrestricted" mudarabah contract whereby the capital provider/owner allows total freedom to the bank to use the capital for its projects without conditions, specifications, restrictions or limits. The bank is free to enter into any trade agreements, whether normal or deferred or leasing basis, using the owners' capital. This form of mudarabah is typically used in replacement of the conventional fixed deposit product for retail customers.
Mudarabah Muqqayadah - This is the "restricted" mudarabah contract. The bank is given certain parameters (restrictions and conditions) on how to use the capital provided by the owners.
Statement of Changes in Restricted Investments and Their Equivalent
This is the statement to report the use of mudarabah muqqayadah investments whereby the bank is to undertake to use the funds for specific investments. This pool of fund must be separated from other funds as the returns from this fund will be shared among this particular group of investors.
Apart from the returns or losses for the group of restricted investors, the statement should also report profits or losses before deducting the investment manager's share of investment profits/losses. The bank's share of compensation as the investment agent is also known as mudarib.
Statement of Sources and Uses of Zakat and Charity Fund
This is required only when the bank established a zakat and charity fund whereby the bank acts as a fiduciary of that fund. The bank is responsible for collection and distribution of all or part of zakat and charity funds.
KL Management Services is a business process outsourcing company, offering company secretarial services, human resource, debt recovery & credit control, accounting and taxation and corporate advisory services to corporates and companies in Malaysia and Asia Pacific.
The people behind KLM are elites in their own industries, having years of experience and key figures in many public listed companies in Malaysia. KL Management Services is a professional accounting firm in Malaysia. Visit them at http://www.klmanagement.com.my/
Collaborating and in association with KL Management Services is Idelinq Services, a full-fledged marketing company offering off, on and above the line marketing services and IT infrastructure services in Malaysia. Get their latest update at http://www.elioe.com/
Article Source: http://EzineArticles.com/?expert=Ken_Low
Let us look at the key differences in presentation of financial statements between conventional an Islamic banking.
Statement of Financial Position (Balance Sheet)
In conventional accounting, the balance sheet has these few components, namely assets, liabilities and owners' equity. In Islamic banking, there is one additional component called "equity of unrestricted investment account holders".
In conventional banking, an asset is defined as an item with future economic benefit attached to it regardless whether there is legal control by the reporting bank. For Islamic banking, however, an item can be taken as an asset only when the Islamic bank has legal right to hold, use or dispose of the item.
The other unique feature is the "equity of unrestricted investment account holders". This additional component is to satisfy the set of customers who invest on the basis of mudarabah which calls for any losses to be borne by the investors (the customers themselves). It is therefore, important to disclose sufficient information to demonstrate the measures taken by the bank to ensure that the interests of this set of customers are considered as part of the strategy of the bank. In conventional banking, they will be treated as liabilities instead.
There are 2 forms of mudarabah contracts:-
Mudarabah Mutlaqah - This is the "unrestricted" mudarabah contract whereby the capital provider/owner allows total freedom to the bank to use the capital for its projects without conditions, specifications, restrictions or limits. The bank is free to enter into any trade agreements, whether normal or deferred or leasing basis, using the owners' capital. This form of mudarabah is typically used in replacement of the conventional fixed deposit product for retail customers.
Mudarabah Muqqayadah - This is the "restricted" mudarabah contract. The bank is given certain parameters (restrictions and conditions) on how to use the capital provided by the owners.
Statement of Changes in Restricted Investments and Their Equivalent
This is the statement to report the use of mudarabah muqqayadah investments whereby the bank is to undertake to use the funds for specific investments. This pool of fund must be separated from other funds as the returns from this fund will be shared among this particular group of investors.
Apart from the returns or losses for the group of restricted investors, the statement should also report profits or losses before deducting the investment manager's share of investment profits/losses. The bank's share of compensation as the investment agent is also known as mudarib.
Statement of Sources and Uses of Zakat and Charity Fund
This is required only when the bank established a zakat and charity fund whereby the bank acts as a fiduciary of that fund. The bank is responsible for collection and distribution of all or part of zakat and charity funds.
KL Management Services is a business process outsourcing company, offering company secretarial services, human resource, debt recovery & credit control, accounting and taxation and corporate advisory services to corporates and companies in Malaysia and Asia Pacific.
The people behind KLM are elites in their own industries, having years of experience and key figures in many public listed companies in Malaysia. KL Management Services is a professional accounting firm in Malaysia. Visit them at http://www.klmanagement.com.my/
Collaborating and in association with KL Management Services is Idelinq Services, a full-fledged marketing company offering off, on and above the line marketing services and IT infrastructure services in Malaysia. Get their latest update at http://www.elioe.com/
Article Source: http://EzineArticles.com/?expert=Ken_Low
How to Teach Financial Matters to Our Children
by Esteri Maina
Countless parents pay a lot of money to assist their children acquire the best professional training but forget to forfeit the little essential to help them acquire the skills of managing their education paybacks- salaries.
Financial decisions are almost attached to every aspect of our lives and this is what makes financial literacy very important to both parents and their children as they grow up.
Why teach your kids about money
There are several benefits a child can gather from being wise on money matters, some of which my include the following.
Children can administer their own incomes that parents provide now by spending on necessities while avoiding extravagance.
A child will value savings and investment decisions. Money matters education along with parent's intervention on the child's financial use enables him or her to think and take action about tomorrow.
A child becomes independent when still young. How many parents have brought up grown-ups who remain parasites even when it is obvious that they should be out of the nest and facing the world on their own?
Children who grow up understanding that earning money requires handwork, determination and smart spending and saving decisions, can be said to be self-sufficient.
Becoming an entrepreneur is thought out to be inborn for some people while others are made.
Your child could later become his or her own boss in a business and if they will be financial literate then, it will make them strategic business and money planners.
Simple ways a parent can use to train kids personal finance
Soon after he/she learns counting, introduce them to money. To do this, parents need to be patient with the kids as they take these lessons. Normally they understand fast by observing a repeated money lesson.
Open up your own money values, saving it, growing it, and most notably spending it and this means as a parent you need to consider how well you master your own finances.
Assist them in making distinctions between needs, wants and luxuries. Not understanding these ends up in overspending and really bad debts even to the adults.
Emphasize on setting spending goals every time kids request for money, or items, to discourage impulse buying; in other words, let them learn the process of budgeting.
Initiate the principle of savings against spending and demonstrate how swift money grows.
This will begin if you showed them how to list their needs in order of priorities and emphasize on spending based on urgency not luxury, when cash is limited. Involving them in shopping will sharpen spending skills more.
Allow them to participate in opening their own bank saving plan by letting them accompany you there.
Some parents open many of such plans on behalf of their kids and say nothing until a time to join college comes.
One way of raising a completely responsible child is by leaving them to be vulnerable on financial issues, and without you around, they will find a solution to the problem.
Let them participate to such easy tasks as opening bank accounts, applying for credit cards, collage loans, and the like, only come in if they need any clarifications.
Keep your distance and allow your children make their financial decisions on their own, whether good or poor.
The bad ones motivate them to be careful with money tomorrow while good ones mean they are progressively getting on track on their own.
One way you can enhance this process is by all means training them how to keep track of the money they have spent, invested or saved by maintaining good records.
Paying a personal finance management course for your collage going child or talk them into paying if they are already done and independent is the best decision a parent may never regret why they made it.
An original article by Esteri Maina on FINANCIAL
Article Source: http://EzineArticles.com/?expert=Esteri_Maina
Countless parents pay a lot of money to assist their children acquire the best professional training but forget to forfeit the little essential to help them acquire the skills of managing their education paybacks- salaries.
Financial decisions are almost attached to every aspect of our lives and this is what makes financial literacy very important to both parents and their children as they grow up.
Why teach your kids about money
There are several benefits a child can gather from being wise on money matters, some of which my include the following.
Children can administer their own incomes that parents provide now by spending on necessities while avoiding extravagance.
A child will value savings and investment decisions. Money matters education along with parent's intervention on the child's financial use enables him or her to think and take action about tomorrow.
A child becomes independent when still young. How many parents have brought up grown-ups who remain parasites even when it is obvious that they should be out of the nest and facing the world on their own?
Children who grow up understanding that earning money requires handwork, determination and smart spending and saving decisions, can be said to be self-sufficient.
Becoming an entrepreneur is thought out to be inborn for some people while others are made.
Your child could later become his or her own boss in a business and if they will be financial literate then, it will make them strategic business and money planners.
Simple ways a parent can use to train kids personal finance
Soon after he/she learns counting, introduce them to money. To do this, parents need to be patient with the kids as they take these lessons. Normally they understand fast by observing a repeated money lesson.
Open up your own money values, saving it, growing it, and most notably spending it and this means as a parent you need to consider how well you master your own finances.
Assist them in making distinctions between needs, wants and luxuries. Not understanding these ends up in overspending and really bad debts even to the adults.
Emphasize on setting spending goals every time kids request for money, or items, to discourage impulse buying; in other words, let them learn the process of budgeting.
Initiate the principle of savings against spending and demonstrate how swift money grows.
This will begin if you showed them how to list their needs in order of priorities and emphasize on spending based on urgency not luxury, when cash is limited. Involving them in shopping will sharpen spending skills more.
Allow them to participate in opening their own bank saving plan by letting them accompany you there.
Some parents open many of such plans on behalf of their kids and say nothing until a time to join college comes.
One way of raising a completely responsible child is by leaving them to be vulnerable on financial issues, and without you around, they will find a solution to the problem.
Let them participate to such easy tasks as opening bank accounts, applying for credit cards, collage loans, and the like, only come in if they need any clarifications.
Keep your distance and allow your children make their financial decisions on their own, whether good or poor.
The bad ones motivate them to be careful with money tomorrow while good ones mean they are progressively getting on track on their own.
One way you can enhance this process is by all means training them how to keep track of the money they have spent, invested or saved by maintaining good records.
Paying a personal finance management course for your collage going child or talk them into paying if they are already done and independent is the best decision a parent may never regret why they made it.
An original article by Esteri Maina on FINANCIAL
Article Source: http://EzineArticles.com/?expert=Esteri_Maina
Financing a Business, Even If Your Credit is Less Than Perfect
by Dustin Heath
How many times have you thought about starting your own business, but decided against it because your credit isn't that great? There are countless things that hold people back when it comes to taking that step, but credit is one of the top reasons. You need money for start up costs, if your credit isn't great it may make financing a little more difficult, but it's far from impossible.
Just because your credit score is low, it doesn't mean that banks won't loan you money. A lot of banks offer loans to those with credit problems. They don't necessarily require them to have exceptional credit to loan them money. Helping them succeed means bigger returns for them in the future so many of them are willing to take the risk.
Something else to check into in order to finance, are grants. Grants are pretty much free money waiting to be cashed in. You will need to research to find the grants that suit your needs and then apply for them. Some grants are easier to get than others. Certain grants are awarded to those in a particular field. Others are offered to people of different demographics. They have grants for only females. They also have grants specifically for minorities. They also have grants for certain parts of the country. You need to research all of these things and apply for as many that you can. You may be able to secure several grants and alleviate the need to borrow too much from the bank. You may not end up needing a loan at all!
You should also consider private financing. If you have a good idea, a great business plan, and a few connections, private financing make be the way to go. Private financing means people will invest in your company to help with start up costs. Often in return they get a portion of the profits, a percentage of the company, or depending on your type of business they may receive stock. Don't let your lack of credit hold you back from your dreams. There is a way to accomplish anything you put your mind too.
Dustin Heath recommends that you visit http://www.Earn-Freedom.com to learn how you can start your own home-based business earning multiple streams of income with a Plug-In Profit Site - Complete Money Making Site Setup FREE!
Article Source: http://EzineArticles.com/?expert=Dustin_Heath
How many times have you thought about starting your own business, but decided against it because your credit isn't that great? There are countless things that hold people back when it comes to taking that step, but credit is one of the top reasons. You need money for start up costs, if your credit isn't great it may make financing a little more difficult, but it's far from impossible.
Just because your credit score is low, it doesn't mean that banks won't loan you money. A lot of banks offer loans to those with credit problems. They don't necessarily require them to have exceptional credit to loan them money. Helping them succeed means bigger returns for them in the future so many of them are willing to take the risk.
Something else to check into in order to finance, are grants. Grants are pretty much free money waiting to be cashed in. You will need to research to find the grants that suit your needs and then apply for them. Some grants are easier to get than others. Certain grants are awarded to those in a particular field. Others are offered to people of different demographics. They have grants for only females. They also have grants specifically for minorities. They also have grants for certain parts of the country. You need to research all of these things and apply for as many that you can. You may be able to secure several grants and alleviate the need to borrow too much from the bank. You may not end up needing a loan at all!
You should also consider private financing. If you have a good idea, a great business plan, and a few connections, private financing make be the way to go. Private financing means people will invest in your company to help with start up costs. Often in return they get a portion of the profits, a percentage of the company, or depending on your type of business they may receive stock. Don't let your lack of credit hold you back from your dreams. There is a way to accomplish anything you put your mind too.
Dustin Heath recommends that you visit http://www.Earn-Freedom.com to learn how you can start your own home-based business earning multiple streams of income with a Plug-In Profit Site - Complete Money Making Site Setup FREE!
Article Source: http://EzineArticles.com/?expert=Dustin_Heath
Reasons Why You Should Hire a Financial Advisor Now
by Chuck R Stewart
Many Americans have been hit hard by the current recession and the plummeting stock market. Many analysts are comparing it to the crash of 1929 that was followed by the Great Depression. This has understandably unnerved many people and frightened them in wondering if they will have enough money to retire, pay for their children's college or follow through with alternative plans that required extra financial security. Many people have lost a significant amount of money in the stock market or in their investments and are not sure what they should do now. The first thing you should do is hire a financial advisor or a financial planning business to give you the best information. Research several and use recommendations from friends before deciding on one. They will help you with various things like your retirement planning which includes distribution IRA and IRA distribution, investments in the stock market or other sources, and estate planning.
Why is it worth spending your money on a financial advisor? It is simple, the more knowledgeable you are about your financial options, the better prepared you are to make the best decisions. Many people are unaware of the different things an advisor can help you with in your planning for your future financially. The first thing many Americans are worried about is their retirement. A planner will help them to use your previous employer retirement plans as well as your individual retirement account to explain them to you. There are many tax laws and rules that individuals are unaware of and that is exactly why it is important to get the help of a financial planning professional. For example, many people do not realize that as long as they put money into their retirement account they will not be taxed as income. However, they will get taxed when they decide to withdraw money from the account. The advisor could also advise them on a way to avoid that tax as well if they qualify for a Roth retirement account where they will not be taxed when they withdraw from it as long as they have certain conditions that are met. These are all things many individuals will learn from their financial advisors.
Another thing people are frustrated with is the drop in the stock market and how much money they may have lost recently. A financial planning company will help you understand all of the options to deal with that and to discuss your comfort level with how much risk you want or other ways to invest your money instead of the traditional stock market. Another thing people should do once they become parents is to work on their estate. You never know when it will be your time to go and it is important to have all of your money and assets lined up for your heirs. A financial advisor can help you plan out your wills and possible trusts to be given to your children in the event of your death.
Chuck R. Stewart recently met with a financial expert to develop a plan for a distribution IRA. They developed a plan for an IRA distribution to start planning for the future.
Article Source: http://EzineArticles.com/?expert=Chuck_R_Stewart
Many Americans have been hit hard by the current recession and the plummeting stock market. Many analysts are comparing it to the crash of 1929 that was followed by the Great Depression. This has understandably unnerved many people and frightened them in wondering if they will have enough money to retire, pay for their children's college or follow through with alternative plans that required extra financial security. Many people have lost a significant amount of money in the stock market or in their investments and are not sure what they should do now. The first thing you should do is hire a financial advisor or a financial planning business to give you the best information. Research several and use recommendations from friends before deciding on one. They will help you with various things like your retirement planning which includes distribution IRA and IRA distribution, investments in the stock market or other sources, and estate planning.
Why is it worth spending your money on a financial advisor? It is simple, the more knowledgeable you are about your financial options, the better prepared you are to make the best decisions. Many people are unaware of the different things an advisor can help you with in your planning for your future financially. The first thing many Americans are worried about is their retirement. A planner will help them to use your previous employer retirement plans as well as your individual retirement account to explain them to you. There are many tax laws and rules that individuals are unaware of and that is exactly why it is important to get the help of a financial planning professional. For example, many people do not realize that as long as they put money into their retirement account they will not be taxed as income. However, they will get taxed when they decide to withdraw money from the account. The advisor could also advise them on a way to avoid that tax as well if they qualify for a Roth retirement account where they will not be taxed when they withdraw from it as long as they have certain conditions that are met. These are all things many individuals will learn from their financial advisors.
Another thing people are frustrated with is the drop in the stock market and how much money they may have lost recently. A financial planning company will help you understand all of the options to deal with that and to discuss your comfort level with how much risk you want or other ways to invest your money instead of the traditional stock market. Another thing people should do once they become parents is to work on their estate. You never know when it will be your time to go and it is important to have all of your money and assets lined up for your heirs. A financial advisor can help you plan out your wills and possible trusts to be given to your children in the event of your death.
Chuck R. Stewart recently met with a financial expert to develop a plan for a distribution IRA. They developed a plan for an IRA distribution to start planning for the future.
Article Source: http://EzineArticles.com/?expert=Chuck_R_Stewart
10 Easy Ways to Organize Your Business Finances
by Abdul Tunio
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
http://thousandarticles.freehostia.com/finance/
Article Source: http://EzineArticles.com/?expert=Abdul_Tunio
Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.
1. Keep Your Bills in One Place
When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it's a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won't get filled up too quickly.
2. Pay Your Bills on Schedule
Bill paying can be simplified if it's done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you're paying bills as you receive them, chances are you're spending too much time in front of the checkbook. Although bills may state "Payable Upon Receipt", there's always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.
3. Read Your Credit Card Statements
Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.
4. Take Advantage of Automatic Payments
Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.
5. Computerize Your Checkbook
Using a software program is a handy way to organize your finances. Whether it's Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn't be easier.
6. Get Overdraft Protection
Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.
7. Cancel Unused Accounts
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
8. Consolidate Your Accounts
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
9. Establish Automatic Savings
Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.
10. Clean up Your Files
Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.
http://thousandarticles.freehostia.com/finance/
Article Source: http://EzineArticles.com/?expert=Abdul_Tunio
Financing a Business, Even If Your Credit is Less Than Perfect
By Dustin Heath
How many times have you thought about starting your own business, but decided against it because your credit isn't that great? There are countless things that hold people back when it comes to taking that step, but credit is one of the top reasons. You need money for start up costs, if your credit isn't great it may make financing a little more difficult, but it's far from impossible.
Just because your credit score is low, it doesn't mean that banks won't loan you money. A lot of banks offer loans to those with credit problems. They don't necessarily require them to have exceptional credit to loan them money. Helping them succeed means bigger returns for them in the future so many of them are willing to take the risk.
Something else to check into in order to finance, are grants. Grants are pretty much free money waiting to be cashed in. You will need to research to find the grants that suit your needs and then apply for them. Some grants are easier to get than others. Certain grants are awarded to those in a particular field. Others are offered to people of different demographics. They have grants for only females. They also have grants specifically for minorities. They also have grants for certain parts of the country. You need to research all of these things and apply for as many that you can. You may be able to secure several grants and alleviate the need to borrow too much from the bank. You may not end up needing a loan at all!
You should also consider private financing. If you have a good idea, a great business plan, and a few connections, private financing make be the way to go. Private financing means people will invest in your company to help with start up costs. Often in return they get a portion of the profits, a percentage of the company, or depending on your type of business they may receive stock. Don't let your lack of credit hold you back from your dreams. There is a way to accomplish anything you put your mind too.
Dustin Heath recommends that you visit http://www.Earn-Freedom.com to learn how you can start your own home-based business earning multiple streams of income with a Plug-In Profit Site - Complete Money Making Site Setup FREE!
Article Source: http://EzineArticles.com/?expert=Dustin_Heath
How many times have you thought about starting your own business, but decided against it because your credit isn't that great? There are countless things that hold people back when it comes to taking that step, but credit is one of the top reasons. You need money for start up costs, if your credit isn't great it may make financing a little more difficult, but it's far from impossible.
Just because your credit score is low, it doesn't mean that banks won't loan you money. A lot of banks offer loans to those with credit problems. They don't necessarily require them to have exceptional credit to loan them money. Helping them succeed means bigger returns for them in the future so many of them are willing to take the risk.
Something else to check into in order to finance, are grants. Grants are pretty much free money waiting to be cashed in. You will need to research to find the grants that suit your needs and then apply for them. Some grants are easier to get than others. Certain grants are awarded to those in a particular field. Others are offered to people of different demographics. They have grants for only females. They also have grants specifically for minorities. They also have grants for certain parts of the country. You need to research all of these things and apply for as many that you can. You may be able to secure several grants and alleviate the need to borrow too much from the bank. You may not end up needing a loan at all!
You should also consider private financing. If you have a good idea, a great business plan, and a few connections, private financing make be the way to go. Private financing means people will invest in your company to help with start up costs. Often in return they get a portion of the profits, a percentage of the company, or depending on your type of business they may receive stock. Don't let your lack of credit hold you back from your dreams. There is a way to accomplish anything you put your mind too.
Dustin Heath recommends that you visit http://www.Earn-Freedom.com to learn how you can start your own home-based business earning multiple streams of income with a Plug-In Profit Site - Complete Money Making Site Setup FREE!
Article Source: http://EzineArticles.com/?expert=Dustin_Heath
How to Get the Government to Finance Your Business
by Marq Samsun
If you need money to start a new business then you're in luck. The government loves to stimulate the economy and those who want to own their own business have an advantage when they apply for a government grant. If you have bad credit it doesn't matter. There's no sense in going to the bank to get a business loan when you can apply for a government grant that will probably give you twice as much money that you will never have to pay back.
So if you have a business idea and you would like to start your own company, you should apply for a government grant. There are no credit checks, there also the security checks you do not have to worry about any in income verifications because the money does not have to be paid back.
So next time you pass your bank think of the opportunity that the government has given every United States citizen who is over 18 years of age. We have the ability to get free money yet most do not apply for it. Last year over 5 million families received government grants. This astounds a lot of people because they think grants are only given to students. This is not true, a student grant is why one form of a grant.
For example Federal Express received $5 million in government funding. Apple computers also received over $3 million in funding. Regardless of the economic times that America's going through the government will still issue over $1 trillion in government money. You need to apply for a grant today.
I have found this resource for grants and I am sharing it with you. Find Free Government Grants.
They will send you a CD for just shipping and handling. The CD contains ways to get a government grant, how to write a grant and which ones are the best to apply for as this information is updated all the time.
They are a reputable company, and specialize in this information. Find Free Government Grants.
The information only cost $1 to get shipped to you.Then you can decide which grant you want to apply for. Remember, you can apply for more than one grant at a time.
Article Source: http://EzineArticles.com/?expert=Marq_Samsun
If you need money to start a new business then you're in luck. The government loves to stimulate the economy and those who want to own their own business have an advantage when they apply for a government grant. If you have bad credit it doesn't matter. There's no sense in going to the bank to get a business loan when you can apply for a government grant that will probably give you twice as much money that you will never have to pay back.
So if you have a business idea and you would like to start your own company, you should apply for a government grant. There are no credit checks, there also the security checks you do not have to worry about any in income verifications because the money does not have to be paid back.
So next time you pass your bank think of the opportunity that the government has given every United States citizen who is over 18 years of age. We have the ability to get free money yet most do not apply for it. Last year over 5 million families received government grants. This astounds a lot of people because they think grants are only given to students. This is not true, a student grant is why one form of a grant.
For example Federal Express received $5 million in government funding. Apple computers also received over $3 million in funding. Regardless of the economic times that America's going through the government will still issue over $1 trillion in government money. You need to apply for a grant today.
I have found this resource for grants and I am sharing it with you. Find Free Government Grants.
They will send you a CD for just shipping and handling. The CD contains ways to get a government grant, how to write a grant and which ones are the best to apply for as this information is updated all the time.
They are a reputable company, and specialize in this information. Find Free Government Grants.
The information only cost $1 to get shipped to you.Then you can decide which grant you want to apply for. Remember, you can apply for more than one grant at a time.
Article Source: http://EzineArticles.com/?expert=Marq_Samsun
Struggling to Find Financial Freedom - Having a Relationship With Money
by Brenda Blindenbach
When it comes to financial freedom, does it ever feel as though you are taking one step forward and moving two step backwards? Do you feel as though you have run straight into a wall? Have you noticed that while you never have enough time, other people seem to do it all without ever breaking a sweat? How would you like to have that golden touch?
There is an energy exchange between you and everything else, and this includes the people around you, your business and even money. Whether or not you are aware of it, you have a relationship with money.
Let's take a moment and consider what kind of relationship you have with your money. Write down what beliefs you have about money. How do you interact with it? Consider some of the following:
Do you always struggle to earn money?
There is never enough time or money?
I don't deserve to have money.
Does my money leave as soon as I look at it?
Is my money here today and gone tomorrow?
Can I earn more money whenever I want it?
These questions and thoughts that come up within you are an indication there may be a belief system that you need to be looking at and releasing. You can release these beliefs and emotions (if you don't know how, find out and learn a release technique or tool to do this) and then think about what kind of relationship you want to have with money.
Imagine that your money is your best friend and look at what kind of relationship you have with your best friend. Do your love hanging out together? Do you support, care and want the best for each other? Would you like to feel the same way about money, safe, cared for and supported, as though you were both good friends?
Just a year ago, my granddaughter started using a toy walker to learn to walk. As she wheels around the house, I follow along behind her. She turns her little head to see where I am and when she sees me, she smiles and giggles and knows that she is safe. She knows she can count on me to make sure that she is okay.
Now when I walk around, I can see my money following me. I talk to it, call it by name and when I think about it, I don't get scared that it will leave me or be taken away. Instead, I feel safe, secure and blessed that it has chosen to be with me.
Just like air is available and is needed to sustain life, imagine money is here for the same purpose - to make life easy, to have fun and to sustain life.
Here's an action step that you can take consistently. As you walk through the park notice the trillions of leaves and blossoms on the trees; feel the stillness, or the breeze flowing through them, smell the fragrance. Is your heart expanded at this beauty and abundance? Allow yourself to be aware of the abundance around you. It's yours for the asking. Open your heart and feel the gratitude that arises within you and give thanks.
And now claim your free bi-weekly newsletter & instant audio access to "Why & How To Shift Your Limiting Beliefs" & "Do You Understand The Laws Of The Universe?"
Brenda Blindenbach-The Possibilities DNA Expert & Coach enabling people to identify & shift their limiting conscious and subconscious beliefs.
Article Source: http://EzineArticles.com/?expert=Brenda_Blindenbach
When it comes to financial freedom, does it ever feel as though you are taking one step forward and moving two step backwards? Do you feel as though you have run straight into a wall? Have you noticed that while you never have enough time, other people seem to do it all without ever breaking a sweat? How would you like to have that golden touch?
There is an energy exchange between you and everything else, and this includes the people around you, your business and even money. Whether or not you are aware of it, you have a relationship with money.
Let's take a moment and consider what kind of relationship you have with your money. Write down what beliefs you have about money. How do you interact with it? Consider some of the following:
Do you always struggle to earn money?
There is never enough time or money?
I don't deserve to have money.
Does my money leave as soon as I look at it?
Is my money here today and gone tomorrow?
Can I earn more money whenever I want it?
These questions and thoughts that come up within you are an indication there may be a belief system that you need to be looking at and releasing. You can release these beliefs and emotions (if you don't know how, find out and learn a release technique or tool to do this) and then think about what kind of relationship you want to have with money.
Imagine that your money is your best friend and look at what kind of relationship you have with your best friend. Do your love hanging out together? Do you support, care and want the best for each other? Would you like to feel the same way about money, safe, cared for and supported, as though you were both good friends?
Just a year ago, my granddaughter started using a toy walker to learn to walk. As she wheels around the house, I follow along behind her. She turns her little head to see where I am and when she sees me, she smiles and giggles and knows that she is safe. She knows she can count on me to make sure that she is okay.
Now when I walk around, I can see my money following me. I talk to it, call it by name and when I think about it, I don't get scared that it will leave me or be taken away. Instead, I feel safe, secure and blessed that it has chosen to be with me.
Just like air is available and is needed to sustain life, imagine money is here for the same purpose - to make life easy, to have fun and to sustain life.
Here's an action step that you can take consistently. As you walk through the park notice the trillions of leaves and blossoms on the trees; feel the stillness, or the breeze flowing through them, smell the fragrance. Is your heart expanded at this beauty and abundance? Allow yourself to be aware of the abundance around you. It's yours for the asking. Open your heart and feel the gratitude that arises within you and give thanks.
And now claim your free bi-weekly newsletter & instant audio access to "Why & How To Shift Your Limiting Beliefs" & "Do You Understand The Laws Of The Universe?"
Brenda Blindenbach-The Possibilities DNA Expert & Coach enabling people to identify & shift their limiting conscious and subconscious beliefs.
Article Source: http://EzineArticles.com/?expert=Brenda_Blindenbach
Monday, June 29, 2009
How to Detect False Promises Made by Loan Modification Companies
by: Bridget Toomey
Over 3-million American families who have been affected by the current economic downturn and are struggling with their mortgages are looking at getting their loans modified in order to save their homes from going into foreclosure.
While loan modifications remain one of the best options for saving your home, many homeowners complain about falling victim to false promises made by certain loan modification companies. Families should be careful of companies who would say almost anything just to get your business only to run away with your money or complicate things further. It is very important for homeowners to learn how to differentiate between the legitimate companies with the ones that are only after your money.
The following points are a few things that you can check while talking to a loan modification consultant to know whether they are telling the truth or simply trying to show you the best case scenario in order for you to pay them an upfront fee without getting an approval from your mortgage lender:
1) Loan modifications on an average take about 3 to 4 months to complete. From preparing the application with required documents to actually applying and then following up with the mortgage lender, it takes a lot of time. The loan modification consultant also needs to spend time in negotiating with your lender to get the best possible modified mortgage plan.
All of the above takes about 90 to 120 days to complete depending on the lender and their own schedule. While talking to a loan modification consultant, if they keep telling you that they can get your loan approved for a modification within a month or so, then it is quite clear that they are not telling the truth. It is also dangerous to sign up with a company who says it takes about a month to complete an application as they might miss important details on your modification which lead to your application being rejected. Since the loan modification consultant already has your money for their services, they would not care if the application was approved or rejected, they would just simply try to rush things and move to the next client.
2) Another thing you must keep in mind is that not all loan modification applications are approved by the lenders. Approval depends on a number of factors such as the reason for your difficulty in not keeping up with your mortgage payment, ability to pay the modified plan if approved, current situation in terms of job, savings etc.
Many companies would tell you that you will be approved by the bank and take their huge sign up fee. This is just another false promise as the company needs to check your situation and consult with your lender and their team of consultants before determining whether you qualify. Only after completing all of the necessary steps can you truly know the outcome of the loan modification application.
You need to work with a company who is honest about the application process with you from the beginning. Learning whether you qualify for a loan modification is one of the most valuable services a loan modification consultant can offer to you as it would then save you a lot of money and time which can be utilized on other options to save your home.
3) The last point you need to check is whether a company tells you that you need to pay a fee before your loan modification can be approved. This is not true at all and you should work with only those companies that guarantee no fees until your loan modification application is actually approved by your mortgage lender.
Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11043.shtml
Over 3-million American families who have been affected by the current economic downturn and are struggling with their mortgages are looking at getting their loans modified in order to save their homes from going into foreclosure.
While loan modifications remain one of the best options for saving your home, many homeowners complain about falling victim to false promises made by certain loan modification companies. Families should be careful of companies who would say almost anything just to get your business only to run away with your money or complicate things further. It is very important for homeowners to learn how to differentiate between the legitimate companies with the ones that are only after your money.
The following points are a few things that you can check while talking to a loan modification consultant to know whether they are telling the truth or simply trying to show you the best case scenario in order for you to pay them an upfront fee without getting an approval from your mortgage lender:
1) Loan modifications on an average take about 3 to 4 months to complete. From preparing the application with required documents to actually applying and then following up with the mortgage lender, it takes a lot of time. The loan modification consultant also needs to spend time in negotiating with your lender to get the best possible modified mortgage plan.
All of the above takes about 90 to 120 days to complete depending on the lender and their own schedule. While talking to a loan modification consultant, if they keep telling you that they can get your loan approved for a modification within a month or so, then it is quite clear that they are not telling the truth. It is also dangerous to sign up with a company who says it takes about a month to complete an application as they might miss important details on your modification which lead to your application being rejected. Since the loan modification consultant already has your money for their services, they would not care if the application was approved or rejected, they would just simply try to rush things and move to the next client.
2) Another thing you must keep in mind is that not all loan modification applications are approved by the lenders. Approval depends on a number of factors such as the reason for your difficulty in not keeping up with your mortgage payment, ability to pay the modified plan if approved, current situation in terms of job, savings etc.
Many companies would tell you that you will be approved by the bank and take their huge sign up fee. This is just another false promise as the company needs to check your situation and consult with your lender and their team of consultants before determining whether you qualify. Only after completing all of the necessary steps can you truly know the outcome of the loan modification application.
You need to work with a company who is honest about the application process with you from the beginning. Learning whether you qualify for a loan modification is one of the most valuable services a loan modification consultant can offer to you as it would then save you a lot of money and time which can be utilized on other options to save your home.
3) The last point you need to check is whether a company tells you that you need to pay a fee before your loan modification can be approved. This is not true at all and you should work with only those companies that guarantee no fees until your loan modification application is actually approved by your mortgage lender.
Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11043.shtml
Permanent Insurance Explained - Permanent Life Insurance Types
by: Donald Lusan
Permanent insurance, also referred to as permanent life insurance, affords the policy owner the opportunity to accumulate a little cash in addition to providing a death benefit in the event of premature death. When most people today think about life insurance today they think in terms of the largest amount of cash they can leave for a spouse and children. The result is that they buy a term policy. Term life insurance is the cheapest type policy you can buy. The problem with this however is that if you keep the policy for the duration and don't die there is nothing in it for you.
Your permanent insurance policy is entirely different. It costs more than term but if you keep it for 20 or 30 years or longer you will likely get back whatever you have paid into it if you choose to surrender it for it's cash value. There are many different types of permanent policies. Let us take a look at a few of them.
Universal Life
Universal life insurance combines a term policy with a savings plan. The amount of money you apply to savings is flexible. It does not need to ne a set amount. This policy also pays a death benefit in the event the insured dies.
Variable Universal Life
This policy is also considered a permanent policy as it combines an investment plan with a permanent type policy. A special licence, an NASD License, is needed to sell this product as some of your money is invested in mutual funds or other equity linked products.
Variable Life
This policy is a combination of whole life insurance and an investment. The agent selling this product also needs an NASD License in addition to his Agents License.
Whole Life
This policy has been around probably from the idea of life insurance came into existence. This is the original permanent policy. Most of these policies last to age 100.
Single Premium Life
This policy is a variation of the whole life policy. It allows you to pay one premium and keep your policy for as long as you wish. You can turn it in to the company at any time for it's cash value.
Limited Pay Life
This permanent insurance policy is set up so that you can pay into it for a given number of years and pay no more thereafter. You have your policy for as long as you live.
Graded Premium Life
The first year you pay a smaller premium which increases every year for a given period of time, usually 5 or 10 years, then levels off. The premium remains level for the balance of the time you keep your policy. The first years premium is usually slightly more than half of the payment required for a whole life policy. When the premium levels off it is again more than you would pay for a whole life policy.
All permanent insurance policies have cash values and most earn dividends is the company performs well with it's investments.
For additional information go to: http://www.life-insurance-answers.net/types-of-life-insurance.html
Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11049.shtml
Permanent insurance, also referred to as permanent life insurance, affords the policy owner the opportunity to accumulate a little cash in addition to providing a death benefit in the event of premature death. When most people today think about life insurance today they think in terms of the largest amount of cash they can leave for a spouse and children. The result is that they buy a term policy. Term life insurance is the cheapest type policy you can buy. The problem with this however is that if you keep the policy for the duration and don't die there is nothing in it for you.
Your permanent insurance policy is entirely different. It costs more than term but if you keep it for 20 or 30 years or longer you will likely get back whatever you have paid into it if you choose to surrender it for it's cash value. There are many different types of permanent policies. Let us take a look at a few of them.
Universal Life
Universal life insurance combines a term policy with a savings plan. The amount of money you apply to savings is flexible. It does not need to ne a set amount. This policy also pays a death benefit in the event the insured dies.
Variable Universal Life
This policy is also considered a permanent policy as it combines an investment plan with a permanent type policy. A special licence, an NASD License, is needed to sell this product as some of your money is invested in mutual funds or other equity linked products.
Variable Life
This policy is a combination of whole life insurance and an investment. The agent selling this product also needs an NASD License in addition to his Agents License.
Whole Life
This policy has been around probably from the idea of life insurance came into existence. This is the original permanent policy. Most of these policies last to age 100.
Single Premium Life
This policy is a variation of the whole life policy. It allows you to pay one premium and keep your policy for as long as you wish. You can turn it in to the company at any time for it's cash value.
Limited Pay Life
This permanent insurance policy is set up so that you can pay into it for a given number of years and pay no more thereafter. You have your policy for as long as you live.
Graded Premium Life
The first year you pay a smaller premium which increases every year for a given period of time, usually 5 or 10 years, then levels off. The premium remains level for the balance of the time you keep your policy. The first years premium is usually slightly more than half of the payment required for a whole life policy. When the premium levels off it is again more than you would pay for a whole life policy.
All permanent insurance policies have cash values and most earn dividends is the company performs well with it's investments.
For additional information go to: http://www.life-insurance-answers.net/types-of-life-insurance.html
Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11049.shtml
Sunday, June 28, 2009
An Offshore Bank is Easy to Find and You Will Surely Be Able to Get Things That You Like
By Evie B Webb
A bank which is located outside of the country you live in is usually described as an offshore bank. There are a variety of reasons as to why people use offshore bank accounts. Taxes are usually lower and the interest rates are usually higher as well. However, the majority of people who have access to a bank account in another country are usually using them to keep their money more secure.
This form of banking is completely legal and there is nothing wrong with making the most of your money. A lot of facilities are based literally offshore from many countries throughout the world. The term "offshore bank" is actually spot on for most banks.
However, there are some mainland banks which offer a banking service to non-residents, such as Switzerland. I'm sure you heard the phrase, Swiss Bank Account in many films and TV shows. A lot of people have a misconception about these banks and assume no tax is paid at all.
This is actually not at all true. A lot of offshore bank accounts don't have any kind of tax evasion luxuries. A lot of countries, although having different tax laws, don't distinguish between money and assets kept in a bank in your resident country and kept abroad.
By law, not many offshore bank account facilities are required to state their income, however, recently, the government have been talking about changing all that. Most of the time though, your money is secure and protected so you shouldn't need to worry.
Another reason why people use an offshore bank account is to take advantage of the lower fees and better quality service. A lot of bank accounts that are abroad or offshore, tend to have a better overall service and this is why they're becoming so popular.
There are also a lot more services available from banks other than the ones we're normally used to. Swiss bank accounts are generally anonymous and you usually access your account by simply using an account number and a password or something similar.
The reason these banks are so popular is because you don't have to attached your name to it. There are actually a large number of options available in and around the UK. If you're interested in an offshore bank then you should do a bit of research first.
Many mainstream and high street banks offer an international service and one of the most popular and the oldest is Halifax International. One thing you'll need to think about is the fact that a lot of places require a deposit of at least £5000, so be prepared to have some money set by first.
The Bank of Scotland International is another option you could consider - but again, you'll need finances set by in order to open an account. There are also some other options available but you'll have to shop around to make sure you find something that's suitable for your needs.
Article Source: http://EzineArticles.com/?expert=Evie_B_Webb
A bank which is located outside of the country you live in is usually described as an offshore bank. There are a variety of reasons as to why people use offshore bank accounts. Taxes are usually lower and the interest rates are usually higher as well. However, the majority of people who have access to a bank account in another country are usually using them to keep their money more secure.
This form of banking is completely legal and there is nothing wrong with making the most of your money. A lot of facilities are based literally offshore from many countries throughout the world. The term "offshore bank" is actually spot on for most banks.
However, there are some mainland banks which offer a banking service to non-residents, such as Switzerland. I'm sure you heard the phrase, Swiss Bank Account in many films and TV shows. A lot of people have a misconception about these banks and assume no tax is paid at all.
This is actually not at all true. A lot of offshore bank accounts don't have any kind of tax evasion luxuries. A lot of countries, although having different tax laws, don't distinguish between money and assets kept in a bank in your resident country and kept abroad.
By law, not many offshore bank account facilities are required to state their income, however, recently, the government have been talking about changing all that. Most of the time though, your money is secure and protected so you shouldn't need to worry.
Another reason why people use an offshore bank account is to take advantage of the lower fees and better quality service. A lot of bank accounts that are abroad or offshore, tend to have a better overall service and this is why they're becoming so popular.
There are also a lot more services available from banks other than the ones we're normally used to. Swiss bank accounts are generally anonymous and you usually access your account by simply using an account number and a password or something similar.
The reason these banks are so popular is because you don't have to attached your name to it. There are actually a large number of options available in and around the UK. If you're interested in an offshore bank then you should do a bit of research first.
Many mainstream and high street banks offer an international service and one of the most popular and the oldest is Halifax International. One thing you'll need to think about is the fact that a lot of places require a deposit of at least £5000, so be prepared to have some money set by first.
The Bank of Scotland International is another option you could consider - but again, you'll need finances set by in order to open an account. There are also some other options available but you'll have to shop around to make sure you find something that's suitable for your needs.
Article Source: http://EzineArticles.com/?expert=Evie_B_Webb
The Pros and Cons of Rent to Own
By Paul Sharp
There are definitely some pros of rent to own offers but there are some cons to be aware of as well. Don't make a decision about such a process until you have carefully evaluated both sides of this coin. Being well informed is the best way to ensure that you are able to get the most from it. If you don't find that you are able to agree to the terms of it then look for an alterative to getting what you want.
One of the main pros of rent to own is that you don't need to have any credit or good credit to do it. This can be a way to build up some credit in fact and show that you can be responsible when it comes to paying what you owe. This method of obtaining things you really need such as a laptop for school or something you want such as a big screen TV means you don't have to wait until you have another way to pay for it.
On the con side though they make it seem very affordable. They often advertise the low monthly payments or even how much it breaks down to weekly. It is up to you though to determine what the overall cost will be. Based on the number of payments and the payment amounts you can determine what you will pay for an item when you fully own it. If that amount is much higher than what you would be able to buy the same item for outright then rent to own my not be the best way to go.
On the positive side, you definitely will find plenty of items offered with a rent to own process. This includes furniture for any room in your home, electronics, and more. The items that are available will vary from business to business but this is what you can commonly expect to find.
On the negative side though you won't have the same selection as you would elsewhere. You will be limited to certain brands and particular models that they carry. This is great if what you really want is offered by the rent to own center but it can mean settling for less than you really want otherwise.
Rent to own allows you to get new items when you would otherwise have to buy it second hand to meet your budget. We all like to have new things that look nice in our home so that is a bonus. I don't know about you but I don't want to sleep on a bed mattress that someone else I don't know has. With rent to own you don't have to because you can get a new one.
Should you not be able to keep up your payments though the rent to own business can come take back those items. You won't get any return on the money you have invested in them. This can mean you have wasted money too because it can add up to quite a bit. You may have made all of your payments for a very long time too and then not been able to do so towards the end of the contract.
There can be other pros and cons associated with rent to own businesses as well. What you will need to do is to take their policies into consideration to help you to evaluate them. While you do have the freedom to take them up on their offers or not, be prepared when you walk in the door for some smooth talking and pressure. Many employees at rent to own businesses work on a commission basis. This means they only generate income for themselves if they are making money for the business.
Rent to Buy or rent to own is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home. OwnYourHome.com.au can help you find rent to buy homes that are right for you.
Article Source: http://EzineArticles.com/?expert=Paul_Sharp
There are definitely some pros of rent to own offers but there are some cons to be aware of as well. Don't make a decision about such a process until you have carefully evaluated both sides of this coin. Being well informed is the best way to ensure that you are able to get the most from it. If you don't find that you are able to agree to the terms of it then look for an alterative to getting what you want.
One of the main pros of rent to own is that you don't need to have any credit or good credit to do it. This can be a way to build up some credit in fact and show that you can be responsible when it comes to paying what you owe. This method of obtaining things you really need such as a laptop for school or something you want such as a big screen TV means you don't have to wait until you have another way to pay for it.
On the con side though they make it seem very affordable. They often advertise the low monthly payments or even how much it breaks down to weekly. It is up to you though to determine what the overall cost will be. Based on the number of payments and the payment amounts you can determine what you will pay for an item when you fully own it. If that amount is much higher than what you would be able to buy the same item for outright then rent to own my not be the best way to go.
On the positive side, you definitely will find plenty of items offered with a rent to own process. This includes furniture for any room in your home, electronics, and more. The items that are available will vary from business to business but this is what you can commonly expect to find.
On the negative side though you won't have the same selection as you would elsewhere. You will be limited to certain brands and particular models that they carry. This is great if what you really want is offered by the rent to own center but it can mean settling for less than you really want otherwise.
Rent to own allows you to get new items when you would otherwise have to buy it second hand to meet your budget. We all like to have new things that look nice in our home so that is a bonus. I don't know about you but I don't want to sleep on a bed mattress that someone else I don't know has. With rent to own you don't have to because you can get a new one.
Should you not be able to keep up your payments though the rent to own business can come take back those items. You won't get any return on the money you have invested in them. This can mean you have wasted money too because it can add up to quite a bit. You may have made all of your payments for a very long time too and then not been able to do so towards the end of the contract.
There can be other pros and cons associated with rent to own businesses as well. What you will need to do is to take their policies into consideration to help you to evaluate them. While you do have the freedom to take them up on their offers or not, be prepared when you walk in the door for some smooth talking and pressure. Many employees at rent to own businesses work on a commission basis. This means they only generate income for themselves if they are making money for the business.
Rent to Buy or rent to own is a new approach which provides home buyers the opportunity of home ownership without taking on debt. It works like a normal rental agreement within a normally 20%-30% rental payment which is put towards the price of the home. OwnYourHome.com.au can help you find rent to buy homes that are right for you.
Article Source: http://EzineArticles.com/?expert=Paul_Sharp
How to Organize and Manage Your Household Bills
By Wer Wery
Don't we all just tend to procrastinate when it comes to bill payment? It is just so hard to keep up with due dates and organize all these paper bills while it is just so easy to "take care of them later", isn't it? We are bound to lose the bills and then pay for excess fee due to late payment. There is no way out it seems. But wait, don't you think it is time to change?
Bill payment is not such an exciting task. A lot of people would not take joy when given the task of organising and paying the household bills. But do you know that bill payment need not be a haunting task? If you know how to organize and manage your household bills, it will not be a pain to do it. In fact, it will only take a few minutes of your time.
So how do you organize and manage your household bills? Follow these easy steps:
• You should be very consistent. Delegate a particular area or even better, buy a small box, to make it a permanent storing area for the household bills. One common mistake among bill payers is that they put the bills just anywhere around the house. Some of the bills are stacked on the fridge, others are kept beside bed lamps, others are on drawers and still others are kept in between recipe books. This makes you forget your bills and lose them eventually - the result? Missed due dates and higher bills (regular bill amount plus extra late fee). Whereas if you have a single area to keep the bills, there is no chance that you're going to lose another bill. As soon as you receive a bill, keep it in your "bill storage" area.
• You should set a schedule. Allocate a scheduled day of the week to review the bills and pay for them in case they are already due. It will only take a few minutes of your time. And remember, don't procrastinate! If you have set a particular day to review and pay for your bills, do it. Don't leave it for later! Choose a day that you are not too busy.
• Pay the bills on time. You may realize that some bills can be paid online. This means you don't have to leave your favorite couch to pay for your bills. All bills with the same or almost the same due date can be paid at once. This means going out once if there is a need to pay for them personally.
These easy steps will help you organize and manage your household bills. See, bill payment is not too bad after all. But when things go bad and you can't handle it on your own, there is always the bill payment service!
Article Source: http://EzineArticles.com/?expert=Wer_Wery
Don't we all just tend to procrastinate when it comes to bill payment? It is just so hard to keep up with due dates and organize all these paper bills while it is just so easy to "take care of them later", isn't it? We are bound to lose the bills and then pay for excess fee due to late payment. There is no way out it seems. But wait, don't you think it is time to change?
Bill payment is not such an exciting task. A lot of people would not take joy when given the task of organising and paying the household bills. But do you know that bill payment need not be a haunting task? If you know how to organize and manage your household bills, it will not be a pain to do it. In fact, it will only take a few minutes of your time.
So how do you organize and manage your household bills? Follow these easy steps:
• You should be very consistent. Delegate a particular area or even better, buy a small box, to make it a permanent storing area for the household bills. One common mistake among bill payers is that they put the bills just anywhere around the house. Some of the bills are stacked on the fridge, others are kept beside bed lamps, others are on drawers and still others are kept in between recipe books. This makes you forget your bills and lose them eventually - the result? Missed due dates and higher bills (regular bill amount plus extra late fee). Whereas if you have a single area to keep the bills, there is no chance that you're going to lose another bill. As soon as you receive a bill, keep it in your "bill storage" area.
• You should set a schedule. Allocate a scheduled day of the week to review the bills and pay for them in case they are already due. It will only take a few minutes of your time. And remember, don't procrastinate! If you have set a particular day to review and pay for your bills, do it. Don't leave it for later! Choose a day that you are not too busy.
• Pay the bills on time. You may realize that some bills can be paid online. This means you don't have to leave your favorite couch to pay for your bills. All bills with the same or almost the same due date can be paid at once. This means going out once if there is a need to pay for them personally.
These easy steps will help you organize and manage your household bills. See, bill payment is not too bad after all. But when things go bad and you can't handle it on your own, there is always the bill payment service!
Article Source: http://EzineArticles.com/?expert=Wer_Wery
Saving Money For Life
By Wendy Gilroy
Hard times call for hard measures. A lot of us in this climate are struggling and here I am talking to you today about saving money. Putting money aside for a lot of people is a luxury. You shouldn't think of it like that at all. Putting money into a savings account is a smart move.
Hopefully you already have a good budget plan in place. If you don't have saving money on the plan then amend it now. You should be saying that one of your expenses on your list is paying yourself. Doesn't matter if it is as little as $5 a week. It is a starting point and one you can slowly work on and increase over time. Increase it by just $2 is still an increase. If you slowly put a little extra in, you maybe won't notice it too much. Start off real high and it won't last and you will be dipping into it in no time.
Think about all the reasons why you should be saving money... Christmas, birthdays, even things like a yearly subscription to pay for like the car warrant of fitness and if something is wrong with the car, where would the money come from to pay for the repairs? Wanting a holiday? How are you going to pay for it? Take out a loan? Are you serious?? Can't afford it, then don't do it. Tough talk but it worked for me. I put money away every fortnight for a year and was able to have a great holiday away for several weeks and it was all paid for from my savings account.
Paying yourself shouldn't be a once every other payday thing. Pay yourself first. Make it a priority and if need be, open an account separate to your main Bank or make a joint account with a family member that won't let you just dip into the account whenever you feel like it.
Don't have all the flash things at home that everybody else has? Too bad, material things can come and go. You have something tangible. You are making money for yourself, earning interest rather than paying interest. You will be better off in the long run. Make yourself a goal. Put a total sum in your head and aim for that amount. Once you get there, move the goal posts further back. Not too far that you think you will never get there though!! Just keep up the saving and slowly increase it and be proud of what you have accomplished and look to double the amount, triple the amount. The possibilities are endless.
Good luck.
Article Source: http://EzineArticles.com/?expert=Wendy_Gilroy
Hard times call for hard measures. A lot of us in this climate are struggling and here I am talking to you today about saving money. Putting money aside for a lot of people is a luxury. You shouldn't think of it like that at all. Putting money into a savings account is a smart move.
Hopefully you already have a good budget plan in place. If you don't have saving money on the plan then amend it now. You should be saying that one of your expenses on your list is paying yourself. Doesn't matter if it is as little as $5 a week. It is a starting point and one you can slowly work on and increase over time. Increase it by just $2 is still an increase. If you slowly put a little extra in, you maybe won't notice it too much. Start off real high and it won't last and you will be dipping into it in no time.
Think about all the reasons why you should be saving money... Christmas, birthdays, even things like a yearly subscription to pay for like the car warrant of fitness and if something is wrong with the car, where would the money come from to pay for the repairs? Wanting a holiday? How are you going to pay for it? Take out a loan? Are you serious?? Can't afford it, then don't do it. Tough talk but it worked for me. I put money away every fortnight for a year and was able to have a great holiday away for several weeks and it was all paid for from my savings account.
Paying yourself shouldn't be a once every other payday thing. Pay yourself first. Make it a priority and if need be, open an account separate to your main Bank or make a joint account with a family member that won't let you just dip into the account whenever you feel like it.
Don't have all the flash things at home that everybody else has? Too bad, material things can come and go. You have something tangible. You are making money for yourself, earning interest rather than paying interest. You will be better off in the long run. Make yourself a goal. Put a total sum in your head and aim for that amount. Once you get there, move the goal posts further back. Not too far that you think you will never get there though!! Just keep up the saving and slowly increase it and be proud of what you have accomplished and look to double the amount, triple the amount. The possibilities are endless.
Good luck.
Article Source: http://EzineArticles.com/?expert=Wendy_Gilroy
Good Green Investment Tips
By Wai Chim
Despite the international economic blues, investing in green companies and funds is still worth doing. Eco stimulus injections are now making green investment more attractive in the long term.
Green investments are currently seen as providing good and stable returns on investment over time, even in the downturn. Investing in green companies or funds is also the right thing to do if you care about the impact of your investment money on our most pressing environmental issue - climate change.
Green Pages is not a certified financial advisor or investment broker, but here are some good green tips we believe can help you make an eco conscious decision when it comes to investing your money:
- Choose a superannuation fund that invests in sustainable and/or socially responsible companies and industries.
- If you have a savings account, check the sustainability report from your bank.
- Research a funds manager that specialises in ethical and/or sustainable investment.
- Check the Dow Jones Sustainability Index to see what companies are performing best in their sector.
- If investing in a specific company of technology, look for companies that are well managed.
- Diversify your investments with different funds, technologies and/or companies to give you the best chance at a good return.
- Not all mainstream companies are created equal. Even if green isn't the main consideration in your portfolio, look for a company's sustainability report, many of them also include sustainability initiatives in their Annual Reports and long term strategies.
Article Source: http://EzineArticles.com/?expert=Wai_Chim
Despite the international economic blues, investing in green companies and funds is still worth doing. Eco stimulus injections are now making green investment more attractive in the long term.
Green investments are currently seen as providing good and stable returns on investment over time, even in the downturn. Investing in green companies or funds is also the right thing to do if you care about the impact of your investment money on our most pressing environmental issue - climate change.
Green Pages is not a certified financial advisor or investment broker, but here are some good green tips we believe can help you make an eco conscious decision when it comes to investing your money:
- Choose a superannuation fund that invests in sustainable and/or socially responsible companies and industries.
- If you have a savings account, check the sustainability report from your bank.
- Research a funds manager that specialises in ethical and/or sustainable investment.
- Check the Dow Jones Sustainability Index to see what companies are performing best in their sector.
- If investing in a specific company of technology, look for companies that are well managed.
- Diversify your investments with different funds, technologies and/or companies to give you the best chance at a good return.
- Not all mainstream companies are created equal. Even if green isn't the main consideration in your portfolio, look for a company's sustainability report, many of them also include sustainability initiatives in their Annual Reports and long term strategies.
Article Source: http://EzineArticles.com/?expert=Wai_Chim
Ride Out the Recession - Financial Security Tips
By Yuji Shinohara
The economic downturn is now an established fact, and if you have not already done what you can to hedge against the negative effects of the recession, it is definitely time to start doing so. How can you do this?
A good place to start is by gaining an understanding of the three basic factors that contribute to one's financial security. These three aspects are the amount of money you possess, your income, and your expenditure. When you balance them well, you will achieve financial security. Planning is extremely important in this regard, and must be carefully and judiciously done so that your financial security can be firmly established.
As far as your existing assets are concerned, you need to determine what they are worth. Liquidity is also an important factor; you should know how easily your assets can be converted to cash if a need for this should arise. Your financial security depends to a great extent on the possession of healthy assets that can be easily liquidated. Saving as much as you can and regularly putting aside a part of your income to build up a nest egg makes sound financial sense, particularly in the present economic climate.
Income refers to the money you earn from a job or other sources of revenue such as rent on property you own, or the profits from a business. Job security is the key aspect here, and this is an area which is becoming increasingly uncertain as organizations cut back on costs by laying off their employees. So if you are working for a company, look for other sources of income, such as starting your own online home based business. Having an alternate source of revenue is very effective in the achievement of financial security.
Expenditure, or the money that goes out of your hands, is one area where you can do a lot as far as ensuring financial security is concerned. Try to keep your expenditure as low as possible, and avoid unnecessary expense. Impulse spending can waste a lot of money, and doing this during a recession is certainly unwise. Think carefully about whether you really need to buy something before you spend the money on it.
Keeping debt levels as low as possible is essential - a market slowdown is not a good time to owe large sums of money on which expensive interest has to be paid.
When it comes to the financial security of your online home based business, there are some specific things you can do to keep things stable and healthy. Keep your online business successful by generating a strong web presence, and make your marketing plan as effective as possible. This will allow your home based business to be able to ride out the recession and take you into a lucrative future.
Article Source: http://EzineArticles.com/?expert=Yuji_Shinohara
The economic downturn is now an established fact, and if you have not already done what you can to hedge against the negative effects of the recession, it is definitely time to start doing so. How can you do this?
A good place to start is by gaining an understanding of the three basic factors that contribute to one's financial security. These three aspects are the amount of money you possess, your income, and your expenditure. When you balance them well, you will achieve financial security. Planning is extremely important in this regard, and must be carefully and judiciously done so that your financial security can be firmly established.
As far as your existing assets are concerned, you need to determine what they are worth. Liquidity is also an important factor; you should know how easily your assets can be converted to cash if a need for this should arise. Your financial security depends to a great extent on the possession of healthy assets that can be easily liquidated. Saving as much as you can and regularly putting aside a part of your income to build up a nest egg makes sound financial sense, particularly in the present economic climate.
Income refers to the money you earn from a job or other sources of revenue such as rent on property you own, or the profits from a business. Job security is the key aspect here, and this is an area which is becoming increasingly uncertain as organizations cut back on costs by laying off their employees. So if you are working for a company, look for other sources of income, such as starting your own online home based business. Having an alternate source of revenue is very effective in the achievement of financial security.
Expenditure, or the money that goes out of your hands, is one area where you can do a lot as far as ensuring financial security is concerned. Try to keep your expenditure as low as possible, and avoid unnecessary expense. Impulse spending can waste a lot of money, and doing this during a recession is certainly unwise. Think carefully about whether you really need to buy something before you spend the money on it.
Keeping debt levels as low as possible is essential - a market slowdown is not a good time to owe large sums of money on which expensive interest has to be paid.
When it comes to the financial security of your online home based business, there are some specific things you can do to keep things stable and healthy. Keep your online business successful by generating a strong web presence, and make your marketing plan as effective as possible. This will allow your home based business to be able to ride out the recession and take you into a lucrative future.
Article Source: http://EzineArticles.com/?expert=Yuji_Shinohara
Five Ways to Save Money For College With Your iPhone 3G, Laptop and Other Electronics
By Katy Marie
Every dollar counts for college students who must pay tuition and various other college-related expenses. College success requires access to computers in a technologically-oriented world, but you can save money by weighing how you use the electronics you already have.
1. Sell old electronics. If you have a broken iPhone 3G, cell phone, computer or any other electronic device, get rid of it by selling your electronic gadgets online for some cash. Online companies will take your electronics whether they work or not, mail you a check or transmit funds via your PayPal account and then recycle your electronics.
2. Hold off on the iPhone 3G or Blackberry. Between my freshman year in college to graduation day, I went through four different cell phones. I dropped two cell phones one too many times and the other two simply broke. I know friends and family to damaged their pricey iPhone in a moment of carelessness. With a disheartening crack, the iPhone met the floor or cement and the advanced iPhone 3G becomes a worthless bit of plastic. If you're salivating over the new iPhone 3G or Blackberry Bold, think about acquiring a basic cell phone until you have more funds. Getting the cheapest (sometimes free) phone instead of an iPhone or Blackberry with a two-year contract can save you up to $199 in upfront costs. Consider getting a phone with only a local coverage area or a pre-paid phone that you use only for emergencies or for finding your classmates to get that group project done.
3. Limit your text message usage. It's easy to get carried away when text messaging. Almost 80 percent of college students use text messages with the average student sending and receiving 115 messages each month, according to Campus Media Group. If you're obligated to a cell phone service contract, then save a chunk of money by limiting your text messages or eliminating your text message package altogether. Assume you pay $10 per month for sending and receiving 75 messages. Slashing that expense could save you $120.00. The alternative to "texting" brings us to our next tip.
4. Communicate with your friends by using social networks more often. What do you do if you want to save money on text messages? Get on MySpace, Twitter, Facebook or the social media network of your choice whenever you pass by the school library or computer lab. Students can still keep in touch in real time through these sites without having to pay 20 cents per text message.
5. Ditch the cable TV. In the last 13 years, cable rates have increased 122 percent to a current average of $49.65 per month. Cancel your cable services and legally watch cable TV shows, such as South Park, on the Internet for free on sites like hulu.com. Stop paying those monthly cable fees by watching your must-watch shows on your computer and save an average of $560 per year.
Be creative with trimming your expenses. Your iPhone, Blackberry, laptop, game consoles can help you with your finances. Sell what you don't need and save the money you don't need to spend to pay for college expenses.
Article Source: http://EzineArticles.com/?expert=Katy_Marie
Every dollar counts for college students who must pay tuition and various other college-related expenses. College success requires access to computers in a technologically-oriented world, but you can save money by weighing how you use the electronics you already have.
1. Sell old electronics. If you have a broken iPhone 3G, cell phone, computer or any other electronic device, get rid of it by selling your electronic gadgets online for some cash. Online companies will take your electronics whether they work or not, mail you a check or transmit funds via your PayPal account and then recycle your electronics.
2. Hold off on the iPhone 3G or Blackberry. Between my freshman year in college to graduation day, I went through four different cell phones. I dropped two cell phones one too many times and the other two simply broke. I know friends and family to damaged their pricey iPhone in a moment of carelessness. With a disheartening crack, the iPhone met the floor or cement and the advanced iPhone 3G becomes a worthless bit of plastic. If you're salivating over the new iPhone 3G or Blackberry Bold, think about acquiring a basic cell phone until you have more funds. Getting the cheapest (sometimes free) phone instead of an iPhone or Blackberry with a two-year contract can save you up to $199 in upfront costs. Consider getting a phone with only a local coverage area or a pre-paid phone that you use only for emergencies or for finding your classmates to get that group project done.
3. Limit your text message usage. It's easy to get carried away when text messaging. Almost 80 percent of college students use text messages with the average student sending and receiving 115 messages each month, according to Campus Media Group. If you're obligated to a cell phone service contract, then save a chunk of money by limiting your text messages or eliminating your text message package altogether. Assume you pay $10 per month for sending and receiving 75 messages. Slashing that expense could save you $120.00. The alternative to "texting" brings us to our next tip.
4. Communicate with your friends by using social networks more often. What do you do if you want to save money on text messages? Get on MySpace, Twitter, Facebook or the social media network of your choice whenever you pass by the school library or computer lab. Students can still keep in touch in real time through these sites without having to pay 20 cents per text message.
5. Ditch the cable TV. In the last 13 years, cable rates have increased 122 percent to a current average of $49.65 per month. Cancel your cable services and legally watch cable TV shows, such as South Park, on the Internet for free on sites like hulu.com. Stop paying those monthly cable fees by watching your must-watch shows on your computer and save an average of $560 per year.
Be creative with trimming your expenses. Your iPhone, Blackberry, laptop, game consoles can help you with your finances. Sell what you don't need and save the money you don't need to spend to pay for college expenses.
Article Source: http://EzineArticles.com/?expert=Katy_Marie
Free Home Repairs & Improvement Grants - How to Get Free Federal Grants For Home Improvement?
By Sani Orman
The US economy is going through a major stress for the past few years. Now the Federal government has decided to help them by providing plans that enhance 'affordability.' The Stimulus Package introduced by President Obama is the first step in this direction. This package provides several options to the house owners in order to save their homes from foreclosure. These include tax rebates, loans, etc. They can choose the best suited option for themselves out of all these. Now you can repair and improve your homes with the help of the Federal free home repairs grants and home improvement grants.
Free Home Repairs Grants
You may visit your City Hall to get the idea on what your local government is offering for you. Few of the grants would help you get the cash required to rehabilitate or even expand the house. The HUD (US Housing and Urban development) department will provide you all the information regarding these free home repairs grants and will also assist you financially. There are certain guidelines that must be met to get this government aid. These guidelines vary from state to state. In some cases having your home business may help you get the money provided you need to build a home office for the business. You can apply for these funds online as well. Never forget to give a call to your local county office to help you in this matter
Home Improvement Grants
FEMA (Federal Emergency management Agency) provides housing assistance to all the families that are affected by the natural disasters. HUD and the FHA (Federal Housing Administration) help you get these grants. You may visit the official website of HUD to get all the information and to apply. The other option is to contact the local municipality for these home improvement grants. These are especially available for the senior citizens.
Article Source: http://EzineArticles.com/?expert=Sani_Orman
The US economy is going through a major stress for the past few years. Now the Federal government has decided to help them by providing plans that enhance 'affordability.' The Stimulus Package introduced by President Obama is the first step in this direction. This package provides several options to the house owners in order to save their homes from foreclosure. These include tax rebates, loans, etc. They can choose the best suited option for themselves out of all these. Now you can repair and improve your homes with the help of the Federal free home repairs grants and home improvement grants.
Free Home Repairs Grants
You may visit your City Hall to get the idea on what your local government is offering for you. Few of the grants would help you get the cash required to rehabilitate or even expand the house. The HUD (US Housing and Urban development) department will provide you all the information regarding these free home repairs grants and will also assist you financially. There are certain guidelines that must be met to get this government aid. These guidelines vary from state to state. In some cases having your home business may help you get the money provided you need to build a home office for the business. You can apply for these funds online as well. Never forget to give a call to your local county office to help you in this matter
Home Improvement Grants
FEMA (Federal Emergency management Agency) provides housing assistance to all the families that are affected by the natural disasters. HUD and the FHA (Federal Housing Administration) help you get these grants. You may visit the official website of HUD to get all the information and to apply. The other option is to contact the local municipality for these home improvement grants. These are especially available for the senior citizens.
Article Source: http://EzineArticles.com/?expert=Sani_Orman
The Financial Credit Crunch & Its Affects
By Peter M. Wilson
The credit crunch and recession has hit the country with a massive impact within the last 6 months and most people have been affected by this, whether it's a shortfall of finances, house repossessions, missed payments or a cut back to lifestyles. If you are looking for loans and credit cards you will have found that many lenders refuse where they would normally accept applications due to the risk and scare that has been spread across the UK.
Even though borrowers have access to credit their policies and standards are tightening which has an adverse affect to you and me. If you have money in savings accounts and in company shares you will undoubtedly have noticed a massive difference since the credit crisis struck, but the biggest difference comes in house prices because right across the UK house prices have fallen by a dramatic amount and if you are in the process of selling then you could be losing anything from £5,000 to £30,000.
Large organisations and smaller business have also suffered and many of these have had to cut staff and even closed their doors because times have got that hard for the owners that they cannot afford to keep staff and companies going. There has been a significant knock on effect from company to company and even though governments are looking for a way out things haven't got much better just yet.
However with all this going on it is still possible to be accepted for secured loans, personal loans and credit cards, and during these periods of financial complications you must keep looking on the bright side and make the best of what you have.
Article Source: http://EzineArticles.com/?expert=Peter_M._Wilson
The credit crunch and recession has hit the country with a massive impact within the last 6 months and most people have been affected by this, whether it's a shortfall of finances, house repossessions, missed payments or a cut back to lifestyles. If you are looking for loans and credit cards you will have found that many lenders refuse where they would normally accept applications due to the risk and scare that has been spread across the UK.
Even though borrowers have access to credit their policies and standards are tightening which has an adverse affect to you and me. If you have money in savings accounts and in company shares you will undoubtedly have noticed a massive difference since the credit crisis struck, but the biggest difference comes in house prices because right across the UK house prices have fallen by a dramatic amount and if you are in the process of selling then you could be losing anything from £5,000 to £30,000.
Large organisations and smaller business have also suffered and many of these have had to cut staff and even closed their doors because times have got that hard for the owners that they cannot afford to keep staff and companies going. There has been a significant knock on effect from company to company and even though governments are looking for a way out things haven't got much better just yet.
However with all this going on it is still possible to be accepted for secured loans, personal loans and credit cards, and during these periods of financial complications you must keep looking on the bright side and make the best of what you have.
Article Source: http://EzineArticles.com/?expert=Peter_M._Wilson
New Car Grants Or Tax Relief on New Car Purchases
By Karl Lavery
The German experience has been mixed and raises some serious concerns.
Firstly; the typical owners of these older cars would usually be in the market for a 3 to 6 year old car on replacement. By incentivising these people to buy a 'new' vehicle, it has jeopardised the livelihood of many used car dealers. A number of whom have gone out of business as a direct consequence of the resulting loss of trade which has switched to the new car dealerships.
Secondly; this incentive is funded by 'all' of Germany's tax payers, yet many of the new cars being bought under the scheme are manufactured in other countries, thus the benefit to the German economy directly is marginal at best.
Thirdly; an incentive which requires the older vehicle to be scrapped is deeply flawed. Effectively a 10 year old car in very good condition could be scrapped, yet many similar aged or older cars will be left on the road in much worse condition and their owners will be deprived from being able to replace these cars with the 'superior' condition vehicles as they will have been scrapped.
So what is the alternative. I would suggest that for a limited period until the economy is back on its feet, it would be far more effective and far better for the cash flow of the public purse not to provide a grant. Instead, 'anyone' who buys a vehicle which meets certain eco standards, should be able to benefit from the same tax benefits afforded to business owners of vehicles. That is to say, an annual Income Tax offset of 20% of the value of the vehicle where the CO2 emissions are below 160g/km and 10% where the CO2 emissions are greater than 160g/km.
The above would have several advantages.
Firstly; the cost to the public purse will be spread over a longer period.
Secondly; rather than being restricted to those who own vehicles in excess of 9 yrs old and requiring them to scrap those vehicles, it would be more appropriate not to place a requirement to scrap a vehicle. Instead, let the older vehicles enter the used car market naturally. Then market will naturally dictate which vehicles will be popular for resale. By natural selection, it will be those vehicles which are less desire-able, in poorer condition or with greater running costs and punitive high emission road tax that will end up on an accelerated path to the scrap yard, without any cumbersome bureaucratic input.
Thirdly; it will favour any manufacturer who is committed to providing vehicles that meet the lower CO2 emissions.
Fourthly; it will reduce the risk of swinging the car market unfairly in the favour of new car dealers, as it will still leave a healthy, though transformed, used car market.
Fifthly; the system for such tax breaks are already in place at HMRC (for businesses) and would not require a completely new department to run it. Thus saving more money.
Finally; this methodology will not dictate as to which form the 'eco friendly' vehicles should take. For example, by not imposing blinkered incentives which favour electric or hybrid cars, it will leave the motor industry to use its skills to develop a wider range of technologies and forms of propulsion, including Hydrogen fuel cells, smaller supercharged and turbocharged engines, regenerative braking systems and stop-start technologies, to meet our needs in the future.
I have to say I do not hold out a great deal of hope on this, as I believe there is a lack of forward vision and the ability to think of the bigger picture amongst those whom we have charged with running our country.
For those of you who are approaching or in retirement, it is actually possible to use Pensions legislation to get the tax man to pay for your new car! If you want to know how, write to me or call me.
Article Source: http://EzineArticles.com/?expert=Karl_Lavery
The German experience has been mixed and raises some serious concerns.
Firstly; the typical owners of these older cars would usually be in the market for a 3 to 6 year old car on replacement. By incentivising these people to buy a 'new' vehicle, it has jeopardised the livelihood of many used car dealers. A number of whom have gone out of business as a direct consequence of the resulting loss of trade which has switched to the new car dealerships.
Secondly; this incentive is funded by 'all' of Germany's tax payers, yet many of the new cars being bought under the scheme are manufactured in other countries, thus the benefit to the German economy directly is marginal at best.
Thirdly; an incentive which requires the older vehicle to be scrapped is deeply flawed. Effectively a 10 year old car in very good condition could be scrapped, yet many similar aged or older cars will be left on the road in much worse condition and their owners will be deprived from being able to replace these cars with the 'superior' condition vehicles as they will have been scrapped.
So what is the alternative. I would suggest that for a limited period until the economy is back on its feet, it would be far more effective and far better for the cash flow of the public purse not to provide a grant. Instead, 'anyone' who buys a vehicle which meets certain eco standards, should be able to benefit from the same tax benefits afforded to business owners of vehicles. That is to say, an annual Income Tax offset of 20% of the value of the vehicle where the CO2 emissions are below 160g/km and 10% where the CO2 emissions are greater than 160g/km.
The above would have several advantages.
Firstly; the cost to the public purse will be spread over a longer period.
Secondly; rather than being restricted to those who own vehicles in excess of 9 yrs old and requiring them to scrap those vehicles, it would be more appropriate not to place a requirement to scrap a vehicle. Instead, let the older vehicles enter the used car market naturally. Then market will naturally dictate which vehicles will be popular for resale. By natural selection, it will be those vehicles which are less desire-able, in poorer condition or with greater running costs and punitive high emission road tax that will end up on an accelerated path to the scrap yard, without any cumbersome bureaucratic input.
Thirdly; it will favour any manufacturer who is committed to providing vehicles that meet the lower CO2 emissions.
Fourthly; it will reduce the risk of swinging the car market unfairly in the favour of new car dealers, as it will still leave a healthy, though transformed, used car market.
Fifthly; the system for such tax breaks are already in place at HMRC (for businesses) and would not require a completely new department to run it. Thus saving more money.
Finally; this methodology will not dictate as to which form the 'eco friendly' vehicles should take. For example, by not imposing blinkered incentives which favour electric or hybrid cars, it will leave the motor industry to use its skills to develop a wider range of technologies and forms of propulsion, including Hydrogen fuel cells, smaller supercharged and turbocharged engines, regenerative braking systems and stop-start technologies, to meet our needs in the future.
I have to say I do not hold out a great deal of hope on this, as I believe there is a lack of forward vision and the ability to think of the bigger picture amongst those whom we have charged with running our country.
For those of you who are approaching or in retirement, it is actually possible to use Pensions legislation to get the tax man to pay for your new car! If you want to know how, write to me or call me.
Article Source: http://EzineArticles.com/?expert=Karl_Lavery
Eight Things That the Recent Financial Crisis (Should Have) Taught Us
By Peter Ponzio
The recent financial crisis seems to have arrived, full-blown, without warning. While a few people predicted that we would experience a credit crisis, most people were caught unawares when the credit markets, and larger economy, seized-up. A number of key assumptions regarding the working of our economy have been given the lie by the current state of affairs; this article addresses some of our changed assumptions.
1. Prior to the current recession, many periodicals across the country declared an end to the business cycle, proclaiming that recessions were no longer possible. According to these publications, we had entered into an era where the economy would keep growing due to an increase in globalism; more efficient credit and financial markets; a growing demand for technology that would lead to more and better use of people's time and abilities; and recent history, wherein we experienced no significant recessions for something like six or seven years. Guess we got this assumption wrong.
2. The stock market would keep growing, since it is a rational system where knowledge is perfect (or as close to perfect as possible); knowledge is readily accessible; everyone can access all knowledge all the time; events can be predicted with relative assurance. Let's see: I suppose we could say the market was rational when the Dow topped 14,000; it was probably just as rational when it hit a low of 6,800 some 16 months later. It would be just as easy to argue that everyone had perfect knowledge of financial derivatives, sub-prime mortgages, and hedge funds. Just one thing: too bad the people who designed these financial products couldn't understand the risks involved much less everyday investors.
3. Real estate would continue to rise in value, and since we would experience no further boom and bust cycles in the economy, real estate was the best investment that most people could have. Since real estate investments were so attractive, it made sense to load up your portfolio with houses that could be "flipped", and since money was so cheap, it made sense to take on ever-increasing debt loads. Anyone want to buy spec house for sale in California, Las Vegas, New York, Florida or Illinois? Enough said.
4. Federal regulation of the financial industry is a bad idea. In fact, the financial industry could grow exponentially if the government took a hands-off approach. Besides, government didn't understand derivatives, hedge funds, mortgage-backed securities, or options. The only people who understood these often arcane financial instruments were the people who designed them. Naturally, these people should be left in charge of regulating themselves. Do you cringe when you hear a banker or stock broker say "trust me?" If you don't, please see number three above-I have some land in a semi-aquatic environment that you might be interested in.
5. Management is a science, and as such, follows the scientific method. Do I really need to comment on this? I guess management is a science and follows the scientific method if you believe that results don't have to be independently verified; if you believe that results can be "tailored" to fit your desired outcome; if you believe that rigorous testing does not have to be done to ensure that outcomes can be replicated.
6. Schools used to teach that there are three kinds of risk inherent in any security, mutual fund, or bond. The first is specific security risk; the second is sector risk; the final type of risk is systemic risk. I started out by saying that schools used to teach about three types of risk; for awhile, they were only talking about specific stock (fund) risk and sector (or industry) risk. You see, people actually believed that we had eliminated systemic risk. Ever hear of the credit crisis? If so, go back and review the definition of systemic risk.
7. Again referring to schools (and to a larger extent the business community as well), the theory used to be that market forces acted as corrective agents. If a company was poorly run over a long period of time, the theory went; it would eventually shut down in the form of a bankruptcy, merger or dissolution of some kind. As we recently learned, these market forces needed to be revised, because of a newly emergent theory. That theory is known as the "too big to fail" theory. As a corollary to that theory, we now know that the "pay large bonuses after a government bailout" rule also applies.
8. In the event that a financial crisis happened (which was largely dismissed as being unlikely), world governments would act in concert to avoid a world-wide financial meltdown. In fact, due to increasingly global marketplaces, governments across the world would be better served to act together. Unfortunately, this conventional piece of wisdom seems to be suspect, as well. To date, the EU has not acted in concert; several contingents in the U.S. are calling for increased protectionism; and Far Eastern countries have not developed a plan to help relieve the financial crisis. Well, at least we got one thing right in the U.S.: we exported our financial problems to the rest of the world.
Well, I for one am glad to see that recessions no longer occur; that regulations are wasteful; that management scientists are busy working on their next round of employee-morale boosting downsizing; that my real estate investments will continue to go up in value, and that I have nothing to fear in terms of systemic risk to my savings. BY the way, if anyone is interested in that semi-aquatic land that I have, please call.
Article Source: http://EzineArticles.com/?expert=Peter_Ponzio
The recent financial crisis seems to have arrived, full-blown, without warning. While a few people predicted that we would experience a credit crisis, most people were caught unawares when the credit markets, and larger economy, seized-up. A number of key assumptions regarding the working of our economy have been given the lie by the current state of affairs; this article addresses some of our changed assumptions.
1. Prior to the current recession, many periodicals across the country declared an end to the business cycle, proclaiming that recessions were no longer possible. According to these publications, we had entered into an era where the economy would keep growing due to an increase in globalism; more efficient credit and financial markets; a growing demand for technology that would lead to more and better use of people's time and abilities; and recent history, wherein we experienced no significant recessions for something like six or seven years. Guess we got this assumption wrong.
2. The stock market would keep growing, since it is a rational system where knowledge is perfect (or as close to perfect as possible); knowledge is readily accessible; everyone can access all knowledge all the time; events can be predicted with relative assurance. Let's see: I suppose we could say the market was rational when the Dow topped 14,000; it was probably just as rational when it hit a low of 6,800 some 16 months later. It would be just as easy to argue that everyone had perfect knowledge of financial derivatives, sub-prime mortgages, and hedge funds. Just one thing: too bad the people who designed these financial products couldn't understand the risks involved much less everyday investors.
3. Real estate would continue to rise in value, and since we would experience no further boom and bust cycles in the economy, real estate was the best investment that most people could have. Since real estate investments were so attractive, it made sense to load up your portfolio with houses that could be "flipped", and since money was so cheap, it made sense to take on ever-increasing debt loads. Anyone want to buy spec house for sale in California, Las Vegas, New York, Florida or Illinois? Enough said.
4. Federal regulation of the financial industry is a bad idea. In fact, the financial industry could grow exponentially if the government took a hands-off approach. Besides, government didn't understand derivatives, hedge funds, mortgage-backed securities, or options. The only people who understood these often arcane financial instruments were the people who designed them. Naturally, these people should be left in charge of regulating themselves. Do you cringe when you hear a banker or stock broker say "trust me?" If you don't, please see number three above-I have some land in a semi-aquatic environment that you might be interested in.
5. Management is a science, and as such, follows the scientific method. Do I really need to comment on this? I guess management is a science and follows the scientific method if you believe that results don't have to be independently verified; if you believe that results can be "tailored" to fit your desired outcome; if you believe that rigorous testing does not have to be done to ensure that outcomes can be replicated.
6. Schools used to teach that there are three kinds of risk inherent in any security, mutual fund, or bond. The first is specific security risk; the second is sector risk; the final type of risk is systemic risk. I started out by saying that schools used to teach about three types of risk; for awhile, they were only talking about specific stock (fund) risk and sector (or industry) risk. You see, people actually believed that we had eliminated systemic risk. Ever hear of the credit crisis? If so, go back and review the definition of systemic risk.
7. Again referring to schools (and to a larger extent the business community as well), the theory used to be that market forces acted as corrective agents. If a company was poorly run over a long period of time, the theory went; it would eventually shut down in the form of a bankruptcy, merger or dissolution of some kind. As we recently learned, these market forces needed to be revised, because of a newly emergent theory. That theory is known as the "too big to fail" theory. As a corollary to that theory, we now know that the "pay large bonuses after a government bailout" rule also applies.
8. In the event that a financial crisis happened (which was largely dismissed as being unlikely), world governments would act in concert to avoid a world-wide financial meltdown. In fact, due to increasingly global marketplaces, governments across the world would be better served to act together. Unfortunately, this conventional piece of wisdom seems to be suspect, as well. To date, the EU has not acted in concert; several contingents in the U.S. are calling for increased protectionism; and Far Eastern countries have not developed a plan to help relieve the financial crisis. Well, at least we got one thing right in the U.S.: we exported our financial problems to the rest of the world.
Well, I for one am glad to see that recessions no longer occur; that regulations are wasteful; that management scientists are busy working on their next round of employee-morale boosting downsizing; that my real estate investments will continue to go up in value, and that I have nothing to fear in terms of systemic risk to my savings. BY the way, if anyone is interested in that semi-aquatic land that I have, please call.
Article Source: http://EzineArticles.com/?expert=Peter_Ponzio
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