Financial Times

Free Personal Finance Management Software Being Thrived On: By angela

2011-04-16T04:44:00.001-07:00

Nowadays, it is considered to be a complete misconception that there is a requirement of a financial management software if a business is owned or if there are multiple sources of income to be tracked on. This is because anyone earning money and spending them is bound to benefit from having free personal finance management software to depend on for their personal accounting needs.

The notion of whatever is considered free is most likely below par, is regarded to be another misconception. This is because in the case of free personal finance management software, open-source or freeware solutions exist which are usually web-based, that work as competently and instinctively like the other financial management software. Here, one needs to think how to choose and which one to choose for application to the requirements. It is important to seek top tips from most of the IT experts, who elucidate that it pays to read every software reviews every time, including those performing financial management tasks. These tips in the form of reviews frequently appear on the desktops and IT magazines, as well as on technological websites.

The functionalities and features of this software also have to be compared. If it is required to choose between a complex suite of financial management software and the vital one mechanizing the most common processes, the best option is to choose the basic one, especially if one is going for using the software for tracking speculation assortment. But in every case, a software will be required that is able to support such types of compound connections. Comparisons are also required for planning budget-making modules of the obtainable software, along-with their capacity of tracking tax-related monetary issues.

Doing billing, payroll and invoicing would be added advantages for the free personal finance management software. With the free personal finance management software, one can access financial health score. The software also detects financial position according to the information provided, and discloses the financial position of the individual. The free personal finance management software is programmed to provide scores in the financial areas and also provides necessary advice for amendments. The free personal finance management software provides relevant advices for all personal finances that are considered to be exceptional and matter-of-fact.
For more info: http://www. debteye.com

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You Are About to Fire Your Financial Advisor!

2011-04-16T04:40:00.000-07:00

The number one fear of the public used to be public speaking but that fear has been replaced. The new fear has become out living ones money in retirement. This fear was more realized after 2008, when the old strategy of buy and hold and diversification was thrown out the window when people saw their portfolios drop by thirty to fifty percent in just a few months. For example if you had saved up five hundred thousand dollars you could of seen your portfolio drop to three hundred and twenty-five thousand or worse two hundred and fifty thousand in less than one year. The problem is that most people still have their money in the same types of investments that lost them all of their money just a few years ago. Most people think the financial storm has passed but that's just not true. Have you seen oil prices lately or been to the grocery store to buy a gallon of milk or ice cream. Food prices have shot up thirty to sixty percent depending on the department. One of the reasons stated that Egypt was in such turmoil was the drastic rise in food prices that seemed to happen overnight along with high unemployment. If you do any research on why food prices shot up drastically in the Middle East you will find that the cause of high food prices leads back to the mortgage collapse in two thousand eight. The Band Aid solution was for the Federal Reserve which is not a government institution. Decided to just print more money and more money, then to give all of that money for free to the banks calling it a bail out, now the banks were strong on paper again and their stock prices shot up. The CEO's of these large banks were now able to take a large bonus for the great job they had done at making money for their financial institutions. Then banks decided not to loan out this money like they were supposed to, all they did was buy T Bills that were again printed by the Federal Reserve for a profit. So the Federal Reserve gives the biggest banks in the world free money and then creates notes Federal Reserve notes for them to buy at a profit to the banks. Then again the banks post a profit on Wall Street and their stock prices soar. Bank of America for example made more money in fees then they made in loans in two thousand nine, these fees were fees like overdraft protection, credit card charges. Not lending money.

So why should you care about banks making money out of nothing and food riots in other countries or why it started in the first place. Well the first reason is you have to look at the price of oil and how that affects your gas price, and you also have to notice your grocery bill has been steadily increasing over the last year. Most people don't take notice until things have gotten so bad there is not much you can do about it, but today you can do something about it. We can vote the right people into office that will stop the madness of big government bail outs, and the devaluing of our dollar by running the printing presses none stop. If we don't vote with common sense, meaning that you vote for those who believe that government will not solve our problems and it must be drastically smaller than we can solve this problem, but if we don't there is not much anyone can do to stop the financial suicide that is coming in just a few short years if not sooner to America.

So what happens if you do everything you can but the government does not shrink in size the money printers keep printing more and more money, how are you supposed to protect yourself? The answer is different than most people think, its insurance, used as an investment vehicle. This is not your grandparents insurance though this is equity index universal life insurance that has averaged over eight percent the last four years. The worst four years of the stock market in history. The whole time the money was tax free, that's the equivalent of getting a twelve to fourteen percent return in the market. Some years you can get as much as a thirteen percent return, still all tax free, and you can fund these accounts with as much money as you want, no matter how much money you make. You never have to take any money out if you never want to, unlike other accounts in which the government requires you to start taking money out at seventy and a half. Plus the money comes out completely tax- free; this is the most important part because you do not know what taxes will be in the future. I predict taxes will be higher. What do you think?

So the question is, do you trust your fellow citizens to vote in people who will make the government smaller year in and year out? Do you trust the Federal Reserve to stop printing money? Do you trust the Government to keep your taxes in the future the same or lower? If you answered no to any of these questions then you need the strategy I just talked about equity index universal life insurance. Your money is one hundred percent protected to never lose another penny, and grow tax free at an amazing high rate of return. For example whole life insurance vs. equity index universal life insurance, which both have their purposes? Whole life is more for one hundred percent guaranteed rate of return. These returns are around three to five percent per year every year. Equity Index Universal Life Insurance returns are seven percent on average, but are not guaranteed like Whole Life policies. You can never lose any of your money in either policies but there different policies for different people and where they are in their life. You should always talk to your financial advisor to make sure any one of these policies are right for you but if they have never heard of them or state they are a waste of time then you should get a second opinion. Your kids will thank you in your golden years.

Article Source: http://EzineArticles.com/6023468

Bad Credit Loans - Financial Crunches Can be Managed Well

2011-04-16T04:30:00.000-07:00

Buying for the better bad credit loans? Then you merely know that it can be huge time consuming and irritating. But there are number of lenders who provide monetary for individual's with poor credit if you know where to search from. Firstly, you should analyze that poor credit interest rates are mostly higher than for someone with a great credit ratio.

This does not mean that you can't buy and compare specific rates and terms to avail the best credit loan. It's always essential to do your detailed research before you accept due to it could save you a good deal of funds. There are a number of places to support you with your search so you will end - up with the best credit loans which are accessible.

Not many banks are open to monetary for individual's with poor credit but some are. This is particularly true that if you have an accepted accounts with the bank now and also have been a consistent customer. A poor credit bank loan is the better place to start with as you are before – hand doing business with them as well. That usually gives you a better leverage along with their loan agents as they might feel because you are existing as a customer that you might have the capability to repay the loan better.

A famous alternative to a unsecured bad credit loans or going to a lending institution for a loan that is a bad credit bank loan through the mode of Online. Such poor credit funds lenders provide you loan schemes from the satisfaction of your computer. Number of online poor credit funds lenders provide financing for individual's with poor credit or any type of other credit. Some of such Online lenders have much more competitive interest rates along with the terms and conditions because of a low over – head. So, easily avail them and solve your financial troubles with ease.

http://www.articlesbase.com/loans-articles/bad-credit-loans-financial-crunches-can-be-managed-well-4613694.html

Mezzanine Financing - A Powerful Financing Vehicle for Growth : By Chris Dobbin

2011-03-29T14:47:00.000-07:00

Mezzanine financing ("Mezz") is a little known strategy available for privately held businesses and publicly traded companies that allows a strong performing company to increase its financial leverage in certain transactions. Generally speaking, mezz financing offers the features of both debt (regular interest and principal payments) and equity (options or warrants). Mezz debt will rank behind senior debt but ahead of equity holders in terms of security.

Mezzanine financing is available for companies with strong cash flows. Although there are some limited exceptions in Canada, the majority of mezzanine lenders require historical cash flows to be at a minimum of $2M when looking at historical performance over a three year term.

Companies should consider using mezz financing when traditional senior debt has been maximized but there are additional leverage opportunities available as a result of strong cash flows prior to raising dilutive equity. Mezz financing is generally used for acquisitions (including leveraged buyouts), expansion, recapitalizations, and management buyouts and is prevalent in both operating company situations as well as certain real estate development scenarios.

While Mezzanine financing can be structured in any number of different ways, the common elements of mezzanine financing are as follows:

1. Cash interest - Regular interest paid on a periodic basis similar to paying term debt;

2. PIK (Payment in Kind) Interest - A stated amount of periodic interest that is actually added to the principal amount of a loan which is usually paid back as a bullet payment at the end of the term.

3. Ownership - The lender will receive an option or warrant to convert to equity. Generally, in private company situations, the equity is repurchased by the owner(s) over time.

Since the target total annualized return for mezzanine lenders ranges from 18-21%, it should be noted that mezzanine lenders usually work with the primary bank in structuring their deals to ensure that the cash interest portion charged on the financing is not prohibitive to the business, thus allowing greater flexibility in the overall capital structure. It should also be pointed out that it is possible to achieve an 85%-90% loan to cost ratio with mezzanine financing. In addition, mezzanine financing is usually treated as equity by senior lenders for purposes of financial covenants.

In today's lending environment, it is common to see senior term debt issued at 3.5 times EBITDA (Earnings Before Interest Tax Depreciation and Amortization) with mezzanine debt adding another 1 times EBITDA for total financing of 4.5 turns of EBITDA. As an example, it is conceivable that a strong cash flow company with $2M of cash flow (EBITDA) could borrow $7M of senior debt and another $2M of mezzanine debt for $9M of total financing. Given the strong emphasis placed on cash flow, lenders are very meticulous in their due diligence process.

In the United States, there are hundreds of lenders directly involved mezzanine financing. In Canada, the number of credible lenders is much smaller. The organizations involved in mezzanine financing include private investors, insurance companies, mutual funds, pension funds, certain government crown corporations, and chartered banks.

Business owners should consider the advantages of mezzanine financing prior to raising equity in the private or public markets.

Chris Dobbin, CA is the President of Precipice Capital, a Halifax based investment bank and exempt market dealer specializing in corporate finance for privately held and publicly-traded businesses throughout Canada.

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

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Behavioral Finance and Your Investments Article: By Steven Pomeranz

2011-03-29T14:43:00.000-07:00

Ever wonder why markets make sudden moves from one extreme to the other, or why markets may decline in the face of good news and rise on bad? Seems crazy, right?

Well, many times stock market movements are based on more than new information such as earnings reports or corporate downgrades... markets are quite often moved by investor sentiment. Psychological factors affect not only the average investor, but also professional money managers who tend to be driven by greed, euphoria and fear!

Behavioral Finance

Believe it or not, there is a legitimate field of study which seeks to quantify the impact of emotions, psychology and behavior on investing and financial decisions - it's called Behavioral Finance.

Behavioral Finance teaches us that just as the stock market operates in up and down cycles, markets also operate on their own "cycle of market emotions". Interestingly these two cycles tend to move in tandem.

For example, when the market is at its peak, most investors are in a state of emotional euphoria. Then as the market trends downward toward a bottom, investors' emotions become darker and more fearful, shifting from slight anxiety to despondency or depression.

This is the shift which can have the greatest impact on your decisions and investment results.

A Little Fun....

Take a short quiz to gauge your investor temperament.

A wager is offered where you must pick one of the following choices:

Wager (Investment) A: Gives you a 50% chance of gaining $1,000, and a 50% chance of gaining $0.

Or

Wager (Investment ) B: Gives you a 100% chance of gaining $500.

Which do you chose?

If you chose B then you are like most investors who are careful to avoid losses and concentrate on gains.

If you chose A, you are concentrating on the chance of winning $1,000.

Interestingly, both bets are statistically the same. Wager A has the same statistical outcome as wager B because the average gain is the same. And yet the overwhelming majority chooses Wager B.

Behavioral Finance refers to this as Loss Aversion which refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies even suggest that this aversion is twice as powerful as the desire for gains.

Avoiding loss by refusing to sell an investment when it starts to deteriorate can cause permanent destruction of your wealth. Understanding loss aversion as a personal trait can be the difference between investment success and failure.

Key Takeaways-What to do.

Loss Aversion is one of many behaviors to keep in mind when you make investing decisions-here is the summary:

* Emotional and psychological factors impact our decisions.
* People will base decisions on perceived losses more than perceived gains. (That's what our quiz also showed us.)
* Losses have more of an emotional impact than equivalent gains. This reinforces the earlier point that individuals are more loss-averse than gain-driven.
* Investment decisions are usually based on beliefs and feelings and not on facts. So even though you may do a lot of analysis on a stock, ultimately, it's perhaps your emotions that influence how and when you pull the trigger. Unfortunately investing needs to be strictly non-emotional so the impact on your results can be quite devastating.

Things to Remember

So based on all of the above... when investing:

* Remove as much emotion as possible and stick to your game plan.
* Do your research and due diligence, and understand the upsides and risks.
* If your investment is solid, do not deviate from it just to follow the masses or to time the market. Hang tight, ride out the storms, and you will come out better-off in the end. (Remember how Buffet sat out the dot-com boom despite a lot of heavy criticism, but came out a hero.)

Fundamentals impact market moves, but so does investor behavior. So avoid making investment mistakes, and allow professional advisors to manage your investments or guide you through the process.

If you want to know more about your risk tolerance and investor sentiment, contact us at 1-866-Money-01.

Source: http://ezinearticles.com/?Behavioral-Finance-and-Your-Investments&id=6110501

A Look at Refinancing Your Student Loans : By James Hunaban

2009-08-01T05:52:00.000-07:00

Student loans offer individuals without the means to devote immediate payment for an education a path to finance college prices and linked expenses. It's not often the most preferable manner to pay for college, but in numerous instances it is required. After all, who has $15,000 to shell out for one twelvemonth period of college work? Then, once your educational activity is finished, what may you do with your student loans? College loan consolidation is a common means to preserve money on student loans.

If you go for a student loan to help pay for your educational activity, chances are you took out more than one loan. A college loan consolidation takes multiple school loans and unites them into one. There may be a couple of benefits to doing this. Foremost, instead of paying for separate loans, you simply need to pay one loan once every month. Second, the college loan integration payment is oftentimes lower than the total of the separate loans. Why, you may wonder would a person take a college loan consolidation? Educative tolls are extremely expensive.

The total balances of one's training loans can pass the price of luxury autos and even houses. Graduating from college does not always translate to getting a high-paying career from the start. For many graduates in the workforce, student loan payments use up a huge chunk of income, with not much remaining for day to day expenses. A college loan consolidation can offer up respite in the form of lighter payments.

A college loan consolidation could likewise offer relief in the shape of lighter interest rates. Interest rates could deviate widely among different student loans. Chances are, at least one of your loans holds a stiffer rate than what the college loan consolidation provides. The bottom line is you may save cash from a lighter monthly payment, smaller rate of interest, less amount of payments, or even a combination of all three. Whenever you consolidate into a smaller rate of interest, you reduce the interest you pay over the life of the loan. To boot, consolidating your loans could spare you time. Juggling several student loans could become involved.

You have to keep track of which payments go to which lender. A simple error can cause you to underpay one loan while overpaying another. A consolidation eradicates this by permitting you to keep track of just one loan. If you want to truly increase the convenience of a consolidation, you can have the monthly payment deducted direct from your bank account. As long as you recognize not to use that payment amount for other expenses, you need not vex about being late or underpaying your loan. As an additional inducement, umpteen consolidation loan lenders extend further rate reductions for borrowers who take advantage of an automated payment feature. When this inducement is proposed, there actually are zero reasons not to use an automatic payment feature.

Article Source: http://www.articlesbase.com/finance-articles/a-look-at-refinancing-your-student-loans-1079998.html

Retirement Planning – Start Early & Enjoy Financial Independence: By Carole Dople

2009-08-01T02:26:00.000-07:00

Everyone retires one day so the earlier you start your retirement planning, the better for your future. It really does not matter whether you would be retiring in the next 5 years or the next 20, start planning now. That would definitely improve your financial future.

The Need for Retirement Planning
People think of ideal retirement as a combination of leisure activities, financial independence and luxury vacations - all these things are possible only if you have enough money when you retire. To live a comfortable life after you retire, you need financial planning. There are many tools and resources available to help you plan better.

The Basic Steps Of Retirement Planning
* How much money would you need after you retire? – This is dependent on your current standard of living. You need to estimate what your annual expenses will be after you retire. One point to be taken into consideration for this estimation is the difference between the current expenses and retirement expenses. For example, right now a large percentage of your income goes towards your house mortgage and children’s education. But by the time you retire, your children must have settled with their jobs and you would have a home of your own. When you retire, you and your spouse may have increased medical expenses and you would also like to spend money on vacations. Here, you also need to consider inflation. The average inflation rate is around 3%.
* How much would you need to save? – After you calculate the inflow that may come from part time income, interest on the savings and Social Security; you need to estimate the exact value that your assets will have and the income you will earn after you retire. By calculating this, you would come to know the shortfall. Here, there are many factors that need to be considered. At what age you are planning to retire, the number of years you are going to live (depends upon your health) and the return on your current investment. The first two factors roughly determine the number of years of your retirement. While calculating the rate of interest on your investment, take a conservative call and calculate the return based on around 5 to 6 percent. This would enable you to calculate the amount of money you require to save after you retire.
* How to build the retirement corpus? – Once you have determined the amount of money needed to be save each month from now till your retirement, the next step is to find a plan that is just right for your savings needs. Ideally, you should arrange for a specific amount that is directly taken from your monthly paycheck and automatically invested in the financial plan of your choice. This type of arrangement would reduce your impulsive spending habits. You can opt for payroll deduction savings plan or 401(k) plans.

For the perfect financial planning, you need to understand the different savings and investment options that are available to you. This definitely requires a lot of dedication on your part. If you are busy and can not find enough time or do not quite understand the intricacies of various investment plans then it is advisable to hire a financial advisor, to take care of your retirement planning needs. Financial security after you retire is important – you must start planning for it now.

Article Source: http://www.articlesbase.com/finance-articles/retirement-planning-start-early-enjoy-financial-independence-1077713.html

Cash till payday: solve small financial problems: By Charly Groom

2009-07-31T14:54:00.000-07:00

Small financial needs creep in slowly when we are low on cash. With no finances obviously catering a small financial requirement also becomes very difficult and may create a financial pressure. What if your payday is also yet far away how will you com out such situation? Cash till payday is a great solution that can be easily entailed for small financial needs. Anyone can easily meet important financial needs with the help of these advances.

Small and urgent expenses that need to be attended instantly can be easily met with the help of these loans. With finances various expenses can be paid off like:-

* Library fee
* House rent
* Purchase grocery or stationery
* Pay for computer maintenance
* Consolidate outstanding bills

Bad creditors can also entail these loans without worrying about their blemished credit history. There is no credit check required and those facing bad credit records such as arrears, CCJs, IVA, late payments, bankruptcy, missed payments and defaults can seek approval. All types of borrowers are acceptable.

The loan amount offered by these loans is small and ranges from £100-£1500 for a short period of 15- 31 days. Being short term in nature the financial help is extended at slightly higher rates of interest. The repayment date can be adjusted with the upcoming payday easily.

These can be applied through any bank, other financial institution or even online. There is multitude of lenders that are available online and offer profitable deals. By doing research and comparing their quotes you can easily fetch a good deal for yourself. Online one can apply in hassle free manner and without facing any trouble.

There are no approval delays to be faced while applying for these loans as there are no formalities involved. You need not waste your time in paperwork, credit check or faxing formality. Moreover, on approval the funds get transferred directly to your bank account.

Article Source: http://www.articlesbase.com/finance-articles/cash-till-payday-solve-small-financial-problems-1081961.html

The current state of Floridas financial system : By: Ronnie Tanner

2009-07-31T14:49:00.000-07:00

If Florida’s City Council doesn’t vote in favor of the proposed mileage rate increase the state is in danger of facing more budget problems.
The Florida Chamber of Commerce created a six-driver structure to focus six major areas that include, innovation, talent, business climate, infrastructure, governance and quality of life. They will also invest
in the new economy by creating more high skilled and higher paying jobs for residents of Florida. The commerce is in support of international trade and would like to see better paying jobs created in that area also
.
Employers will focus on restructuring and increasing job opportunities for the work force and focusing on career education that is geared towards the job.
The commerce also supports having an energy policy that will be affordable and reliable.

Some of the other concerns that the state will support and focus on are in the areas of property insurance, health insurance, property tax relief, workers compensation, private property rights, Lawsuit abuse reform, constitutional amendment reform, and attainable housing.

The government affairs advocate for the North Florida Region of the Chamber of Commerce, Brock Mikosky is optimistic that the economic situation will get better if free enterprise and capitalism comes into play. He also said that he believes that taxing and changing policies can’t solve the present economic situation.
The President of Compass Bank, Nelson Bradshaw blames the economic crisis on the residential mortgage business. He said that it is spiraling down so fast that it has caused havoc for the contractors and sub contractors.

The state of Florida was second in the nation for mortgage fraud in 2008 but in 2006 and 2007 they were number one in the nation for mortgage fraud.
Florida Attorney General Bill McCollum has called for several agencies to create a ‘cooperative approach’ to the fraudulent housing crisis after receiving thousands of calls from homeowners who were dooped by phony foreclosure rescue agencies.

It has been reported that the housing market is getting better but the consumer must be aware of agencies pretending to help them with their mortgage.
Most of the business owners in the state of Florida are republican but they do have faith in the new administration.
Some lobbyist believe that it is vital for the Chamber of Commerce and the state lawmakers to band together if they expect to see a full recovery of the economy in Florida.
Florida was once a beautiful and affordable state to live in. It is still very beautiful but now sits at number fourteen on the list of the most expensive states to live in.

Article Source: http://www.articlesbase.com/finance-articles/the-current-state-of-floridas-financial-system-1083799.html

Government Financial Assistance Grants: By Jack Cardell

2009-07-31T07:10:00.000-07:00

Government financial assistance grants are merely finances that are offered by the government without any interest and which does not need to be re paid. These grants are a very good way of getting financial assistance irrespective of the type of credit rating that you currently have.

In order to be eligible to receive a grant you have to fulfill certain criteria. There is a specific principle for receiving financial assistance that has been fixed by the government itself. According to this principle, if you are seeking a grant then you have to have complete knowledge about that grant and need to struggle with other people vying for the grant too. Even after this, there is no guarantee that you will receive the government grant. The amount of money you receive as a part of a grant is always preset and is never altered later. Therefore, it is wise to apply for a government grant as quickly as you can as they are usually given out on a first come first serve basis.

There are various different types of government grants that are made available to the all the citizens by the government of the United States of America. The types available are:

1. Adoption tax credit
2. Housing rental grants
3. Grants for retirees
4. Legal help grant
5. College student grants and loans
6. Health insurance for children grants
7. Financial assistance for small business
8. Health care grants
9. Training and employment grants
10. Expatriate settlement grant

One of the main reasons for the government to offer these grants is so that it can provide assistance to persons who were not given loans to by banks or financial agencies. In the United States, there are approximately 3,500 different government grants and close to 20,000 educational programs.

Minority small business grants are the pinnacle of financing ordinary peoples' business dreams. The United States is built from that very same dream of prosperity and the government wants ordinary people like us to build our own future and take charge of our own lives. Barack Obama is a great supporter of the people that make up our nation, and he's laid out tens of billions every year in funding from personal government grants to business and education grants for all to benefit. You can visit the links in this article to learn exactly how to obtain government grants for your needs.

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

Financial Disorganization is No Longer a Choice: By Christine McGinley

2009-07-31T06:57:00.000-07:00

When the economy was booming and work was abundant, we all lived with little concern. Yet, as the unemployment rate is at an all time high - and the housing market has lost 10 years of value; we need to tighten our belts. But how? Well...it seems that everyone knows how much their paycheck will be at the end of the week, but the interest rate on the car payment or major credit card - not a clue. Debt management is absolutely necessary.

According to an article in USA Today (2009), the average household has $668,621 in debt; $121,953 in personal debt (credit cards, mortgages etc.) and $546,668 in Federal Governmental Debt. (our portion of programs such as medicare and social security). So, the economy has a terrible long term downfall that we will feel for many years to come - even if he job market rebounds. This means, that we MUST know where every penny is going, every interest rate on every account - so we can better maintain our financial life.

Think about 2 years worth or paperwork, bills, passwords, online accounts, checking & savings accounts, car loans, credit cards, doctor bills, medical benefit information, life insurance information...you get the point. At one given moment, if any of this paperwork was lost - well there would be havoc to bear trying to recuperate the details. What about the details of all of this information? Do you know your interest rates for every loan and line of credit? How about the due dates, the mailing address, the customer service numbers and the account numbers? Can you say with confidence that you have placed your payments in the best fashion; in order to utilize your money to its fullest? Well, if not...time to get organized! Organization and electronic records available at your fingertips...

Your One Stop Shop For Financial Freedom!
http://www.StepTowardsFinancialFreedom.com

Life Insurance & Annuities
Loan Modification Support Services
Electronic Financial Organization
Money Merger Program

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

Investor Protectionism and Financial Market Size: By Charles Ampong

2009-07-31T06:56:00.001-07:00

A common denominator of market-based financial system like that of United States and U.K and bank-based financial system such as that of Germany or France is investor protection. The United States has a market-based system because its economy is largely dependent on property and financial asset value. Consequently, it has a large stock and bond markets creating a large market which attracts investors and companies from all over the world. This presupposes that the stock market and individuals (that is investors) play a significant critical role in corporate finance and governance as large fraction of individual portfolios is held in the equity market. Moreover, equity financing is practiced in this system.

On the other hand, bank-based systems are characterized by financial assets predominantly being held by financial institutions encompassing banks, mutual funds, insurance companies, pension funds and others. This means direct equity investment is small whilst individual investment is predominantly held in bank deposits, insurance policies, mutual and pension funds e.t.c. Debt financing comes mainly from banks instead of stock markets and so the stock market is comparatively small and less significant in this type of economic system. The fact is that, in market-based financial systems, investors property rights are protected well due to the fact that stocks and bonds markets are significant and form a higher percentage of the GDP. For example in 2003, financial assets was about 327% of GDP for U.S and 306% for U.K which are market-based dominant financial systems compared to 192% in Europe, 267% in Japan which tends to be bank-based dominant systems, an epitome of socialist systems [1}.

The large stock market size in terms of number of listed companies, aggregate market value relative to GDP and initial public offering (IPO) relative to population is a repercussion of the investor confidence and the quality of laws governing the market. Contrarily, inadequate protection rights minimize the integrity and size of the market as seen in the economies with dominant bank-based financial systems. Even in the efficient market-based systems where shareholders and creditors of the market are protected well by laws, political trends and shift in government policy can inhibit the smooth running of these markets. There is the tendency for governments to garner more power and control in terms of enforcement of the laws governing the market in times of deep economic recession.

A case in point is the financial market crash in 1929 which was followed by the government expansion and ownership in the Great Depression. However, much as laws need to be enforced to ensure investor protection, an expansion of government control of the market can be very ambitious besides reducing the efficiency of the market. That is why it is incumbent on the Federal government to critically examine the amount of power and reforms it seeks to control the market to avoid a rippling effect of market inefficiencies. Most importantly the market inefficiencies would emanate mainly from competition and capital gains impairment, no insulation from political influence on investment and operating decisions. The market is a privatization entity and so should be allowed to operate with some level of independence for efficiency and profitability. Reforms are necessary to ensure investor protection and subsequently confidence yet very robust reforms if not handled carefully can impact negatively the markets.

These times are similar to the Great Depression period and care needs to be taken to avoid the degenerating syndrome of "protectionism" as practiced in some socialist systems. We have learnt by observation and experience that the large size of the U.S market is also a result of large number of foreign individuals and company investments and any failure of the market spills into the economies of the rest of the world.

Reference:
[1] CEIC Data Ltd, International Financial Statistics, and National Sources

Charles Horace Ampong a holder of masters degrees in engineering and business management has professional strengths in engineering, management, finance, economics accounting and marketing having worked as an engineer and analyst and currently working as a consultant for GLG Councils. His current area of research includes risk management, international finance, financial modeling, derivatives, managerial economics and forecasting, management accounting, operations management, marketing analysis and advanced applied statistics in business management.

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What Credit Crunch? Financing Alternatives In Today's Tough Credit Environment: By cfgroup

2009-07-31T06:36:00.000-07:00

With the credit crunch in full force, many small businesses are finding it harder and harder to land a business loan. Even business lines of credit are being squeezed tighter-often yanked right out from under companies that have long established histories with financial institutions.

Fast-growth companies are especially vulnerable in the current credit environment. Those with 20 percent or higher annual growth rates can make banks nervous even during the best of times, since fast growth can knock their ratios out of whack and result in temporary periods of unprofitability.

There is hope, however, for companies in this predicament. A creative financing alternative known as asset-based lending (ABL) can be a virtual lifeline for these types of businesses. ABL is ideal for companies that can't qualify for traditional business loans due to fast growth or other extenuating (and often temporary) circumstances. Start-up firms and those with heavy seasonal inventory needs are good examples, but any company with a solid foundation and a history of success that's facing temporary financial challenges could benefits from ABL.

How It Works

ABL generally takes one of two primary forms: factoring services or accounts receivable financing.

With factoring services, companies sell their outstanding receivables to a commercial finance company (sometimes referred to as a "factor") at a discount that's typically between 2-5%. The amount of the discount depends on such variables as the collection risk, number of days the funds are in use, and how much of the receivable is advanced (80% is common). There are two key benefits of factoring:

Drastically improved cash flow-Instead of waiting 30, 60 or even 90 days or longer to receive payment, the business gets most of the accounts receivable when the invoice is generated. This reduction in the receivables lag can mean the difference between success and failure for companies operating on long cash flow cycles.

No more credit analysis, risk or collections-The finance company performs credit checks on customers and analyzes credit reports to uncover bad risks and set appropriate credit limits-essentially becoming the business's full-time credit manager. It also performs all the services of a full-fledged A/R department, including folding, stuffing, mailing and documenting invoices and payments in a ledgering system.

With accounts receivable financing, companies borrow against the value of their accounts receivable, instead of selling them to a finance company outright. Their receivables, in effect, become collateral for the business loan, with the finance company advancing funds based on a calculation of the outstanding receivables. The best candidates for accounts receivable financing are companies that can demonstrate a history of strong financial planning, that have solid financial reporting capabilities, and that don't have high customer concentrations (e.g., no more than 60% of sales to one customer).

Finding a Commercial Finance Company

When searching for an ABL lender, talk to your bank first. However, since ABL is a specialized type of lending, many banks don't do it in-house, instead referring their customers to commercial finance companies.

Be sure to check out any potential commercial finance company carefully. Find out how long they've been in business and how well capitalized they are. How many local businesses have used (or are using) them? Does the commercial finance company itself qualify for commercial banking services? Professional experience and adequate capitalization are especially crucial.

Important: A commercial finance company will become an integral part of your business team. Therefore, take the time for careful due diligence when selecting your partner, and enter into the relationship carefully and thoughtfully.

Article source: http://articleavenue.com/article23566-what-credit-crunch-financing-alternatives-in-todays-tough-credit-environment.html

Financial Help For People With Cerebral Palsy: By Mike Selvon

2009-07-31T02:38:00.001-07:00

Children with cerebral palsy are eligible for a number of federal and state benefit programs -- from Social Security and Medicaid to reduced rent and low-interest loans for technology devices to assist them. Dealing with cerebral palsy can be challenging for families, especially since the child will need so many services, such as doctors, surgeons, physical therapists, occupational therapists, speech pathologists, dental hygienists and mental health counselors. Luckily, help is just around the corner.

Your first stop for financial aid for your cerebral palsy child should be to apply for Social Security benefits. If you or your child has become disabled before the age of 22, then you are eligible for Adult Child Social Security benefits. If your child is under 18, you can apply for Supplemental Security Income benefits through your local Social Security office.

Children with cerebral palsy are admitted easily to this government aid program, which is designed for people with life-long disabilities or who are too old to work any longer. Sometimes Medicaid health insurance coverage automatically comes with SSI, but other times you must apply separately for these benefits. Be sure to ask your SSI representative what your state's rules are.

There are other resources for those with cerebral palsy. For instance, the United Cerebral Palsy Community Resource Funds offer emergency money for living expenses and technological needs. The USA TechGuide website offers low-interest, technology loans and state grants to help kids with spastic cerebral palsy get the necessary medical devices they need.

New mothers who need to take time off from work to care for their child are eligible for supplemental income (50-60% of their standard salary) from Temporary Disability Insurance for up to 12 months. Once your child reaches school age, the Individual Education Plan (through the Individuals with Disabilities Act) can provide your child with a team of therapists and educators, as well as the proper devices to ensure your child learns all he/she can.

Later in life, as the child with this disability grows into an adult, he or she may decide to live on his/her own. Through Section 8 HUD, patients with this disability can get housing assistance vouchers and reduced rent based on their income and demonstrated need. Through the Krysti Bingham Cerebral Palsy Foundation, eligible residents will only pay 30% of their living expenses, with the rest funded through a government grant.

According to the Foundation, "Too often, people in the prime of life have been forced to live in nursing homes, rehabilitation centers and hospitals, or at home with aging parents. The KBCPF 'Hope Houses' transforms the lifestyle of those with this disability from one of social isolation and dependency to one of dignity, shared experiences and community involvement."

Educate yourself further about the disability form from Mike Selvon articles portal and download your free audio gift on the disability application.

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

How to Find the Right Financial Services Firm

2009-07-30T16:06:00.000-07:00

By Ray McCaskey

The global financial crisis has created one of the worst recessions since 1982 and this has caused millions of investors to have many sleepless nights as they struggle to find a strategy that will protect them during the bad times yet allow them to participate in the growth during times of expansion. While there is nothing wrong with this many financial services firms have promised the world yet undelivered on the promises that they made to their clients, causing them to lose money. The current economic situation underscores this lack of follow through which has taken place with in the financial services industry. In response to these different challenges many investors are now searching for those financial services firms that will protect them while providing consistent growth. To find the right firm for your situation requires that you consider a number of different factors.

Do they have a wide variety of different strategies that they can use? Whenever you are dealing with any financial services firm you want to make sure that they have many different strategies that you can use in both bull as well as bear markets to make money. What happens to most people work only with those firms which sound good, when it comes to strategy they have the one standard that they use on virtually all clients, buy and hold. This lack of ideas means that when the bear markets do come you could see sizable losses in your account as prices are cut dramatically.

What will be done to protect you against risk? Whenever you are investing in anything there will always be a certain degree of risk involved. To protect yourself from holding the Enron's of the world requires that you work with a financial services firm that will show you how you can protect yourself against the different forms of risk such as hedging, using sell stops or diversification.

Clearly choosing the right financial services firm can be challenging. However, by making sure that they offer a wide variety of strategies and knowing that that they have different ways to protect you against risk will help you to be able to avoid some of the severe declines which are known to occur during bear market and to participate in the growth associate with bull markets, helping you to have consistent profits.

To learn more about the different ways that you can invest please visit the managing wealth creation website today to claim your free DVD.

Get the information you need about Financial Services such as Asset Protection, Estate Planning and Tax Minimisation.

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

Yoga Principles Apply to Your Finances, Too

2009-07-30T15:52:00.000-07:00

By Ellen Rogin

While I was supposed to be relaxing my mind and focusing on my breath, it occurred to me that important principles in yoga also apply to the world of investing and financial planning. The practice of yoga and the building of healthy finances both require balance through developing strength and flexibility.

• In yoga classes I have learned that extending too far is not smart - it will lead to injury. Similarly, with investing, people who extended their risk tolerances too far (holding too great of a percentage of their investments in stock market investments) are feeling pain now. As it is important to be in tune with your body during exercise, it is important to be aware of your investing comfort level. When the stock market went up every day, many investors mistakenly thought they had a greater ability to tolerate risk than was actually the case.

• People can also stretch themselves too far as it relates to their spending. Pushing the limit of spending can backfire if your income should be reduced due to a job layoff, for example. That larger mortgage you thought you could cover or that big credit card bill you were sure you could pay off is now causing your financial health to be out of balance.

• I have had yoga instructors tell the class that yoga is about our individual experience and that we should not compare ourselves to others in the class. As with yoga, avoiding comparing your financial situation to others may be prudent advice. In the late 90's, those who compared their more conservative investment returns to their friends' returns whose portfolios had high concentrations in technology stocks may have felt that they were missing out. Many of these people decided (at the peak of the market) to make a move to more aggressive investments based upon these comparisons.

• Balance is as important in yoga as it is in investing. In yoga, to stay in a balance position it is good to focus on a point that is not moving. To stay balanced in your financial lives, it is good to focus on your goals and what is important to you in life. Balance in your portfolio (investing in a variety of asset types) often helps to reduce the volatility in your investments.

• It is impossible to get all the mental and physical benefits yoga can provide by going to one class. By incorporating yoga into your daily or weekly routine you will see improvement and experience the benefits. Likewise, you cannot expect to have financial health and reach your goals by rarely paying attention to your financial situation. Instead, set a plan for regular savings, periodic reviews and tracking your progress.

• I enjoy going to yoga class and learning from a good teacher, and I also like to practice on my own at home. I find that a teacher can instruct me to be in a yoga position correctly and safely (so I get the maximum benefit with the least likelihood of getting hurt). I also find that being in a class pushes me further than I would otherwise do on my own, thus I improve more quickly. You may enjoy managing your personal finances on your own. Many people benefit from having a professional financial advisor assist them to make sure they are addressing all the important issues and to help guide and support them in reaching their goals.

• One of the most important things to remember in yoga is to breathe. Breathing helps to calm our minds. With calm minds we can make wise choices. When people are afraid (as many investors currently are) they tend to take quick, shallow breaths. Our brains need oxygen to make good decisions. So, remember breathe in and breathe out fully (then you can open your investment statements). Om.

(C) Ellen Rogin 2009

Ellen Rogin, CPA, CFP®, wealth advisor and prosperity guru, has established a reputation as a nationally- known expert on living a life of success and prosperity.

Ellen is co-author of the book, Great with Money: The Women's Guide to Prosperity. http://www.begreatwithmoney.com

As an entertaining speaker at meetings and conferences, Ellen has inspired audiences with her powerful and insightful presentations, Open for Business: How the Best of the Best Find Success and Great with Money: Thinking Your Way to Prosperity. In these popular talks, Ellen delivers on the message that during challenging economic times, successful people must recognize there are many ways to thrive.

As a woman of experience and entrepreneurial success, Ellen serves on the board of directors for Metropolitan Capital bank, as well as serving as Director of Financial Planning, Strategy and Marketing for the Bank. She is founder and President of Strategic Financial Designs, Inc., an independent life and wealth management firm in Northfield. http://www.sfd-inc.com

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

The Financial Aspects of Unemployment

2009-07-30T15:44:00.000-07:00

By Carlene Damba

Good things happen over time; however, bad things happen immediately. This is the way life is. Your graduation, wedding, and first child are things that you dream and imagine for years. However, catastrophic events in your life come out of nowhere. Getting laid off from your job is one of those life events that occur immediately. You may have worked for the company all your life and imagined that you would retire from this job. Feelings of self-worth are closely tied to your job. A job can identify who you are. It means that you are breaking away from the past and facing an uncertain future. Not only do you have all the emotional feelings of losing your job but also the financial challenges that you and your family will face. This paper discusses how to survive financially when you are unemployed. It will look at developing a plan, developing a survival budget, and options when you cannot meet your financial obligations.

Developing a Plan

When you lose your job, you may have to put yourself on a financial diet. It is difficult to know how long you will be unemployed. Depending on your job skills, it may take a few weeks to months to find a job. During this time you need to have a plan on how to keep paying your bills.

When you have come up with a financial plan that will get you through, you must have the discipline to stick to it. You will be tempted to cheat from time to time. However, it is imperative that you stick to your plan as closely as possible. You want to make a plan that is flexible and can be changed when your circumstances change. But, you must have the discipline to stick as closely as possible to the financial plan you have created.

Adjust your expectations

Finding a job in this financial environment is not going to be easy. Even if you have a profession that is in high demand, it could take weeks. Your job search plan may look like this (Forefield Advisor (2009): Week One. Send out ten resumes and wait for a phone call. Week Two. Send out ten more resumes and wait some more. Week Three. Send out five resumes for jobs you want and five resumes for jobs that you really don't want. The phone rings but not for a job interview. Week Four. The phone finally rings twice and you have two job interviews. You still should send out three more resumes. Week Five. You have two more interviews and send out five more resumes. You get a call for a second interview for one of the jobs. Week Six. You are hired! Bad news: You can't start for three weeks. As you can see, it can take a few months even if you have developed a successful job searching plan. This is why it is important to develop your financial plan as soon as possible after losing your job.

If you are only out of work a short time, your lifestyle may not have to change drastically. However, if you are unemployed for months, you may have to take drastic measures to survive. Some of the measures might be selling your house, a second car, or take a temporary job. You need to prepare yourself mentally for this.

Preparing a Survival Budget

It is important to remember that losing your job is temporary. The budget you are creating is not going to last forever. When you get a new job, the survival budget can be changed to a more realistic long term lifestyle. Therefore, you need to be careful and make decisions that are not shortsighted. You need to do what you can to survive, but only do what you really have. Do not make decisions out of fear and then regret them later when you get a new job and things are easier.

Start a budget by listing all of your post-employment income and necessary expenses. A survival budget is a bare-bones version of a regular budget. You will want to end up with is an idea of how much income you will need to survive. Eliminate all luxuries expenses and things that you can do without (i.e. movies, eating out, trips, etc.).

Ways to increase your income

One of the first places you should look for income is through unemployment benefits. You will have to meet certain eligibility requirements. You must be involuntarily unemployed, which means that if you quit your job you have no chance of receiving unemployment. However, if you have been laid off or fired (without cause) then you may be able to draw some unemployment benefits. The amount and duration of your check will vary from state to state (Forefield Advisor 2009).

Are you eligible for any severance pay if you were laid off? The amount of the severance will be determined by company policy. You may have the option of receiving a lump-sum payment or a continuation of salary for a set period of time.

If you have planned ahead, you may have an emergency fund set aside with three to six months of your net salary which can help pay your living expenses. Many people are amazed at how fast savings can be depleted; however, it is a great source to help pay for your daily expenses.

You may have credit insurance that will make your bill payments when you are unemployed. This can help with your car and mortgage. If you have any doubt, check with your creditors to see if you have it. However, keep in mind that it may take time to fill out the paperwork and get this benefit started.

If you have been out of work for a longer period of time, you have to resort to taking a part-time or temporary job to supplement your income. This may benefit you in two ways. First, it will ease some of the stress of trying to make your monthly financial obligations. Second, your temporary or part-time job may become permanent. Also, you may be getting additional experience that will help you in your job search.

You may want to have a yard sale. If you look around your house, you will be surprise at how much you own that you really don't need. Make a list of things that you want to sell and list them in order of priority. If you are really desperate, you may want to price things accordingly. However, there may be items that you only want to sell if you get a good price. You may want to use a consignment shop for certain items such as clothing.

If things really become critical, you may want to consider selling your home. It could be a good idea of because you can raise a lot of cash in this way and reduce your monthly payments. It isn't a good short-term solution to raising money because it takes time to sell a house. Any decisions you make should be carefully thought out. You need to consider the true cost of your decision and how much you can actually get out of the deal (Forefield Advisor 2009).

As the very last resort, you can withdraw money from your retirement accounts. This step should be considered only if you are facing bankruptcy. Any money that you withdraw from a tax-deferred retirement will be taxed as ordinary income for the year you take the withdrawal. In addition, you may have to pay a 10% penalty for early withdrawal if you are under the age of 59 1/2. Also, you will lose the advantage of compound interest on the money you withdraw. If you do not replenish the money in your retirement account, you may not be able to retire at the age when you planned to.

Reducing your expenses

You may be able reduce your monthly automobile insurance payment by increasing your deductible. However, if you have an accident, you will have to pay the higher deductible out of your pocket. You should try to keep the amount of the deductible in your savings account. If you cannot put aside this money, you should balance the risk with the benefits of this action.

If you have more than one vehicle, you may want to consider selling one. When you take into account, the monthly payment, gasoline, insurance, and maintenance, you could drastically cut your monthly expenses. If you owe more on the car than it is worth, this option will not work because you will still have to get a loan to make up the difference. Make this decision carefully. Weigh the benefits and risks carefully.

If you are out of work for a long time, consider negotiating with your creditors. If you have good credit, you may find it relatively easy to reduce the interest rates on your credit cards, skip a payment or two on your car loan, or reduce monthly payments temporarily. Remember, you will be in a better negotiating position if you call your creditors before you get behind in your payments. If the creditors are calling you, they may not be as inclined to work with you if you call them and explain your situation. Creditors may or may not work with you; however, it is worth a try. If you need help negotiating with your creditors, you may want to talk with a nonprofit credit counseling organization.

You may be paying for things that you can do without. Consider canceling magazine subscriptions, extra phone services, credit cards you don't use that have an annual fee, health club membership, auto club memberships, cable television, and internet service.

Now that you have drafted a bare-bones budget, post it somewhere where you can use it on a daily basis. It is important that you chart your progress so you can keep on track with expenses.

Options When You Cannot Meet Your Financial Obligations

If you are unable to make your monthly expenses, you have options. However, it is important that you act immediately. Delaying action can make things worse. You could damage your credit history or lose your home.

How You Can Help Yourself

As we have discussed earlier, one way to ease your financial distress is to increase your income. Both you and your spouse should consider increasing your hours or taking a second job.

If you cannot meet your financial obligations, you must cut out every nonessential expenses such as eating out and entertainment expenses. Look for ways to save at the grocery store by buying food on sale and clipping coupons.

You may also consider consolidating debts. This is a great way to catch up on overdue accounts and start fresh with a single creditor. If may can extend the repayment period and lower the monthly payment.

Chapter 7 Bankruptcy

If you income is less than a certain amount, you may be able to file bankruptcy under Chapter 7. When filing Chapter 7, you can keep exempt assets, but non-exempt property is sold and the proceeds are distributed to pay creditors. The remaining debts are discharged. This gives you a chance to start over fresh. To find out if you qualify, contact a bankruptcy attorney in the city where you live. Keep in mind that a bankruptcy stays on your credit for a number of years and will have an impact on you be able to borrow money and the interest rate that you will be charged.

When Spending is an addiction

Some people's problem with money comes from a compulsive addiction behavior. They have a controllable urge to spend money. Compulsive debtors can seek help through Debt Anonymous, which is a twelve step problem modeled after Alcoholics Anonymous. If you have a problem spending money and are ready to admit that you are powerless over your problems, you may want to attend an open meeting and learn more about it (Forefield 2009).

Summary

Because of these economic times, many people are dealing with the trauma of unemployment. Although this experience can be painful, knowing what to expect and using proactive behavior can make unemployment easier. Having a plan, making a survival budget, and planning for the what ifs of running out of money can help you survive. However, planning for the unexpected before it happens, it the best way of handling any financial pitfalls that come along. Developing a financial plan where you are saving for emergencies and setting financial goals is the best way of getting through any financial pitfalls.

I am here to help you in any way possible. You can also contact me for a free unemployment checklist to help you organize and prepare for the period of unemployment. Please contact me by email at cdamba@aol.com. You can also call me at 336-854-8500 and I will try to help answer any questions that you may have.

Carlene Damba runs a full service financial advisory company creating financial plans for her clients and helping them plan for such events as education for children and retirement. She is also certified to work with spouses and their attorneys, and/or mediators, assisting on the equitable distribution process of divorce.

Carlene knows that most clients have concerns about 2 things: their financial future and selecting the right advisor. Choosing a financial advisor with ethics and integrity is a vital part of getting a sense of peace about a person's financial future. This is why Carlene has created a business of integrity and transparency for her clients. She says, I have two goals for every client. First, I want to be the kind of financial planner whose integrity and character would be good enough for my own mother. And second, I want to help each client to create enough wealth so that they have the resources to live a life with no regrets the life they always dreamed about.

Bibliography Forefield Advisor. (2009). Unemployment, Retrieved May 7, 2009, from http://www.forefield.com

Carlene has been in the financial industry for 10 years and a financial advisor for five years. She creates financial plans for her clients and helps them plan for such events as education for children and retirement. She is also certified to work with spouses and their attorneys, and/or mediators, assisting on the equitable distribution process of divorce.

She has over 15 years of experience in helping foreign companies make their United States business operations more efficient and 5 years experience as a paralegal in family law, including 2 years in Taegu, Korea for the US Army.

She earned her MBA from the University of Phoenix and Bachelors of Science from High Point University.

She is married and has 2 children and 2 grandchildren. She plays the piano for her church and loves to needlepoint and quilt in her spare time.

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

Financial Spread Betting - Top Five Tips

2009-07-30T14:29:00.000-07:00

By SS Smith

Start out small
Financial Spread Betting is like anything else. You need to get used to it. And like everything else, you are more likely to make mistakes when you are a novice. So take that pain out of the learning curve by starting small. True, your wins won't be so big, but then neither will your losses. As your understanding and confidence grows you can increase the size of your bets. But remember the golden rule. You only ever bet what you can afford to lose.

Make money on both the ups and downs
This may sound obvious, but it is so often overlooked. Investors by their very nature look for winners. It's the 'up' mentality. And that's right if you are an ordinary equity investor. After all, it's very difficult for the average share trader to sell 'short'. But one of the key things with Financial Spread Betting is that you can bet on a price falling as easily as you can bet on a price rising. Twice the opportunity to make money!

Cut your losses and ride your winners
This really is at the heart of most successful financial spread betting strategies. It's also basic common sense but you'd be surprised how often it isn't applied. Key to getting this right is to use the stop loss facility in your account. Set your stop loss at the outset of each trade to the maximum you would be comfortable to lose. Many traders choose to set it at 2 or 3% of their total account balance. If the trade goes against you, it gets automatically closed out and your loss is fixed. If the trade goes in your favor, keep moving the stop loss up. When it finally turns your stop loss will then lock in most of your profit

Give it a rest
You can get too involved. Sometimes it helps if you stop trading altogether for a short while. Without being tied into open positions you can analyze your recent performance and decisions with the clarity of hindsight. How is your return looking? Would you have made any different decisions with hindsight? Learn from both your successes and also your failures. Write down your learnings and start afresh.

Don't rely on technology too much
This is a personal one I admit. Some people love their software systems, and their fancy algorithms, whereas others prefer to follow fundamentals or the market sentiment. My point really is that even if you love your software derived bets, please make sure you follow the other basics outlined above. That way you can at least eliminate the potential on the downside.

Stuart Smith writes widely on Financial Spread Betting subjects and is the owner of leading website http://www.financialbetting.co.uk

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

Achieving Financial Independence

2009-07-24T01:50:00.001-07:00

By: Wesley Watkis

When it comes to financial independence, it often seems that there are certain members of society who just have a better chance of succeeding than everyone else. In fact, there is a anecdote that I would like to share with you that says if you take a group of millionaires; remove all of their knowledge, wealth, and experience; and stick them in the middle of a desert with nothing but a gallon of water, almost every single one of them will be back to millionaire status within 10 years. While it is hardly ethical or scientific to actually put this theory to a test, the basic premise is pretty reasonable: the wealthy are wealthy because finances, investments, and making money are what they're good at doing.

Financial Independence: Your Goals, Your Life

While it may not be your life goal to become a millionaire, it would be difficult to convince anyone that being financially independent or comfortably wealthy wouldn't be a nice break from the routine of everyday life. Yet few people really take advantage of what they currently have to try and amass the kind of wealth that will allow them an early retirement or that beach house in the Grand Caymans.

The primary culprit? Not having solid, attainable fiscal goals.

This may seem oversimplified at first, but the fact is, most people view financial investments or long-term financial planning as something that can wait or that can be set aside when everyday life gets in the way.

The best financial advisors and investment firms, however, will tell you that the first thing you can do to start making the kinds of decisions that will create a solid portfolio of wealth for the future is to sit down and really outline what it is you want and what steps you can take to get there.

For example, imagine a family whose three children are only a year apart in age. They're young right now, but the parents one day hope to see all of them in the college of their dreams. There are a number of steps that need be taken to make that goal a reality, and not all of them have to do with stepping up the piano lessons or moving to a neighborhood with the best public schools. In order to reasonably put three kids through college, it is best to create a plan with actual, measurable results at the end. Saving whatever is left at the end of the month is a good first step, but unless you sit down and look at what kinds of investments that money needs to go into to get the necessary percentage increase in 15 years, you aren't following a financial plan - you're just saving money.

The Bottom Line

Understanding that difference - the difference between saving money and following a financial plan - is what really separates the millionaires from the rest of the population.

The good news is, in today's world, you have serveral resources that can help you move from saving to creating an investment plan. Thanks to financial advisors and other professional firms dedicated to turning fiscal dreams into realities, everyone can tap into the knowledge it takes to move - if not quite to millionaire status - as close as necessary to live the life you deserve.

Article Source: http://www.articlesbase.com/finance-articles/achieving-financial-independence-1063261.html

10 Easy Ways to Organize Your Business Finances

2009-07-24T01:32:00.000-07:00

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/

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How to Achieve Financial Freedom

2009-07-24T01:17:00.000-07:00

by Willie Horton

Over the many years that I've been working with clients who want to better their lives I've come across the goal of "financial freedom" - people looking for an end to financial worry (over 905 of males claim that it is their greatest source of worry), people looking for "passive income" or people wanting to have "more than enough". But, what is "more than enough"? In a comment once attributed to Rockefeller (I've really no idea whether he said it or not) he is reputed to have said that "Enough is just one more!" Enough, perhaps, is never enough.

It strikes me as, at the very least, odd that, as supposedly the most advanced species on the planet, the vast majority of humans in the so-called developed world are obsessed with money (people in less "developed" regions often have more pressing matters on their mind). How is it that, even when we have more than what we need to lead the lives that we are currently living, we always want that "extra security" or "safety net" (both quotes from clients)?

In the greater scheme of things, is money the be all and end all? Were the last cell 'phone messages from passengers on the hijacked 'planes on 9/11 about money? I wonder if those who lost their lives on the Air France flight from Brazil to Paris wondering if they'd enough passive income in the moments that it dawned on them that their time was up? And, in just the same way that no one on their deathbed ever wishes that they'd spent more time in the office, I suspect no one in that position grieves for a bigger bank balance or greater investment returns when it's time to "check out" (as my father called it).

"Financial freedom" a lot like beauty (or fear for that matter) - it is in the eye of the beholder. It is a state of mind that plagues modern society, a concept of the modern rush for more. In the process, we lose track of what is really important, we lose track of the simple things in life, we lose all perspective on what it is to be fully alive in the here and now.

If you have been or are, at any stage, caught in the trap of worrying about your finances, you have lost sight of reality - you are being tricked by your "personality" which, generally speaking, conceives success in comparative and competitive terms. People who have said to me "I've lost all my money" or "We're running out of money" simply do not realise that, in the here and now, generally speaking, not only do that want for nothing but, in fact, they have more than enough to live a wonderful life - right here, right now.

More importantly, they've missed the point in terms of achieving greater financial well being. If you're worried about money, money worries is what you'll get. Remember how the universe works? Energy in : energy out. If you're obsessed with achieving financial freedom, it's a bit like trying to give up cigarettes - you'll be so focused on your finances you'll forget to do the important things that need to be whole-heartedly done to achieve that freedom.

See the point I'm making? You need to stop focusing on money and start focusing exclusively on what you're supposed to be doing - on what really needs doing - in the present moment - whatever that task is. If you make more than 1% sure (remember, normal people only put 1% energy into what they're doing) that the really important things get done to the very best of your ability, then money actually flows. It's that simple. I've seen it happen - my clients have seen it happen - there are loads of examples that graphically illustrate how easy it is on my website.

But, unfortunately, almost everybody has put the "financial cart" before the "quality of life horse". As a result, they end up wondering why it is so difficult to push that cart up the hill! Stop worrying about money and it will flow. Start doing all the important things that you have to do without looking through the lens of "I need more money" or "I want more money" or "I want my financial freedom". Put all of your energy into what you're doing - the important things that you need to do each day - and you will get your reward.

How do you put more than 1% of your energy into what you have to do? Well, imagine that you're going on two weeks' vacation tomorrow and you have to get all the important - only important - things done today. A flight at 06h30 tomorrow morning concentrates the mind! And concentration is the key to being more all here in the present moment than the pathetic 1% that normal people are. Your clear and present focus will get all the important things done and you will have your financial freedom - whatever that means to you.

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

Struggling to Find Financial Freedom - Having a Relationship With Money

2009-07-24T00:59:00.001-07:00

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.

http://PeacefulInterlude.com

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The Basics of Financial Spread Betting

2009-07-24T00:53:00.000-07:00

by Stuart S Smith

Ever fancied trying your hand at financial spread betting but haven't really known what it's about, or where to get started? In this article we take a very basic look at financial spread betting and ask what it's all about.

Financial spread betting is a commonly used retail derivative employ to speculate which direction the share price of a stock/commodity/index will take without actually owning or purchasing any of the shares. It is now one of the United Kingdom's most popular methods of trading, and this is not surprising given that any profits are 100% free from stamp duty and Capital Gains and Income Tax. A spread bet is a contract between the client and spread betting company where the bet is based on an underlying financial instrument. Actual ownership of that financial instrument never takes place.

One of the principle reasons for using this tool is to profit from markets such as stocks and shares, bonds, foreign exchange, and commodities such as crude oil and gold, be they on the UK or international markets. Financial spread betting is a great way for smaller investors to trade without committing to a large financial investment.

Unlike bets in bookmakers, there are no fixed odds in spread betting, but instead a stake is betted (pound s per point) on the direction of the market. If the trader bets that the price will rise, this is called 'going long', and if the better predicts the price will fall, this is called 'going short'. So rather than direct ownership of equities in a company, the trader is betting on which direction he thinks the price will go. Any profit or loss made is determined by the difference in buy and sell (bid and offer) prices.

Another advantage of financial spread betting is that it is also possible to make money if the price falls, unlike the more traditional methods of trading. And making profits here is as simple as making profits in a rising market, it simply depends on how far (how many points) the price has fallen against the price the time the bet is executed.

There are principally two types of spread bets at present. The first is a bet which closes once the markets close, and the second is a bet which will close at the end of a quarterly cycle. Daily spread bets do have expire at the end of each day but for a small 'interest' charge you can roll over these bets into the next trading day or trading cycle.

Benefits of financial spread betting include access to most markets 24 hours a day, all markets traded through just one account, and the use of smaller bets. This is attractive for traders who are looking to get in and out of a trade quickly. Another benefit is that there is no commission or fees involved and all of the costs are included in the bid-offer agreement. With financial spread betting your financial products are all in the same place and under the currency of your choice, pound sterling, US dollar, or euro. This saves you the inconvenience and costs involved in exchanging currencies.

As with all trading and investment, there is an element of risk involved and if the market moves in the opposite direction to your bet, you may lose your money. Research your market and only bet what you can realistically afford. Stop-loss facilities are offered by most financial spread betting companies to help you monitor your funds. These facilities are set up to suit your individual financial requirements but they may not be guaranteed and money can still be lost.

Stuart Smith writes extensively on Financial Spread Betting subjects and is the owner of leading website http://www.spreadbettingftse.co.uk

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General Financial Planning For the Future in Turbulent Times

2009-07-24T00:49:00.000-07:00

by Lance Winslow

Far too many investors get freaked out during a recession, or an down turn in the business cycle and sell all their stocks right after the stock market collapses. And then they promise they will never buy another stock of any company as long as they live.

Of course, as the business cycle starts going back up again they see everyone else making money on their investments and they decide it is time for them to investigate and buy back in. But by this time the market has reached its next top and as they buy in at the top of the market, it collapses all over again, and they lose all their money, because they once again get out at the bottom.

This is why investors should hire a financial planner who can watch the peaks and valleys of the business cycle, and prevent investors from investing in the wrong types of companies at the wrong times, as well as help them diversify their portfolios. This way they are not too invested in one type of investment-vehicle that will burn them.

Now, some investors believe that they can do all the investing themselves and they are smart enough to time the market and make money without a financial planner. Whereas, this might be true if they spent a whole lot of years studying things, and spend all day watching the stock market, but alas investors really don't do that. Many of them have other jobs and they are busy all day doing something else.

This kind of thinking can be a mind trap for someone who is somewhat arrogant, and believes they can do everything by themselves. The reality is that even general financial planning takes into consideration the future turbulent times that are ahead. And it takes advantage of the up cycle during expansion periods. Please consider all this. Thank you very much.

Lance Winslow is a retired franchisor - Lance Winslow's Bio. Lance Winslow is formerly the CEO of WashGuys family of franchises which Lance; http://www.windowwashguys.com/links.shtml.

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Government Financial Assistance Grants

2009-07-24T00:44:00.000-07:00

by Jack Cardell

Government financial assistance grants are merely finances that are offered by the government without any interest and which does not need to be re paid. These grants are a very good way of getting financial assistance irrespective of the type of credit rating that you currently have.

In order to be eligible to receive a grant you have to fulfill certain criteria. There is a specific principle for receiving financial assistance that has been fixed by the government itself. According to this principle, if you are seeking a grant then you have to have complete knowledge about that grant and need to struggle with other people vying for the grant too. Even after this, there is no guarantee that you will receive the government grant. The amount of money you receive as a part of a grant is always preset and is never altered later. Therefore, it is wise to apply for a government grant as quickly as you can as they are usually given out on a first come first serve basis.

There are various different types of government grants that are made available to the all the citizens by the government of the United States of America. The types available are:

1. Adoption tax credit
2. Housing rental grants
3. Grants for retirees
4. Legal help grant
5. College student grants and loans
6. Health insurance for children grants
7. Financial assistance for small business
8. Health care grants
9. Training and employment grants
10. Expatriate settlement grant

One of the main reasons for the government to offer these grants is so that it can provide assistance to persons who were not given loans to by banks or financial agencies. In the United States, there are approximately 3,500 different government grants and close to 20,000 educational programs.

Minority small business grants are the pinnacle of financing ordinary peoples' business dreams. The United States is built from that very same dream of prosperity and the government wants ordinary people like us to build our own future and take charge of our own lives. Barack Obama is a great supporter of the people that make up our nation, and he's laid out tens of billions every year in funding from personal government grants to business and education grants for all to benefit. You can visit the links in this article to learn exactly how to obtain government grants for your needs.

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

Financial Help For People With Cerebral Palsy

2009-07-24T00:37:00.000-07:00

by Mike Selvon

Children with cerebral palsy are eligible for a number of federal and state benefit programs -- from Social Security and Medicaid to reduced rent and low-interest loans for technology devices to assist them. Dealing with cerebral palsy can be challenging for families, especially since the child will need so many services, such as doctors, surgeons, physical therapists, occupational therapists, speech pathologists, dental hygienists and mental health counselors. Luckily, help is just around the corner.

Your first stop for financial aid for your cerebral palsy child should be to apply for Social Security benefits. If you or your child has become disabled before the age of 22, then you are eligible for Adult Child Social Security benefits. If your child is under 18, you can apply for Supplemental Security Income benefits through your local Social Security office.

Children with cerebral palsy are admitted easily to this government aid program, which is designed for people with life-long disabilities or who are too old to work any longer. Sometimes Medicaid health insurance coverage automatically comes with SSI, but other times you must apply separately for these benefits. Be sure to ask your SSI representative what your state's rules are.

There are other resources for those with cerebral palsy. For instance, the United Cerebral Palsy Community Resource Funds offer emergency money for living expenses and technological needs. The USA TechGuide website offers low-interest, technology loans and state grants to help kids with spastic cerebral palsy get the necessary medical devices they need.

New mothers who need to take time off from work to care for their child are eligible for supplemental income (50-60% of their standard salary) from Temporary Disability Insurance for up to 12 months. Once your child reaches school age, the Individual Education Plan (through the Individuals with Disabilities Act) can provide your child with a team of therapists and educators, as well as the proper devices to ensure your child learns all he/she can.

Later in life, as the child with this disability grows into an adult, he or she may decide to live on his/her own. Through Section 8 HUD, patients with this disability can get housing assistance vouchers and reduced rent based on their income and demonstrated need. Through the Krysti Bingham Cerebral Palsy Foundation, eligible residents will only pay 30% of their living expenses, with the rest funded through a government grant.

According to the Foundation, "Too often, people in the prime of life have been forced to live in nursing homes, rehabilitation centers and hospitals, or at home with aging parents. The KBCPF 'Hope Houses' transforms the lifestyle of those with this disability from one of social isolation and dependency to one of dignity, shared experiences and community involvement."

Educate yourself further about the disability form from Mike Selvon articles portal and download your free audio gift on the disability application.

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Best Financial Advisor

2009-07-24T00:31:00.000-07:00

by Jon McQueen

When it comes to handling financial matters, you should think twice about fully relying on personal knowledge. Do not disregard the benefits of seeking personal financial advice. Financial issues are not just contained in present issues, but also finances of the future. With financial advice, people are able to strengthen whatever they have at present in preparation for possible outcomes.

In whichever country you belong to, be it from the third of first world, it does not change the fact that economy is money. It plays a vital role in our day to day lives such as with bills, savings, and most especially with debts. Aside from managing these accountable, the target of personal finance should also be being able to keep maximum money in hands. In this case, tapping on some financial advice is a great move.

The Unspoken Practical Rule- Income Should Exceed Expenses

Financial management is not limited to managing your income and expenditures, but it also should be able to map out budgets and future expense as well as income. All of these factors should be balanced. You will not only know what to do, but you will also understand the how's and why's of these with the help of financial advice. These pieces of advice come from consultants who not only have had experience with the ins and outs of money, but have also studied how it can be managed best.

Baby Steps in Interests

Another financial advice that will benefit you in the purpose of saving money is to identify where you will get the best interest rate for your savings. It is a sound advice that will allow your money to grow in the long run for possible future capitals. In this method, there is no sudden increase in savings, but in the long run, is a good way of seeing your money grow without extra efforts.

To maximize the use of personal financial advice, you should be ready to set-up a retirement goal. This allows you to set aside money for a comfortable retirement life without breaking the bank, nor cost your present living.

Well, I suggest that you visit Best Financial Advisor to learn more about handling and consulting your savings,accounts and deposits if needed.

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

Student Financial Aid Direct Loans and Getting Money For College

2009-07-20T07:44:00.000-07:00

By: Anamika Gupta

Need money for college? Who doesn't need a loan to go to school these days? Tuition is ridiculous! It is common for a student to accumulate a lot of student debt on his or her way to a diploma.Visit Now http://gov-debt-grantbenefit.blogspot.com

Where do you start on your way to a student loan or grant? Start with the school you are enrolled in or intend to go to.

There are people working at colleges whose job it is to understand student loans and be up to date with the information on all the different types of student loans. Even if you have no money, they are there to help you get you your tuition.

Private Student Loans

Private student loan debt consolidation programs are one way to get money for your college education. Some of these loans are made to the parents. Other Student Loans are designed to be made to the student and give a deferment period that gives the student time to graduate and get a job before he/she has to make monthly payments.

There are many ins and outs to student loan debt consolidation programs. For these types of programs, it is best to start by asking the bank you or your family does business with for information.

Stafford Loans

One such student loan you should find out about is the Federal Stafford Loan. The Federal Stafford Loan is one of the loans made to the student. This loan is based on need and no credit check is necessary. The government guarantees the Stafford Loan to the actual lender.

The Stafford Loan has a deferment period. Its payments do not start until the student graduates. To be eligible for a Stafford Student Loan, you must be attending school on at least, a half-time basis.

Get all the info

The trick is to get as much information on as many Student Loan Programs as you can. There are a whole lot of lenders willing to give you free information, so take it. There are new programs coming out and current ones changing all the time so don't be afraid to ask.

Some schools offer Stafford Loans directly through the federal government. These are commonly known as Direct Stafford Loans. The schools offering student loans this way are called Direct Stafford Schools.

Some schools offer Stafford Loans through banks or other lenders. These schools are known as FFEL schools (Federal Family Education Loan schools). With this type of student loan you find the lender yourself and then go to the school so they can complete the paperwork.

Think big

Have you ever thought of going to an expensive private university but you feel you'll never get enough money to attend one? Well, you won't know until you try. Many middle-income families end up getting no aid when their college bound offspring apply to their local college because, they are told, and their income is too high.

Ironically, if they apply to a university that is financially way out of their league, they may end up with enough aid to swing it. The moral to this story is shoot for the stars. You never know!

The money is there

Your further education is available to you if you want it. Financial need cannot stop you, but you must plan ahead, be serious, and find out everything you can. When is a good time to start? About half way through sophomore year in high school, you should start your search for your college funding!Visit Now http://gov-debt-grantbenefit.blogspot.com

Article Source: http://www.articlesbase.com/finance-articles/student-financial-aid-direct-loans-and-getting-money-for-college-1050189.html

Getting Financial Assistance-Six Tips to Keep Grant Seekers On Track

2009-07-20T07:42:00.000-07:00

By: Anamika Gupta

Do you have a great idea for a project or program that could improve your community? You may be able to get financial assistance to pay for some or all of your program from government agencies, charitable foundations and even businesses.Visit at http://themotley-fool.blogspot.com

You may have many opportunities to access grants to help your program, but there are many chances to slip. Consider these six tips to keep you on track as you seek suitable grants and request financial assistance.

1. Have Clear Purposes and Objectives

Grantmakers have specific purposes such as environmental compliance, community development, providing essential services to the poor, improving health care accessibility, supporting promising artists or supplying safe and affordable housing. When they provide funding, they want to see results. Your clearly stated purposes and objectives will bring focus to your program and to your search for financial assistance.

2. Find Compatible Grantmakers

Seek assistance from organizations that have purposes and goals similar to your own. In addition to being most likely to fund your project, they will have a stake in your success. Because of your common interests and their work with other assistance seekers, they may be able to bring more to the table than just money.

3. Consider Duration and Sustainability

Define the timetable for your project. Grantmakers generally do not intend to provide ongoing funding for a program. They look for projects, i.e. something with a defined duration, cost and desired outcome. This may be start-up activities, studies, construction projects, exhibits, curriculum development or any of a host of other projects.

If you have an ongoing program, consider how you will sustain it after the grant. Some financial assistance providers fund phases of ongoing programs, especially start-up and expansion. However, most provide temporary assistance to start and improve programs, not to fund them long-term. Before apply for a grant, explore whether local contributions, fees, participation in umbrella organizations or other revenues can sustain the program.

4. Follow Directions

Get a copy of the funding agency’s rules, guidelines or procedures and follow them carefully and completely. This goes double if you are seeking assistance from a government agency. These rules are in place to keep a funding program on track, consistently managed and fair.

Those who review proposals and applications may have a lot to go through in little time. If your submission is incomplete in any way, they may put it aside without further review. Do not let a technicality derail your proposal.

5. Follow Up

Be responsive to the funding agency. If they request additional information or clarification, provide it right away. Remember that it is your project and you need to manage it. Call to make sure the agency received your complete application. If there is a public planning or review process, keep track of it.

6. Ask For Feedback (Whether or Not Get Funded)

Private foundations vary widely on the amount and type of feedback they will give (sometimes none), but government agencies will usually give some. Find out what was good or bad about your proposal. Do they think you have a good project, or does it need to be improved? Was your proposal persuasive? Did the agency have higher priorities? Did they think your proposal was great, but they did not have enough money? Use feedback to make your next pitch better.Visit at http://themotley-fool.blogspot.com

Article Source: http://www.articlesbase.com/finance-articles/getting-financial-assistancesix-tips-to-keep-grant-seekers-on-track-1050210.html

Student Financial Aid Direct Loans and Getting Money For College

2009-07-20T07:09:00.000-07:00

Loan Modification Financial Hardship Letters - How To Make Your Case Convincing

2009-07-20T05:49:00.000-07:00

By: Joe Emery

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Loan Modification Financial Hardship Letters - How To Make Your Case Convincing

Author: Joe Emery
There is an old saying, "When the going gets tough, the tough get going" and this is true in tough economic times as well. Faced with debts that cannot be paid and loans that are difficult to pay off, a person's true colors are shown. You might be in the worse possible circumstances but you can't let this break you, face the situation head on. Approach your lender and let him know the difficulty you are having. On our site you will find many examples of loan modification letters that will help you write your own to explain your circumstances. This will motivate your lender to work with you.

It is very difficult if write a hardship letter, since it makes you sound like your situation is horrible. When you put everything in on paper, you are writing down everything that led up to where you are today and requesting help to pay your debts. We will help you do this. Even though it would be wonderful if no one ever had to write this letter, if no one was ever in this situation, when it happens, we will be here for you.

Be honest, concise and personable in writing your letter. Don't be emotional. Just explain what happened to cause you to have trouble paying your bills since you initially agreed to the loan. For example, maybe your business collapsed and you no longer have an income or a family member became very ill and you had to spend a lot of money on healthcare treatment.

The point of the letter is to get your lender to be empathic to your situation; understand what brought you to this point, and agree to help you find a way out. This might mean finding a way to pay up to what you owe or working out a different way to pay. Take advantage of the letters posted on our site or others that you can find on the internet, or contact us and we will be happy to help you.

Using examples of Loan Modification Financial Hardship Letters, you will be ready to face your unfortunate circumstances with the right information. Learning to write a hardship letter is very important as it will help your lender understand your situation and decide to help you modify your loan in the best possible way for you.About the Author:

For tips and facts about how to get approved for a Mortgage Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

Article Source: ArticlesBase.com - Loan Modification Financial Hardship Letters - How To Make Your Case Convincing

There is an old saying, "When the going gets tough, the tough get going" and this is true in tough economic times as well. Faced with debts that cannot be paid and loans that are difficult to pay off, a person's true colors are shown. You might be in the worse possible circumstances but you can't let this break you, face the situation head on. Approach your lender and let him know the difficulty you are having. On our site you will find many examples of loan modification letters that will help you write your own to explain your circumstances. This will motivate your lender to work with you.

It is very difficult if write a hardship letter, since it makes you sound like your situation is horrible. When you put everything in on paper, you are writing down everything that led up to where you are today and requesting help to pay your debts. We will help you do this. Even though it would be wonderful if no one ever had to write this letter, if no one was ever in this situation, when it happens, we will be here for you.

Be honest, concise and personable in writing your letter. Don't be emotional. Just explain what happened to cause you to have trouble paying your bills since you initially agreed to the loan. For example, maybe your business collapsed and you no longer have an income or a family member became very ill and you had to spend a lot of money on healthcare treatment.

The point of the letter is to get your lender to be empathic to your situation; understand what brought you to this point, and agree to help you find a way out. This might mean finding a way to pay up to what you owe or working out a different way to pay. Take advantage of the letters posted on our site or others that you can find on the internet, or contact us and we will be happy to help you.

Using examples of Loan Modification Financial Hardship Letters, you will be ready to face your unfortunate circumstances with the right information. Learning to write a hardship letter is very important as it will help your lender understand your situation and decide to help you modify your loan in the best possible way for you.

Article Source: http://www.articlesbase.com/finance-articles/loan-modification-financial-hardship-letters-how-to-make-your-case-convincing-1053146.html

Government College Financial Aid Comes in Many Forms - Scholarships, Fellowships & Student Loans

2009-07-20T05:42:00.000-07:00

By: Anamika Gupta

Government College Financial Aid Comes in Many Forms - Scholarships, Fellowships & Student Loans

When it comes to finding funding for college the answer may be as close as your back yard. Visit at http://themotley-fool.blogspot.com

Everyone considers federal government sources of aid to make their college dreams come true but overlook what their state has to offer. State financial aid sources exist to help students who are reaching for a higher level of education. Here is some information to point you in this possibly lucrative direction.

Start with your high school guidance counselor. Any information about grants, scholarships, loans, and other programs offered by the state will be funneled through their office. Make an appointment to talk with them and gather as much information as you can on the options available.

Contact your state educational office. Every state has one. If they have a website, visit and see what they can tell you. States are ready to help students, especially if they plan on attending a state school.

Ask the state educational office for a financial aid handbook. Any scholarships, loans, and grants that are provided by the state can be found in the pages of that book. Study it carefully. Apply for all of the programs that even remotely apply to you, your situation, and your skills.

Scholarship monies are available for attending a state school. A state college or university may not be your first choice, but don't count them out. One distinct advantage of a state-supported school is the cost. The average cost per year could be half that of a private college or university in another state.

States set aside money for students pursuing certain fields of study at college. The funds encourage students to stay within state to receive their education. This doesn't mean that you have to attend the same college for all four years. If you truly want to study elsewhere, you can transfer after the first year or two, but understand that these funds more than likely will not follow you to your new school.

Counties issue grants based on their need for graduates to pursue a specific discipline. Teachers and nurses are in high demand. Areas where there is a significant shortage offer students the chance to go to college for little or nothing in return for a certain number of years of service in the needy area.

States provide grant money for minority students. These grants give money to qualified students based on race, religion, and sex. If you fall into one of these categories, apply for the grant and get the money you need for college.

The best thing about grant money is that it does not have to be paid back. It is important to check with the grant foundation on the renewal particulars of the grant. You don't want to miss out on money in subsequent years because of a failure to renew the grant.

Local businesses and civic organizations offer scholarships for students planning on attending college. For some of these scholarships, students are chosen based on their academic record in high school. Other ones require an application to be filled out for consideration.

Banks in your state may offer college loans for parents and/or students. The loans supplement any costs that are not covered from other financial aid sources. Loans should always be a last resort when considering all forms of aid, but they are available if you need them.

Another avenue of inquiry is the financial aid office of a state college. After deciding to attend a state school visit or call their financial aid office to learn about any state grants or scholarships that are available on their campus. The state government or corporations may partner with state-funded schools or private colleges to offer money to students in need.

With all of the state sources that you find, be mindful of application deadlines. Many of the deadlines will be around the same time so staying organized is a must to get all of the information in on time. Late applications will not be considered.

State financial aid sources do exist. Check with state educational offices and your high school guidance counselor for more information.Visit at http://themotley-fool.blogspot.com

Article source: http://www.articlesbase.com/finance-articles/government-college-financial-aid-comes-in-many-forms-scholarships-fellowships-student-loans-1050253.html

Money Mastery - Three Easy Steps to Mastering Your Financial Destiny

2009-07-20T01:26:00.000-07:00

By: Anamika Gupta

When I was a kid I was constantly told, "We can't afford that; we can ONLY get this; ask your dad if you can have that; you must save your money for a rainy day; start saving now for retirement."Visit at http://themotley-fool.blogspot.com

Don't get me wrong, I understand the intention of some of these messages and that they may even hold value for some folks but I also have learned that these statements can lead to potential financial paralysis.

By hearing those statements over and over again, I developed what could have been my Money Destiny. That Money Destiny led me to believe I would never have enough money, that I must always save and never spend, and that I was not financially safe. These messages repeated themselves in my mind every time I needed to make a money decision or anytime I thought about money. Soon thereafter I found myself resenting the "mean green" and at times wanting to rebel against it. Thank goodness I realized one day that should I continue down this same Money Destiny road, I was destined to have just enough (not plenty) or none at all for that matter or worry about money constantly, and stay in the middleclass.

When I noticed how I was making decisions that would keep me in the same place and never propel me forward financially, I knew it was time to bust my old patterns, break debilitating money-habits, and create a new money system, a new Money Destiny. Doing this was going to take some mental, emotional, spiritual, and physical work, oh yeah, and finacial work as well! It meant I was going to have to stop listening to what I had been told all my years growing up as a child as well as stop playing the "tape recording" of these messages over in my mind. It also meant I was going to have to buck this old system every time it flashed before my eyes! My intention in sharing this article with you is to help you break down your conditioned mindset and build it up with a new one that actually works with you and not against you. This is a mindset that YOU are going to create, nobody else will be creating it for you. Isn't that exciting?

So what does mastering money look like? Mastering your money literally boils down to one thing: your mindset. Have you ever noticed that when your bills are paid off for the month and you have some extra "bread" in savings, you are just bouncing around the planet like you are rich (even if you aren't)? However, on the contrary, have you noticed that when you don't have enough to make ends meet and you're struggling to figure out where the next dollar will come from to pay your rent or mortgage, you never seem to see the light? And, have you ever noticed that you actually decided, either consciously or subconsciously, which of those scenarios would play out in your life?

What I would like for you to do is sit for a moment and put yourself into both situations. First, visualize yourself in the moment when you have no money, nothing in the bank, in fact you may be in the negative. You're not going to be paid for another week and all of your bills are due yesterday. What is the first feeling that you notice? Desperation, anger, frustration, helplessness? Take a quick note of that. Now, go to the visual of having money in the bank, all bills paid off and in essence you feel free. You have extra money to do what you would like and everything seems to be going right in the world. Again, take note of the first feeling that pops up for you when sitting in this visualization.

Let's take an even further step. Picture that you are in control of both scenarios. You actually designate or choose which will happen in your life. And, you actually choose the same scene over and over again. Which do you choose? Do you choose the visualization with lots of money and financial freedom or do you choose the daunting visual? I venture to guess you wish to choose the one of Money Mastery.

The concept of Money Mastery has to do with having a destiny when it comes to money. Some folks actually are destined to be rich, middle class or poor. For most of us, we witnessed how our parents behaved with money, listened to things they said and then modeled after them. If our parents were rich, we figured as adults that we, too, had the right to be rich. If our parents were poor, we grew up thinking we did not deserve to have more money so we followed in the footsteps of our poor parents.

I am here to tell you that you don't have to follow in anybody's footsteps when it comes to mastering money except your own. Today, you get to decide your new Money Destiny in just three steps.Visit at http://themotley-fool.blogspot.com

Article Source: http://www.articlesbase.com/finance-articles/money-mastery-three-easy-steps-to-mastering-your-financial-destiny-1050294.html

How Are You Managing Money If Financial Distress is Overwhelming You?

2009-07-20T01:08:00.000-07:00

By: Anamika Gupta

How Are You Managing Money If Financial Distress is Overwhelming You?

The stock market is down, foreclosures are up, unemployment is up and bankruptcies are up. Many Americans are having a very difficult time managing their money in this environment.Visit at http://themotley-fool.blogspot.com

There are many small business owners that are facing the prospect of losing their business. I faced this exact situation in the past year and this is how I dealt with it.

My home improvement business was very profitable by 2005 and I was looking at a very prosperous future for my family. In 2006, however, sales began to decline as more of my customers were finding it difficult to get home improvement loans to pay for my company's services. I realized that the future success of my business was in doubt and began to plan for alternatives.

I tried to sell my business, but there were no takers. I worked extremely hard to keep it profitable, but by June of 2007 I realized it was a losing battle. I looked at all of my debt, and understood that a bankruptcy was probably inevitable.

I knew that filing for bankruptcy was an extreme measure, and that the consequences of that decision would be far reaching, but I had poured every cent that I had into my business, including a huge mortgage on my house. I could not see spending the next 30 years trying to pay back all of that money when my formerly prosperous business was a victim of a bad economy.

I knew that before I took a step as drastic as bankruptcy, I had to have a plan for how I would provide for my family after I got rid of the business that had become an anchor around my neck. I spent hundreds of hours studying various online and home businesses and eventually found one that I thought I could do.

I started that business in December 2007 and was able to make over $10,000 the first week in January. This gave me the confidence that I needed to move forward, but it still was not easy. I was not able to consistently make that much every week, so I had to take some very drastic actions to keep food on the table.

My advice in managing money if financial distress is overwhelming you is born from my own experience. I was a victim of many creditors that threatened me and got me to cough up money that I could not afford to pay. Many times I found myself without enough money to pay for the basic essentials for my family. Health coverage was an almost instant victim of my financial struggle and food and gas costs became a great concern.

If you are going through a situation that is this difficult, I recommend making sure that you are able to take care of the basics before you succumb to the threats of your creditors. Having health coverage and food on the table is far more important than your credit score. There are far worse things than realizing that you need to pay cash for everything.

If there is any way that you can avoid a foreclosure or bankruptcy, by all means do so. You can drive a cheaper car and cut costs across the board to try to avoid losing your house or going bankrupt. If you realize that a bankruptcy is inevitable, then make the decision and protect yourself. Do not cough up money when you do not have it and begin working on a plan on how you can prosper in the future. This is perhaps the very best time to go through a bankruptcy or foreclosure because there are many people doing so. The social stigma associated with those financial events is not what it was 20 years ago and you will be in good company. Some notable people that have gone through bankruptcies are Abraham Lincoln, P.T. Barnum, John Barrymore, Kim Basinger, Bjorn Borg, Francis Ford Coppola, Walt Disney, Charles Goodyear, Ulysses S. Grant (his face is on the $50 dollar bill), myself and many others. Do not be afraid of taking the opportunity for a fresh start.

This may also be a very good time for you to start a home business. Your financial distress should help provide motivation for you to put in the effort to make a home business succeed. Most home businesses fail for lack of effort. The reason that mine succeeded is that I knew I had to be successful. Failure was not an option because the security of my family depended on that success.

If you are in financial distress you should also make sure to nurture the relationships that are important to you. Money, or the lack of it, can bring out the worst in people and you do not want to let your relationships to be a victim of your hard financial times. Any type of difficulty can either bring people together or drive them apart. The former is better than the latter and you will be able to handle your financial trials better with the support of family and friends than without them.

If you decide to start a home business, make sure that you have the financial ability or time to properly market it. Do not spend more money than you should to get your home business off the ground, but you do need to realize that it takes an investment to make money. If you invest your time to learn how to market for free, you will save your dollars for essentials and be way ahead in the long run.

I had very little money to put into a home business when I started, but I was able to take my effort and determination and build a very successful and profitable business. You may be able to do the same if you are willing to invest the time and take the risk to do so.Visit at http://themotley-fool.blogspot.com

Article Source: http://www.articlesbase.com/finance-articles/how-are-you-managing-money-if-financial-distress-is-overwhelming-you-1050317.html

Currency Markets Even If You Know Nothing About Finance

2009-07-18T00:03:00.000-07:00

By: Anamika Gupta

Discover How You Can Make Money in the Currency Markets Even If You Know Nothing About Finance

Forex trading is one of the hottest growing money making opportunities that individuals become involved. As more everyday people discover the big money making potential of forex trading, the currency markets grow and grow.Visit Now http://gov-debt-grantbenefit.blogspot.com

Just like transacting in stocks, in the currency markets you need to buy low and sell when it's high. Except in forex trading, currencies are traded rather than stocks. Similar to shares, currency values rise and fall in value each day. It's a very simple idea really. If you purchase a currency when you find it is inexpensive and then trade it when it grows in price, you make a profit.

Although this looks simple in theory, there are many things you must keep in mind before you jump into forex trading. One of the immediate things you'll discover is that there are numerous currency types - it's not realistic to keep track of each currency. Professional traders will focus on just a couple. But, even if you do decide on a few interesting currencies to observe, how do you know when it's the ideal time to make a transaction?

It might sound challenging, but you can pick up currency trading software that will return profits for you. These computer programs the difficulty of analyzing the markets out of currency trading as they use a specially programmed algorithm to analyze the forex markets.. The programs will spot when it's time to purchase and sell, and also which currencies to put money into.

And don't worry about these software being difficult to operate - they are extremely easy. Another useful feature that most programs will have is a demo mode. This allows you to utilize the program without using any of your cash so you can monitor how it performs. This is a good feature, since you do not want to risk cash through currency markets while you're still discovering how to use the software.

You can try the program risk free, since reputable companies will offer a money-back guarantee. This way you can use the software and learn if it's as strong as it promises to be. More importantly, you'll also be able to see if the software provides you with the additional money you're hoping to generate from the markets.

It's natural to be a touch nervous to jump into the currency markets if you are new. That's precisely why a currency trading program can be so helpful. You can rely on the program to help you generate some cash as you learn more about the markets.

As your knowledge of the currency markets grows, you will likely execute trades coming from your own intuitions and also based on what the software gives you. But it's still wise to use a currency trading program even after you're out of the newbie stage. Using a trading program will generate for you some extra cash, and it also helps in giving you knowledge about the markets.Visit Now http://gov-debt-grantbenefit.blogspot.com

Article Source: http://www.articlesbase.com/finance-articles/currency-markets-even-if-you-know-nothing-about-finance-1048206.html

The Existing Informal Microfinance financial sources

2009-07-17T15:06:00.000-07:00

By: R.Yuvarani

The informal financial sources generally include funds available from family sources or local money lenders. The local money lenders charge exhorbitant rates, generally ranging from 36% to 60% interest due to their monopoly in the absence of any other source of credit for non-conventional needs. Chit Funds and Bishis are other forms of credit system operated by groups of people for their mutual benefit which however have their own limitations.

Lately, few of the NGOs engaged in activities related to community mobilisation for their socio-economic development have initiated savings and credit programmes for their target groups. These Community based financial systems (CBFS) can broadly be categorised into two models: Group Based Financial Intermediary and the NGO Linked Financial Intermediary.

Most of the NGOs like SHARAN in Delhi, FEDERATION OF THRIFT AND CREDIT ASSOCIATION (FTCA) in Hyderabad or SPARC in Bombay have adopted the first model where they initiate the groups and provide the necessary management support. Others like SEWA in Ahmedabad or BARODA CITIZEN's COUNCIL in Baroda pertain to the second model.

The experience of these informal intermediaries shows that although the savings of group members, small in nature do not attract high returns, it is still practised due to security reasons and for getting loans at lower rates compared to that available from money lenders. These are short term loans meant for crisis, consumption and income generation needs of the members. The interest rates on such credit are not subsidised and generally range between 12 to 36%. Most of the loans are unsecured. In few cases personal or group guarantees or other collaterals like jewellery is offered as security.

While a census of NGOs in micro-finance is yet to be carried out, there are perhaps 250-300 NGOs, each with 50-100 Self Help Groups (SHG). Few of them, not more than 20-30 NGOs have started forming SHG Federations. There are also agencies which provide bulk funds to the system through NGOs. Thus organisations engaged in micro finance activities in India may be categorised as Wholesalers, NGOs supporting SHG Federations and NGOs directly retailing credit borrowers or groups of borrower.

The Wholesalers will include agencies like NABARD, Rashtriya Mahila Kosh-New Delhi and the Friends of Women's World Banking in Ahmedabad. Few of the NGOs supporting SHG Federations include MYRADA in Bangalore, SEWA in Ahmedabad, PRADAN in Tamilnadu and Bihar, ADITHI in Patna, SPARC in Mumbai, ASSEFA in Madras etc. While few of the NGOs directly retailing credit to Borrowers are SHARE in Hyderabad, ASA in Trichy, RDO Loyalam Bank in Manipur.

Article Source: http://www.articlesbase.com/finance-articles/the-existing-informal-microfinance-financial-sources-1045593.html

Weaknesses of Existing Microfinance Models

2009-07-17T11:54:00.000-07:00

By: R.Yuvarani

One of the most successful models discussed around the world is the Grameen type. The bank has successfully served the rural poor in Bangladesh with no physical collateral relying on group responsibility to replace the collateral requirements. This model, however, has some weaknessed. It involves too much of external subsidy which is not replicable Grameen bank has not oriented itself towards mobilising peoples' resources. The repayment system of 50 weekly equal instalments is not practical because poor do not have a stable job and have to migrate to other places for jobs. If the communities are agrarian during lean seasons it becomes impossible for them to repay the loan. Pressure for high repayment drives members to money lenders. Credit alone cannot alleviate poverty and the Grameen model is based only on credit. Micro-finance is time taking process. Haste can lead to wrong selection of activities and beneficiaries.

Another model is Kerala model (Shreyas). The rules make it difficult to give adequate credit {only 40-50 percent of amount available for lending). In Nari Nidhi/Pradan system perhaps not reaching the very poor.

Most of the existing microfinance institutions are facing problems regarding skilled labour which is not available for local level accounting. Drop out of trained staff is very high. One alternative is automation which is not looked at as yet. Most of the models do not lend for agriculture. Agriculture lending has not been experimented.

Risk Management : yield risk and price risk
Insurance & Commodity Future Exchange could be explored
All the models lack in appropriate legal and financial structure. There is a need to have a sub-group to brainstorm on statutory structure/ ownership control/ management/ taxation aspects/ financial sector prudential norms. A forum/ network of micro-financier (self regulating organization) is desired.

R.Yuvarani, M.Phil Scholar, Department of commerce, Periyar University, Salem-11

Article Source: http://www.articlesbase.com/finance-articles/weaknesses-of-existing-microfinance-models-1045606.html

How to Make Sure You Get the Best Home Insurance Policy

2009-07-17T10:51:00.000-07:00

By: Alien

Whenever you plan to buy a home insurance policy, the two things that will surely come in your mind will be the cost that the policy will incur and the coverage it will assure you. If you can manage to get the best combination of both these aspects, you perhaps will have the best quality policy, which you can trust and rely upon. Never fall in the trap of just being satisfied, by even one of the two aspects. It is very easy for a customer to fall for a cheap home insurance policy, and not to give much of a consideration to the coverage it assures you. The same case can be other way; some customers may be overspending on their policies, just for receiving a huge coverage.

Trust the market on this; you can manage to find a medium type of a policy that will satisfy both the aspects of your needs, a cheap cost and a high coverage. It has been observed that many customers settle for a cheap cost or a huge coverage return, but do no really feel the necessity of having both. It is important for you to understand that there are many insurance companies who will give you a quality policy in a price that will be very well affordable for you to live with. It is not necessary for you to spend too much from your pocket to get a high quality policy. Many people do not realize this, and end up wasting their hard earned money.

It is important for you to have a good knowledge about how a balance home insurance policy should be like. It should neither be too expensive, nor too cheap, but should offer a decent enough coverage, that suits your requirement. The best home insurance policy suitable for you will be a good combination of both a decent cost, and a decent coverage.

Also it is important for you to trust your policy, and make sure that it covers all the aspects, in order to protect you and your property at all the times you need. But, you also should make sure that you are not overpaying for your policy. Always make sure that you pay only what you can afford, and what is required to be paid for your house. Now go get the best policy for you.

Article Source: http://www.articlesbase.com/finance-articles/how-to-make-sure-you-get-the-best-home-insurance-policy-1045854.html

MICRO FINANCE-A NEW PARADIGM

2009-07-17T10:42:00.000-07:00

By: R.Yuvarani

A new paradigm that emerges is that it is very critical to link poor to formal financial system, whatever the mechanism may be, if the goal of poverty allieviation has to be achieved. NGOs and CBOs have been involved in community development for long and the experience shows that they have been able to improve the quality of life of poor, if this is an indicator of development. The strengths and weaknesses of existing NGOs/CBOs and microfinance institutions in India indicate that despite their best of efforts they have not been able to link themselves with formal systems. It is desired that an intermediary institution is required between formal financial markets and grassroot. The intermediary should encompass the strengths of both formal financial systems and NGOs and CBOs and should be flexible to the needs of end users. There are, however, certain unresolved dilemmas regarding the nature of the intermediary institutions. There are arguments both for and against each structure. These dilemmas are very contextual and only strengthen the argument that no unique model is applicable for all situations. They have to be context specific.

Dilemmas

Community Based

Investor Owned

Community Managed
Community (self) financed
Integrated (social & finance)
Non profit / mutual benefit
Only for poor
'Self regulated'
Professionally managed
Accepting outside funds for on-lending
Minimalist (finance only)
For profit
For all under served clients
Externally regulated
The four pillars of microfinance credit system (Fig. 1) are supply, demand for finance, intermediation and regulation. Whatever may the model of the intermediary institution, the end situation is accessibility of finance to poor. The following tables indicate the existing and desired situation for each component.

DEMAND

Existing Situation

Desired Situation

fragmented
Undifferentiated
Addicted, corrupted by capital & subsidies
Communities not aware of rights and responsibilities
Organized
Differentiated (for consumption, housing)
Deaddicted from capital & subsidies
Aware of rights and responsibilities

SUPPLY

Existing Situation

Desired Situation

Grant based (Foreign/GOI)
Directed Credit - unwilling and corrupt
Not linked with mainstream
Mainly focussed for credit
Dominated
Regular fund sources (borrowings/deposits)
Demand responsive
Part of mainstream (banks/FIs)
Add savings and insurance
Reduce dominance of informal, unregulated suppliers

INTERMEDIATION

Existing Situation

Desired Situation

Non specialized
Not oriented to financial analysis
Non profit capital
Not linked to mainstream FIs
Not organized
Specialized in financial services
Thorough in financial analysis
For profit
Link up to FIs
Self regulating

REGULATION

Existing Situation

Desired Situation

Focussed on formal service providers (informal not regulated)
regulating the wrong things e.g. interest rates
Multiple and conflicting (FCRA, RBI, IT, ROC, MOF/FIPB, ROS/Commerce)
Negatively oriented
include/informal recognise e.g. SHGs
Regulate rules of game
Coherence and coordination across regulators
Enabling environment

R.Yuvarani, M.Phil Scholar, Department of commerce, Periyar University, Salem-11

Article Source: http://www.articlesbase.com/finance-articles/micro-financea-new-paradigm-1045611.html

Payday advance: instant cash to deal with financial crisis

2009-07-16T13:07:00.000-07:00

By: Harry Chick

Uncertain situations can be occurred anytime that is filled with some unexpected expenses that can adversely affect your financial budget. In these kinds of circumstances, when you really need money to fix some unexpected expenditure, you can easily apply for the payday advance. These financial aids surely offer you the small amount of money so that you can overcome your problems.

These are especially designed to help the borrowers in their financial crisis. As its name suggest these loans are offered on the basis of your next paycheque. These are short term financial help that offer the sufficient amount to fulfil certain needs such as paying electricity bills, school fees, car bills, credit card bill, grocery bills, or any urgent medical expenses.

In order to borrow cash, you need to meet certain criteria such as applicants should have regular employment; applicants should also possess a valid and active bank account. Borrower should also be over 18 years of age. If the applicant qualifies the desired eligibility, the required amount is automatically transferred in his/her bank account within the same day.

The amount approves under this fiscal aid ranges from £100 from £1500 as per the borrower’s requirement. The repayment term of the amount is varies from 14 to 31 days till borrower’s next salary day. If you tracked with crisis then you can extent the repayment term by paying the extra fee to lender. The rate of interest of the borrowed amount is slightly high because of its short repayment term.

These loans are free from credit check, so that borrowers with bad credit problems like defaults, late payment, arrears, etc can also borrow the amount in their urgencies.

Online is the most convenient way to get the loan amount. There you just have to fill up the simple application form in order to get the required cash. Through online medium you can also compare the different loan quotes in order to get the deal that suits your requirement and budget.

Article Source: http://www.articlesbase.com/finance-articles/payday-advance-instant-cash-to-deal-with-financial-crisis-1042325.html

Financial coaching can effectively increase financial awareness

2009-07-16T11:25:00.000-07:00

By: Pradeep Shukla

There are several reasons that lead to a proper perspective and help us to know more about the financial decisions. Financial coaching is new concept and this helps us to know more regarding the strategic ways of money management.

Economic crisis is often the cause of excessive stress and mismanagement of finances is a prime cause of suicide each year. It is indeed good idea to consider that irrespective of social stature or class, everyone should be aware of the art and science of money management. Many of us have a fear of being financially ruined, we think of possessing money. But on the contrary it is a fact the seventy five percent of the wealthy population of the globe has earned the bucks, they have not at all inherited. For this self made people know the process of maintaining life with and without money. Proper financial coaching help to know the fact that money is the cause of great deal of anger, depression and anxiety.

Different personal financial coaching has been tailored to clarify existing doubts among the people. It is possible to get exactly the required information. There remain a properly tailored coaching agenda and it has been tailored to fit several individual requirements. With these facilities it is possible to find a personal mentor who can ensure financial freedom. The perfect selection of finance coaching related course indeed matters. There are plenty of online courses available and with a few mouse’s click it is possible to plenty of information from the online resources.

It is not difficult to control money to gain faith and confidence when the right steps are known. Thoughts matter and it is necessary for everyone to believe that money creates worthiness and social prestige directly or indirectly. Taking control over the spending habits it is indeed possible to make better financial future. There are plenty of books but online interactive courses are much better. At times it becomes necessary to identify and prioritize the expenses and we become rattled. From a proper coaching program we get to know the basics related to wealth creation.

Details of the finance coach can be found from the web portals that deliver finance coaching. These sites also offer information on the prevailing special offers. In case of doubts, just by sending an electronic mail or by dialing the telephone numbers further details can be obtained.

Article Source: http://www.articlesbase.com/finance-articles/financial-coaching-can-effectively-increase-financial-awareness-1043049.html

Government Financial Assistance Grants

2009-07-14T15:08:00.001-07:00

By Jack Cardell

Government financial assistance grants are merely finances that are offered by the government without any interest and which does not need to be re paid. These grants are a very good way of getting financial assistance irrespective of the type of credit rating that you currently have.

In order to be eligible to receive a grant you have to fulfill certain criteria. There is a specific principle for receiving financial assistance that has been fixed by the government itself. According to this principle, if you are seeking a grant then you have to have complete knowledge about that grant and need to struggle with other people vying for the grant too. Even after this, there is no guarantee that you will receive the government grant. The amount of money you receive as a part of a grant is always preset and is never altered later. Therefore, it is wise to apply for a government grant as quickly as you can as they are usually given out on a first come first serve basis.

There are various different types of government grants that are made available to the all the citizens by the government of the United States of America. The types available are:

1. Adoption tax credit
2. Housing rental grants
3. Grants for retirees
4. Legal help grant
5. College student grants and loans
6. Health insurance for children grants
7. Financial assistance for small business
8. Health care grants
9. Training and employment grants
10. Expatriate settlement grant

One of the main reasons for the government to offer these grants is so that it can provide assistance to persons who were not given loans to by banks or financial agencies. In the United States, there are approximately 3,500 different government grants and close to 20,000 educational programs.

Minority small business grants are the pinnacle of financing ordinary peoples' business dreams. The United States is built from that very same dream of prosperity and the government wants ordinary people like us to build our own future and take charge of our own lives. Barack Obama is a great supporter of the people that make up our nation, and he's laid out tens of billions every year in funding from personal government grants to business and education grants for all to benefit. You can visit the links in this article to learn exactly how to obtain government grants for your needs.

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

10 Pointers to Rein Your Finances

2009-07-14T14:59:00.000-07:00

By Wain Roy

No matter how much or how little you earn, you should plan your finances well ahead to have a steady cash-flow and a secure future. However, it’s easier said than done! That is precisely why you need to be extra cautious about your savings and expenses. If managed prudently, you will soon see your money flesh out like never before, driving worries away and supporting you to sail through all odds and lows. To help you hold the reins to your funds, here are ten tips:

1. Save a minimum of 10% from your pay to build your long-term securities, such as a retirement plan. This includes your pay hike as well. The more you save, the more you are moving towards the ‘comfort’ zone of financial stability. Consider the inflation aspect and save in accordance with that.
2. Invest, but choose your investments wisely. You can have both short-term and long-term investments. Invest in money market or bank term deposits for short-term fund-building. Investments in shares and equities are generally for long-term goals.
3. Be wary if the returns offered on your investment look unusually attractive. Then the chances are that it’s a swindle. Do your homework and check if your investment company is registered with the Financial Services Board (FSB). Don’t invest in unlisted companies.
4. Begin with safe investments like life insurance, asset allocation funds, etc. Returns may not be too lucrative here, but security is much higher.
5. Investment in shares is risky but rewarding. However, before you jump to conclusions, it’s crucial that you know the stock market completely. Be on your toes while you invest on shares—track company performances and other ups and downs to buy/sell shares judiciously and get good monetary benefits.
6. Keep an emergency fund always at hand to be on your guard and help save that bit of worry when misfortune strikes. But if all roads close, you always have an option for fast cash. It’s easy to apply for a UK payday loan online, which you can easily access when you need money.
7. If your confidence falters, get a financial advisor. But please don’t hesitate to negotiate the advisor’s commission/fees. Remember, it’s your money.
8. Don’t be fooled by fancy labels or promises while investing. Research and probe deep into the product/company for understanding the investment proposal before deciding.
9. If a big amount is sitting idle in a low-interest savings account, act. Put the same in a money market account or a mortgage bond.
10. Most importantly, consider your finances in the light of your needs, not desires. Buy houses or cars when you need them, not when you just want them. That way, you will make a more sound decision. The thumb-rule of managing finances is not to be ruled by the heart, but by the head—always!

Wain Roy is an internet marketing professional expert in various industries like real estate, web design, finance, medical tourism and Payday Loans UK

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

Ameriprise Financial Services - The Best Personal Financial Adviser

2009-07-14T13:54:00.001-07:00

By Abhishek Agarwal

In today's growing consumer market, where one has plethora of options to choose from for almost all goods and services, many companies have managed to maintain their goodwill and win the rat race with a simple rule - consumer is the king!

Some companies have carved their niche with prompt and accurate customer services and support system. A leading name among financial advisory services today is - Ameriprise Financial Services or the AFS.

Ameriprise Financial Services initiated as a small company from a local office, and have managed to expand a fortune. They are best known for their online financial advisory services and personal consultation.

Their strategy for the same is to use a handy advisor locator. The best part of using this locator is that you do not need to give any personal details. On the company's web portal simply key in your zip code. The locator would automatically supply a list of Ameriprise Financial Services Advisors with in your vicinity. Be rest assured that you won't be contacted unless & until you yourself opt to call an agent.

Besides the regular functions of the web portals, Ameriprise Financial Services' website offers enormous wealth of information on all aspects regarding financial planning. An individual's financial planning primarily depends on their budget and the financial requirements. However, at the end financial planning remains one's personal decision. Yet, all of us need to have a clear understanding of our goals from the same.

The personal advisors at Ameriprise Financial Services understand these basics and hence their website details the very core information like:

i. The fundamentals of investment
ii. Tips for paperwork
iii. Information that we must put forward before the advisor to make the best of his services. This way he or she would give you the best possible recommendations for your personalized financial planning needs.

How the Ameriprise Financial Services' Advisor works?

Ameriprise Financial Services' personal financial planner initially offers a free consultation session. Here, he or she would help you identify your financial goals. He or she would present before you the realistic & concrete picture of your current scenario and your actual needs. That is your financial stand today and what it requires to meet what you want.

In the following sessions, the advisors would help you synchronize the goals, that is prioritizing the needs & wants. He or she would then prepare the information you need. Next, He or she would present this information in a way that it clarifies all your doubts. Hence the advisor would help you understand the best possible ways to achieve your financial goals.

Ameriprise Financial Services advisors are always there for you in order to answer your questions. Yet, they are just advisors and they would leave the final decisions for the client or customer.

Finally a written plan would be developed. As per your requisites and goals it would also be modified until completion.

That is not all. You advisor would also help you implement the plan with regular meetings. Ensuring that the customer stays on the track to achieve their financial objectives and goals, they would guide you through the required changes as well.

What are the other services provided by Ameriprise Financial Services?

1. Insurance

Ameriprise Financial Services also deals with insurance. They provide:

i. Life Insurance
ii. Health Insurance
iii. Disability Insurance
iv. Long Term Care Insurance
v. Home Insurance
vi. Auto Insurance

2. Banking & Lending Agency

Ameriprise Financial Services is also an efficient banking & lending agency so they help you through money management & financial planning in the practical terms.

3. Investment Products
Ameriprise Financial Services' investment products include the following:
i. IRAs
ii. Annuities
iii. Stocks
iv. Bonds
v. Mutual Funds

This implies that the clients could easily diversify the portfolios & try varied types of investments during working with the advisors

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

Film Making Finance - 12 Points To Keep In Mind

2009-07-14T13:43:00.000-07:00

By Abhishek Agarwal

Finance is a very important and crucial part of film making. While many people pull you here and there explaining about this vast topic, where as they are all beating behind the bushes, here are some real facts about film making finances.

Every film maker at some point in his career is supposed to make a choice between a hobby and a profession - that is whether you choose film making as a full time career or just a mere hobby. The key to the answer lies in their ability to finance or fund their own projects.

Film making, as we all know involves a lot of money in indeed, most oft the film makers focus on their current project, not the future ones. Hence in order to become a film maker, it is immensely important to understand the professionalism involved in film making, and the mechanisms of film investment.

In this regard many people claim to be Mr. Know-It-All, but as a matter of fact, this is not any toddlers' job. Such people often try to take advantage of your ignorance in the field.

We suggest you to contact a legitimate company who are equipped with the right knowledge and have some experience in the field of film making. But, like all other services and products, there are so many consultancy firms out there. On what basis do you choose or reject one? Here are some basic facts that you must understand:

1. The fake or some average companies would merely try to grab your money away with high dreams and no results.

2. The legitimate and quality organizations would never promise you any investors. They would rather assist you with a list of the potential investors and help you win over them.

3. Whether your project gets an investor or not is matter that is decided by several factors like the subject of your project, the market scenario, your individual potential and its portrayal, and for those who believe, luck.

4. The legitimate consultants understand that there is no fun stealing away those few dollars paid for consultancy that any producer could afford conveniently.

5. The genuine financial consultants at times do not even charge the percentage of the funds you have earmarked for the project. They charge you their fees but ultimately aim towards the success of your project and its effective distribution.

6. They must help you evaluate the accumulated interest levied on the money you have borrowed during production.

7. They would also guide you through a well planned financial end of your project.

The toughest part of this business comes in to the scene when you have to convince a financial consultant of a legitimate producer to get involved in your project. You must find an investor who trusts you and your project well enough in order to invest in such high-risk, that is film making. For this you must step in to the shoes of an investor and evaluate as to what would be his/her investing criteria.

There are some essential basics of film investing. These are:

1. Usually, a film investor contributes around 50% of the total cost of the film. Film producer bares the remaining 50%.

2. 30-40% is quite enough to make the film. This would totally depend on your convincing power to bring forth the end users to become a part of your plan.

3. The investor would always want that the budget of the film project is as low as possible.

4. Foreign sales must cover at least 50%.

5. An investment worth $5 million is should be enough to allow the investor to buy several films.

As getting a film financed through investors is not an easy nut to crack, the independent film makers must consider the film making grants. Those who are passionate about this art and are in love with this profession, have a real scope of getting these grants. Just log on to internet and key in 'film making grants' and you shall get to know about several funders who are all willing to help such budding talents. All you need is to believe in your project. But make sure to gain enough knowledge about each grant as there are several types of grants that define different criteria for each.

Abhishek is an avid Film Making enthusiast and he has got some great Film Making Secrets up his sleeve! Download his FREE 78 Pages Ebook, "Understanding The Basics Of Film-Making!" from his website http://www.Fun-Galore.com/94/index.htm. Only limited Free Copies available.

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

Financial Meltdown - The End of a 300 Year Ponzi Scheme

2009-07-14T11:24:00.000-07:00

By Ellen Brown

Panic struck on Wall Street, as the Dow Jones Industrial Average plunged a thousand points between July and August, and commentators warned of a 1929-style crash. To prevent that dire result, the U.S. Federal Reserve, along with the central banks of Europe, Canada, Australia and Japan, extended a 315 billion dollar lifeline to troubled banks and investment firms. The hemorrhage stopped, the markets turned around, and investors breathed a sigh of relief. All was well again in Stepfordville. Or was it? And if it was, at what cost? Three hundred billion dollars is about a third of the total paid by U.S. taxpayers in personal income taxes annually. A mere $188 billion would have been enough to repair all of the 74,000 U.S. bridges known to be defective, preventing another disaster like that in Minneapolis in July. But the central banks’ $300 billion was poured instead into the black hole of rescuing the very banks and hedge funds blamed for the “liquidity” crisis (the dried up well of investment money), encouraging loan sharks and speculators in their profligate ways.

Where did the central banks find the $300 billion? Central banks are “lenders of last resort.” According to the Federal Reserve Bank of Atlanta’s "Economic Review", “to function as a lender of last resort [a central bank] must have authority to create money, i.e., provide unlimited liquidity on demand.”1 In short, central banks can create money out of thin air. Increasing the money supply (“demand”) without increasing goods and services (“supply”) is highly inflationary; but this money-creating power is said to be necessary to correct the periodic market failures to which the banking system is inherently prone.2 “Busts” have followed “booms” so regularly and predictably in the last 300 years that the phenomenon has been dubbed the “business cycle,” as if it were an immutable trait of free markets like the weather. But in fact it is an immutable trait only of a banking system based on the sleight of hand known as “fractional-reserve” lending. The banks themselves routinely create money out of thin air, and they need a lender of last resort to bail them out whenever they get caught short in this sleight of hand.

Running through this whole drama is a larger theme, one that nobody is talking about and that can’t be cured by fiddling with interest rates or throwing liquidity at banks making too-risky loans. The reason the modern banking system is prone to periodic market failures is that it is a Ponzi scheme, one that is basically a fraud on the people. Like all Ponzi schemes, it can go on only so long before it reaches its mathematical limits; and there is good evidence that we are there now. If we are to avoid the greatest market crash in history, we must eliminate the underlying fraud; and to do that we need to understand what is really going on.

The 300 Year Ponzi Scheme Known as “Fractional-Reserve” Lending

A Ponzi scheme is a form of pyramid scheme in which earlier players are paid with the money of later players, until no more unwary investors are available to be sucked in at the bottom and the pyramid collapses, leaving the last investors holding the bag. Our economic Ponzi scheme dates back to Oliver Cromwell’s revolt in seventeenth century England. Before that, the power to issue money was the sovereign right of the King, and for anyone else to do it was considered treason. But Cromwell did not have access to this money-creating power. He had to borrow from foreign moneylenders to fund his revolt; and they agreed to lend only on condition that they be allowed back into England, from which they had been banned centuries earlier. In 1694, the Bank of England was chartered to a group of private moneylenders, who were allowed to print banknotes and lend them to the government at interest; and these private banknotes became the national money supply. They were ostensibly backed by gold; but under the fractional-reserve lending scheme, the amount of gold kept in “reserve” was only a fraction of the value of the notes actually printed and lent. This practice grew out of the discovery of goldsmiths, that customers who left their gold and silver for safekeeping would come for it only about 10 percent of the time. Thus ten paper banknotes “backed” by a pound of silver could safely be printed and lent for every pound of silver the goldsmiths held in reserve. Nine of the notes were essentially counterfeits.

The Bank of England became the pattern for the system known today as “central banking.” A single bank, usually privately owned, is given a monopoly over issuing the nation’s currency, which is then lent to the government, usurping the government’s sovereign power to create money itself. In the United States, formal adoption of this system dates to the Federal Reserve Act of 1913; but private banks have created the national money supply ever since the country was founded. Before 1913, multiple private banks issued banknotes with their own names on them; and as in England, the banks issued notes for much more gold than was in their vaults. The scheme worked until the customers got suspicious and all demanded their gold at once, when there would be a “run” on the banks and they would have to close their doors. The Federal Reserve (or “Fed”) was instituted to rescue the banks from these crises by creating and lending money on demand. The banks themselves were already creating money out of nothing, but the Fed served as a backup source, generating the customer confidence necessary to carry on the fractional-reserve lending scheme.

Today, coins are the only money issued by the U.S. government, and they compose only about one one-thousandth of the money supply. Federal Reserve Notes (dollar bills) are issued by the privately-owned Federal Reserve and lent to the government and to commercial banks. Coins and Federal Reserve Notes together, however, compose less than 3 percent of the money supply. The rest is created by commercial banks as loans. The notion that virtually all of our money has been created by private banks is so foreign to what we have been taught that it can be difficult to grasp, but many reputable authorities have attested to it. (See E. Brown, “Dollar Deception: How Banks Secretly Create Money,” www.webofdebt.com/articles, July 3, 2007.)

Among other problems with this system of money creation is that banks create the principal but not the interest necessary to pay back their loans; and that is where the Ponzi scheme comes in. Since loans from the Federal Reserve or commercial banks are the only source of new money in the economy, additional borrowers must continually be found to take out new loans to expand the money supply, in order to pay the interest creamed off by the bankers. New sources of debt are fanned into “bubbles” (rapidly rising asset prices), which expand until they “pop,” when new bubbles are devised, until no more borrowers can be found and the pyramid finally collapses.

Before 1933, when the dollar went off the gold standard, the tether of gold served to limit the expansion of the money supply; but since then, the Fed’s solution to collapsed bubbles has been to pump ever more newly-created money into the system. When the savings and loan associations collapsed, precipitating a recession in the 1980s, the Fed lowered interest rates and fanned the 1990s stock market bubble. When that bubble collapsed in 2000, the Fed dropped interest rates even further, creating the housing bubble of the current decade. When lenders ran out of “prime” borrowers, they turned to “subprime” borrowers – those who would not have qualified under the older, tougher standards. It was all part of the structural imperative of all Ponzi schemes, that the inflow of cash must continually expand to pay the people at the top. This expansion, however, has mathematical limits. In 2004, the Fed had to begin raising rates to tame inflation and to support the burgeoning federal debt by making government bonds more attractive to investors. The housing bubble was then punctured, and many subprime borrowers went into default.

The Subprime Mess and the Derivatives Scam

In the ever-growing need to find new borrowers, lending standards were relaxed. Adjustable rate mortgages, interest-only loans, no- or low-down-payment loans, and no-documentation loans made “home ownership” available to nearly anyone willing to take the bait. The risks of these loans were then minimized by off-loading them onto unsuspecting investors. The loans were sliced up, bundled with less risky mortgages, and sold as mortgage-backed securities called “collateralized debt obligations” (CDOs). To induce rating agencies to give CDOs triple-A ratings, “derivatives” were thrown into the mix, ostensibly protecting investors from loss.

Derivatives are basically side bets that some investment (a stock, commodity, etc.) will go up or down in value. The simplest form is a “put” that pays the investor if an asset he owns goes down, neutralizing his risk. But most derivatives today are far more difficult to understand than that. Some critics say they are impossible to understand, because they were intentionally designed to mislead investors. By December 2006, according to the Bank for International Settlements, the derivatives trade had grown to $415 trillion. This is a Ponzi scheme on its face, since the sum is nearly nine times the size of the entire world economy. A thing is worth only what it will fetch in the market, and there is no market anywhere on the planet that can afford to pay up on these speculative bets.

The current market implosion began when investment bank Bear Stearns, which had been buying CDOs through its hedge funds, closed two of those funds in June 2007. When the creditors tried to get their money back, the CDOs were put up for sale, and there were no takers at anywhere near their stated valuations. Panic spread, as increasing numbers of investment banks had to prevent “runs” on their hedge funds by refusing withdrawals by investors concerned about fraudulent CDO valuations. When the problem became too big for the investment banks to handle, the central banks stepped in with their $300 billion lifeline.

Among those institutions rescued was Countrywide Financial, the largest U.S. mortgage lender. Countrywide was being called the next Enron, not only because it was facing bankruptcy but because it was guilty of some quite shady practices. It underwrote and sold hundreds of thousands of mortgages containing false and misleading information, which were then sold in the market as “securities.” The lack of “liquidity” was blamed directly on these corrupt practices, which frightened investors away from the markets. But that did not deter the Fed from sending in a lifeboat. Countrywide was saved when Bank of America bought $2 billion of its stock with a loan made available by the Fed at newly-reduced interest rates. Bank of America also got a nice windfall, since when investors learned that Countrywide was being rescued, the stock it just purchased shot up.

Where did the Fed itself get the money? Chris Powell of GATA (the Gold Anti-Trust Action Committee) commented, “[I]n central banking, if you need money for anything, you just sit down and type some up and click it over to someone who is ready to do as you ask with it.” He added:

"If it works for the Federal Reserve, Bank of America, and Countrywide, it can work for everyone else. For it is no more difficult for the Fed to conjure $2 billion for Bank of America and its friends to “invest” in Countrywide than it would be for the Fed to wire a few thousand dollars into your checking account, calling it, say, an advance on your next tax cut or a mortgage interest rebate awarded to you because some big, bad lender encouraged you to buy a McMansion with no money down in the expectation that you could flip it in a few months for enough profit to buy a regular house."3

Which brings us to the point here: if somebody is going to be “reflating” the economy by typing up money on a computer screen, it should be Congress itself, the publicly accountable entity that alone is authorized to create money under the Constitution.

The Way Out

Economic collapse has been the predictable end of all Ponzi schemes ever since the Mississippi bubble of the eighteenth century. The only way out of this fix is to reverse the sleight of hand that got us into it. If new money must be pumped into the economy, it should be done, not by private banks for private profit, but by the people collectively through their representative government; and the money should be spent, not on bailing out banks and hedge funds that have lost speculative market gambles, but on socially productive services such as rebuilding infrastructure.

When deflation is tackled by creating new money in the form of debt to private banks, the result is a spiraling vortex of debt and price inflation. The better solution is to put debt-free money into consumers’ pockets in the form of wages earned. Workers are increasingly losing their jobs to “outsourcing.” A government exercising its sovereign right to issue money could pay those workers to build power plants using “clean” energy, high-speed trains, and other needed infrastructure. The government could then charge users a fee for these services, recycling the money from the government to the economy and back again, avoiding inflation.

Other considerations aside, we simply cannot afford the bank bailouts coming down the pike. If it takes $300 billion to avert a market collapse precipitated by a few failing hedge funds, what will the price tag be when the $400-plus trillion derivatives bubble collapses? Rather than bailing out banks that have usurped our sovereign right to create money, we the people should skip the middlemen and create our own money, debt- and interest-free. As William Jennings Bryan said in a historic speech a century ago:

"[The bankers] tell us that the issue of paper money is a function of the bank and that the government ought to go out of the banking business. I stand with Jefferson . . . and tell them, as he did, that the issue of money is a function of the government and that the banks should go out of the governing business. . . . [W]hen we have restored the money of the Constitution, all other necessary reforms will be possible, and . . . until that is done there is no reform that can be accomplished."

______________________________________________________________________________

1. James Barth, et al., “Financial Crises and the Role of the Lender of Last Resort,” Federal Reserve of Atlanta Economic Review (January 1984), pages 58-67.

2. George Selgin, “Legal Restrictions, Financial Weakening, and the Lender of Last Resort,” www.cato.org (1989).

3. Chris Powell, “Central Banking Is Easy,” www.gata.com (August 23, 2007).

Ellen Brown, J.D., developed her research skills as an attorney practicing civil litigation in Los Angeles. In "Web of Debt," her latest book, she turns those skills to an analysis of the Federal Reserve and "the money trust." She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her websites are http://www.webofdebt.com and http://www.ellenbrown.com Her eleven books include the bestselling "Nature's Pharmacy," co-authored with Dr. Lynne Walker, which has sold 285,000 copies.

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

Carbon Finance at the World Bank

2009-07-14T11:21:00.000-07:00

By Emmanuel Ayomide Praise

The World Bank was a pioneer in the carbon market. The Bank’s operational engagement in carbon finance started with the establishment of the $180 million Prototype Carbon Fund (PCF) in 1999. This was rapidly followed by the establishment of other funds and facilities as the Kyoto Protocol was ratified. Today, the World Bank manages just over $2 billion across 10 carbon funds and facilities. Sixteen governments and 65 private companies from various sectors have made financial contributions to these funds.

The funds and facilities include the PCF; the Community Development Carbon Fund (CDCF), which extends c arbon finance to small poorer countries and communities; the BioCarbon Fund (BioCF), which applies carbon finance to forestry and land use projects; the Netherlands (Clean Development Mechanism (CDM) and Joint Implementation (JI) (*) Facilities; the Italian Carbon Fund; The Spanish Carbon Fund; the Danish Carbon Fund; the Umbrella Carbon Facility; and the Carbon Fund for Europe, launched in March 2007.

While the Bank’s initial role was to catalyze the global market for carbon emission reductions, carbon finance is now emerging into the mainstream of the Bank’s lending program. In December 2005, the Executive Directors endorsed the Bank’s approach for further engagement in carbon finance, focusing on three clear objectives – to:

Ensure that carbon finance contributes to sustainable development;
assist in building, sustaining, and expanding the international market for carbon emission reductions; and further strengthen the capacity of developing countries to benefit from the emerging market for emission reduction credits.

Operationally, the carbon finance program essentially supports the objectives of the second pillar of the Investment Framework for Clean Energy and Development, by providing incentives for transitioning to a low-carbon economy in the Bank’s client countries.

(*) The Clean Development Mechanism, (CDM) and Joint Implementation (JI) are flexible mechanisms under the Kyoto Protocol that allow OECD countries to fulfill some of their greenhouse gas emission-reduction commitments through projects in the developing world (CDM) and countries with economies in transition (JI) .

Emmanuel Ayomide Praise

Emmanuel Ayomide Praise is a world leading internet entreprenuer and investor. Some of his areas of interest include sport management,merchandise,ownership,internet entreprenuership,investments, media and writing amongst others.

Business URL: http://www.emmapraise.blogspot.com - http://www.nigeriasoccer.blogspot.com

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Importance of Financial Education

2009-07-14T10:53:00.000-07:00

By Pauline Go

The knowledge of financial education is important to all investors, whether a business man or a family. Financial management enables us to organize and spend our money wisely in different areas. It may help you understand the significance of your savings, expenditures, liabilities, investments, and financial statements better. The entire concept of financial education is to impart you with the skill to maximize the profit and to extend your business life period. Precisely a well informed and financially educated individual can make better economic and financial decisions on the job, at home and in their community.

The prime importance of financial education is to guide an individual or businesses to plan the budget for a better and smooth economical living. A financially strong person always adds to the progress of a nation. They enjoy higher level of living and have this ability to make the major consumptions as well as purchase. Successful businesses add more savings in the banks and make the most use of credit available, which in turn provides jobs and income to millions of people.
Financial education empowers a common man and thus helps to prevent any financial loss or damage. Countries like UK, US, Australia, Singapore and other economically developed countries lay stress on the fact that financial and economic literacy should be the key component of any public policy. If you want to be a good financial planner in the years to come, make sure you get all your doubts cleared through better financial education.

About Author:
Pauline Go is an online leading expert in finance industry. She also offers top quality finance articles like :

Weekend Payday Advance, Loan For Bad Credit

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

Financial Risk, Investment in College and Academic Clout Often Over Blown

2009-07-14T06:54:00.000-07:00

All too often academia misleads parents and college students into believing that their institutions carry clout. In fact in the end it is the individual not the school, which provides propulsion in one’s career you see? One thing that colleges and universities always tell students and parents during pre-enrollment visits is that; “Our institution places 85% of our graduates in the Fortune 500 Companies.”

Well that is just grand, but doing what, being the janitor? And what do these corporations do with all these up and coming kids? The average corporate employee now changes jobs on average every 3.2 years you see? The average corporation has an under funded pension issue now, are they going to give you or your child a guarantee that they will never fulfill? One could say what does it matter if you kid will only work there for 3-4 years anyway? Universities always tout who went to and/or graduated from their institution? Of course they do not tell you how many kids committed suicide or failed out or were let go by these corporations the first time they downsized in a downward sector rotation or a downward business cycle do they?

You know that is false and misleading advertising, businesses must always disclose the good and the bad when selling stocks, franchises or investment opportunities? Well what do you call those high fees of tuition? It is an investment in your child’s future and therefore you have the right to know how big the risk is and therefore these universities should disclose the whole truth and not misrepresent. Why are they able to cheat the system like this? Consider this in 2006.

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

Hurricanes and Finance

2009-07-14T06:26:00.000-07:00

By Lance Winslow

Are your personal and family finances in order and ready to go for the 2006 Atlantic tropical hurricane season? Are you ready to go for a mandatory evacuation and realize that your home may be destroyed and you may not even come back for four to six weeks to look at it because the power is out and FEMA will not want you back in the area?

Have you consider what you will do or how you will live for three to four weeks away from your home while still paying all your bills? Are you worried that when you come back to your area that your business or your job may no longer be there because the building was destroyed and therefore the company is no longer in existence?

Have you considered plans in case of such a potential eventuality; have you even considered what on earth you will do if you lose your job and your home? Where will you go, what would you do, how will you pay your bills, can you get another job; doing what?

If your families finances are straight and you have a financial plan in place in case of such a catastrophe like the folks along the Gulf Coast of the United States went through during Hurricane Katrina and Hurricane Rita during the 2005 Atlantic tropical hurricane season; then you might be okay. Please consider all this 2006.

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

Tracking Down the Financial Future by Passionately Pursuing the Present

2009-07-14T05:50:00.001-07:00

By Lance Winslow

Have you ever wondered what it would be like to know the future? Can you imagine the advantage that you would have if you had a better glimpse into future events? Well, perhaps this is why futurists are so gainfully employed. But how do they do it?

First, a good futurist thinker must consider recent history and the present period, he must know it like no other. When Sun Tzu said "know thy self and know thy enemy" that was indeed a wise comment. For futurism strategies to work one must "know the present and know their sector."

So, considering this let's discuss the news on February 17, 2009 as an example and see if we can see trends here:

* Stanford Financial; Houston - New Fraud Case on High Yielding CDs
* Dow down 250 points at 9:00 AM PST; Closed Down 300 points
* Obama to sign Stimulus in Denver today
* Cisco Launches Video Conferencing via Cell Phone Devices
* Cirrus Satellite Radio gets bailed out Financing & John Malone to prevent BK
* Rumor: Direct TV setting up Long-term play to own Cirrus
* Mini-Cooper Auto Makers laying off 1/3 workforce - not immune to slow down
* Return to Financial Viability plan; Auto Maker Deadline; Rumors ask for more & BK
* Russia gives helicopters to Bolivia; supposedly to fight Drug War?
* Bolivia and Peru at odds, tension mounts
* Japanese Finance Minister Resigns
* Madoff Doll to Smash made by FL Entrepreneur: Cost $99

Now then, think deeply and consider how these trends work together and what they might mean for the future. For instance, fraud will mean more regulation in the financial sector. What will more regulation mean?

Go ahead and study all these events and ask, what do they mean. Write down the major events for the next month, scan them, you'll spot the same trends that the top futurists do. Think on this.

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

# Winning in the Financial Services Industry is a Lot Like Making the Money in the First Place

2009-07-14T01:31:00.000-07:00

By Lance Winslow

In turbulent economic times, working in the financial services industry can be quite challenging. Even when recovery is on the way investors are sketchy, fearful and almost hostile towards anyone in the industry. Although it's not easy to win during such a global economic crisis as a financial services professional, it is possible, let me explain:

You know money is a lot like winning. If you don't care about it, you'll never have any. Any money. Or any wins. If you are a financial services consultant or sell financial products you might wish to make a note of it. If the financial company you work is having difficulties in this market, it can become a catch-22 if you do not do it right.

For instance, you need to make money to live well, but if you sell people financial products that are not appropriate you'll lose your way for violating your integrity. Thus, you have to think of it this way; You must make money, by making other people money, or make money by saving people money.

Therefore you are doing a valuable service for them, and thus, YOU deserve the money you make. And if you are successful in your services to help them make money, you will get referrals and have no trouble asking for referrals, because? Well, because you have earned them and YOU deserve the money you've made.

Many financial firms have quotas, and since that type of sales is a numbers game you have to obviously focus on the number of folks you get in front of and talk to. I suppose they already told you that you need to see X amount of people a day, week, month, to meet your goals.

All goals should be broken into sub-goals and you must treat the sub-goals as important as the main-bigger goal. Always remembering "service first" in other words YOU resolve to help people make money or keep more of the money they make.

Maybe to help you in this dilemma, set your goals to how much money you saved or helped grow for other people and set that goal in the millions of dollars per week or month? Whatever number that should correspond to your firms goals.

If you find you cannot make people money, say due to the economic situation, consider how much you saved them from losing now, and as the economic factors shift how much money you grew their portfolio, investment (s), etc. If you find a better way to make them more money on their money or grow their nest egg with a different firm, then quit and work for the better company.

This will give you a strong personal conviction in what you are doing. You must have PURPOSE to win, (participation without purpose is not noble, it's just busy work) a reason and one which matches your personal character.

If you had a low personal character or integrity value, then you'd need to go take care of that prior to focusing on making money, otherwise you will set yourself adrift towards a dead end. Think of it like Niagara Falls, it's important to know it's there, just don't go over it.

Lance Winslow - Lance Winslow's Bio. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.

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

Online Banking

2009-07-10T11:48:00.000-07:00

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 café, 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

2009-07-10T05:37:00.000-07:00

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

2009-07-10T01:50:00.000-07:00

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

Finance Mortgage - Your Home Can Save You

2009-07-09T13:19:00.000-07:00

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?

2009-07-09T13:11:00.000-07:00

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?

2009-07-09T13:06:00.000-07:00

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

Small Business Finance - How to Calculate Your Needs

2009-07-08T07:09:00.000-07:00

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

College Financial Planning - How To Go About This

2009-07-06T13:20:00.000-07:00

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!

2009-07-06T12:53:00.000-07:00

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?

2009-07-06T12:34:00.000-07:00

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

Legal Financing: New Niche for Financial Services

2009-07-05T13:59:00.000-07:00

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

2009-07-05T13:53:00.000-07:00

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

2009-07-05T13:45:00.000-07:00

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

2009-07-05T10:52:00.000-07:00

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

2009-07-05T09:32:00.000-07:00

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

2009-07-05T09:25:00.000-07:00

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

2009-07-05T09:18:00.000-07:00

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Bad Habits Keep You From Your Financial Goals

2009-07-05T08:57:00.000-07:00

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

2009-07-05T08:43:00.000-07:00

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.

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

What is Bridging Finance?

2009-07-05T08:38:00.000-07:00

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.

This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.

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

Six Steps to Raising Financially Responsible Teens

2009-07-04T14:52:00.000-07:00

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

Medical Receivables Financing

2009-07-04T14:05:00.000-07:00

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

Why Winning the Money Game Takes Discipline and Personal Finance Secrets Are Worthless

2009-07-03T13:46:00.000-07:00

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

Avoid Financial Disaster with Good Planning

2009-07-03T13:38:00.000-07:00

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

How to Achieve Family Flexibility in Times of Financial Flux

2009-07-03T13:25:00.000-07:00

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.

What Does a Good Financial Advisor Look Like?

2009-07-03T13:16:00.000-07:00

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

Four Investments Carry 'Government' Asset Protection - But With Limitations

2009-07-02T14:41:00.000-07:00

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

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Financial Advisers - Your Country Needs You!

2009-07-02T14:32:00.000-07:00

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

Change the Way You Think and Live a High Income Life

2009-07-02T14:12:00.000-07:00

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.

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Islamic Banking - Key Differences of Components Within a Financial Statements of an Islamic Bank

2009-07-02T13:52:00.000-07:00

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

How to Teach Financial Matters to Our Children

2009-07-02T13:36:00.000-07:00

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

Financing a Business, Even If Your Credit is Less Than Perfect

2009-07-02T13:13:00.000-07:00

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

Reasons Why You Should Hire a Financial Advisor Now

2009-07-02T13:07:00.000-07:00

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

10 Easy Ways to Organize Your Business Finances

2009-07-02T13:01:00.000-07:00

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.

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

Financing a Business, Even If Your Credit is Less Than Perfect

2009-07-02T12:09:00.000-07:00

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 to Get the Government to Finance Your Business

2009-07-02T11:36:00.000-07:00

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

Struggling to Find Financial Freedom - Having a Relationship With Money

2009-07-02T10:17:00.000-07:00

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.

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