Finance Tips

Market Capitalization

2010-02-02T16:31:00.001+07:00

One thing newbie investors are often confused about is a stock's market capitalization. A company's market capitalization is simply the value of the company as priced by the stock market. The market capitalization is taken by the price of the stock times the amount of shares outstanding.

For example, if there are 100 million shares of company XYZ and those shares are trading at $35 a share, then company XYZ has a market capitalization of $3.5 billion.

Stocks with a larger market capitalization are generally seen as 'safer' investments, since the company itself is larger. However, large-cap stocks also do not have as much growth potential as small cap stocks. For a $1 billion stock to triple, it just needs to become a $3 billion company. For a $200 billion company to triple, it needs to become a $600 billion company.

Stocks are generally classified as mega-cap, large-cap, mid-cap, small-cap, or micro-cap stock based on their market capitalization. There is no set definition for these terms. What some consider a small-cap others might consider a micro-cap. Nevertheless, here's a general guideline to give you an idea what market capitalizations fit these terms:

Mega Cap: $200 billion or more (very few companies fit this category)

Large Cap: $10 billion to $200 billion

Mid Cap: $2 billion to $10 billion

Small Cap: $250 million to $2 billion

Micro Cap: Less than $250 million

Choosing A Good Stock Investment Broker

2010-01-09T00:55:00.000+07:00

If you want to invest in the stock market, you need to find a stock broker. Most people just use brokers that either their friends or family use or they see an advertisement on TV. Most of the time, these brokers are just fine. But with a little bit of research, you should be able to find the best stock broker for you. Here are the factors that you should consider when shopping around for a broker:

Place trades through the Internet

Some brokers allow you to place trades via phone, in-person, or through the Internet. Whatever the case is, the key is that you need to be able to place a trade online. Placing a trade online will generally cost you between $7-$15, whereas placing a trade over the phone or in-person can cost you anywhere between $25-$100. The difference in savings between making an $8 trade and a $10 trade is nowhere near the difference in making a $10 trade and a $50 trade. So whatever you do, make trades online.

Any advice or research they give is generally useless. Don't pay much for it

Some firms justify higher prices based on 'personalized research' or 'excellent investment advice.' Almost always, these perks are worth little. Again, if it's the difference between making $8 trades with no help and $10 trades with some help, go with the $10 trades if you want the advice or research. But don't be paying $50 a trade and up for research and advice. Chances are you are best served just investing in index funds or ETFs anyway.

Use a beginner-friendly broker

There are some brokers that are more geared for frequent traders and professionals, such as Interactive Brokers. There are others that are geared more for beginners, such as TD Ameritrade. For most novice investors, it is much much better to go with beginner-friendly brokers. The brokers geared for professionals offer lower trading fees and some advanced tools, but this will most likely just confuse beginning investors. Investment firms such as TD Ameritrade, Fidelity, etc. are very easy to use, and their trading costs are still relatively low as long as you use internet trades.

Know Your Role - How About Their Roles?

2010-01-02T12:53:00.000+07:00

It seems pretty obvious that employees need to know what their own jobs require -- their roles, responsibilities and authority levels. We don't expect people to do their jobs effectively if they don't know what they are supposed to be doing. However, one area that people tend to ignore is how well employees understand what OTHER PEOPLE DO in their organizations. Why might that be important?

Recently, I was doing some training in customer service and defusing hostile customers for a fairly large organization. A constant theme kept emerging (and it's quite common). A customer would call in with some sort of difficulty or problem, and the person answering the phone would transfer the caller to someone else. Unfortunately, the next person taking the call was not the right person, or was unavailable, leaving the customer to leave voice mail, or once again, get shuffled to someone else. Often the frustrated customer would end up calling the first person back to holler at them.

How does this happen? Are employees stupid? Or perhaps can't be bothered? Probably not. They simply lack the information they need to provide good quality customer service to callers. And what's the outcome? First, angry customers. Second, stress and frustration on the part of staff caught in this shuffle. Third, some terrible inefficiencies for the organization itself, which impacts the bottom line.

The problem is that we don't educate staff in the "bigger picture". In this case, that bigger picture relates to what other people do, their various expertise, and the relationship of other employee's jobs to each other. Before we talk about specific "fixes", consider this.

It's very rare that employees work is independent of the work of other people in their workplaces. These days, getting jobs done has become more complicated, where the ability to get something accomplished often involves cooperation with others, or some degree of teamwork. Customer service aside, workplaces where people understand their own jobs and the jobs of others (like how the whole puzzle fits together) are going to be more effective and more productive.

Helping People Understand The Larger Puzzle

New employees should be oriented and educated not just about their own jobs, but about what other people do, and who to talk to when faces with different kinds of situations. They need to know who has decision-making power, and who has expertise they may need. That's far more important than knowing where the washrooms are (well, that's debatable!).

Workplaces are constantly changing. Responsibilities change, and so do job roles. Management should take an active role in keeping employees up to date about changes that affect not only their own jobs, but the jobs and roles of others. This is even more important in team based and project based environments. Regular staff meetings can be used to do this in an ongoing way, and need not be time intensive. Often, staff updates can take only a very few minutes.

Here's the most important part. And this applies to every employee. Employees tend to hesitate about asking too many questions, for fear of looking stupid or being perceived as a nuisance. They rely on the human resources department or their supervisor to tell them what they need to know. Unfortunately, supervisors don't always know what employees need to know, or haven't thought about it, and they can't read minds. So, it's important that employees take on responsibility for their own understanding of what other people do. Employees! Listen up! ASK! You can't do your job well if you don't know your own role and what other people do. You can't do your job if you don't know where to refer a customer with a particular problem.

Let's end this by listing some things that people should know:

Who has authority to make decisions about specific issues (which people, which issues)?
Where does the expertise lie to deal with particular issues?
What procedures should be used to involve people who need to be involved in a particular issue?
When a particular person who needs to be involved is unavailable, is there a backup procedure (someone else to contact)?

The nice part about all this is that it isn't rocket science, but it is neglected. Human resources, managers and employees can all take responsibility and make sure that employees know and understand their own job responsibilities and roles, and those of others who fit into the completed "puzzle" of getting things done effectively and efficiently.

Improve Your Debt Management Skills

2009-12-10T21:42:00.000+07:00

If you are struggling with debts, and would like to feel in full control of your finances, you should consider improving your debt management skills.
Why?

Improving your debt management skills could allow you to:

• See exactly how many debts you have.

• See exactly how much you owe, and who you owe it to.

• See exactly how much you are required to pay towards your debts each month.

• See if you can actually afford to service your debts each month.

• Get a rough idea of when you should be debt free.

How?
Improving your debt management skills can actually be pretty easy.

The first you thing you should do is create a budget. This should help you see exactly how much money you are earning / receiving each month, along with exactly how much money you need to spend each month. Knowing these two figures should give you a rough idea of whether or not you will be able to afford to service your debts each month (providing you know how much they will cost you).

To find out the exact amount of money you have available to pay towards your debts each month, you should do the following:

Total monthly income minus total monthly essential expenditure (mortgage/rent payments, secured debt payments, utility bills, food, etc.).

The amount you are left with is called your 'disposable income' - and as mentioned, this is the money you will have available each month to pay towards your unsecured debts, as well as spending on non-essentials and saving for the future, if you can afford it.

Creating a budget is just one of the ways you could improve your debt management skills.

When?
In general, the sooner you take action to improve your debt management skills, the better. The earlier you address your problems, the easier they should be to tackle. If you simply leave your debts to grow and don't take action against them, they will probably get worse.

Bankruptcies Hit Retirement Communities

2009-12-03T21:55:00.000+07:00

The recession is hitting elderly people where they live, literally. Financial problems have been mounting at a number of assisted-living and continuing-care communities, forcing some facilities into bankruptcies and inflicting new worries on residents and their families who thought their life plans were comfortably set. In recent weeks, Erickson Retirement Communities, which manages 19 continuing-care retirement communities in 11 states, declared bankruptcy. Sunrise Senior Living Inc. posted a quarterly loss of $82 million and announced plans to sell off 21 of its assisted-living communities. Nationally, smaller retirement communities are raising their prices, changing the way they operate, selling themselves off to bigger chains, or getting out of the business altogether. Many companies say they can't make a profit—or even succeed on a nonprofit basis—in an environment that combines the high cost of caring for elderly residents, restrictive Medicaid budgets, tight credit markets and fewer residents willing and able to pay top dollar for their care.

When a facility fails, it can have myriad effects on the residents. The good news is that no one gets kicked to the curb–at least not right away. "Nobody has ended up on the street, which is a primal fear when you're dealing with these places," says Jason Frank, an elder-law attorney in Baltimore. "But their fees can skyrocket, and they can become unaffordable. Then they can kick you out for nonpayment." In some cases, residents may find that the sizeable deposits they made to get their apartments in the first place have disappeared. (Continuing-care communities like Erickson's typically charge deposits of $150,000 or more, and assure residents that they can stay on the campus for the rest of their lives regardless of how their needs change, and that the deposits will be refundable to themselves or their heirs when they leave or die. But residents typically also have to pay monthly fees for care, and those fees can continue to increase. Assisted-living facilities like Sunrise generally require no deposits but charge a monthly pay-as-you-go-plan.) That's what happened to the 170 people who lived in Covenant at South Hills in Lebanon, Pa. Their deposits went up in smoke when their facility was sold in bankruptcy to Concordia Lutheran Ministries, which did not take on that liability. Several are now suing B'nai Brith Housing, the original operator of Covenant.

Erickson executives say that their bankruptcy filing will have no impact on residents. "We've refunded every single deposit in our 26-year history," says Tom Neubauer, the firm's executive vice president of sales. "People moving in are completely unaffected by all this." Erickson's corporate organization is complex, with each community (and that community's deposits) owned by a separate nonprofit entity that is not part of the bankruptcy filing.

But residents could face disruptions. Newer communities that haven't been completely built out yet may not have their assisted-living and nursing-home wings, so residents who need higher levels of care may end up being transferred to other facilities. Should various nonprofits not be able to resell units at the same price as the original buyers paid, those original buyers might not get their deposits back. And residents who run through their personal savings and their deposits paying for ever-higher levels of care will have to depend on an optional "benevolent fund" to cover their expenses.

Erickson has a solid reputation and good track record for keeping residents for the rest of their lives, but anyone shopping for retirement housing now should think thrice about the financial risks of their arrangements. "You've got to keep your eyes open," says Eric Carlson, director of the long-term-care project for the National Senior Citizens Law Center. "If you look at the agreements, sometimes what you're being promised is not that much. The provider may be reserving the right to force you to leave for various reasons." Often there's a generic "can't meet your needs" clause in the contract.

He recommends that refundable deposits be set aside in escrow accounts, and that anyone signing a long-term-care contract run it by an elderlaw attorney first. (They can be found at the National Academy of Elderlaw Attorneys.) His organization also has an online checklist of questions that should be asked before moving into a retirement or assisted-living community.

Carlson also says he generally prefers the financial advantages of the pay-as-you-go models, but even consumers who choose facilities that only charge rent on a monthly basis may not be saving their nest eggs for long. Sunrise has raised prices as it has gone through several quarters of financial trouble. It can cost $6,000 or more a month for quality assisted living, and $9,000 for nursing-home care. At those rates, it's not hard to run through life savings in a hurry, and then not every assisted-living facility will keep you. Many don't take Medicaid or other subsidies, and some facilities that had taken Medicaid have switched to no-Medicaid policies. That leaves those residents who have no assets with no place to live. Nationally, discharge-related complaints about nursing homes and assisted-living facilities have doubled in a decade—to 12,237 in 2008, according to the U.S. Administration on Aging. It's now the second-most-common complaint at nursing homes, behind "failure to respond to requests for assistance." And it's the third-most-common complaint at assisted-living facilities, behind problems with medication administration and disappointment with the food.

Complicated state rules can then force newly impoverished residents to go into nursing homes for at least a month so they can qualify for Medicaid, and then back out into another assisted-living facility, says Beverley Laubert, the long-term-care ombudsman for Ohio and president of the National Association of State Long-Term Care Ombudsman Programs. She and her colleagues are called in when facilities declare bankruptcy or force residents to relocate because of policy changes, but usually they can't force facilities to keep residents. Instead, they spend much of their time helping residents who thought they'd found their final homes look for new places to live in a market where, now, nothing is certain.

Gear Up for the Holidays

2009-11-25T11:50:00.000+07:00

You can't claim to have lived in New England until you've gotten through a winter. The same could be said for e-commerce sites. Whatever track record you've had the rest of the year, the real proof that your online business is viable comes some time after the holiday crunch. Did you handle the high volumes without sacrificing customer care? Did you not only deliver the goods for current customers but also attract new ones? Did you, your staff and website emerge intact? Is your accountant smiling?

If the answer to these questions is generally "yes," then you should be smiling, too. But here's my advice: Think of the holidays as a stress test for your organization. You won't always be dealing with these kinds of volumes, but the best practices you embrace now will pay dividends the rest of the year.

In that spirit, here are some tips for the holiday season.

Use incentives to keep a steady flow
One of the most important safeguards against getting overwhelmed is to level out the volume spikes that can catch your organization off guard. The steadier the flow of traffic to your site, the better. Conversely, if 90 percent of your customers place their orders on Dec. 22, you're going to look unprepared no matter how much preparation you've made.

Begin by working out a set of incentives that will get your customers buying early. Possibilities include free gift wrapping, free shipping, two-for-one offers, coupon codes for later purchases, and, especially popular in today's economy, merchandise discounts and promotions. Then make sure your customers are aware of the offers by highlighting them on your home page. You can also e-mail your most valued customers, as long as you don't wear out your welcome. Finally, monitor the results to see what your customers are responding to. That knowledge will help you rev up sales during slow periods throughout the year.

Clearly communicate the true cost
The trend in e-commerce sites is to eliminate as many hidden costs as possible. Transparency is especially important during the holiday season, when customers have even less patience for unhappy surprises. Customers report that hidden shipping costs are the most frequent irritant--especially when those costs are unexpectedly high and only appear at the final stages of checkout. That ploy can lead to shopping cart abandonment--the merchandise is at the "register," but the customer has departed.

Instead, let customers know as soon as possible in the process what shipping will cost. Most of us know what it costs to mail a package, so keep those costs in line with customer expectations--or go one better and offer free shipping as an option. Some customers will always want more expedited shipping, but all will appreciate the opportunity to get standard shipping for free. And again, that's true not only during the holidays, but throughout the year.

Take customer support seriously--but let's chat
The time has long passed since the days when an e-commerce site could hide from its customers by not responding to queries. Phone calls are usually best, but not every online company has the resources to handle them, especially during the holiday crunch.

What to do? Resist the urge to bring in people who can answer the phone, but lack the expertise to truly represent your store. A badly handled call is worse than an unanswered one. Instead, consider online chat. The medium isn't as personal as the phone, but skilled representatives can conduct five or 10 chats at once--and customers will quickly recognize whether the people at the other end know what they're doing. Of course, e-mail can also be effective as long as you're diligent about responding quickly--an e-mail black hole is worse than no e-mail at all. And what if you're truly underwater from customer queries? Apologize, get a number and a good time to call--and call back.

Use "heat map" technology to track what clicks
Here's another place the holiday stress test can serve you well in the coming year: tracking what people actually do on your site. Companies like CrazyEgg, and Clickdensity offer services that can show you how people are navigating your website, with the ability to experiment with new designs that are more effective. While the holiday season is no time for a major redesign, you can make quick fixes, and then use this invaluable data to make bigger changes later on.

Improve checkout
One reason people have flocked online for their holiday shopping is that when they're ready to check out, they're always first in line. So make sure you've exceeded customer expectations during those final, crucial mouse clicks. The key is to reduce the number of hoops customers must jump through, while giving them different options to pay. For example, the checkout process should securely retain customer data so that people don't have to re-enter their information with each purchase. You should also offer a variety of payment options so that shoppers can use their preferred payment method, including a buy now, pay later plan, which is especially important in these cash-strapped times.

When your customers check out, they should also feel safe. Over the past few years, many people became online shoppers only after they overcame their fear of making online transactions. Once they had a good experience, they returned online for more. In that sense, every successful online transaction is a win for our industry as a whole. So do your part: Make sure your customers are feeling safe by giving them a truly secure method of paying.

What is a Debt Management Plan

2009-11-09T19:45:00.000+07:00

The economic downturn has led to debt taking centre stage in the media and news coverage. But debt certainly is nothing new. Consumers often depend on their credit cards, purchase household items with a credit line and take out loans and mortgages. So debt is, for many, simply a part of life.

Traditionally, when debt becomes too difficult to manage, individuals find themselves bankrupt. And while most of us know what bankruptcy is, far fewer of us are fully aware of other alternatives, such as debt management plans.

A debt management plan is, effectively, an informal agreement made between the debtor and the creditors. More of than not, this is negotiated with the assistance of a Debt Management company. The way it works is for the company to establish what you can realistically afford to pay off your debts each month. You must have some form of income and be able to pay at least something. They will take into account your income and living expenses to work out what you can afford to pay off your debts each month and then approach your creditors. Often, the debt management company will attempt to negotiate your outstanding balances down one way or another or to freeze interest. However, because the approach is informal in nature, the creditors are in no way obliged to accept any offer. If your creditors do agree to the offer, you will simply make one monthly payment to your debt management company. They will then divide this accordingly between your creditors for the duration of the debt management plan. This is often five years, at the end of which time your debts are considered to be settled.

Because of this effective timeline of being out of debt, the debt management plan is proving particularly popular. However, if you debts exceed £15000, you’re unlikely to be eligible and may instead have to look into the more formal, legal alternative of the IVA.

Effective Ways During Tight Economy

2009-11-05T00:16:00.000+07:00

Tipping in a recession is a dilemma. Do you stick with the 18 to 20 percent formula or retreat to 15 percent? Do you skip an appetizer, a glass of wine or a dessert to lower your dining bill and thus your tip?

It's a subject that millions of diners and travelers are wrestling with.

A lot of people whose income has vanished or shrunk because of layoffs, salary cuts and shrinking fixed incomes have cut back. Instead of going out to dinner every week, they settle for once a month. If they take a trip, they trade down, choosing less-expensive accommodations and restaurants.

As a result, minimum-wage wait staff, bellhops and hotel housekeepers have taken a huge hit, if they're not among the nearly 10 percent of workers who are jobless. There is nothing wrong with cutting back, but give pause when you think about stiffing your waiter or hotel maid to save a few dollars.

"I believe that customers are tipping a smaller percentage of the bill," said Michael Lynn, a professor at Cornell University's School of Hotel Administration. "I base that on anecdotal encounters, lots of things on the Internet - servers say they are making less money." A server quoted in The New York Times put it this way: "In New York, the average tip is 20 percent, though some tip as low as 15 percent and some as high as 30 percent. These days our tips are closer to 17 percent, with a range of 10 to 25 percent.

"This drop in tips registers to $60 less a night. Over five shifts a week that is $300 less per week! But we are working just as hard as we used to, perhaps even harder, trying to get people to forget their troubles for a few hours. ... It's not fair for people to take out their economic troubles on the server. If one cannot afford to tip, then perhaps that person should be ordering less." Lynn, who has done extensive research on tipping, said that "during bad economic times, people become more price-sensitive."

At hotels, Lynn said, only two-thirds of guests normally tip maids, who should get $1 to $2 a night.

In bad times and good, Lynn said, servers can increase their tips by using tested techniques found in Mega Tips, published by Cornell's Center for Hospitality Research and available for free on the Internet (Google "mega tips").

Among Lynn's 14 points (most effective in casual-dining restaurants): Wear something unusual, introduce yourself by name, smile, squat next to the table, repeat customers' orders and write "thank you" on the check.

At hotels, it's hard to miss the bellhop, who usually gets $1 to $2 a bag, unless you are traveling light and politely wave him off. But there is little a housekeeper can do to earn a few extra bucks except to hope that guests remember.

If you are traveling abroad, where there also is a recession, keep in mind that tipping customs vary by country, so consult with your travel agent, a government tourist office or the worldwide tipping chart.

In Europe, many hotels and restaurants add a service charge to your bill, so additional tipping isn't necessary. In Japan, tipping is considered an insult. That feeling is changing, but it's best to inquire about the proper way to reward someone.

Even in a recession, there are no hard and fast rules for tipping. And whether at home or abroad, tipping is a personal matter. But however you feel about tipping, keep in mind that workers at the service end of the business are getting hit as hard as if not harder than anybody. Why not give 'em a break?

Using a Pay Day Loan in a Tough Economy

2009-10-27T17:14:00.002+07:00

At no time since 1974 has there been such a downfall in the American economy. Unfortunately, in 2008 alone, some 2.6 million people lost jobs. In just two months, from November 2008 to January 2009, unemployment numbers climbed from 6.7% to 7.2%, being the highest increase since 1993. Obviously, this has put many people in a troubling financial situation. The fortunate numbers of people that still have steady income are tightening the budget and some are still living paycheck to paycheck. For these people, sometimes they end up needing a short-term financial solution, which is available in the form of a pay day loan.

In summary, a pay day loan is unique, being a loan intended for emergencies. This type of loan is designed only as a short-term solution whereby the payoff date is typically within 30 days. However, reputable lenders offer extensions but these should only be used if necessary in that a higher interest rate might be charged, along with additional fees.

People caught up in this tough economy find that sometimes, they face a financial crisis in between paychecks. With no money in savings and having numerous friends and family members without jobs or also living on a tight budget, they feel there is nowhere to turn. In some cases, people become so stressed that work production and performance are affected, which means their job could be at risk. Instead of people fearing the worst, they need to know that a pay day loan can help if through the right lender and used for the right reasons.

Although some people take out a pay day loan for frivolous purposes such as a vacation, throwing a party, or even shopping, which is fine, a payday loan is actually more beneficial when used for difficult financial situations. The reason is that typically, interest rates are higher than with a conventional loan so it would make more sense for the vacation, party, or shopping adventure to be postponed until the person has the cash. On the other hand, if a person needed quick and easy money for a car repair, medical bill, utility bill, or some other need, a pay day loan offers a viable solution.

According to the president of the Economic Policy Institute, the labor market is unraveling and soon, unemployment is likely to hit 10%. Sad as this may be, experts still believe this situation is only temporary and that within a year or two, things will begin to turn around. However for immediate financial needs, even full-time employees are struggling. It seems that when something goes wrong, it is usually just after or weeks before payday, which is why having a means of getting $100 to $2,500 through a payday loan is so great.

Another scenario in which a pay day loan helps is for people that have lost a full-time job and while still searching, have only been able to secure part-time employment. In this case, if something unexpected happened and the person needed a few hundred dollars to get by, the payday loan would provide that person with the money needed. With a 30-day payoff schedule, the individual has enough time to pay the loan in full but if additional time were needed, again, most online lenders offer an extension.

Currently, jobs are available for health services, education, and governmental positions so if someone who had lost one job but was hired for another and then found they had an emergency arise, the pay day loan would also be a viable solution. Even if the person had only been on the new job a few weeks or months, as long as there is proof of steady income and a checking account in good standing, the loan would be approved. Unlike conventional loans where the applicant would be required to be on a job a minimum of six months, the payday or cash advance loan is different.

The good news is that the majority of people that apply for a pay day loan are approved. Again, as long as they have steady income and a bank account without a history of insufficient checks, the loan would be approved. To maintain dignity, going through a reputable online lender allows complete privacy by handling everything from home. While getting a pay day loan is possible through a local money lending company, this also means standing in line with other people, which for some is an embarrassing and demoralizing situation.

Although a pay day loan would be paid by the individual’s next paycheck, the tough part trying to deal with a financial hardship in between paychecks. For instance, if a person’s car had a radiator leak but this was his or her transportation for work, obviously getting the problem fixed would be a priority. With a pay day loan, the person could take out the money needed, get the car fixed, and miss very little or no work.

Great Way to Save Your Money

2009-10-16T16:52:00.001+07:00

Saving (investing on a regular basis) is often done for various purposes. However, if you set aside money regularly, then the money you collect can be very useful.
Someone who has revenue of US$ 1,000 per month, for example, after a year to save the account balance only US$ 200 in the account. Once asked why the amount of the balance of the account only works after a year, he said incomes are often exhausted in use in a month. So, he can not save.
In fact, if he wants to save as much as US$ 100 per month only, then at the end of the year he will have a number of the account balance of US$ 1,200 plus interest.

Whether a situation like this is quite familiar in your ear??

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More about savings.

Tactical Asset Allocation

2009-10-16T16:41:00.002+07:00

Tactical asset allocation is a strategy, under which you maintain a constant surveillance on the movements of the market. This is done in order to adjust the percentages of assets distributed in different sectors. For example, let's say that your current asset portfolio is divided between bonds, precious metals, natural resources, real estate and stocks.

Suddenly, you determine that the price of oil is going to stop it's decline and rise again to the levels of last month. In order to exploit that opportunity, you may sell some of your real estate (which is going through a bubble-period anyhow), and buy some stock from oil companies.

Types Of Assets

There are many types of assets in the market. For example, one of the most renown kind of assets are bonds. Bonds are nothing but loans that are emitted as a security. The loaner receives an interest for the period of time that he has loaned the money to the emitter. There are several types of bonds (fixed rate, variable rate, inflation indexed, among others) and several types of issuers (private companies, supra national agencies, governments, among others).

Another kind of asset is stock. Stock is emitted by companies who wish to raise capital for their organizations. They are usually traded at the different stock markets that are distributed around the world. One of the biggest advantages of the internet is that, thanks to it, you can buy and sell stock from almost any exchange market in the planet.

Other types of assets are real estate, foreign currency and luxuries (like fine pieces of art or collectibles). It will depend on the experience, and knowledge, of the asset manager to determine which is the best one to invest in. And, the only way to do that is to maintain yourself updated on what is happening around the world.

Three FOREX Methods and Concepts

2009-09-30T17:02:00.000+07:00

The following are the three important forex methods and concepts:

Pips
When you trade foreign exchanges certain values are ascertained to the currency prices. Those values are referred as pips. The more number of pips you gain the higher are your profits. For example if you have allotted .1 $ value for a pip and you gain 10 pips on that day then your profit can be calculated by multiplying the value of a pip with the total number of pips gained i.e. 10* .1 $ =1 $

Volume
Volume refers to the extent of trade activities that take place on one particular day. In other words it denotes the amount of money transacted during the day. These volumes are dependent on how busy the exchanges are working. Whenever there is break or less business the volume will be less. Since people work by taking different time zones into account the volume of these exchanges always tend to be very high.

Buying and Selling
They constitute the core activities. You must always buy foreign exchanges when the prices decline sharply and sell them when they increase rapidly in a stock exchange. However these activities take place differently in a foreign exchange. The buyers will get the currencies after anticipating the fall in price but they will also sell it at a lower price on the assumption that prices will further fall so they can buy them back at a very lower price.

Protecting Yourself Against Credit Card Fraud

2009-09-25T04:50:00.000+07:00

While credit card fraud is a problem, here are a few simple steps you can take to greatly reduce the risk of becoming a victim. These are my tips for you.

Sign new cards immediately. When you receive your new or replacement card in the mail, sign it, in ink, right away. If it is a replacement card, destroy the old card by cutting it into many small pieces.
Shred old credit card receipts. You can purchase an inexpensive paper shredder at an office supply store. All old receipts with your credit card number and any unneeded documents with your social insurance number or other sensitive personal information should be shredded before disposal. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity
Never fax your credit card number. Your credit card number can lie for hours in the fax basket at the other end. Anyone passing by can record your number and begin to use your card number fraudulently. It is even possible for criminals to intercept your credit card number while the fax is in transmission.
Use caution when giving your credit card number out on the phone or on the Internet. Only give out your credit card number on telephone calls you initiate to business or organizations you trust. Never give your number out to callers who call unannounced, no matter how legitimate the call sounds.
On the Internet, look for an Internet address that begins https:\\. The “s” indicates that it is a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen, indicating it is safe to transmit your credit card number.
Call your credit card company instantly if you suspect trouble. All credit card companies have 24 hour lost and stolen help lines. If you lose your wallet or purse or have it stolen, call without delay! Much fraud happens within the first hour or two, before the victim realizes the cards are missing. Your credit card company will block your cards from being used and stop you from being responsible for any charges thieves incur.
Take advantage of any security features your card offers. Many newer cards have the option of including your photograph on the card. This is excellent protection and is highly recommended.

Identify a Target Market

2009-09-17T20:40:00.000+07:00

Before beginning your advertising campaign, it is important that you first identify your target market. A target market is basically the type of person that will want or need your product or services. By targeting a specific market, you will be able to save money by spending less on marketing and increase marketing. The process of identifying a target market is called market segmentation. Using market segmentation, a business can use a top-down approach to identifying a target group or niche. Once you have identified a niche using target segmentation, you will be able to concentrate your efforts on marketing to attract a specific consumer group.

As a business owner or executive, you have probably heard of using market research. Market research is the process of using various techniques to collect, analyze, and report data about potential consumer groups. Formal market segmentation requires comprehensive market research. The market research will help you to identify quantitative and qualitative patterns in consumer groups. Quantitative data refers to numbers such as age, income, and family size while qualitative data relies on characteristics such as education, occupation, and personality. There are severals ways you can go about segmenting a population to target a market. Some are more relevant to your business than others. The following describes different aspects of market segmentation that will help you in identifying a niche and maximizing your marketing dollars.

1. Demographics:

* Age: Teenagers targeted by acne medication company.
* Income: A person earning $200,000 is more likely to purchase a Cadillac than a person earning $10,000.
* Family size: Wholesale distributors that keep prices low by selling in bulk would target larger families.
* Education: A calculator company may target high school math students.
* Occupation: A shoe company might sell a shoe targeted for construction workers.
* Gender: A handbag company will target women.
* Nationality/Race: A small business selling foodstuffs from Africa would target the immigrant African community.

2. Geography:

* Region of the world: The shoe company, Puma, most aggressively targets consumers in Latin America and Europe for their soccer shoes.
* Climate: A snow plow manufacturer will target areas where it snows.

3. Behaviors:

* Brand loyalty: Apple targets a niche of consumers loyal to its products.
* Value of quality: Higher-end watch companies like Seiko target consumers that value high-quality timepieces.

4. Psychographic:

* Personality: A person who likes to show off is more likely to buy a Hummer H2 than a reserved person.
* Lifestyle: A shoe company like Vans, that sells skateboarding shoes would target skateboarders with their advertising.
* Interests: Stores that sell arts and crafts materials target hobbyists and students alike.

5. Other Questions to Ask in Market Research:

* Readiness to buy: How soon will they purchase your product?
* Frequency of purchase: How often will they purchase your product?
* How likely are they to purchase your type of product?
* What kind of music do they like?
* What kind of ____(fill in the blank) do they like?

6. Types of Market Research:

* Surveys are the most commonly used and least expensive market research method available. They can be conducted online, in person, or by phone.
* Focus groups are a method by which companies gain feedback on products by asking questions in an interactive group setting. This method might also be used to gain feedback on services, concept, advertisement, ideas, or packaging.

7. An Introduction to Surveys:

* Establish goals of survey. What market segmentation criteria will you use? Ask specific questions so you won't lose sight of your target.
* Sample size. Who will be asked to complete the survey? The sample size should be as random as possible to ensure a variety of different type of people complete it. Also, the greater the sample size the greater the accuracy of the research.
* Method.
1. Personal interview: Ask past customers to answer some of your questions.
2. Telephone: Hire telemarketers to conduct the surveys for you.
3. Mail: Purchase the addresses from direct mailing companies and mail in bulk.
4. Web-based: Search for a website with a survey panel that has existed for a long time and has good results for past clients. You can also conduct your own research by putting surveys on your website or sending e-mail messages with links to your survey.
* Planning the research.
1. How much will the research method take?
2. How long will it take to write and edit a survey?
3. When will you implement the survey?
4. When will you complete the survey and analyze the data?
* Processing and analyzing data.
1. For large market research campaigns with a very large sample size, computer software is a must. You might want to hire a company that conducts surveys or someone familiar with statistics to help you with this aspect.
2. For smaller market research campaigns you can simply look through the surveys and get an idea of what your niche is.
3. Create a report detailing your findings and how it will fit into your marketing plan.

Short Term Investments, Which Are Best?

2009-09-16T23:00:00.002+07:00

If you need to make money quickly, consider short term investments. Short term investments allow you to invest an amount of money at a high yield interest rate, and gain access to the return sooner rather than later.
There are several short term investment options out there, and the key to making money successfully is finding the best short term investments. And that starts with learning the answer to the question you probably have: what are short term investments?

Defining Short Term Investments
A short tern investment fund is a fund that earns you a return on your money in a short period of time, such as one to ten years. This is different than retirement investing, and it can be a challenge to find short team, high yield investments. Good short term investments will have a high interest rate, allowing you to earn substantial money immediately.

The Need for Short Term Investments
You might need short term investments if you have a pressing need coming up in the near future. If, for example, you might need to have a down payment for a house or car in a year or two, you could make use out of short term investment options. Also, you might use this type of fund in replacement of a traditional savings account, because you will earn a higher rate of return. Some even choose to use short term investment funds to supplement their retirement income.

How to Use Short Term Investments
If you are interested in short term investments, talk to your financial advisor. He or she can tell you what the best short term investment opportunity you can use will be. Then, invest your money, and leave it alone. Allow it to gain interest for the course of the investment period. When the fund comes to term, you will have earned interest on the money you invested.

Decide what amount of your total income you are willing to invest in your fund. Most people are comfortable with investing around ten percent of their total income. Then, choose the investment to use. It is best to take the amount and invest it into one particular investment. Your long term investments are where diversification is helpful.

8 Savings Secrets On Auto Insurance

2009-09-13T23:51:00.002+07:00

Everybody has a reason. Maybe they're telling you what you want to hear. Could be they'll get a bonus if they sell you product "A". Heck, they may simply have forgotten to mention it. Bottom line, there's something your car insurance company or agent isn't telling you that might save you money. And it could be one of these 8 things:
1. Older car? Drop collision.

Have a car that's 7 or 8 years old? Is it worth less than $2,500? That's the time to start thinking about taking the risk and dropping comp and collision premiums from your policy. The reason why? Chances are your deductible is closing in on the value of your car and any major collision will send you to the dealership, anyway.
2. Buy home and auto with different companies

With everything being bundled today – from cell phones to Internet and cable TV – you'd think that having your home and auto insurance bundled at the same company would save money. But, do your research, and you may discover that having separate policies can be well worth it. Good rates abound for both types of insurance – but it's rare to find the lowest rate for both from the same company. So, unless you buy an umbrella policy, there's no overriding reason to keep your policies together if you can save.
3. Minimum liability? Not enough.

You may tell an agent that you can only afford the minimum car insurance required by law. And some agents may be more than happy to provide you with that policy – and then get you out the door so the next paying customer can step in. What he may neglect to tell you is that in some states – particularly Ohio, Pennsylvania, South Carolina, Nevada, New Jersey and Oklahoma – state-mandated limits are ridiculously low. And there's a good chance those minimums won't even come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
4. Shop around for lower rates

A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers, so how do you know what's fair? Shopping for and comparing services online from companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. All in one place. All at one time.
5. Go green; keep green

Even auto insurance companies are green – offering discounts that will trim a bit off your premium. Look for things like a discount for driving a hybrid, for opting for paperless statements or electronic payment plans. Even signing your policy with an e-signature can save you some pennies. Basically, the less the company has to spend on paper, the more they'll pass those savings on to you.
6. Consider paying that claim yourself

Naturally, you don't really want to hear that, but if you've backed into the garage, think twice about asking your company to repair it. Why? Besides the possibility that your rates will go up at the time of renewal, the next time you shop for new insurance, many insurance companies will use an insurance history report to see if you've made any car insurance claims, and how much money was paid. Although accidents can only affect your rates for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Having more claims will affect that result.
7. Your car makes a difference. Don't buy that turbo convertible.

All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect the size of the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. That'll affect how much your premium will be. Even more reason to shop around for the best deal.
8. Teenager turned 16? Don't add them to your policy – yet.

If your teenager has turned 16 but isn't a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. That also means in most instances you don't have to insure them if they just have a learning permit. But check. Some policies may require it.

Personal Grants To Pay Off Debt

2009-09-08T12:02:00.002+07:00

Have you ever been watching the television when an ad comes on, promising that if you go to their website they can show you how to eliminate a good chunk of your personal debts through government grants to pay off debt that you never have to pay back?

How about seeing an advertising banner for something similar online?

Well just like most things that sound too good to be true, this one more or less is as well. While the claims they make are technically true, they are also can be very misleading. While you can apply for a government grant AND pay off your personal debt, no program exists for you to apply for a government grant TO pay off your personal debts. There is a difference between the two, and that difference is the one between a free ride and a lot of work.

What most of these websites and ads are referring to are the government grant programs for those looking to start their own businesses. The way these work is that they will give you a small amount of startup money for a business plan that seems like it would benefit your community (for example if you were to create a non-profit or a local produce market if there were no others in the area). If that business becomes successful, you can then use any profits you make off it to pay off your debts as you do not have to repay the government money.

This is probably a lot more work than those looking for a quick and easy way out of their debt might be hoping for, but if it appeals to you by all means give it a try. Those grants are there for people to apply for and must be given out, although these government grants are not government grants to pay off debt per se. When you apply for grants such as these, you can often find support information on the same website to help you create a business plan and get your startup up and running successfully. They would not be offering all this free money if they did not want to give people the best possible chance of success.

There are also some other kinds of grants available, although none of them are considered grants to pay off personal debt as the ads seem to promise. These options include grants for paying off hospital bills, tax debt, and programs designed to get people their uniforms for their jobs. Unfortunately, most of these grants are only available to those with severe economic hardships and often come with other strings attached like participation in a job program or proof of poor income.

Another option for free money is that sometimes the government or specific organizations will offer grant money to be used toward paying off education debt if you are studying a particular career path such as medicine or teaching.

The long and short of it is if you want free money from grants to pay off debt you had better be prepared to work for it and you have to really need it. It is suggested that you do not use false information when applying for a grant as the consequences could end up costing you much more than time and money.

Credit Card Companies, Friend or Foe?

2009-08-29T08:53:00.000+07:00

Have you ever wondered exactly how credit card issuers stay in business? The credit card companies mail an approximate 4 billion solicitations each year. Despite the fact that they come in different colors and sizes they all have one thing in common. They are all trying to convince you to apply for one of their credit cards. Depending on what source you believe, the industry will mail between 16 and 20 times to each credit-qualified consumer in the United States. In layman’s terms this means each of us gets, on average, sixteen to twenty pieces of mail annually from credit card companies trying to convince us to apply.

The response rate of these mailings, also known as “pre-approval” mailings, is abysmal. The industry averages no more than a 0.6% response rate. And, of the 0.6% who respond, fewer will actually ever open and use the account that they’ve applied for. And, of those few who do open an account, even fewer will actually revolve a balance from one month to the next. And, of those who do revolve a balance, fewer still will actually pay their bills on time. So, again, the questions is…how do these companies stay in business?

Don’t be swayed by the pessimistic tone of the introduction. These companies make piles and piles of cash from their credit card portfolios. So, please put away your checkbooks and stop thinking of sending your charitable contribution to Delaware and South Dakota, where most of the large credit card issuers are based because of favorable state laws.

The problem is that none of them have figured out what to say, how to say it or what kind of envelope to put it in to convince us to apply for their wares more than 6 times out of every thousand envelopes they mail. For every 1,000,000 pieces of mail they will get 6,000 responses. If only 80% of those responders actually open and use an account then that’s 4,800 new accounts. If each of those new accounts generates only $30 each month in interest (a very reasonable amount) then that’s $144,000 each month or $1.73 million dollars per year. Now you’re getting the picture on how these companies stay in business. And, to boot, 1,000,000 pieces of mail is nothing for the large credit card issuers who will send out several hundred million solicitations this year.

Once you are on their books as a customer the fun really begins. They love you when they are trying to get your business but you will eventually lose your luster. You are no longer the flavor of the month. You are now a living breathing profit center to them. And they’ve figured out plenty of ways to separate you from your hard earned dollar. Further, they’ve managed to self justify the means almost as to seem normal. Here are the most common ways credit card issuers will make money from you once you’ve started using their cards.

So, Friend or Foe? A compelling argument can be made for each side of the debate.

Friend — The credit card environment in the U.S. is more inviting than any other country. The reality is that pretty much anyone can get a credit card. In other countries the protocol calls for saving your money and paying cash for your belongings. In this country as long as you have a salary and a decent credit rating you can buy a car and a home complete with furnishings all using someone else’s money.

Foe — Opponents will counter that the credit card issuers are allowed too much leeway to aggressively market. This has lead to predatory lending practices from unscrupulous lenders and an increase in amount of household credit card debt. There are also too many offers targeted specifically to new credit users, typically students, who end up entering the workforce in severe debt and close to bankruptcy.

You can also make a good argument that without a credit card you can’t function efficiently in today’s environment. This can be a pro or a con. You can’t rent a car, check out a movie, buy anything online or reserve a hotel room. You have to have a credit card to function today. It’s that simple.

The bottom line is that credit cards are what you make of them. If you let them, they can easily overwhelm you. However, if properly managed then credit cards can be your friend and ally in accumulating wealth and security…all while using someone else’s money.

Paying Bill Online

2009-08-25T16:21:00.001+07:00

Online bill paying makes your life easier. You don’t have to write checks, get them into the mail, or work as hard to track your transactions. If you’re interested in online bill paying, find out what it takes to get started and where to do it.

How it Works

Online bill paying can happen in a few ways. Payment may be made electronically, or somebody (such as your bank) may print a check and mail it to your payee. Either way, online bill paying happens when you get the process started online and somebody else handles the logistics for you.

Use Your Bank

For most, online bill paying is easiest to do at your bank. You probably already have a checking account with free online bill pay, so use it. You’ll enter information about your bills, and login to your account each month to pay them. You may also authorize the bank to pay bills automatically.
Your bank may pay your biller electronically, or they may actually print and mail a check for you. Either way, you don’t have to write a check and get it to the mailbox. The transaction usually shows up with your payee’s name, so it’s easy to track your spending.

Use Your Biller

You can also use online bill paying options at each of your service providers (often called “ACH debit”). After you provide bank information they pull money from your account each month as your bill comes due. While this requires less work on your part each month, you don’t control when money comes out or exactly how much they take.

Other Services and Software

Some companies offer online bill paying as part of a software product or for free. Financial management programs such as Quicken and MS Money may allow you to pay bills from the same program you use to monitor your finances. You should expect to pay for this form of online bill paying - usually a modest monthly fee.

Eating Out Affordably

2009-08-21T23:30:00.000+07:00

Americans love to eat out. It has as much to do with the social aspect as it does with the great taste of food you (as the cook) did not have to prepare!

Here are some simple tips for eating out at your favorite restaurants affordably either with your friends or family:

Look for “Kid’s Night” Deals

Many families are going back to the more traditional “one income” situation, so “Kid’s Night” deals are critical to being able to take the kids for an evening out. Most restaurants have a special kid’s night—where kids under a certain age (usually 12) eat free or at a reduced cost.

Share larger entrees

Entrees are growing, along with our waistlines and cheques at the end of the night. To decrease all of the above, share an entrée with a friend or family member. This will ensure both of you receive your fill, pay less, and walk out a little lighter than you might have if you had tried to eat the entire portion.

Bargain-Fest

Many new (and even existing) restaurants in your area send out coupons (buy one entrée, get second at half price). These are designed to get you to try their new menus, and then hope to garner your return business without coupon. Regardless, this is a great way to eat at your favorite new restaurants and save money.

Fast Food

Not always the most healthy option available sometimes; however, can be a way to enjoy a night out including miniature golf or a movie without spending as much on food. Some of the healthier options include Subway, Taco Bell, Blimpie Subs, Chinese fast food, and even salads from McDonald’s or Wendy’s.

Order Pizza!

Pizza restaurants always have special deals, and you can look for additional coupons in your weekly paper. This is not only a money saver, but a time saver as well for those Friday nights in which you don’t wish to go out, but would rather kick back and watch a night of videos.

Plan your budget

Many people spend too much money on eating out because they eat out too frequently and don’t plan it into their week. Pick one night a week or every other week to go out, decide in advance which restaurant you want to go to, and even pick up a menu in advance of that night. This will help you plan how much you will spend that night, as well as choosing your food in advance!

Appetizers and Desserts

These were designed with one idea in mind—to get you, as hungry as you are, to order more food than you would ever eat if you cooked it, thus spending more money than you may have planned going in. In advance of your restaurant visit, determine whether or not you are going to order the appetizer as your meal (provided it is large enough) along with a small salad, or not at all. In doing so, you will save money and room in your stomach for after-dinner coffee. Having coffee at the end of the meal will also help you avoid the $7 desserts with the $2 portions. You will be full and won’t want dessert, thus saving you even more money and inches to the waistline.

Sides

Many restaurants now offer sides as ala carte items. Choosing 2 or 3 “sides”, such as a salad, a baked potato, or a side of steamed veggies will help you choose less expensive and potentially more healthy options.

Eating out is fun

It should remain that way, and can be done in such a way that everyone’s budget should be able to afford it on a regular, planned basis. Enjoy!

Clear Your Shopping Cart Abandonment

2009-08-20T06:21:00.002+07:00

Imagine you owned a store where half your customers left their purchases on the checkout counter. That, in effect, is happening all too often to online merchants. Potential customers go shopping on their site, like what they see, and put merchandise in the shopping cart. But somewhere during the checkout process, they "abandon" their cart and depart the site, sometimes never to return.

What went wrong? As an online merchant, knowing the answers can make a big difference in how well you convert a customer's clicks into an actual sale.

Studies have demonstrated that the single biggest cause of cart abandonment is an unexpectedly high transaction cost--typically a high shipping cost--that is only revealed at checkout. A customer believes a transaction is going to be about $75, steps up to the virtual counter, arranges payment, only to learn that the actual total is $100. We shouldn't be surprised if that shopper "walks off" in a huff. Indeed, shopping cart abandonment is often a sign of deeper troubles for the merchant. It's not just an indicator of a lost sale, but also of a troubled relationship. If customers have a sense of being baited and switched, their overall confidence in the merchant gets undermined.

The problem is aggravated by the high variability of shipping costs. During a recent online shopping excursion for a stationary bicycle, I found that shipping fees ranged from "free" to $150. That's a huge difference. And yet in many cases, the total "out-the-door" cost wasn't apparent until deep in the checkout process.

What can merchants do? First of all, you should keep shipping costs in line with customer expectations. A small, lightweight item like a pair of socks, a garden trowel or camera battery shouldn't cost $17 to ship. And adding one of these items to an existing purchase shouldn't cost $17 more. Some merchants have taken the mystery out of checkout by offering free shipping across their product lines. But if you can't afford that, at least give shoppers an early, clear indication of the actual cost. And while this might sound obvious, the same advice also applies to good news: Tell customers about special discounts, coupons and other incentives up front, not at checkout. The guiding principle: When it comes to payment, online shoppers don't like surprises.

Security and comparison shopping
Cart abandonment happens for other reasons as well. Sometimes customers are uneasy about handing over their personal information, including credit card numbers, to an unknown merchant. You can remove that concern by offering multiple options for electronic payment, including services that allow payment without disclosing financial information to the merchant.

Some customers don't click on the purchase button because, at the last minute, they want to assure themselves they are getting the best possible deal. The temptation is understandable. E-commerce has matured since its early days, and customers are the beneficiaries. More sites are competing for their business, and customers can use "shopping engines" to compare price and merchant reputations at a glance. The obvious advice: Keep your prices competitive and your service exemplary so that new customers keep coming back. In looking for the ultimate bargain, some customers depart to seek out discount coupons. If your competition is trumping you with this tactic, perhaps you should follow suit.

Sometimes, the barrier to purchase is not cost, but an unanswered question. "How long do I have for a return?" "Can I see the manual?" "Do you have it in green?" "Can I include a Valentine's card?" No merchant can anticipate every question, nor will every customer locate every snippet of information on your site. So don't hide behind your website. Provide a telephone number, an e-mail address, or both--and respond to queries promptly and personally, taking the time to hear the actual question.

Finally, some shoppers abandon their carts simply because they cannot figure out how the checkout process works. If your customers are hunting for the "purchase" button, it's time for a site redesign--preferably with something simpler.

Good Payment Processing Service

2009-08-14T16:03:00.000+07:00

Five Star Payments are an alternative payment processor to receive payment of your products. With Five Star Payments, you don't need to fuss over again to receive payments from around the world. All handled by professional staff.

Five Star Payments receive all types of credit cards, from Visa, Mastercard, Discover, Amex and others. You also will be treated directly by a staff ready to assist you 24 hours. Qualified and experienced staff also help you what is needed by your company. So you will not waste your time.

Five Star Payments receive any type of your company. True, whatever your company. Low risk or high risk company, all accepted by them. Unlike other payment processor that is still difficult to receive a request from your company. Other advantages, the fee charged to you than other payment proccessor. So you can save your money and get large benefit. What are you waiting for, joined the Five Star Payments now.

Credit Card Reform Comes Back

2009-08-11T18:50:00.003+07:00

The call to reform the most abusive and restrictive practices of the credit card industry was once again heard on Capitol Hill yesterday, as two separate hearings emphasized both the need for more oversight and new legislation to protect consumers.

The Senate Judiciary Committee convened a hearing over S. 2359, aka the "Consumer Credit Fairness Act," introduced by Senators Sheldon Whitehouse (D-RI) and Dick Durbin (D-IL). The bill would, if made law, amend a portion of the 2005 bankruptcy legislation to enable consumers to divest a portion of their debt in bankruptcy.

Under the terms of the Act, if a filer's consumer debt threshold — including credit card debt, payday loans, or other debts — exceeded 15 percent plus current rates on 30-year Treasury bonds, they could have it liquidated in bankruptcy. The Act would also exempt filers with debt levels above the threshold from the "means test" mandated by the new bankruptcy law.

"The standard credit card agreement gives the lender the power to bleed their customers through evolving and ever more crafty tricks and traps," Whitehouse said in his opening statement. "The typical credit card agreement, which twenty years ago was a page in length, has grown to a 20-page, small print contract filled with legalese. In substance, it gives the companies the right to raise interest rates for almost any reason, and in some cases no reason at all."

The committee heard testimony from Douglas Corey, a Bank of America customer who had been paying his card debt on time for years, until he accidentally paid less than his normal minimum payment in August 2008. That triggered a spiral of rate increases and penalty fees that threatened to bury Corey under even more debt.

"With my next statement in October 2008 came the devastating news that my interest rate had skyrocketed to an astonishing 28.99 percent," Corey said. "I went from paying $360 in interest to $792 in one month and I was charged a $39 late payment fee. The following month, I was laid off from my sales representative position of seven years."

Corey's debt troubles increased to the point where he was missing payments on his mortgage, but, he said, he struggled to keep current on his loans. "Bank of America has come before you asking for help, understanding, and, with both hands open, for financial support," he said. "Yet when we the consumers go to these institutions looking for the same help, understanding and financial support, we get roughed up and receive no compassion."

Whitehouse introduced the Act in the previous session of Congress, but no action was taken on it. The House of Representatives passed the "Credit Cardholder's Bill of Rights" last year, but that bill did not come to the Senate for consideration. The House Financial Services Committee is expected to act on credit card legislation next week.

Read more: http://www.consumeraffairs.com/news04/2009/03/credit_card_reform.html#ixzz1puT3kDUH

Life Insurance is A Priority

2009-08-09T04:51:00.000+07:00

The function of insurance is as protection of financial risk on the possibility of natural occurrence that is not planned. So, that should be seen if someone need insurance or not is to see the financial risk of what will happen when the case of natural. If the parties are subject to the financial condition, it should insure soul. But if he/she does not have insurance, then have a life insurance guaranteed is the priority.

But, that should be protected is a living for his live, not his/her incomes. If we only a person who celibate but still have to work with. Because of the stag and does not bear the burden of other people, then the revenue is only for him/herself. If there is such as dies, then no party subject to financial conditions. That's mean you must find guaranteed life insurance.

This logic can also be used in determining the amount of insurance money that should be taken. If the fee is too large, take the insurance money can make at least needs to be able to get a substitute for living. For example, living for several months until his wife could have a job. Or until children reach adults age and can find them living.

Turn Your Habit to Make Saving As A Priority

2009-08-05T03:52:00.000+07:00

Whether you are saving for a major purchase or for your retirement, you will never reach your goals unless you make saving a priority.

Many people may think they can never find the extra money to save for a new home, a dream vacation or even a much needed new car. They may think that putting small amounts will never really add up, but it is true when it comes to saving that little changes can add up to big savings on expenses. Those savings can then be put to good use for achieving your long term savings goals.

The Latte Factor

There is a coined phrase called the "latte factor." This comes from the notion that many people will think nothing of spending $2.50 each and every work day on an afternoon latte. It is true that $2.50 is not that much money. Not when you spend it once in a while. However, if you were to add up that $2.50 each day, it becomes $12.50 per work week. Then, you multiply that by roughly 21 work days per month and now you are up to $52.50, a fairly significant amount of money for most people. Right there, that person, by simply switching to bottled water brought from home, could save about $630 per year!

Compound Interest

Now, $630 may not sound like much toward the down payment on a house or even a new car. It certainly won't go too far in retirement. That is where compounded interest makes saving even a few dollars a day well worth giving up that afternoon latte. If you were to take $50 per month and invest it in your company's 401k plan for example, and you are fresh out of college, you would have approximately 45 years until your retirement at age 67. That $50 would be worth about $138,000 assuming a conservative average of 6 percent compounded interest. If you were to increase your contribution by another 10 percent each year, so the second year you are saving $55/month and so forth, then that amount would be more than $935,000!

For shorter term savings goals, compounded interest can also help speed things up. Interest rates on Certificates of Deposit (CD) are not as good as long term savings rates, but certainly better than a passbook savings account. You can purchase CDs with guaranteed interest rates for terms from 3 months all the way up to 5 years. Keep in mind you will loose your interest if you withdraw the money before the term is up, so make your savings goal for a specific time period and stick to the plan. You normally need between $500 and $1000 to purchase a CD, so within 10 latte-free months you could have your initial deposit.

Discover your own Latte Factor

The biggest obstacle in saving is determining your own "latte factor." You may have several that surprisingly add up to thousands of dollars in unnecessary expenditures. The first step in finding yours is to write down everything you spend for an entire month or longer. You may be surprised to find where small amounts of money slip through the cracks - the vending machine, the convenience store, lunches and dinner at fast food or restaurants, cigarette smoking, etc. Once you've discovered your latte factor or factors, see what you can live without or where you can cut out some of those spontaneous purchases.

Set Up Automatic Savings Withdrawal

The second step is to set up an automatic savings withdrawal. If you never see it, you won't be as tempted to spend it. You can have a portion of your pay put into a separate savings account or even directly into a savings plan that converts to higher interest bearing account when you've reached certain levels. Remember, you deserve to pay yourself first out of every paycheck. Uncle Sam takes his cut automatically. Make your next automatic payment go toward your savings and you will be able to achieve any savings goal you set for yourself.