Top Finance Blog » financial health

Is This The End Of The American Dream? – Guest Post

Mitch Mitchell — Fri, 03 Feb 2012 14:31:26 +0000

The early days of the Internet were a great time for those who had hopes of living the American Dream. In fact, the Internet made the world feel a lot smaller, and the American Dream became the dream of people from all over the world. Sadly, the dreamy period was short lived. First, the DotCom bubble burst, and then, just a few years later, the USA entered a long and serious recession. Around the same time as the US recession, Europe hit trouble too, and life became hard for everyone – office workers, home owners, small business owners, and investors alike.

Be Your Own Boss

Before 2011, the American Dream was alive and well, with start-ups springing up all over the place. Terms such as IPO, web fulfillment, and venture capital weren’t bandied about with the frequency that they appeared during the DotCom boom, but they were part of most people’s vocabulary.

Middle aged people who had taken a break to raise children didn’t just look to jump back into their careers; they considered starting their own business instead. Young people with free time and good ideas would test the waters with web based businesses while looking for full time jobs. If the business failed, at least they’d have something to put on their portfolio.

Sadly, last year saw an end to that culture of ambition and dreams. Career breaks aren’t an option at the moment, as people are reluctant to leave their jobs even briefly – who knows if there’ll be any jobs to come back to? Older workers who thought they were taking a little time off are now facing the prospect of being forcibly retired, and recent graduates are now in a position where they must take anything they can find, even call center work or a job flipping burgers, because there’s simply no other way to pay off student debt.

Keep Dreaming, Just Smaller

However, there is hope for the next generation. Those who are fortunate enough to not have large outstanding debts may find that their low outgoings are a huge advantage. They are in a position to be flexible, try new things, and take the initiative; something that people who are slave to their credit card debt cannot do.

Starting an online business doesn’t have to be expensive. Business hosting accounts don’t cost a lot, and modern CMS software and web fulfillment packages are easy enough for even people without a technical background to use. A good idea, some initiative, and an investment of time (something every unemployed person has) is all that you need to test out a business plan. If it works, that’s great. If it doesn’t, all you have lost is the cost of the hosting and the domain.

Few successful businessmen achieved great results with their first idea. It’s normal to have to go through several iterations before you succeed, but the lessons you learn from your failures can be applied to future plans, until you find one that works. The best thing about the internet is that once you have one technical and web fulfillment setup working, it’s easy to apply it to other ideas, and that speeds the process up significantly.

The most important lesson from 2011 is that you should never stop dreaming, and never stop trying.

This post was written by James Harper on behalf of Hallmark Consumer Services who provide outsourced web fulfillment to businesses of all sizes. James writes about business and the internet.

Finance Debt Counseling – Guest Post

Mitch Mitchell — Wed, 25 Jan 2012 14:21:32 +0000

Today, almost everyone is in some form of credit and debt crisis. With the downturn in the economy, many people found themselves without a job and without a way to pay their credit card debts or other financial obligations. If you find yourself in this situation, you are not alone and there are solutions to help you find your way back to financial freedom.

by Alan Cleaver via Flickr

Benefits of Credit Relief Counseling Services

Probably the best benefit of using debt counseling services is that professional credit counselors can help you develop a plan for making a budget, prioritizing your financial obligations and getting out of debt. When you talk to a credit counselor, make sure you talk to them about all of your financial debts so that they have a clear picture of your financial situation. With this information, they can help you decide what expenses can be cut and assist you in developing a realistic budget.

Although you may not see an immediate improvement with your credit score, eventually your credit rating will improve. As creditors begin to receive regular monthly payments and you start paying off your credit obligations, positive information will be sent to credit reporting agencies and granting credit to you will be seen as less of a financial risk. Eventually, you will see the benefit by being able to qualify for premium interest rates again.

Debt Management Services – With a working budget, and then you can begin to look at credit card repayment options. One of the most popular services offered by many debt counseling companies is debt management. With debt management services, you usually make one payment a month to the credit counseling company, which encompasses all of the credit card payments you need to make for the month. They, in turn, make your payments for you.

Negotiated Debt Reduction – Usually, a credit counseling services will negotiate with your credit card companies to lower your monthly payments by reducing your interest rate, removing accumulated fees or freezing your account. As a result, the single monthly payment you make to the credit counseling service is usually lower than it would be if you were to pay all of the credit card payments separately. Ultimately, you end up with more money to put toward your budget by using debt management services.

Credit Card Consolidation Loans – Debt counseling companies also often have access to credit card and debt consolidation loan lenders. Since consolidation loans are spread out over a longer term than credit card payments and are offered at lower rates than credit cards, taking out this type of loan can significantly decrease your monthly payments and give you more room in your monthly budget. A consolidation loan does not eliminate your debt, but it can make it more manageable and allow you to more realistically pay it off in full.

Credit Repair Services – Credit counseling services can also help you with credit repair efforts. They can help you place a statement on your credit report explaining any major life events that have affected your ability to meet your credit obligations, such as job loss, illness, death or divorce. This can be an important activity because it will help potential creditors understand and take this information into consideration when considering you for credit. Additionally, professional credit counselors can help you remove erroneous and negative credit information from your credit report. This can help significantly improve your credit score.

Working with a professional credit counseling service can provide you with guidance and assistance to help to dig your way out of your financial crisis. With their assistance, you can develop a realistic budget, begin to pay off your debts and improve you credit score.

Shin Mayormita writes for FranklinDebtRelief.com, a company that specializes in debt settlement, also known as debt negotiation.

Millionaire Maker – Book Review

Mitch Mitchell — Mon, 16 Jan 2012 14:17:19 +0000

The Millionaire Maker by Loral Langemeyer is a book that gives people encouragement and instructions on how to learn how to handle their money and grow their money to get out of debt, gain financial freedom, and even learn something about themselves in the process.

Langemeyer talks about her principles of wealth building, known as the 12 Building Blocks of the Wealth Cycle. She gives a brief explanation of each of these individually, then goes deeper into the concepts and how they work with each other. They are:

Gap Analysis
Debt Management
Wealth Accounts
Leadership
Financial Baseline
Entities
Forecasting
Teamwork
Freedom Day
Cash Machine
Assets
Conditioning

She then talks about what she calls the Eight Questions in Eight Minutes Equals a Lifelong Wealth Plan. These are the financial questions each of us should answer as it regards how we want to live financially throughout our lives and how we monitor those things, such as how much money we want to make, what are our assets, how can we make money, etc.

That last one is the most important one as far as I’m concerned when it comes to those of us who might not be living financially well. The question of job and career skills comes in handy because she talks about finding ways to increase income as opposed to always talking about saving on expenses, and that’s refreshing. She believes, as I do, that everyone has a marketable skill that could earn them some extra money, whether it’s a hobby or something they’ve learned at work or in school. In the book she shares stories of people she’s worked with and how she’s helped them overcome their problems in this way, to the extent that some people found new careers doing work that they loved that paid them more than their original jobs.

If there’s a minor complaint about the book, it’s that most of the examples in the book are people that many people wouldn’t be able to relate to. These are people who make a significant amount of money but have handled their money badly. There was one couple of very modest means whom she highlights and helps, and in this fashion it’s almost reminiscent of what was talked about in a previous book review here, the Smart Consumer’s Guide to Money Coaching.

Still, this is a good book for anyone looking for ways to figure out how to get out of debt to read. It was a long time best seller, and she was featured on Oprah as well. There’s a lot in this book, and if you like it she has other books and tips that you can find to help you out. Just click on the book above if you’re interested in purchasing it from Barnes & Noble.

Rich Dad Poor Dad Book Review

Mitch Mitchell — Mon, 09 Jan 2012 14:49:15 +0000

Rich Dad Poor Dad by Robert Kiyosaki is a book that I wish was around when I was still in high school. I have a feeling that it might have altered my thoughts on money and career way earlier than life did on its own, and given me a better sense of direction as far as how I wanted to be financially set by a much earlier age. In my opinion, this book is must reading by all high school seniors, and at the very least should be a part of every college’s financial curriculum.

Kiyosaki tells the story of growing up in Hawaii with his father and the father of one of his best friends. His father was an academic; his best friend’s father was a businessman. His family lived within lower financial means, and his dad had negative feelings towards those that had way more than enough money. His friend’s father had money, lots of money, and over the years helped teach Kiyosaki, through deeds and actions, just what having money could do for you.

Kiyosaki did what many of us did; went to college, got out, got a job and ended up in a career that he didn’t set out for. At some point he realized that he’d basically tossed away the lessons he learned from his friend’s father, his second “dad”, and decided to give up a lucrative job to find not only financial freedom but happiness.

In the book, he talks about overcoming five obstacles to financial freedom, even if one happens to be financially literate: fear, cynicism, laziness, bad habits, and arrogance. He gives examples of what he means for each of these. He also gives six lessons where he defines what separates the rich from the rest of us:

the rich don’t work for money
why teach financial literacy
mind your own business
history of taxes and the power of corporations
the rich invent money
work to learn – don’t work for money

This is a book of stories that Kiyosaki learned growing up. If you’re honest with yourself, most of these things apply to you in some fashion if you’re not already rich. Since he wrote this book he’s written many others and even created a game that caught up with lots of people called Cashflow. I didn’t purchase the game, but I have purchased a couple of follow up books of his.

I recommend that even if you’re not a high school kid that you read this book if you’re looking for a boost of financial confidence and education. If you’re thinking about buying it anyway, or even just checking it out, click on the book above and you’ll be taken to the Barnes & Noble page.

What Should You Look For In A Financial Advisor? – Guest Post

Mitch Mitchell — Fri, 06 Jan 2012 14:03:08 +0000

When you were younger and likely had fewer personal and professional responsibilities, hiring a financial advisor was probably the very last thing on your mind. However, as you pass basic milestones, like buying a house, starting a family, and investing in stocks or properties, your financial life becomes increasingly more complicated.

At some point, you will realize that hiring someone to monitor, track, and grow your finances is the best way to go to ensure financial health. Still, making the decision to hire a financial advisor is only the first step. No two financial advisors are alike, so here’s how to pick the one that’s best for you.

1. Before interviewing financial advisors, figure out what you want.

There are various reasons why you may be hiring a financial advisor, the most common being that you feel clueless about making major financial decisions. Still, you’ll have to have a basic understanding of what your goals are, so that a potential advisor thoroughly understands where you are now and where you will want to be in the future. Make a thorough list of all your financial plans—how much money you want to save, how soon you want to get out of debt, or what investing options interest you.

2. Look for an advisor who will explain your finances until you understand.

Finances are complicated, and it takes someone with lots of education and experience to understand all the details. At the same time, however, the job of a financial advisor is not all about completely taking the reins. A good advisor will involve you in every single decision by helping you understand all the ins and outs of finance. If you interview a financial advisor who comes across as impatient, it’s best to find someone else.

3. Ask for each potential advisor’s credentials.

Even if your financial advisor sounds like he knows what he’s doing, to ensure that he or she is competent, be sure to ask for credentials. This means requesting certifications and asking about their educational background.

4. Never hire a financial advisor until you receive references.

All the education and certifications in the world won’t necessarily make a good practicing financial advisor. Once you’ve narrowed down your list of potential hires to a handful, make sure that you request references from former or current clients who have worked with the advisor for at least a year, preferably more. When you speak with references, be sure to ask specific questions about how the advisor handled different financial problems.

Once you find a good financial advisor, you’ll be amazed at how much more attuned you’ll be with your money. Of course, even if you find an incredible advisor, you’ll still be left with lots of hard decisions to make. The best advisor will see you through the decision-making process the whole way through. Good luck!

This guest post is contributed by Angelita Williams, who writes on the topics of online courses. She welcomes your comments at her email Id: angelita.williams7 @gmail.com.

Smart Consumer’s Guide To Money Coaching & Financial Education – Book Review

Mitch Mitchell — Mon, 02 Jan 2012 14:23:45 +0000

I was asked to review this book titled The Smart Consumer’s Guide to Money Coaching & Financial Education by Todd R. Tresidder of the website Financial Mentor. He is a financial adviser/coach and I received this ebook free without any qualifications, but just wanted to get that disclaimer out before proceeding.

The basic premise of the book is that every person would do better in life and business if they had a better knowledge of finances and financial issues. The reality if that most of us don’t learn anything about finances in school, certainly not how to manage our money, and thus it puts us at a disadvantage whenever we enter the real world. Some people never learn good principles, which is tragic. This book hopes to conquer some of that.

Tresidder talks early about 15 reasons why people should grow their financial intelligence. I’d have to say that I totally agree with all 15 of them, which are more his telling us what reasons get people finally thinking about their financial independence, and 3 in particular stick out in my mind:

You don’t know where to get started and would like a step-by-step blueprint so that you can eliminate the fear and actually persist with enough consistency to reach the goal.

You want to grow your passive revenue to exceed your expenses so that you can stop working for money and start enjoying it instead.

You want “true wealth” and not just more money… meaning you want to balance your life while working toward financial freedom so that you don’t make the mistake of sacrificing your family, health, or a fulfilling life in pursuit of money.

These resonate with me because they talk address the issue of financial freedom, being able to pretty much spend your money the way you want because you have enough money to be able to do that while taking care of everything else. Who would have problems with that?

Next comes the topic of how one gets financial education and the costs of getting it. The concept of trying to figure out not only what the information is worth to you but how you learn things best sometimes seems to be a dichotomy, and yet it’s important to figure out. Do you need to spend $2,000 to go to a class, or $500 a month for someone to coach you through things, or $800 a year for someone to take you through things step by step or to do it all for you or maybe just spend $25 for a book or book on tape because that’s all you need? Overall, he’s stressing the importance of getting a good financial education is important, but making sure you do what’s right for you is equally important.

After that there’s a section giving ideas on how to know that you’ve selected the wrong method for you to learn, tips on picking a money coach if that’s what you want to do, and deciding which type of money coach you’d like. At this point you know that the book is geared towards the premise that having a money coach is really in your best interest, and that’s the point where I go off opinion more than what the rest of the book has to say.

It’s important for all of us to know more about our finances and how it all works. Whether it’s a money coach or someone managing your finances in another way, there is an acknowledgement that for most of us it’s hard figuring everything out on our own. Pretty much like most things in life, having someone help us could help us get further ahead.

A major rule of thumb always says that one has to spend money to make money. How one spends their money and how much is another thing. You can pay for coaching, advisors or even things like The Smart Consumer’s Guide to Money Coaching & Financial Education, which you can get at this link, and get a lot of value from any of them. By the way, this ebook is free if you subscribe to the page.

As with anything else you’ll get out of it what you can put into it. I don’t do money coaching, which is a relatively new term, but I do leadership/executive coaching. People always do better when they’re held accountable by someone, so this might be a way to go. With advisors, they tend to do it all for you and then tell you what they did, and you probably don’t remember anything 10 minutes after they left. But if you’re not up for the intensity, then coaching might not be for you.

Still, it wouldn’t hurt you to check out the book to see what your options are, and who knows, you might be encouraged to go this route. Can’t hurt.

What Are Your Financial Goals For 2012?

Mitch Mitchell — Thu, 22 Dec 2011 14:06:59 +0000

If we believe the Mayan calendar, this is the last year of our existence, so we might as well have some fun. However, if it turns out we’re still going to be around, we might as well plan for the future, and even if it’s only this year, why not do what we can up until just before that time so we can throw a major party right?

In previous years I’ve posted my financial goals for the coming year. This year I’m not going to do that, but I am going to review the financial goals I thought most people should have shot for last year and I want to see how I did, then talk in more generalities about financial goals for this year, as I’m going to assume everyone else has similar goals.

I talked about 5 major goals last year:

Pay down more outstanding bills
Invest some of your money
Learn to budget your money.
Put some money into a savings account of some type
Always make sure to take care of yourself first when fiscally possible

I did very well with #1, and I always do well with #3. I never got around to investing money, and the savings account I have is actually the change jar next to my office desk; that might not count for some people but it works for me. After all, most savings accounts are paying less in interest than the monthly fee they charge you, so I’m good.

That last one is an interesting one to be sure. Basically it’s the “law” of paying yourself that first 10% and doing something with it and then using the rest for bills and whatever else you need. I’ve never quite been able to hit that one, but I hope some of you have. Thus it remains a goal of mine, and I think it should remain a financial goal for you as well.

This coming year, I hope those that don’t have health insurance either get it or start putting money away in a medical savings plan, which you may not know is tax deductible. Health care is going to continue going up, and it’s going to be harder to count on either the government or hospitals charity care plans to help you out; certainly it’ll be difficult finding any physicians that will give you care you might not be able to afford. This is paramount, so try to get it done.

Also, I expect that this will be the year that the housing crisis hits its low point and starts going back up. Recovery is already happening in some places, and Florida and Nevada home builders are starting to build new communities again, though slowly because there’s still a glut of pre-existing homes via foreclosure and other new communities that no one ever moved into. This means it’ll be a great year to buy a home or condominium, and you need to be ready. Make sure your credit reports look good, check your credit scores, and start looking and negotiating, as it’s a buyer’s market.

Finally, unemployment is starting to fall, which means that it’s finally a good time to take a look at getting a new and better paying job after 3 years. The new job situation might put you in a great negotiating position if you really want to stay but want more money from your employer. This is always a dicey proposition though so don’t count on getting a raise, since your present employer will still be worried about the pending health care bill and how expenses will react. I’m of the opinion that it will work great for smaller businesses but I’m still on the fence as to how it will impact larger companies that will be forced to pay for health care and how insurance companies might try to gouge them over the next couple of years (did I say that?).

In any case I’m hoping this will be the year where more people are finally able to start making money and feeling better about themselves. This is the year to plan for the future, no matter what the Mayans had to say about it. Good luck in the coming year.

5 Financial Things You Need In Your Life

Mitch Mitchell — Mon, 12 Dec 2011 14:52:01 +0000

There’s no doubt that financially people are hurting these days. Yet, there are some things that everyone needs at least one of that are related to a person’s financial life in some fashion. If you’re without any of these items you’re surely going to have some difficulties somewhere along the line. I name 5 things you need and the explanations why, even if I begrudgingly name a couple of them.

1. Bank account. Some people would rather just use cash and never have a bank account but in today’s world, having a bank account is paramount to being able to survive. We can’t put thousands of dollars in our homes for risk of being robbed or something happening to our homes. Most company jobs these days won’t issue paper checks, and it’s hard getting checks cashed, while a bank account allows electronic deposit and immediate access to your money. There are still enough local banks where you can get free checking for a personal account, so there’s no reason not to have one.

2. Credit card. As someone that rails against credit cards, I hate owning up to this one. But without a credit card you can’t rent a car, you can’t book a hotel, and you almost can’t fly anywhere. Credit cards prove that you’re, well, you. Nothing says you have to carry a balance, but everyone runs into an emergency situation once in awhile, and a credit card offers great protection at a moment’s notice.

3. Health insurance. This one might seem strange to put in here until you realize that more than 60% of the people that claim bankruptcy have a significant medical bill included that wouldn’t have existed if they had health insurance. I view it as I do life insurance; you never know you need it until something happens, so you might as well be proactive at it.

4. Transportation. Everyone needs access to their own mode of transportation, and price might vary depending on what you get. Even in New York City, the need for having one’s own transportation became important in 2005 when there was a subway strike and suddenly there weren’t enough taxis to go around.

5. Rainy day fund. This one is entirely on you but I can’t stress how crucial it is. It doesn’t have to be thousands of dollars either; how often have you suddenly needed to buy something specific and didn’t have any money laying around the house? The easiest way to create a rainy day fund is to have some kind of container and throw loose change into it on a consistent basis. Every once in awhile think about wrapping some of those coins up so you have a better idea of how much money you can lay your hands on in an emergency.

I have around $250 at the moment, all from money that I never missed, and I can allow it to grow because I haven’t had that emergency where I needed to dip into it. Of course the more you can accumulate the better, but in this fashion you can grow your home savings without even paying attention to it.

You Must Generate More Income

Mitch Mitchell — Thu, 10 Nov 2011 15:31:18 +0000

Throughout the country you keep hearing of companies cutting employees to save on costs. You also have heard multiple times over the past few years that we all need to learn how to budget our money better.

Although both of these are true, another reality is that one can only cut so much based on the money they have coming in. For all the hate we’ve been showing against the banking industry lately in retrospect they have the right idea. They keep trying to come up with new revenue streams to offset their losses. Sure, we hate their ideas, but at least they’re trying. And we have to try on our own to generate more income as well.

The simple solution is to tell everyone to get part time jobs but that’s not necessarily the best option. If you have kids do you really want to be away from the house all the time? Also, it can be tiring; sure, one must do what one must do but are there other options available?

Actually yes there are, and it’s within each person to try to figure out what other options they have. In essence, every person has a skill that someone else might be willing to pay them for, or a talent that can help them produce something they might be able to sell.

I’m currently reading the book The Barefoot Executive by Carrie Wilkerson, and in it she talks about many people she’s helped mentor over the last 4 or 5 years in helping them figure out both ways to make extra money and ways to actually get their businesses to take off so that some of those people are self sufficient.

I hear you now, ‘what can I do’? Here are 5 general ideas of things to think about:

1. Teaching. Teaching is probably the number one thing to look at because, as I said, everyone has a skill that someone else wants to learn. You can either set up a coaching course, create ebooks on your subject, or advertise to do direct teaching.

2. Sell stuff. Who saw the guest post on making money on eBay? Two weeks ago my wife and I ran into a guy that was buying up lots of one particular product at the Dollar Store. He said that he sold them on eBay for $10 and was making a killing because people loved these things yet didn’t know they could be had for much cheaper. It’s not a scam; this is what retail marketing is all about.

3. Freelance writing. If you can write on certain subjects there are people willing to pay you for your knowledge. They’re always the easiest people to find but if you can find them it can put some nice dollars into your pocket.

4. Consulting. This is different than teaching because you’re going in to help tweak an operation rather than starting from scratch. You can’t get away with this in all industries because of proprietary information, but the overwhelming majority of fields have no restrictions on your sharing thought knowledge. And by the way, who says you have to consult in something you do that you’re presently employed for?

5. Repairs. Do you have special talents for repairing certain things? Maybe you know a lot about computers that you could help others with. Maybe you’re an electrician or an engineer who knows how to fix home appliances. Or maybe you’re someone who knows how to fix lawn mowers and the like. There never seems to be enough people who know how to fix things when you need them.

Saving Money On Computer Purchases

Mitch Mitchell — Sun, 30 Oct 2011 22:33:29 +0000

If you’re reading this blog post you’ve got some kind of computer. People get caught up in all sorts of things when buying a computer or laptop but the reality is that there are some things important and other things not so important to the general user. If you’re a power user you already know what you need and want so this article isn’t for you. For everyone else, here’s what to concentrate on.

1. RAM. It stands for ‘random access memory’ and it’s what determines how your computer handles its resources. In the old days people always thought that if you added more RAM that your computer would move faster. That’s only true if you have too little RAM. These days almost every computer on the market has enough RAM to get you by. The top RAM these days is DDR3, and many computers will have anywhere from 4 to 8 GB. Right now most computers can’t use more than 4 GB anyway, so if you’re not a power user save your money and go for 4 or 4 GB RAM.

2. Hard Drive. Hard drives are for storage of files and programs. These days most hard drives for both computers and laptops are at least 250 GB. For almost anyone that’s way more than you’re ever going to use. If you’re someone that downloads a lot of movies it’s not big enough, whereas if you download lots of music it would probably take you as long to download enough music files before it was time to purchase a new computer. However, it’s probably smarter, if you are one of those people who downloads a lot of files, to buy a separate drive to put all those files on so it doesn’t slow down your computer. Don’t pay up front for larger drives because buying a separate drive costs less in the long run.

3. Processors. I’m not going to get into all the things about processors because it gets confusing. I’ll just say this; if it’s being sold at a large store it’s pretty good. When comparing two laptops recently I had a choice between the Intel I5 or I7, and the difference in price was $250. I’m not a gamer and I don’t overuse my laptop, so I went with the lesser processor. Most people will never need anything stronger than that for now.

4. Brand names. Like in the old days, brand names drive prices. We all have names we hate and names we like. However, there’s no real difference for most consumers between a Dell or Gateway or Asus or any other name. None of these are overly better than the other, and it takes someone like PC World or Consumer Reports to run thousands of tests to find minor differences in performance. Get the computer you like to look at, that fits your style, and go from there. That goes for the difference between a PC & Mac. Apple products will always cost more and some say parts of them are easier to use. But if it’s based on price buy what you can afford; PC’s aren’t as bad as Apple lovers make them out to be.

5 Easy Ways to Save Money – Guest Post

Mitch Mitchell — Thu, 27 Oct 2011 13:39:23 +0000

These days everyone is suffering from financial hardship. Many people are out of work and many of those who still have their job, have seen a cut in their paychecks. No matter what your situation is, we still have to shop, whether its for food, clothing or other necessities. But, you can cut down your spending bills dramatically without sacrificing a lot. Here are 5 easy ways to save money when shopping:

Buy generic brands

Store brands are usually cheaper than name brands. These days most stores how their own brand and when you put store brands side by side with name brand products, they are almost always identical.

List shopping

We all do it, we go to store to pick up one or two items and we end up coming out with a cart full of items! Impulse shopping is saving’s worst enemy! Through out the week make a list of what you need and when shopping, only buy items mentioned on that list.

Avoid eating out

Eating out too often can seriously jeopardize your saving efforts. You can save a lot of money by staying in and going out less. You dont have to forget about eating out, just cut it down. Instead of eating out 3 times a week, do it once a week.

Use whatever you have

Whether its food, clothing or health care products we all have pantries and closet full of stuff. Try using what you have got before going shopping. Promise yourself to empty out your pantry before going to grocery store. You will be amazed how long you can last with out going to store.

Game of saving

Try to save more every time you shop even if its just a few cents or dollars. Its not hard to find items you usually buy for $5, for $4.50! Print out online coupons, use in store coupons and keep an eye on sales.

Saving money starts with little things here and there. Make a habit of it and soon you will be saving money every chance you get without even realizing it.

Satrap writes at BlogStash.com about different work from home opportunities. Visit BlogStash to learn real ways to make money.

Five Useful Financial Tools – Guest Post

Mitch Mitchell — Thu, 06 Oct 2011 13:12:40 +0000

Money is precious and it’s always good to find a way to make it go further. We’ve found some really helpful financial tools (from the US and the UK) for planning your spending and tracking where your money is going, which can really help to plan for the future.

1. Budget templates for Excel

The best way to stay on top of your spending and savings is budgeting. Just about everyone needs to stick to some sort of budget and there is more than one way to go about it.

If you’re a fan of the Excel spreadsheet, you might find the Microsoft Office budget templates useful. You’ll find templates for daily budgets, weekly budgets, monthly budgets, family budgets and you’ll even find a budget template for a wedding or gardening!

2. Online Budget planner

If you would prefer a budget planner that allows you to type in your monthly income and expenses and that does the sums for you, you might like to try an interactive online budget planner.

This budget calculator from CNN is pretty simple to use.

3. Take-home pay

To work out an accurate budget, you’ll need to know your income after tax. There’s a really handy website that lets you work out what you earn after tax – whether you are paid by the hour, the week or the month. This salary calculator will tell you what you can expect to take home after tax or other deductions.

4. Retirement calculator

As life expectancy increases, it looks like many of us will be working longer to pay our way when we’re older. People are being advised to start planning for retirement at a younger age.

This retirement calculator comes from the financial news provider Bloomberg.com. Simply enter the number of years until you retire and how much you would like to live on when you retire and let the calculator tell you what to expect.

5. Debt calculator

Many people have multiple debts these days. Factoring debt repayments (like a mortgage, loan or credit card) into our monthly budgets is simply a part of life. If you are in the UK you can use this debt consolidation calculator to work out whether consolidating your debts might be a good idea.

These are our ‘five useful financial tools’. If you’ve found any tools that you’d like to share, please leave a comment!

Guest post written by Melanie Taylor, a financial expert from Think Money.

Costly Accounting Mistakes: How Hiring an Accountant Can Help You Save – Guest Post

Mitch Mitchell — Tue, 04 Oct 2011 13:04:41 +0000

There’s no denying that most of us are never taught how to balance a checkbook, much less manage a budget and complex finances. So when it comes to earning, spending, saving, investing, building credit, and paying taxes we often find ourselves in the dark, blindly groping for a financial plan that won’t leave us in the poorhouse. And while spending money on accounting services may sound somewhat counter intuitive to the idea of saving, the truth is that having the help of a professional will lead you to save a lot more than you could on your own. So here are just a few costly mistakes that a personal accountant can help you avoid.

1. Abide by changing tax laws. The main purpose most people have in hiring an accountant is to help them save money on taxes. This is a great idea since you probably don’t have a very clear idea of which tax laws apply to your particular situation, which can be used to save you money, and which have recently changed (potentially in your favor). Your accountant will be well aware of the current laws and how they apply to you specifically, which will save you the time of doing the legwork (and possibly missing money that should be yours).

2. Missing deductibles and tax breaks. One of the biggest failures that people make when doing their taxes is missing out on deductibles and tax breaks they could be claiming in order to pay less (or even get money back). An accountant can make sure that you take advantage of every write-off available to you.

3. Independent work status. With the recession resulting in job loss and long-term unemployment, many people are changing careers and even taking on freelance work opportunities in order to make ends meet. If you’re a first-time freelancer you may not realize how many write-offs are available to you. And since you aren’t getting the same tax advantages you would have as an employee, you really need to know how to save come tax time.

4. Fixing a poor credit rating. You may not realize that you suffer from a low credit rating until you go to buy a car, a home, or some other big-ticket item that requires a loan – and find that you’ve been denied. Did you even know that it was possible (and advisable) to order a free copy of your credit report once a year? An accountant can help you find ways to improve your credit rating and ensure that it stays high.

5. Managing your personal finances. Planning a budget, saving for the future, and considering investments are all areas where your personal accountant can come in handy. If you thought that accountants were only good for sending off your taxes, it’s time to think again. They can help you with the basics as well, so that your personal finances become much more manageable.
You don’t have to spend years studying to earn a Bachelor’s of accounting or even spend a few minutes contemplating online accounting degrees in order to successfully manage your finances and get money back on your taxes. By shelling out a few ducats to hire a professional accountant you can save time and money, avoiding the costly mistakes that have plagued you in the past.

Carol Montrose is a writer for Accounting Degree where you can find the accounting program that’s right for you. She resides in Southern California and is currently writing a book in her spare time about the joys of freelancing.

Did Al Qaeda Win The Financial War?

Mitch Mitchell — Sun, 11 Sep 2011 20:01:52 +0000

Today is the 10th anniversary of the four planes that changed the lives of pretty much everyone in the United States forever. In a weird way, one could say it was the day that changed the financial life for everyone in the world as well. That might sound like one of those things that people generally say without any backing, but let’s look at what’s happened.

First, many businesses that were in the World Trade Center towers folded, either on that day or within months. Some didn’t have any capital to go forward. Some didn’t have the heart to continue. After all, the towers were a major center of financial power.

Second, many businesses that had to shut down for days after that were drastically affected. Many airlines shut down, while others had immediate cutbacks. I knew many flight attendants and pilots who lost their jobs within a couple of months. Some insurance companies had to fold because of the claims they had to pay out. You probably didn’t know that insurance companies bank on the fact that most people actually do reach the age of 70; within months there were many claims, and many insurance companies had to pay out million dollar insurance policies before closing their doors.

Third, the U.S. stock markets shut down for almost a week, the longest period of inactivity ever. That act threw off the market for weeks, some might say years, and helped to lead to our present financial crisis.

Fourth, we went to war in two countries, which is drastically expensive. Whether one agrees with the actions in Iraq, one has to realize that financially it’s beaten up our country during a tough financial period. Many of those people have come back and found there are no jobs available for them. Many of their spouses have found they couldn’t get work in the interim.

Fifth, where did the jobs go? Many more factories decided to get out while the getting was good, so manufacturing went on permanent vacation elsewhere. That certainly didn’t help the overall economy.

Sixth, when money is scarce, smart people will come up with some goofy ways to generate profits. Hence, the banking and accounting scandals that helped cause the problems we have now. Profits are an interesting thing; unlike normal people, large corporations already have their profits spent, and use their time thinking of ways to keep having profits grow more and more. They will skirt ethical grounds for those profits, and when things come crashing down, it hurts everyone.

Seventh, September 11, 2001 exposed us to just how vulnerable this country, and pretty much every other country, is to terrorism when people are ready to give up their lives for their cause. Phone lines went down; electricity went down. Some people even had problems using their computers on that day and in the following week. The government started listening in to our calls, reading our email, seeing what we had to say online. The military was called out to stand in the airports and look at us; they’re there today because of what’s being called a credible terrorist threat; doesn’t that happen every year?

I think that’s enough; I could keep on going but I think you see my point. By one day’s terrible act, our financial world was altered, and it seems like we’ve never caught up. I don’t think anyone in Al Qaeda was smart enough to figure that part out, but they certainly knew they were doing something big. They got their money’s worth out of that day; when do the rest of us get to cash in and get back to what was our norm at the time?

Why Many Financial Issues Are Our Fault

Mitch Mitchell — Sun, 31 Jul 2011 18:02:15 +0000

While we have our government bashing each other on the heads while trying to pass a debt limit increase, looking at unemployment that doesn’t seem to be going down, few new jobs being created, gas prices rising again, the crash of the housing industry, and a host of other issues, I thought it was a good time for us to take a look in the mirror and claim our part in the mess.

I know many of us think “what did I do”? I’m going to point out 5 things we did that have contributed to all this mess we have.

1. We buy things we can’t afford instead of concentrating on the things we need. We’re human; we want things. Often we buy things on credit because we know the monthly payments won’t be that high. The problem is twofold; one, we buy enough things and suddenly that “low” payment is pretty high. Two, we think the income we’re getting will continue to at least be steady, if not always increase. Turns out the first part comes true but that second part didn’t. Yes, banks are sneaky, and they did give you a $50,000 credit limit when you were only making $20,000 a year. But you should have known better to fall for it, and now look where everyone’s at.

2. You bought a house you should have known you couldn’t afford. Yes, everyone deserves to own a home if they can pay for it. That’s the crucial issue, though; can you pay for it. Whereas many banks in many states came up with these sneaky floating interest loans that turn out to be quite predatory, many of us didn’t use our own common sense when we knew what the terms were. You didn’t understand what you were signing up for? Shame on you; why didn’t you ask more questions? This wasn’t a puppy you bought, it was a house, a big, scary, very expensive piece of property. Sure, everyone told you prices would always go up; didn’t happen, did it?

3. You switch jobs all the time. I understand this one; you’re always looking for more money, or the next challenge. What are you missing? You haven’t built any equity into where you are because you’re always the new person. Whether or not you have a union job or not, you’re right on the chopping block whenever something bad happens. And every study out there says that even in a bad economy the people most likely to get a new job are those that are already working. You’re still trying to find yourself and find what you like? Find it faster or consider working for yourself.

4. You’re trying to impress others rather than making sure you can live well. Did you really need that $50,000 Escalade when the Hyundai Santa Fe would have done you well? Do you really need Jimmy Choo shoes when you could have gotten a very nice pair that fit well at Penneys? Many people these days are making due at stores like Walmart because they’re realizing they might not be getting name brand stuff, but they can buy 10 shirts for the price of one designer shirt, and with mixing and matching that’s a whole lot of ensembles. Stores like Kmart and Target have a lot of things for everyone that looks good and works good. If you have friends walking up to your clothes and looking at the labels then judging you for it, those aren’t friends worth having. Life within your means; if you can afford that other stuff, then have a ball.

5. Elect people for the right reasons. Yeah, I’m going there. Here’s the thing most people don’t understand about government; it’s a compromise. The reason things have always gotten accomplished in Washington is because no one gets everything they want. These people are skilled negotiators, and when they’re all working for the common good they get some amazing things passed. They also do some stupid stuff but you take the good with the bad. However, if you elect someone that’s going to be inflexible, you start to find out that it hurts everyone, including you eventually. Be big and mighty and say “see how brave our person is, standing there clogging everything up”? What happens when your area is hit with the next earthquake and there’s no federal relief money for it? Look at health care for a minute. Is the policy you’re paying almost $700 a month for actually giving you better care than a government sponsored insurance might give you? If you lose your job and can’t afford COBRA, or end up working for someone that doesn’t give you health care coverage, and then you or your family member gets sick, who do you think eventually ends up paying for that? The government, that’s who. If you’re going to be against something at least think about how you’d feel if it was you; it could always be you. Elect people who have a position, but are willing to negotiate; always better to get things done.

Small Changes That Make A Big Difference On Your Cellphone Bill – Guest Post

Mitch Mitchell — Wed, 20 Jul 2011 13:11:37 +0000

A recent survey showed that a massive 85% of Americans now have cell phones. With the average consumer now so dependent on this technology, the telecom companies are really raking in the cash, but what about the rest of us? How is this reliance affecting us financially and what can we do to ensure that we are getting the biggest bang for our buck?

With just a few small few steps we can all get all our bills in order:

1. Make sure you are on the right price plan

Being on the wrong price plan is a mistake that we have all made at least once. We get over-excited in the phone shop and before we know it we’ve minutes, texts and internet usage coming out of our ears! Seriously, how many of those 1000 free texts that you paid for last month actually got sent? Half? A quarter? Even less?! Why pay for something that you are not using? Many providers will let you change your plan if you have been with them for a certain period of time. Give them a call (if only to get rid of some of those minutes!!) and see if you are eligible for a downgrade.

2. Use your messenger service

A lot of cell phones have now integrated a messenger service into their handsets. This allows people who have the same handsets to instant message each other without charge. Certain brands of smart phone have really taken off to the extent that many of your friends and family will share the same make as you, so if you have this feature on your phone then be sure to make the most of it. In my case it’s the Blackberry.

3. Always check your bills

How many of us actually bother to check our phone bills? Who wants to sit down and meticulously go through lists of telephone numbers and figures! This may not be the most exciting job in the world but it will be 2 minutes extremely well spent as you check that you are receiving your full entitlements in terms of pre-arranged discount packages. You will also see where you are being charged additional amounts if you are going over your allowance. It may be that it was the last 3% of minutes of calls that cost you 50% of the bill, and that is information worth knowing!

4. Use a landline for local calls

As landlines have seen a rapid decline in recent years, many of the deals offered have become increasingly generous. Out of sheer habit we now reach straight for our cell phones to make outgoing calls, even when we are just as close to a landline! If you have a landline with a generous deal (it could be free local calls or perhaps you can select x number of landline numbers to call free of charge at any time) then be sure to make full use of it!

5. Find the right phone insurance

With smart phone handsets costing many hundreds of dollars, you need to ensure it offers adequate protection but check the cost your provider is going to charge for Cell Phone Insurance before agreeing to the price plan, as over the duration of the contract this seemingly small addition could make a huge difference!

6. Turn off your internet when traveling!

We all know someone that’s been stung by roaming charges whilst traveling abroad. In some parts of the world the industry is clamping down on these exorbitant charges but always err on the side of caution and make sure your internet is switched off before leaving the US.

Dan Holt – I work with the cell phone insurance website www.mobileinsurance.co.uk. I am also a keen technology enthusiast and pride myself in my ability to always get the most for my money, particularly where communications are concerned!

Debt Consolidation; Should You Or Shouldn’t You

Mitch Mitchell — Fri, 27 May 2011 23:28:52 +0000

There have been a couple of articles on this blog about debt consolidation, but none have addressed the main question, which is if debt consolidation is a good deal or not. On the surface it seems like a good thing, but it isn’t necessarily a good thing at all; let’s take a look at a few things.

The first issue is whether you really need debt consolidation or not. Many people think that as soon as they start feeling overwhelmed with their bills that they need to consolidate their debt. The reality is that most people make enough money to pay all their bills and take care of their staples as well, but because they don’t understand the concept of budgeting they can’t see it. A well planned budget, or even hiring someone to put the numbers together so you can see what your income and expenses are can help greatly. No one should ever rush into debt consolidation without this first step.

The second issue is whether you want to try to do it on your own. This usually means getting a loan of some type, which includes getting a line of credit on your home to help out. This might not be the best idea in the world unless you’re going to start exhibiting some great restraint on yourself as far as your spending goes. If not, you’ll pay off your initial debt load, start paying down what you have, yet you’ll be adding to it and getting yourself into more financial difficulties. Only this time you might be putting your home in jeopardy as well, or creating a debt to someone you don’t want to miss a payment with.

The third issue is if you decide you need help. On this front it becomes a question of how much help you need and who you should trust. My first move would be to Consumer Credit Counseling because they’ll be able to tell you if you need more or less help than they can give you. If you decide to go the debt settlement/consolidation route, you need to really do strong research on the company because some companies will get you out of debt, but they’ll ruin your credit for years. Or maybe you can find someone to help you with budgeting, maybe a friend good with numbers or an accountant or bookkeeper, but in this case you really have to be diligent and listen to what they have to say.

Whatever you decide, know that there are always options and that you don’t ever have to do it alone.

Can You Conceive Trillions?

Mitch Mitchell — Fri, 18 Mar 2011 17:39:39 +0000

Unless you’ve been living under a rock, you know that just days ago there was a horrific earthquake in Japan that then created a tsunami that’s destroyed a lot of property and killed a lot of people. There are still a lot of people missing, and there’s a host of other scary things that people are dealing with right now over there.

One of those things is the impact all of this is going to have on an economy that, like the economy of the United States, the country has been trying to work its way out of to move towards more positive results. It’s amazing that a country that’s only the size of California has almost 130 million residents and a deficit of close to $5 trillion dollars that inevitably is about to drastically go up.

Just how much money is a trillion dollars? No one really knows. I’ve seen a million dollars and it’s pretty impressive. When you think that a billion is 1,000 times that, I can only imagine where someone could put a pile of money like that. In thinking about Bill Gates, who’s worth around 50 billion, that’s 50,000 piles of money. Multiply that figure by 20 and you finally get to one trillion; ouch!

When you get into the multi-billion dollar range, you might as well realize that’s money you’re never going to really see. When you start thinking trillions, you might as well get it into your mind that there’s really no such number, only the concept. Sure, there’s probably quite a few trillion dollars in the country, but not all in one place. None of us will ever see $100 million at one time, let alone trillions.

And that’s the frightening part about thinking of rebuilding any parts of Japan. That was the problem in thinking about how to solve the issues because of Hurricane Katrina as well. We were on the verge of a recession and suddenly money was needed to help rebuilt New Orleans and other parts of Louisiana and Mississippi. That was bad enough; some cities of Japan are totally evacuating because of potential nuclear meltdowns, and if that happens there’s another area, such as Chernobyl, where there won’t be any life for decades, possibly centuries.

Well, we may not be able to conceive of trillions, but it doesn’t mean we can’t help. If you’re able, click on this link to the Red Cross to help as much as you can.

How Much Do You Need For Your Future?

Mitch Mitchell — Wed, 16 Mar 2011 14:28:52 +0000

None of us wants to think about our future; we want to live for the here and now. However, the here and now is what we need to think about because we’ll find the future upon us quicker than we were expecting it to be and suddenly we’ll find ourselves not having enough money to live in comfort, or at least in the manner we were living when we were earning our money.

by Pedro Figueiredo

There was a report on our local news a couple of weeks ago stating that most people who retire and had set up a 401K savings plan don’t have close to enough money to live the life they’re used to living. The average comes in around $149,000, which sounds like a lot of money until you think about just how long you might have to live off it. If you lived another 20 years that’s only around $7,500 a year, if that. Sure, you’d have your social security money, but with the way our government keeps playing around with it how secure do you feel in trusting them?

How much money do you need for your future? For each person that’s a different answer. What you need to do it think about how you want to live your future. For instance, you might need less money if you’ve paid off all your debt, which includes your home, before you retire. If you decide to sell your home and live in an apartment, depending on how much you could sell your home for, that could help drastically.

If you want to live a really simple life, you could probably get it done. If you were hoping to travel or help the grandkids with college, suddenly you need a bit more money.

The best thing to do is to contact a financial planner to help you make these long term decisions. I’ll caution you and let you know that many of them are going to try to talk you into getting insurance first, especially if you’re married, and that might not be a bad thing. However, it will be another expense you’ll have to plan for. They will help you figure out how much money you need, as well as figure out your risk tolerance. This is important because if you want a lot of money your financial planner might have to risk your money on deals that will work one day and burn on another day.

It’s always better to know than to not know. The earlier you can start, the easier it will be for you to save what you want, if not necessarily what you need.