Money and You – Keeping Your Finances Afloat

The Great Recession of 2008 was a wake up call for millions of Americans and other citizens around the world. Most economists agreed this was the worst economic downturn since the Great Depression of the 1930s. Between 2007 when the recession began and 2009, well over five million jobs were lost – and many of them are never coming back. 2.6 million people filed for bankruptcy. 8.3 million homes were lost to foreclosure. If you were lucky enough not to be one of those affected, you saw these statistics as a cautionary moral tale. “How can I make sure this doesn’t happen to me?” you asked yourself over and over … [Read more...]

Safe Investments for Your Money

One day the DOW was up 275.56 points. That’s great, but the day before it closed down by 100.96 points. You may be looking for ways to hedge against the losses you may be taking from your stock market portfolio, and you have several options to choose from that will be extremely safe investments for your money. Every investment comes with some risk, even government bonds as is evident looking at Europe now. Some investments are more risky than others and can be like gambling in the wrong hands. So consider some of the options in light of your own circumstances and take professional advise if you need to. The Savings … [Read more...]

Real Estate Investing in Uncertain Times

As recently as a decade ago, real estate was the most popular form of investment. Investors all over the country couldn’t get their hands on real estate properties fast enough. This created a huge boom in the real estate market, and people everywhere were suddenly enjoying huge returns on their investments. Unfortunately, this created a false sense of security and expertise among the investors. The problem became that, despite their lack of experience and actual knowledge, they were still finding success and earning huge profits. This, combined with severely irresponsible practices on the part of lenders, led to the huge … [Read more...]

Should Personal Finance Be Taught At School?

Not all that long ago, if a young person wanted spending money, he would find a paper route or a part time job and earn the spending money he desired. His parents were working hard to support the family, and extra money was not available for his wants. He would learn to manage his money by making poor choices that were not all that costly. His money management habits were developed with his own money while he lived in the confines of his parents home. In the twenty-first century, parents provide substantial sums of money to their teens because jobs are scarce, and the students have academic and extracurricular activities … [Read more...]

The Difference Between Bad Debt and Good Debt

A common mistake many people make is to think that all debt is bad. That is not true. The richest people in the world did not become that way by avoiding all debt. They made their money by knowing which kinds of debt were good and which were bad. Unless you learn the difference between good debt and bad debt you will be stuck in the rat race, struggling to make ends meet, for the rest of your life. Assets and Liabilities The first step is to learn the difference between an asset and a liability. Once you have learned this, everything else will fall into place. The problem arises when people think that something is an asset … [Read more...]

Eight Ways to Spend Your Windfall

If you've ever received a lump sum, then you know how difficult it can be to decide how to spend it. There are so many different options that you may find yourself agonizing over what to buy. Since you may not have enough money for everything you want, you'll have to examine your priorities to see what you need and what you can do without. Try weighing some of these popular options to see which ones are right for you. Paying Off Your Mortgage Many people who receive lump sums use the money to pay off the mortgages on their homes. Paying off your mortgage can be a great way to save money because it allows you to avoid the … [Read more...]

How Much Money Do I Need for Retirement?

Planning for retirement may be at the bottom of your to-do list, but the sooner it gets to the top, the more assets you will have available when the time for retiring arrives. It is safe to assume that you will need around the same level of income after you retire that you need now. Investing in bonds, stocks and cash investments while you are working is good, but you also need to think about the amount of income you will need when you stop working. People Usually Underestimate the Need It is very common for people to underestimate the amount they will need as they grow older. They don’t think about long-term home care … [Read more...]

The Magic and Myths of Compound Interest

Understanding the power of compound interest is perhaps the most important concept that anyone can use to save and accumulate wealth. The phrase "you need money to make money" was never truer when it comes to compound interest. Compound interest can make a small pile of money turn in to a big pile of money. The 2 key elements that make compounding work are interest rates and time. Following is an explanation of some of the magic and myths of compound interest. What Exactly is Compound Interest? Compound Interest is the process by which interest is calculated. It can be compounded in different increments. The greater the … [Read more...]

Lessons From The Financial Crisis

Many well-known businesses have gone under the last few years, and America is carrying the burden of huge debts. You may be worried about your financial status and what is going to happen in the future. So where do you go from here? But before you go forward, you need to look at the past and find out where the mistakes came, so you will not make the same ones again. Do Not Invest without Understanding If you do not comprehend what you are investing in, then be cautious about putting your money into that investment. Don’t just take someone’s word for it that it is a good investment. Think about who is giving you that … [Read more...]