Friday, July 10, 2009

Online Banking

By Michael Russell

Before you do this, make sure to compare existing offers from at least three different facilities, such as banks, building societies and other financial institutions. Your bank doesn’t necessarily give you the best deal just because you are currently banking with them. It pays to shop around before you make a decision and inform yourself. Most financial institutions worldwide offer online banking these days. So it shouldn’t be too hard to find something suitable for your needs.

What are the benefits of online banking? For starters it is a convenience, as it allows us to deal with our banking needs totally from the comfort of our home or office. As long as you have an internet connection and an online account set up, you are set to go.

Most banks offer a host of different activities in your online banking account such as: transfer funds (moving/sending money from one account to another), pay anyone (send money from your account to another account), schedule your regular bill payments (organizing your bills to be paid on a certain recurring date), check balances of your account anytime (whether day or night), apply for an online loan, see a list of all/any transactions you have made from your account and the ability to print them out if needed, financial planner (the ability to plan your finances via a help function), order cheques (you can even order cheques to pay your bills if you like online).

Online banking is easy to learn and apply. However, there is a serious side to it and that is internet security. Banks go to great length these days to keep your money and your data safe from online crooks. You will be supplied with a password, which you should change as soon as you have your account set up. There are also rules and regulations (the fine print) you will have to agree to, before opening your account. It certainly pays to read them in detail prior to adding your signature to the contract. Yes, you will be entering into a contract with your bank, just as you do with offline activities. So make sure you read this contract carefully before signing anything. You will avoid nasty surprises if you do this correctly.

As with many things these days there are always pros and cons to apply a certain method such as online banking. On the positive side online banking is great because: it eliminates cutting down trees and therefore it is beneficial to the environment, you can check your account balance anytime 24 hours/7 days week, you don’t have to spend time waiting in bank queues, you can send money to anywhere in the world with a click of a button, it simply is an easier way to do your banking. On the negative side, online banking might not be a good option for some because: someone could steal your money from your account via hacking into it and you will need your own computer to do online banking (you can do it in an internet cafĂ©, but this is not recommended due to security reasons). Some people still wonder whether online banking is safe. It also eliminates a lot of jobs in the workforce. When you get paid via cheques you will still have to go to your local branch to cash them.

Whatever it is you believe regarding online banking, you will have to make the right decision that is best suited to you and your needs. For most of the people who choose online banking, it is probably the convenience factor that really convinces them the most. As an online banking customer you have legal rights to protect you and your identity. These are also called consumer rights. They have been established to protect you as the customer and to make sure that the bank is operating within the law.

Article Source: http://EzineArticles.com/?expert=Michael_Russell

Search For Unclaimed Money and Property in Your Name

By Russ D Johnson

The country has a new captain at the helm and Americans are all set to try to shift the country's economic course the only way they can. A recession has hit the country on both costs and is rapidly creeping-up towards the central states. Countless folks are out of jobs, out of houses and almost out of hope. Even with the hopes of a new, smarter President, it will take a while for the U.S. economy to recover. Americans, regardless of name, are going to need all the resources they have at their disposal to survive these lean times. One possible source of cash that only a few citizens know is state unclaimed money.

Unknown to the general public, the government collects lost or abandoned financial assets from businesses, banks and financial institutions every year. According to the NAUPA, an acronym for National Association of Unclaimed Property Administrators, "Unclaimed property (sometimes referred to as abandoned) refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or a longer period. Common forms of unclaimed property include savings or checking accounts, stocks, uncashed dividends or payroll checks, refunds, traveler's checks, trust distributions, unredeemed money orders or gift certificates (in some states), insurance payments or refunds and life insurance policies, annuities, certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, and contents of safe deposit boxes" Currently, these are worth roughly $33 billion spread-out among the different State Treasuries and all people have to do is search for unclaimed money by person name.

Quite ironic that in this time of economic strife, people still lose track of their finances and never take the time search for money under their name. These funds sit in banks, insurance companies, various businesses, etc. until their owners remember and come to get them. Otherwise, they're collected by the US government as State unclaimed property after the specified period of dormancy (3-5 years usually). An excerpt from a press release by Georgia State Department of Treasury Unclaimed Property Unit explains dormancy periods best: "The time that must elapse for property to be determined "abandoned" and turned over to the state varies depending on the type of property. For example, unclaimed wages and company liquidation proceeds must be turned over to the state after one year. The vast majority of unclaimed property must be turned over to the state five years after the last contact with the rightful owner. Time frames for other types of property are: safe deposit box contents must be forwarded to the state two years after the box was opened by the holding financial institution; money orders seven years after the issue date; and traveler's checks 15 years from the issue date."

The excerpt from is fairly standard across all 50 U.S. States and most have websites where visitors may search by name to locate assets due to them.

The Unclaimed Property Division in each state takes charge of safekeeping the citizens' lost assets and locating the owners. Most States keep the funds indefinitely until the owners or their beneficiaries look for unclaimed money by a persons name and realize they're actually missing money and show-up to collect. However, if you live in Idaho or Indiana, you are urged to search as soon as possible if you have never searched. After 10 years, if the property if not claimed, the state takes possession forever. Currently, time restraints do not apply to some of the more active states like California, Texas, Washington, New York or Florida. All Americans are urged to search for unclaimed money and property in their names each year, and several times per year as funds are added year round.


Unclaimed money and property expert Russ Johnson has been assisting Americans in finding their unclaimed money online since 1997. His sites are http://www.unclaimedmoney.net and http://www.unclaimedfunds.net which are updated regularly with the latest missing money information, news, and direct access to each states official unclaimed funds websites. Mr. Johnson is on a mission to inform all Americans of this little and often misunderstood program overlooked by U.S. Government offices.

Article Source: http://EzineArticles.com/?expert=Russ_D_Johnson

Get Financing Help For Your Texas Mobile Home

By Nathalie Fiset

Nathalie Fiset
Level: Platinum

Nathalie Fiset M.D. is a family doctor, a certified hypnotherapist and an internet marketer. She is also a mother of four. Her passions are medicine, ... ...


Everybody needs a home where one can feel secure and comfortable. However, with escalating prices, it may be difficult for some to buy a home. Nowadays, it's definitely not that easy to afford your dream home. But with the help of great home financing schemes available in Texas, you can turn a Texan mobile home into your dream home.

An alternative to these expensive conventional homes which are constructed on the site, are mobile homes. These mobile homes are relatively cheaper and are much preferred in rural areas. As their name suggests, mobile homes can be moved to a different location.

Initially, mobile homes were considered ideally for people who always need to move to different places every now and then, such as the construction employees. However, because these mobile homes are less expensive that the traditional homes, more and more people are looking into getting themselves a mobile home instead. In Texas, you'll probably find several mobile homes stationed in vacant lots, such as parks.

There's one catch, though. As compared to traditional homes, you might find it a little harder to look for financial institutions which can help you finance your mobile home. However, you should still be able to find yourself a lending institution with a great mobile home financing deal that can work within your set budget.

In Texas, these mobile homes are quite popular, and thus, it shouldn't be that difficult for you to obtain a mobile home financing. Texas is a relatively large state and there are a lot of residents who would prefer to just move from one place to another. Usually, these mobile homes can be placed in parks, or you can even lease a community lot.

Some financial institutions refuse to finance mobile homes, or if they do, they have some restrictions to the kind of mobile home that qualifies for financing. Usually, those mobile homes that have been constructed over twenty years ago may not qualify for financing. The same thing goes for altered mobile homes or those with some structural modifications. Obviously, the value of old properties has already largely depreciated, that's why you'd find it difficult to look for financial institutions to finance old mobile homes. Also, since altered mobile homes could not be anymore compared to standard mobile homes, their value may have also decreased.

Most banks do not also offer mobile home financing. The rate of foreclosure for these mobile homes is set at a higher rate compared to the traditional homes. Mobile homes are considered to depreciate much more quickly, which makes it risky for banks to take these in as collateral. Also, if you manage to get financing for you mobile home, the financing term is usually less than the thirty-year home financing offered to traditional loans. In addition, the interest rates can be slightly higher. That's what usually happens in states other than Texas.

In Texas, banks are not the only ones which offer home financing. In fact, you can find a lot of other financing companies. There are even a few which specializes in mobile home financing. These types of companies are usually located in places such as Texas, where mobile homes are popular. Most of the mobile home financing deals offered in Texas would only require you to pay as low as five percent down payment. However, if you want to take advantage of the lowest interest rate possible, you should consider paying up to twenty percent of the purchase price.

Like getting home financing for conventional homes, there are a few criteria that you need to qualify if you want to finance your mobile home. It is virtually important to have a good credit history. Usually, these financial institutions have their own minimum credit score. Of course, your income and employment history are also considered as major qualifications. Most financing institutions also have a minimum price and measurement requirement for your mobile home. Usually, they may not finance a home which costs less than $ 20 000 or measures less than 750 square feet only. But with the great home financing terms offered in Texas, then you shouldn't worry about getting a larger and more expensive mobile home.

Each financing institution have their own specific requirements. It's highly recommended to contact them first before making any comparisons or decisions. Besides, it's difficult to give out a good estimate of how much you'll be paying unless they go over your qualifications and conduct inspections on your desired mobile home. Searching for these financing institutions should not be too much hard work. You can just sit in front of your computer and do your research online. In Texas, a lot of varieties of these financial institutions exist. Mobile home financing has made fulfilling people's dream of owning a home easier.

For more information now go to: http://www.homefinancingalert.com/Financing-Home-Mobile-Texas.html

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Article Source: http://EzineArticles.com/?expert=Nathalie_Fiset

Thursday, July 9, 2009

Finance Mortgage - Your Home Can Save You

By Nathalie Fiset

Your home is the single biggest and most useful investment you can have in your life. And knowing how to use its value properly will help you in many ways. I am not talking about giving you shelter or having a place to rest. That's given. What I mean is your home can be used during emergency financial situations. What are those, you ask? Before I enumerate them, let us first discuss how can a financial mortgage save you...

You own a home. Yes, not totally because you are still paying for the mortgage, right? Still, you own a good amount for equity which you can tap anytime. (The equity is the fair market value of your home after you subtract the unpaid balance of your mortgage and other outstanding debts.) For example, the total value of your house is $400,000. You still have $250,000 to pay for the mortgage, so your equity is $150,000. You can use this amount to use as capital for a business venture, pay off emergency medical bills, fund a major house repair or finance your child's college education.

There are two ways to apply for a home mortgage: the home equity loan and the home equity line of credit (HELOC).

Home equity is a type of loan where you can use the equity as collateral for the loan. Once approved, you shall receive a lump sum amount equivalent to the equity of your home. This is ideal when you want to pay large amount of money. Some factors like poor credit score can reduce the amount of money you can borrow. Home equity loan can be referred to as second mortgage or fixed-rate loan since the amount you pay throughout the term does not change. The good thing about fixed-rate is that you can easily plan your payment every month.

The home equity line of credit (HELOC) is a type of loan which can be compared to a credit card. Once approved, the lending company will give you a card with a credit limit which will become the means of purchase. The HELOC is bounded by a changing interest rate.

Ways you can use your home equity:

Pay Off Emergency Medical Bills - Sometimes, insurance coverage is not enough and you need additional source of money to pay off emergency medical bills. You can apply for a home equity loan to get the needed amount.

Capital for a Business Venture - Not enough cash savings for the business you want to set up? Why not tap the equity of your home.

Fund a Major House Repair - This is probably the best way to use the equity of your home. A good yard landscaping, kitchen refacing, or living room expansion can increase the value of your home by 30%.

Debt consolidation - The practice of using the equity of the home to consolidate debt is becoming more and more popular. This is because the convenience it gives to the homeowner. Once you apply for a home equity loan and use the money for debt consolidation, you pay all your debts, you save your credit card and utility services, and you relieve the stress from collectors knocking at your doors or calling you at the phone. All you worry about is the mortgage. When used properly, home equity loan can save you from the interest you pay from all the credits you owe.

Finance Your Child's College Education - Entering your child to a prominent college or university is costly. If you do not have enough income to make sure that his or her education can be supported, the easiest and the most ideal way to finance his or her college education is by applying for a mortgage loan.

Every loan is coupled with big responsibility especially when your home is on the line. Your house may save you in dire financial emergencies but you have to make sure that before you borrow money, you have a regular source of income where you can pull out extra cash to pay for the mortgage. Again, mortgage is good if used wisely. Consult a mortgage broken, do your homework, and negotiate your terms when you have decided that you need to use your equity.

Article Source: http://EzineArticles.com/?expert=Nathalie_Fiset

Personal Finance - How to Reach Your Comfort Zone Rapidly?

By Nathalie Fiset

Setting short term financial goals and changing the attitude towards handling money are perhaps 2 of the most basic things you need to do if you want to reach your personal financial comfort zone rapidly. This is because you can never really give yourself a good financial relief unless you know how to value the money you currently have. That way, you will know where to allocate your money, what and when to buy, and what other strategies you must do in order to achieve a good financial standing. Here are some tips to get things done, effectively:

Define your lifestyle

No matter how much money you earn, if you are spending too much or if you are maintaining a lifestyle beyond what you can afford, everything that are mentioned hereafter are useless. So, this should be the first thing you must do. Know how much you earn against how much you spend. Identify your needs and separate your wants. Limit your finances to what you can afford, way within what you earn. It might sound pretty easy, and it is. The tough part is sustaining. But don't worry, if you follow the tips below you can have a shot at reaching your comfort zone fast. Everything goes hand in hand.

Set a budget.

You often hear this phrase from your mother and even your neighbor. And don't you hate it when you receive such words? But no matter how annoyed you are from being thought of what you should do, the point is you need to have a budget. This will make your finances fall in to the right order. Define how much money goes to where: bills, shopping, recreation, food, and mortgage. Don't forget to save. Never spend more than what you have. Allocate your money where they should be.

Improve credit score

Although there is no way to improve your credit score overnight, aiming for a better score changes attitude towards money and money management. When you aim to improve your credit score, you tend to pay your bills on time, you avoid borrowing unnecessary money from different loans; you control your shopping. This makes you save more and thus, making you feel more comfortable financially. Take note, there is a big difference between improving your score than avoiding doing something to hurt your score. Aim for the former.

Avoid short term, non-secured loan.

Payday loan or cash advance loan may be the easiest way to get money fast but applying for one is against your aim of reaching your financial comfort zone and may give you financial problems in the future. Aside from high interest rate this non-secured loan companies apply, payday loan can be your one way to debt pit. Financial freedom is not always the same with having money at hand or having an available lender ready to lend you money. Financial freedom is the ability to maintain yourself without depending on others.

Minimize the use of credit cards.

Being debt free maybe the thing of the past but it doesn't mean that you should always subject yourself to debts. Your credit cards may be important to you but it doesn't mean that you should use it always. Yes, it is tempting to use plastic money on every purchase but if you want to reach your financial comfort zone rapidly, do not borrow. Use cash. This way you can monitor where your money goes. Also, do not forget to negotiate for lower rate from your existing credit card company.

Save. There is no better way to have a secured financial standing than to save. As they say, "save for the rainy days". Save a portion of your income and deposit it on a separate bank account. Do not touch it unless you are in dire emergency.

Finally, reduce auto insurance

There is a tip in the auto insurance industry for people who want to save significantly: ask for higher deductibles. Deductible is the amount you pay before the insurer pays for the cost of the claim. Since this will put your finances at risk in case you request for the claim, what you should consider is the amount of deductible you should get; thus, request for the highest deductible you can afford. This will reduce your premiums which equates to lower auto insurance.

For more information on financing and loans, please visit: http://www.safepaydayloans.com/instant-payday-loans-online.html
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Article Source: http://EzineArticles.com/?expert=Nathalie_Fiset

Poor Credit Finance Car - How Much is Your Car Really Costing You?

By Nathalie Fiset

In the past, applications for a car loan with poor credit, bankruptcy, bad credit, slow credit or even no credit would be a hard find. But now, try to search poor credit car finance over the internet and you'll see companies that willingly take care of you and provide you with a loan in no time. But if you qualify for a poor credit car finance, did your really hit the jackpot?

Yes we can all agree, to anyone who needs a car loan and needs it now, any loan would be a heaven-sent. But no one cannot deny that loan taken with poor credit standing places a great stress at your financial status and ability to pay debt. If you think that getting approved with poor credit status is a big opportunity, then think again. Okay, you can own a car but can you pay for the monthly dues? How much is your car really costing you if you pay under poor credit car finance?

Different companies that specialize in poor credit car loans have a wide margin on the interest rate given to applicants with not-so-perfect credit score. The lowest can be 10% but it can go as high as 25% or even 30%, depending on how bad the credit score is. The bottom line is, interest rate is stiffly higher than what your credit-worthy counterparts pay. Are you going to pay a higher cost? Sure you are.

But that does not end there. There are opportunistic car dealers that even give higher APR on top of the rate that your creditor gives. This makes the car much more expensive than it really is. The unfortunate part of this is that, since most poor credit score holders lack the confidence to question this obvious scam in the making, all they can do is keep their lips close. After all, they should be thankful enough that someone has allowed them to borrow money and own a car. What happens here is even if they know that they will pay much higher mortgage on the car, they allow this practice to happen.

So, if you want to know how much your car is really costing you if you apply for poor credit car loan, consider these two factors.

Needless to say, they are pretty hefty.

How can you make sure that you get a good car loan and avoid paying more than what you should?

Get an accurate credit report and credit score. If you realize that you have a poor credit, then skip the car and fix your credit first. Here's the thing; if you cannot even pay your credit card and utility bills on time, why would you add another financial burden?

If there are inconsistencies on your credit score, report and have it fixed immediately. Payoff higher APR cards before applying for car loan; payoff your credit card bills on time.

If you still want to apply for a loan even if you still have a poor credit rating, then get pre-approved first. Shop around for the best deal. As was mentioned, rates vary from dealer to dealer, and bank to bank. If you look around, you increase your chances of finding one that can give you the best deal.

Understand how poor credit car loan works. Understand the difference between rate and points. Know the company very well. Get reviews and feedbacks from current and previous borrowers of the company. A reputable lender gives you better chances of getting approved and paying the mortgage easily.

Do not rush to take home a car. Research the actual value of the car so that when you are on the car dealer, you avoid getting ripped-off by the salesman. Have an accurate credit report on hand so that when the dealer tries lie and claim that you have a lower credit score than you actually have, you can always block him with a copy of yours.

All in all, you can only feel the effects of the actual cost of the car when you start making payments. But it doesn't mean that you have to wait for this to happen. You can avoid paying too much and start living financially stable.

For more information on financing and loans, please visit: http://www.greatestcarinsurances.com/Auto-And-Insurance-Quote.html
http://www.safepaydayloans.com
http://www.drnathaliefiset.com

Article Source: http://EzineArticles.com/?expert=Nathalie_Fiset

Wednesday, July 8, 2009

Small Business Finance - How to Calculate Your Needs

By Nathalie Fiset

Your optimism on the future of the business may overshadow the crucial aspects and specific details required in keeping the business on the progressive status. Sometimes, owners happen to be very aggressive and confident in terms of financial standing that they tend to become very lax when dealing with borrowing money. This creates a big problem since every cent of the money borrowed needs to be put into proper use. Unfortunately, what happens to some is that when they have the chance to borrow money, they borrow more (or less) than they require.

So when it is time for you to take a small business finance, you have to know how to calculate your needs.

There are several factors that affect the amount of money you need. They are worth discussing one by one.

Credit rating - The eligibility for a loan, especially on small business finance, is based mainly on the credit rating of the person. A good credit score means higher amount of loan and lower interest rate. Tip: Obtain a copy of your credit report long before you approach a lender. With a good lead, you have enough time to improve it further or to have your score fixed should there be any inaccuracies. Also gather all your business documents. This includes financial statements with attachments and schedules, tax returns, financial statement (interim year-to-date), and other documents that will help the lender assess your loan application. By doing so, the processing time is reduced.

Savings - Establishing a business or keeping a business running requires a good capital. Pulling out money from your saving will significantly reduce the amount of money you require for a loan. Tip: before you borrow money from lender, tap your resources first. This can cut the amount of money borrowed and the interest you pay, which in turn will increase your profit further.

Expected return/monthly expenses - Before borrowing money, project the amount you can afford to pay back. Your expected income minus the monthly expenses should be well over your loan payment.

Amount required - How much money do you need? Where should the loan go? These 2 questions should be answered first before you go to a lender. You do not simply say, "as much as you can lend" when you asked by the lender on how much money do you need. A reply like this will definitely shut your chances of getting a loan. Have a good estimate of how much money you need. Know where the money should be spent. This way, you can better plan the repayment or project whether or not you can afford to pay the loan back. Another good thing about knowing exactly how much you need is you can carefully manage your finances against other factors that were mentioned above.

Your credit rating, savings, expected return, monthly expenses, and amount of loan required should therefore be included when calculating your needs.

How to Calculate Your Needs?

Once you know where the money should go, identify which items are optional and which are necessity. Having a good funding on your small business is imperative but creating an impartial judgment towards management of funds will bring you a long way. Pinpoint the total amount of money you need by enumerating the small detail. For example, the start up expenses you may include: installation of fixtures and equipment, fixtures and equipment, decorating and remodeling, starting inventory, licenses and permits, legal and other professional fees, deposits with public utilities, consulting and software, advertising and promotion for opening, cast, etc.

Then ask yourself, "Can you afford to pay for the loan?" Borrowing is easy, paying it back can be a problem. So to make sure that you can afford to pay the money back, make a good projection of the future income of your business. Compute your monthly expenses which may include the following: monthly expenses, salary of owner-manager and staff, rent, supplies, advertising, telephone, utilities, delivery expenses, insurance, interest, taxes, maintenance, legal and other professional fees, etc. Deduct these expenses from the projected monthly income. Is your net income more than enough to pay your loan? If yes, then the loan can be borrower. If not, then it is not worth the risk.

For more information on financing and loans, please visit:
http://www.safepaydayloans.com/payday-title-loans.html
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http://www.drnathaliefiset.com

Article Source: http://EzineArticles.com/?expert=Nathalie_Fiset

Monday, July 6, 2009

College Financial Planning - How To Go About This

By Roger Guzman, M.D.

College financial planning should start early. In fact, do it as soon as the child is born. There are benefits to doing this. For one thing the longer time frame will allow some flexibility. You can be more aggressive in pursuing the best return for your money.

The question that begs to be answered is this. How much should one save for college? The College Board says the cost is more than $32000 annually to attend a private university and college. The annual cost in public universities and colleges is much less, around $13,000.00 per year. And it is rising every year at more than the inflation rate.

Everybody in the family should get involved in college financial planning. The kids who are college-bound should think of their educational goals. Answer questions like what do they want to study? Where do they plan to go to university, public or private? In which state do they want to go for this?

After getting the answers, then the kids should investigate the prices at every school they are planning to go. Have more than two colleges in mind for one never knows where he can be accepted. For example I'll laugh if President Obama's safety school is Harvard. Once you have the college cost at each school, it will be easier to see how much money to set aside.

The college-bound kid can also help check out the opportunities in terms of financial aid that is available to them. Have a meeting with the librarian or the guidance counselor in their high school to find out how to access funds for college.

What you will find out is that saving more will be quite necessary So how do we do that? Well, save more and spend less, that's what. The whole family can help. Eating out once a month instead of every week will obviously help save hundreds of dollars very month.

Buying a second-hand car instead of a shiny new one will save thousands of dollars that you can set aside for college. Stop maxing out your credit cards for the interest rate will be horrendous. In fact, transfer the balance to a low-interest card, and stick to the payment plan.

Where do you park all the money you are saving for college? By this time, you are richer than what you think but you will be richer still if you put it in the right place. The government is on your side here. Believe it or not, the government wants to help you save.

Skeptical? Don't be because the government has set up two ways to help you save in a tax-advantaged manner. One is the Coverdell Education Savings Accounts where you can park the money that will earn interest that will not be taxed. It will allow one to withdraw funds for any educational expenses tax free.

The second one set up is the Section 529 College Savings Plans. You can lock in the college cost at today's rate. Let's say college cost is $13,000 annually. Well if the baby is new born you can save $10,000.00 every year at the $13,000 tuition rate even if the college cost when the baby is ready to go to college has gone up to $50,000.00 a year. Cool, huh?

The only trouble with the 529 plan is that only some schools allow this. So, are there other ways to pay for college? Of course, there are other ways; we just have to dig deeper. So bring your spade and let's do some digging, shall we?

There is a law called College Cost Reduction and Access signed where a new repayment plan will be based on one's income, thus making it easier to afford the federal loans. And listen to this, those who consolidate there loan can do it at an interest rate of 2%.

So remember, sign up for IBR (income-based repayment) plan, consolidate loans at 2%, and sign up for a tuition payment plan where you can split the annual cost into 12 equal monthly payments. All are worth investigating for they are part of college financial planning.

Abstract: College financial planning will help ease the burden of the educational cost facing families today but there are solutions to the challenges. Credit woes may hold back the college-bound but careful research and work around all angles will offset the cost of higher education to make college a reality. Start as soon as you can so that if there are unexpected gaps, they can be easily filled in with time and effort on your side. It goes to show that while we cannot lower the cost we surely can reduce its impact.

Please visit these sites for more help where you can sign up for free to receive alerts and tips delivered right to your email inbox:

http://www.debtchallenges.com/collegefinancialplanning.html

http://www.debtchallenges.com/index.html

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11015.shtml

An Amazingly Simple Formula on How to Attain Financial Freedom So That You Never Have to Worry About Money Again!

By Brandon Wilkins

After several years of research, reading all types of money making books, investing in all types of business opportunities, my wife and I have finally realized a simple way that’s helped many people become financially free. I won’t pretend that I have the magic formula that will: make you $100,000 in 3 minutes while you sit on the couch, or allow you to retire next week without ever leaving the house!

Now, I’m not saying that the folks who sell those programs are lying because I haven’t done them all, but years ago, I tried a couple of them and let’s just say the only thing that happened while I sat on the couch was I made an imprint!

Let’s face it: If you truly want to get rich & achieve financial independence, it’s going to take some work! However, if I told you that you could become rich and increase your net worth (regardless of how much money you currently make) by using a tried and true formula that consists of 3 simple steps, would you believe me? Well you should, because it works!

How do I know? Because We Have Used This Formula to Increase Our Net Worth Over 300% over the past 7 years!

It could happen sooner or it might take a little longer for you depending on your situation. But, what I can guarantee is that if you follow these three simple steps, YOU WILL ACHIEVE FINANCIAL INDEPENDENCE!

I’ve spent many years (AND DOLLARS) looking for ways to become rich and financially free. I can honestly tell you that of the many things I’ve tried, some worked and some didn’t. Instead of getting upset about the things that didn’t work, my wife and I had a conversation and we simply asked ourselves, “Of all the things we’ve tried that did work, what did they have in common?”

And that is how we were able to come up with the simple 3 step formula that we’ve been following for the past several years that has allowed us to walk the path towards wealth and financial independence.

Before I share the formula with you, let me just answer one question so that you can decide if I’m someone you want to listen to or not:

QUESTION: WHAT DO YOU CONSIDER FINANCIAL FREEDOM, INDEPENDENCE, OR BEING RICH?

I think if you were to ask ten different people this question, you’d get ten different answers. So, what I consider being rich might be totally different than what you consider being rich. However, financial freedom for me was the point where my wife and I did not have to have jobs in order to sustain our quality of life. I’m not saying that having a job is a bad thing. But the key is working somewhere because you want to, not because you have to! And being financially independent will make it much easier for you to decide if you want to have a job or not.

SO WHAT IS THIS FORMULA?

As I mentioned earlier, it is 3 simple actions. The greatest thing about the formula is that you don’t have to do the steps in any particular order. You can do them one at a time or work on all three simultaneously:

Step 1: Debt Reduction

– In order to get rich, you have to reduce the amount of debt that you owe others. It is important to know that not all debt is bad. Good debt is that debt which helps you to become richer. As one famous author puts it, “Good debt is that which someone else pays for you”. Your goal should be to get rid of bad debt first and then work to eliminate good debt.

Step 2: Expense Management

– In order to get rich, you must manage expenses. You need to identify where you are spending your money and then determine what is absolutely necessary and where you can trim. This doesn’t mean you have to change your way of life, but instead take better control by being prepared. Your goal should be to prepare for new expenses in advance while minimizing the risks of being caught off guard.

Step 3: Multiple Income Streams

– In order to get rich, you must have more than one source of revenue. So often I hear people say, I could be rich if I just got a higher paying job. Believe me, there are financially free people who make less than $40,000 annually, and there are people making over $100,000 annually who are broke. It’s not about making more money from one source of revenue; it’s about making money from more sources. Think about it: if you make $50,000 from one income stream (e.g. job) and you lose that job, you are temporarily doomed. But if you make $5,000 from ten income streams (e.g. businesses, stocks, real estate, etc.) and you lose one (maybe the stocks tank), you still have $45,000 coming in. There are tons of books, seminars and courses you can take on building streams of income. Your goal should be to always have 4 or more income streams going.

So there you have it. An amazingly simple three step formula on how to attain financial freedom so that you never have to worry about money again!

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11052.shtml

Seller Financing is BAD – Right?

By Dean Dretske

The real answer is ‘it depends’. It depends on the situation and the parties involved in the transaction. Let’s talk about it from the Seller’s perspective and the Buyer’s perspective. We’ll also talk about the investor’s perspective in each of these roles. Remember, I am an investor, not an accountant – please check with your own accountant to confirm how this would apply to your own situation!

For the purposes of our discussion, suppose that a house sells for $150K and the seller takes back $100K as a mortgage as part of the sale (the buyer pays the other $50K as cash to keep this simple). The Seller owned this property free and clear – or owed less than the net cash received. Say the note has an interest rate of 6%, interest only payments (or more), with a balloon payment of the outstanding balance in 15 years. This makes the payments equal $500 per month – assuming only the interest is paid.

Seller – The Good:

The Seller can reduce the amount of tax they pay on the sale. When the Seller ‘takes back paper’ at the sale, that part of the equity of the house is not counted towards their capital gain. As payments come in over time, the principal received in each tax period is considered a capital gain for that tax period. Since our note is interest only payments, the $100K capital gain will be deferred for 15 years. This means that a seller can lower the tax they would need to pay for the house sale – both immediately and possibly as a total over time.

The seller gains an income stream from the note. For the next 15 years, the Seller will have $500 each month to spend – minus ordinary income tax (which will depend on the Sellers financial situation). The Seller actually makes more money for the sale of the house. The total amount this Seller earns is $150K + 15 years * $6000/yr = $240K.

As an investor Seller, this kind of financing can help you stabilize your income stream and result in better returns on your initial investment. Also, by offering seller financing, you may be able to demand a higher sales price at the time of the sale.

Seller – The Bad:

The Seller is still ‘attached’ to the house for the length of time that the note is collateralized by the house. This can be bad if the quality of the house is suspect, or the neighborhood value is declining – as the house decays or the defects are discovered, the security for the note (the house) looses value. This can be countered by requiring a larger down payment, charging a higher interest rate or doing more qualifying of the Buyer. For example, a Buyer who lives in the property is generally more likely to maintain or improve the property while a non-occupying Buyer may not have the same incentive to maintain the property (and the renter likely has no incentive at all).

The Seller may not receive payments on time. Ultimately, the Seller can solve this by foreclosing – which is a process defined by the area where the house is located. For example, in Washington the foreclosure process takes about 4 months while in Oklahoma it averages about 7 months. During this time, the Seller will not receive payments and the house may be vacant or damaged. Again, the Seller can mitigate some of these risks by requiring larger down payments or charging higher interest rates. In our example, the $50K down payment can mitigate some losses. For instance, if the payments stop and it takes a year to foreclose, the Seller will have lost out on $6K worth of payments. Since the foreclosure process is not free, let’s assume $10K cost (remember that the cost will depend on the location of the property). This means that the Seller still has $34K in cash and now can resell the property. If the Seller can sell the house for more than $116K, then the Seller is still ahead (remember to also add the amount of payments that were received prior to the foreclosure).

As a rehabber, I feel that investor sellers can also mitigate the quality / damage issues more easily than a homeowner. Part of a rehabber’s job is to manage the quality and costs of repairs and to focus our buying in areas of town that are more likely to appreciate.

Buyer – The Good:

It can be easier for a Buyer to qualify for the loan. Mostly because the lender has already qualified the property – the lender/seller agrees on the current value of the property and they have some history with the property’s quality. Additionally, many Sellers do not require as much documentation as an institutional lender would require to qualify the Buyer. Institutional lenders have a process that they use to qualify Buyers – this process is supposed to reduce the risk to the lender (the current economic situation was caused by a loosening of this process). Most sellers who do Seller Financing don’t have a process but instead do just enough to feel comfortable with the Buyer’s promise to pay.

Seller Financing can reduce the amount of money needed to buy a property. Some financing situations can result in zero down payment. For example, in a ’subject to’ purchase, the seller may loan you all of their equity. For example, the seller may owe $100K on a house that is in disrepair. This house may require $20K of repairs and when fixed up may be worth $200K. A deal could be crafted for a total of $120K where the Buyer takes over payments on the $100K and owes the Seller $20K (to be paid when the Buyer completes repairs and refinances or sells the house).

Seller Financing allows an investor to buy a wider range of properties. An institutional lender may not qualify a property if it is in need of some serious rehab work. As an investor Buyer, this means that I may not be able to get a bank to lend me the money needed to buy the property (they may be more accommodating for construction loans, but there are limitations there as well).

Seller Financing allows an investor to hold more properties. Currently, institutional lenders limit the number of loans that a Buyer may have in their name. As an investor Buyer, this limits the number of properties you can own at any one time. The current limit is actually 10, but the qualifying process for more than 4 loans is very difficult – making a practical limit of 4 loans. Most Sellers don’t have similar limitations and Seller financing often does not show on a credit report, so this can be a nice way to avoid this limitation.

Buyer – The Bad:

It can be difficult to find a Seller that is willing to accept Seller Financing. The most common objection I hear is that they just want to cash out. When I dig deeper, often the resistance comes from not really understanding the good and bad aspects (Why did I write this article?!).

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11102.shtml

Sunday, July 5, 2009

Legal Financing: New Niche for Financial Services

by Robert Draper

How to finance a lawsuit is not common knowledge among the general populace, much
less among the legal field as a whole.
Pre-settlement lawsuit financing is a relatively new phenomenon in the financial services
sector that is a little over six years old. Basically if a lawyer has a case brought to his
firm and upon initial review determines it has strong merit – he will then need time and
money to develop and “flesh out” certain basic facts. This phase, called the “discovery
period” can last several months to several years depending on the complexities involved.

If the firm’s financial resources cannot sustain this expense, there are funding sources
that will advance the necessary capital. They specialize in finding cases that have a strong
likelihood of being winners and have an in-house staff of attorney’s that review such cases. Once the law firm is confirmed as a valid risk by the funding source, money is
advanced, normally in stages up to an agreed-upon limit. A lien or legal claim is then
created so that upon settlement the principal and fees are dispersed to the funder. In the
event the case is lost; most funders have no recourse – so obviously their legal team will
look with hawk eyes to the merits of the case.

Another recently created niche in this arena is personal injury lawsuit financing, also
called pre-settlement legal financing. Look in any major yellow pages under attorneys
and personal injury law firms will predominate. Many people who have sustained an
injury – be it in an automobile accident or slip and fall, etc. – cannot because of their
condition continue to work. Their lawyers can fund items directly related to the case but
cannot directly give personal advances to their clients in most states because doing so would be a conflict of interest.

The same basic procedure applies here in that these funders have lawyers in-house that
are familiar with these cases and can determine the odds of a winner fairly quickly. The
injured parties are advanced money that allows them to pay their bills and survive until a settlement is reached. For most people in this situation, going up against an insurance company means deep pockets and lots of patience.

An important point should be noted here - these funds are not loans. A loan normally has a well defined payback schedule, usually on a monthly basis and there is an agreed upon date for final payment. The correct term is called an advance and the fees are based on the amount of risk involved. A case could conceivably run from several months to several years – there are no hard and fast rules. The advance has no “up front” fees or monthly payments due and again if the case is lost the client is under no obligation of repayment.

For the reasons just stated, these funds are priced according to the risk involved. However, for many people who have run out of resources, this does give them staying power to go up against deep pockets and very possibly receive a larger settlement. The lawyer may also be helped by not having to settle quickly.

Some have expressed concern that this type of service will lead to a further growth of litigation and “frivolous” lawsuits. Actually the opposite is true. Attorneys for the funders
must judge each case with very clear eyes or they stand to lose not only all money advanced but possibly their own jobs. They act as a kind of sifting mechanism separating the wheat from the chaff.

This service is not for everyone – however for attorneys that come up against massive pre-trial expenses and for their clients that have no other way of sustenance until a settlement is reached pre-settlement funding does offer a viable alternative.


Article Source: http://EzineArticles.com/?expert=Robert_Draper

War of the Worlds: Student Finance Versus Life

by Richard Brown

It’s a worrying time for current and prospective students. Figures from the Prudential, show that a third of UK university students have considered abandoning their studies due to the financial strain they have encountered. It is not surprising that many prospective students are finding the need to seriously think through the merits of going to university. With the increase in course fees, alongside decreases in government financial support, the current crop of graduates can expect huge debts (currently averaging over £13,000) when they enter the employment market, which they hope will reward them with a highly paid job.

However, as more students get pushed on to the higher education production line and undertake degrees, the once elitist qualification becomes devalued. Suddenly employers find themselves surrounded by graduates of ambiguous quality. Prestigious highly-paid careers are rare these days and graduates find themselves increasingly under pressure to jump through a number of hoops, with many interviews relying on an individual’s ability to sell himself, rather than the basis of the academic work.

Students need to take responsibility for their own finances, while the government seeks our recognition of its actions (educating the unemployed is good for the books … and votes), without the state taking on responsibility (“it’s an investment in your own future”).
Too many want to bury their heads in the sand and wait for a lottery win to make it all better. With over one trillion pounds of personal debt in the UK, students need to realise that the, "it could be you!" they pray for, is actually an "it is you … in debt" … with trapped wind more likely than wind-fall.

Part of the problem is hopeful expectation (alias denial), part is a fear of controlling your own personal finances (alias apathy), and part is a lack of knowledge (alias ignorance). The first one is difficult, and needs to be overcome by the individual. The other two however can both be overcome by looking for help. Sources of information need to be made available, actively promoted and sought out by consumers.
It’s not like the information isn’t there… there are plenty of financial product comparison sites loaded with information (and pictures): www.moneynet.co.uk for a start, or www.moneysavingsexpert.com The Financial Services Authority has its own finance help information for consumers.
As the saying goes, "Seek and you shall find". It may be a hard lesson, but it is one that we must all currently embrace.

Article Source: http://EzineArticles.com/?expert=Richard_Brown

33 Essential Year-End Financial Tasks

by Scott Frush

The end of the year is a traditional time of celebration, excitement, reflection and planning – not withstanding the hectic holiday shopping of course. However, the end of the year also holds another, lesser-known but more significant, importance - the optimal time of the year to complete year-end financial tasks. A new booklet in the Financial Booklets Series from Marshall Rand Publishing reveals the most essential of these tasks.

Managing your personal finances always begins with you. By not completing certain essential tasks, you risk making costly mistakes and placing your financial independence, control and security at risk. The benefits of completing these financial tasks typically include protecting and growing your investments, cutting your tax bill, jump starting your retirement savings, improving your credit rating and reducing your insurance costs.

“The end of the year is not only the optimal time to address all personal finances, but also is the deadline for completing some specific tasks,” says Scott Frush, president of Frush Financial Group and author of 33 Essential Year-End Financial Tasks (available at www.FinancialBooklets.com). “For example, the last trading day in December is the final opportunity to sell losing investments and offset resulting capital losses against existing capital gains for that tax year.”

Here Frush shares seven of the essential year-end financial tasks revealed in his new booklet.

1. MINIMIZE CAPITAL GAINS: Capital gains taxes can significantly reduce total portfolio performance and increase your tax bill. As a result, harvest appropriate capital losses to offset against existing capital gains.

2. REBALANCE YOUR PORTFOLIO: Due to fluctuating market prices over the year, your portfolio and respective holdings may have changed. To ensure that your portfolio remains optimal - or aligned to achieve your goals and objectives - you may need to sell some investments and buy other investments with the proceeds.

3. MAXIMIZE RETIREMENT CONTRIBUTIONS: Consider increasing contributions to your retirement account – 401(k), 403(b), IRA or other, if permitted. The compounding impact from increased contributions will become quite sizable over time. Take full advantage of employer matching.

4. ESTABLISH AN EMERGENCY FUND: An emergency fund is used to protect against a loss of income as a result of layoff, disability or death. As a general rule, your emergency fund should amount to between three and six months of your average monthly expenses.

5. CONSIDER BUNCHING ITEMIZED DEDUCTIONS: If you are close to benefiting from itemizing your deductions, consider "bunching" them in alternating tax years. One year you itemize deductions - and benefit from the excess itemized deductions over the standard deduction - and the next tax year you take the standard deduction.

6. DRAFT OR MODIFY ESTATE PLANNING DOCUMENTS: Having an estate plan (will, living will, trust, power of attorney, etc) is essential for avoiding probate, minimizing estate taxes and ensuring assets go to whom you designate.

7. MAKE TAX-EFFICIENT CHARITABLE GIFTS: Making gifts of highly appreciated assets, namely stocks, can be very beneficial by reducing your tax bill. In most cases, taxpayers benefit by obtaining both a charitable tax deduction and avoiding capital gains tax on the highly appreciated asset.

With the end of the year fast approaching, it is crucial that you address your personal finances and complete certain essential tasks, especially those with deadlines. Remember, managing your personal finances always begins with you.


Article Source: http://EzineArticles.com/?expert=Scott_Frush

Protect Your Assets and Your Financial Future

It’s been said that, in this litigious society we live in, it’s better to be rich and guilty than poor and innocent. Justice, and access to the legal system, seem to be reserved only for the wealthy. So what are the ‘little people’ supposed to do? What about us ‘average Joe’s’? We have legal concerns, too, and because we’re not among the wealthy, one lawsuit could wipe us out financially. Can we protect our relatively meager assets the way the rich do and still afford to eat?

Actually, there are a number of things the average, middle-class American can do to protect what they’ve worked so hard for. Because our homes are usually our largest assets, we’ll start with that. If you have your home mortgaged to the hilt, you’ve actually ‘protected’ it in one way. Yet, if you’re among those who feel most secure by having a paid-for home, you’re more vulnerable than you think. Sounds counter to logic, doesn’t it? Let me explain.

If someone wanted to sue you—over an auto accident, for instance—the first thing they or their attorney will do is try to find out if you’re worth suing. How do they do that? The amount of information about you in the public records is enough for anyone to get a pretty fair idea of what you’re worth financially. However, when they see that your home is mortgaged for very nearly what it’s worth (or in some cases even more than it’s worth), yours doesn’t look like a very profitable lawsuit. On the other hand, if no mortgages are recorded in the public record on your home, all that equity looks mighty tempting to the attorney who’s about to take the case. It’s all at risk.

To protect your paid-for, or nearly paid-for, home, probably the wisest thing to do to protect your equity is to mortgage your house so it looks as though you have no equity at all. Now, you don’t have to put a traditional mortgage on your home and start making those big payments you were so happy to get rid of when you paid off the loan. Instead, apply for the largest home equity line of credit (HELOC) you can get. Equity lines of credit offer the lowest interest rates around these days, and some lenders will allow you to apply for 100% of your home’s value—and the best part is that you don’t pay if you don’t use it. Your lender may require you to take out a certain amount of the available total when you go to closing, but there usually is no penalty for paying it all back immediately, while leaving the entire line of credit open for future use.

How does this protect your home? Lines of credit such as this are recorded in the public records as mortgages (there is no notation indicating that it’s a line of credit so it appears the same as a first mortgage would), and the ‘balance’ is simply the maximum available credit you have access to. The balance you have outstanding on the loan (how much of your equity you’re actually using) is not recorded publicly. So, to the person searching the public records, it looks as though you’re mortgaged to the hilt and have no equity to take in a lawsuit. Quite often, they won’t pursue the lawsuit any further because no ambulance-chasing attorney will take a case on contingency that doesn’t look like it will have a big payout. What a HELOC offers in addition to providing some level of protection for your home from lawsuits, is that you now have all that equity at your disposal with the simple act of writing a check—to pay for home improvements, for college, or to tide your family over through a period of unemployment or even disability.

The next step toward protecting your finances is to consider adding an umbrella liability policy onto your homeowner’s insurance policy. Liability insurance is about the cheapest insurance you can buy, in some cases costing less than $20 a month for a million-dollar policy. This policy would kick in after the liability coverage on your home or cars has been exhausted in a judgment against you, allowing the lawsuit to be settled without you having to sell any assets. Ask the agent who handles your home and car insurance, and don’t hesitate to shop around for a terrific ‘package deal’ including your home, cars, and liability umbrella all with one company.

So what if your local drycleaner ruins your favorite suit and won’t pony up for the damage? Would you even consider calling an attorney to see if you have any recourse? Most people won’t call an attorney, even when they need one, because the cost of the attorney is more than what the situation is costing them. And what if you’re involved in, say, a relatively minor car accident, and you get sued by the other driver? Now what do you do? You definitely need an attorney now, but do you know who you would call?

The wealthy seem to have entire law firms at their beck and call, but few Americans seem to be aware that there is help for them…if they’re willing to give up pizza night once a month. A thirty-plus-year-old, New York Stock Exchange-traded company called PrePaid Legal Services, Inc. does just that. They offer virtually limitless access to legal advice and representation starting at an astoundingly-low monthly cost. And these are highly-rated law firms, not rinky-dink operations. See http://www.WeAllHaveRights.com for more information about what’s available in your state.

When thinking about protecting our families and our assets, having an attorney ready and willing to answer our questions is a powerful thing to have. And to be able to access that legal advice without having to first weigh the cost is simply empowering. So, there it is in a nutshell: you, your family, and your assets don’t have to be vulnerable any more, and it won’t cost an arm and a leg to protect them. You just need to know the strategies to use and the affordable resources available to you. I encourage you to take a look at your own situation and protect what you have right now.

Article Source: http://EzineArticles.com/?expert=Kathryn_Marion

Setting Your Financial Priorities

Terry Rigg

Whether you know it or not, you are always setting your financial priorities. Some may decide that a new stereo system is more inportant than this month's electric bill. This may be a little off the wall but it is still setting your priorities.

Anyone wanting to better manage their money would be wise to determine what their financial priorities are and stick to them. Of course, if you see that these priorities will not put food on the table and pay your bills then you will have to rethink your priorities.

Setting your priorities is simple. You just decide what is the most important aspect of your finances and put that item on top. However, if you decide on that stereo over your electric bill, you may find yourself in the dark with no need for a stereo.

There are basic priorities that pertains to everyone. These are simply a matter of survival. Here is a list of the basics:

Water

Food

Shelter

That was a tough one.

What does it take to ensure that our basic needs are met? The main ingredient is a source of income to pay the rent or house payment, pay the utilities, and buy the groceries. This is where you start setting your priorities.

Before you can spend another penny, you have to take care of what you need to survive. Don't put off the rent or house payment, utilities and don't skimp on your groceries and necessary health items. If you do you will start experiencing money problems much sooner than you would if you had delayed paying other bills instead.

What's next? If your source of income happens to come from a job, then I would say your transportation. You have to get back and forth to work so you can afford all of the other stuff. This would include your vehicle payment, gas, insurance and maintenance. If your source of income is not a job then go to the next step.

And Now? Naturally, this would be your other bills. You can even split this category a little further.

First, you have your bills that are secured by property. You should always pay these bills first.

Secondly, your unsecured bills which are probably credit cards.

The reason you should always pay your secured bills first is that it is much more likely that they can take the secured property and probably will unless payment is made. While credit cards companies are notorious for their threats, they very seldom follow through. I'm not saying not to pay them, just that they aren't as high a priority as your secured bills.

Next would be your savings. I really to hate to list savings as your last priority because having a savings can prevent the use of those dreaded credit cards and help in so many ways. If you have the money to cover all of your other priorities then you should always put savings at the top of the list. However, if you don't have enough money to cover your bills and expenses then your savings will have to be the first to go.

Just to recap. The below list is an example of what your financial priorities should look like:

1. Groceries and Necessary Health Items

2. Housing (Rent or House Payment)

3. Utilities

4. Transportation

5. Secured Bills

6. Unsecured Bills

7. Savings

Let's hope that you never get in the position to have to decide which of the above list will have to wait. But if you do, following the above priorities is absolutely necessary to ensure your survival.

visit his home page at http://www.homemoneyhelp.com

Article Source: http://EzineArticles.com/?expert=Terry_Rigg

3 Steps to Personal Financial Success - Part III: Save Some Money

by Gordie Prescott

Obviously, you cannot be a financial success if you don't have any money or are not living the lifestyle that you envisioned. Question: Do you know what your net worth is? Many people don't and are afraid to even try to determine what it is. It may just be the one thing to get you taking action towards saving your money.

How Much to Save?

Most say save 10% of your income. I say save more, but it all really depends on how much debt you are currently working with and where you want to be in the next year, 10 years, or by retirement (This should be determined in your goals. Read Part I of this series). If you are looking to retire in 30 years, investing $300 a month at 8% will yield you roughly $440,000. Enough for some to retire on, and probably a whole lot more than where you are currently headed.

What if I have Debt(s)?

If you have debt, it is important to get that debt out of the way. The logic here is that most credit card interest rates are upward of 12%. If you have debt on that card, but decide to save your money in an account earning 5-8%, you are losing money.

So what to do? Save enough for a cushion. Determine how much you may need for quick emergency cash such as $1000 - $2000 dollars, and save this amount. Once there, devote however much you were putting away into these accounts to paying off your debt as quickly as possible.

What Financial Vehicle should I use to save My Money?

Good question. There are many options that will get you where you want to be. When I think about where I want to save my money I think of 8 things:

1. What is my purpose for saving this money? (Very Important)

2. How much of a risk am I willing to take?

3. Will I be able to get to my money quickly?

4. Are there any penalties for getting my money?

5. How much do I want to save?

6. What reputable company should I save / invest with?

7. How much am I able to put aside monthly to achieve this?

8. How long will I be saving for?

I recommend separating your savings into multiple accounts (Christmas savings, car savings, retirement savings, etc.) and for each, make choices that will be conducive to how you will use the accounts.

If you are saving for a car for 1 year, you may want to use a 1or 2 yr CD. If you are saving for Christmas you can do the 1yr CD or use a Money Market account to allow you to get to your money if you have an emergency before Christmas and have to sacrifice some funds. If it is retirement you are saving for, there are numerous annuities, the most famous being the Traditional and Roth IRA which provide significant tax advantages depending on how you use them.

The Next Step: Take Action!

You've been given the hammer and the nail. Now it is up to you to drive it home. Take action today! It is important that you are clear about what it is that you want to do, seek professional help (for your money, not your mind) if needed, make a decision, then do it! Become the financial success that you have always wanted to become, today.

Article Source: http://EzineArticles.com/?expert=Gordie_Prescott
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Bad Habits Keep You From Your Financial Goals

by David Wilding

Bad habits can ruin any well thought out financial plans. Habits such as your morning coffee,
buying lunch at work each day, and of course smoking and drinking, can drain your bank account.
They are not as noticeable as someone backing a truck up and loading all your money in and
driving away. However, the results are the same.

A woman shared her story with me. Her bad habit was smoking cigarettes. She smoked less than a
carton a week. Along with her husband’s habit they used about two cartons a week. On occasion
the decision had to be made whether to buy food or the cigarettes. Guess which one got bought.

She made the choice to get a job outside her home, to make the food/cigarette decision go away.
Now she could have both. Work began to take more and more of her time. She enjoyed the other
stuff besides cigarettes the money would buy. A budget was never considered, she spent every
dime she made. She had STUFF!

It all came to a halt when her son began failing school. It became important to stay home and help
him with his homework. The problem was she had STUFF. She and her husband returned to one
income but had much higher bills. Something needed to give.

The stuff had to go, so she started with the obvious, the cigarettes. Not before she tried every way
to keep them. She tried to fit them into her budget. She lowered her grocery bill, began hanging
her clothes, used only cold water in her washing machine, anything to save money to keep her
cigarettes.

She discovered that whatever she did she could not scrimp and save enough. It came down to
another decision: Stay at home with her son and quit smoking or, go back to work to keep her
habit supplied.

She made the decision to stay home with her son. She stopped smoking. In the three and one-half
years since she has quit, she has NOT smoked 27,000 cigarettes. She has saved $7,185.00, more
than $1900 a year. She has put that money to better uses.

You know you could find a place for more than $150 a month; I know I could. Don’t let your bad
habits rule your life and drain your resources. Get them under control and put that saved money to
good use in your financial plan.

David Wilding has for the past ten years worked with groups and individuals to help them become debt free. Visit his website http://www.debtattack.com for more ideas, tools, and strategies to rid yourself of debt.

Article Source: http://EzineArticles.com/?expert=David_Wilding

3 Steps to Personal Financial Success - Part I: Goal Setting

by Gordie Prescott

Financial Success - A Definition

What is your definition of financial success? For many of us it means different things. And for most people, it is a vague definition with out a set number or desired result. Most people declare that they want to be "rich" or have enough money so that they don't have to work.

Well, what is that number? What is rich to you? What steps have you outlined to reach this goal? Your definition of financial success should be a personal definition, not some generic definition that someone created in general. But, if you cannot think of one on your own, a generic definition may be a good place to start. That being said, here is my personal definition that my wife and I decided on:


Financial success - the ability to be able to pay bills without worry, be free of debt, help others with our time and financial resources, save our children's college tuition/trust funds saved in the amounts of (amounts here), and are on track with our savings plan to have saved the money we want to have by (our date here).

Pretty lengthy definition huh? Well, one of the most important things for being a success in anything is clarity. If you are single, you must be clear as to what it is you are trying to accomplish for yourself. If you are married, you must both be clear on what it is you want together, as well as individually, and put a game plan together to begin, gauge, and accomplish your goals.

Step 1 - Establish Clearly Defined Financial Goals

In order for you to reach a destination, you must be able to see where you are going. Have you ever tried swimming through mud? It would be very hard to do. In addition, you wouldn't be able to see where you are going and the frustration would probably lower your determination and you would give up. If you don't have financial goals set, this is exactly what you are doing.

Why do this if you don't have to? Clearly Defined Financial Goals allow you to see where you are, where you are going, and gives you a way to track your progress. Imagine swimming in the clear waters off the coast of Bermuda - able to see the underwater life and go exactly where you want to go. You can see the dangers and avoid them. If you get off course, you can see where you came from and adjust your direction. Goals in any part of your life give you this power.

How to Set Financial Goals - Short Term

So how do you go about setting financial goals? I'm glad you asked! Setting short-term goals is important because they help you achieve your long-term goals. You can set short-term goals that look something like this:




I will save $600 by June 2005, starting now, by putting away $100 a month. I will have it automatically drafted.

I will drink only 1 soda a day starting today, instead of three, and save the difference in a Money Market account with (Name of Company) from (today's date) to (1 year from today's date).

I will save $5000 this year in my Mutual Fund account with (Name of Company) by having $208.50 drafted bi-weekly from my pay.



These short-term goals answer the questions who, what, when, where, and how. Do your goals do this? It may be time to revamp. I can't stress enough the importance of clarity. Without clarity, your action will be more so inaction than progress.

How to Set Financial Goals - Long Term

For long-term goals, you want to be just as clear. As a matter of fact, your long-term goals will follow the same format, but will have dates that are further in the future. For example:




I will have saved $500,000 by my 55th birthday by setting aside ($ set number of dollars) for (set number of years) by having it automatically drafted into a Roth IRA with (Name of Company).

On September 5th, 2020 I will have saved ($ set number) for my child's tuition / trust fund by having ($ set number of dollars) drafted from my paycheck bi-weekly.



The short-term goals that my wife and I have set put us in sync with our long-term goals and our definition. The greatest part about all of this is - if our thinking changes about our future plans, we can make adjustments and continue the course.

I am confident that the first part of this series is helpful to you, or has at least put you back on track to your financial goal. Stay tuned for 3 Steps to Personal Financial Success - Part II: Budgeting.

Gordie Prescott is a motivational speaker and success coach in the areas of personal, career, and financial success. Gordie also owns GordiePrescott.com and the Money Matters website.

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What is Bridging Finance?

by Darren Yates

Once you understand what the term, “Bridging Finance” means, it’s easy to understand how it got its name. The purpose of a bridging or bridge loan is to provide short term cash for a real estate transaction until permanent financing is secured. Bridge loans are commonly used to “bridge the cash gap” when completing commercial real estate transactions.

Everyone knows it’s difficult to time the sale of one property to coincide with the purchase of another property. The slightest delay can wreak havoc on the transactions and create obstacles that are difficult to overcome. Having to pay two mortgages, whether for residential or commercial purposes, for any length of time can spell financial disaster. This is where bridging finance helps.

The goal of a bridge loan is to remove this financial obstacle so that a commercial transaction can proceed. In the majority of situations, “bridging finance” provides additional funding so a company can continue to pay the lease on its existing commercial property for as long as it remains on the market.

There is a process to go through before a bridge loan is approved. If you’ve already developed a relationship with an institution, that’s a good place to begin. If not, it’s time to start looking for a lender with which you feel comfortable. Go through the bridge loan pre-approval process to see how much of a loan you qualify for. With pre-approval in hand, you can act quickly once a desirable commercial property becomes available.

One general requirement for obtaining a bridging loan is collateral. Most applicants will be asked to secure the loan with some sort of significant collateral. Examples of collateral include heavy machinery, business equipment, inventory, other commercial or residential properties owned by or the applicant and even properties involved in the purchasing process.

Having a great credit history, for both your business and your private life, and a solid relationship with a lender always helps when applying for a bridging loan. There have even been situations where bridge loans were approved with only a signature – no collateral necessary!

Even with good credit, however, expect to pay a slightly higher rate of interest for this type of short-term bridge loan. One-half of a percent or more is typical. The maximum length of a bridge loan is usually twenty-four months. The lender has to make some money on the deal and the higher interest rate is where the opportunity lies. Other factors are also involved in determining the interest rate. The applicant’s calculated credit risk, the value of the items being used as collateral and the amount of time the loan is needed all factor into the equation, too.

If you think applying for a bridge loan makes sense for your situation, work with a US Commercial Lending organization that specializes in this type of loan. They’ll help with all the steps necessary and they’ll offer advice along the way. Don’t be afraid to shop around for better rates and terms! The commercial lending market is very competitive and it’s to your advantage to do business with a lender that will work with you and not against you.

Commercial Lifeline are Commercial Mortgage and Bridging Finance specialists.

Download our free Commercial Mortgage guides by visiting our Commercial Mortgage Guide page.

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