Tuesday, October 31, 2006

Saving account, super charged!

Okay people, it doesnt get any easier than this. Who here wants to make money just by having money laying around in their checking account? Well i just opened an account from gmac bank and let me tell you its perfect for anyone who wants to earn a higher interest rate than the average savings account and still having access to their money 24/7. So i basically transferred all my money from my checking account from suntrust to this account and using it as my checking account, its great!

Who doesnt want to earn that extra 5.25% while doing nothing, i mean your gonna have your money just sitting there whether in a checking or saving account, you might as well make that extra 5.25% interest rate. I mean 5.25% is not gonna buy you a new car but its better than not making 5.25% right?

So here are the benefits for this account:

*A higher yield on your deposit than a traditional savings account
*Easy access to your money through checks and a Check Card
*Standard Money Market restrictions of six transactions per statement cycle will apply
*A minimum opening deposit of only $50
*No monthly service fees when you maintain a $500 minimum balance
*FDIC-insured up to $100,000 per depositor (How to maximize your FDIC insurance)
*Fees may reduce earnings

The only draw back to this is that you cant go into a branch because everything is done online. (which to me isnt necessary a drawback because i never go in the branch anyways, i do everything either online or over the phone).

There is a useful savings calculator you can check out also on their site. You enter in your starting amount and how much on average you intend on putting in every month (if any) and for the number of years then hit calculate, this will tell you how much money you made just from letting it sit in the account(if you didnt put anything in your account). Whats there not to like about this? I encourage everyone to check it out, its Awesome!

Monday, October 30, 2006

Rules for getting out of debt

1.)The problem here is not how to get you out of debt, but rather recognizing what made you get in debt originally.To get out of debt, you cant just simply start off by trying to pay off everything that your in for, instead you need to start at the root. First you need to ask your self how you got in debt to begin with. When you find this source, thats when we can start getting you outta debt.

2.)Analyze what made you get in debt and see if you can notice a pattern so you can try to change from there. Its always best to tackle the problem from the source. Many people who finds themselves finally getting out of debt eventually gets back in debt and thats because they never learn/realize what got them in debt in the first place.As hard as it is to just pay off everything you owe, its pointless to do so unless you change your reasons why you were in debt in the first place, or else you'll be back at where you started after having everything paid off.

3.)Once you have realize/analyzed what got you into debt, then you need to make sure you throw out all the bad habbits that caused all of this, then you can start to pay things off.

The next problem: most people after getting out of debt thinks that theyre now in the safe zone because theyre not in the negatives. Well if you think in terms of negatives, then when you get out of debt, your technically at a zero. Which to me does not sound like your in the "safe zone". Once you get out of debt, then think of it as a clean start, you now are ready to be in the positives.

Dont stop at zero, think smart and get ahead. After getting outta debt, start up a savings account of some kind, whether it be a mutual funds of some sort or investment in a 401k plan or IRA. This is a great habbit and surely will be a good payoff in the long run.

Sunday, October 29, 2006

The importance of having good credit

Having a good credit history is very important in maintaining a healthy and happy life. What most people dont realize is that employers, landlords and even insurance companies checks credit scores to make that final decision in whether or not they should give you that job or contract. Credit report and their scores helps companies determine whether you pay your payments on time or even if you have been sued or filed for bankruptcies. This way, they can use these information as a future indicator of your "credit worthiness", as it can reveal info about your past and present payment patterns.

Especially for me, everything that i want to do involves me having good credit. I can list the top 3 goals that i want to acheive in the next 5 years and how they relate to having good credit.

1.) After graduation, I will want to go apply for a job and they will most likely check my credit score to make some indication of how "responsible" i am. Most companies today have credit checks and having good credit might be that extra push that they need to make that decision on whether or not to hire me.

2.) The type of work that i want to do might require me to have a top level security clearance. Therefore having good credit is a must for this to goal.

3.) I want to buy a house maybe 2-3 years after i graduate, which will be in 2008 of may. It is critical that both my girlfriend and I have excellent credit scores for this one. Ofcourse having a good amount for down payment and our debt/income ration will be a huge factor, but having that good credit score will for sure be helpful when its that time for the credit bureau to decides how much they can trust to give me for a loan for that house.

These are some examples of how crucial it is for me to have good credit for me to do what i want to do. I want to emphasize the importance of good credit by saying that everything that i do now to prepare for my future is dependent of having good credit. The importance of credit today is so significant because it is one of the methods people are using to make any kinds of judgement on who you are based on your past payments. Although bad credit scores is not the most accurate way of identifying a persons behavior, it is still used as an assumption because that is all that they can go by.

Thursday, October 26, 2006

Spend and Save at the same time!

Who says you cant start investing with a dollar? Well let me start by saying that a dollar is the main key to investing. There are alot of people who feels like they should be investing but thinks they cant afford it, well here is a solution to those who thinks they cant afford to invest.
Step 1) Start by going to the atm machine and taking out the amount you think you'll need for the week. I genearlly take out only 40, which is really low but can still pay for gas and little things here and there.

Step 2.) After step one, take your credit cards and debit cards out of your wallet and put them away, doesnt matter where, just not in your wallet.

Step 3.) Okay, the idea here is to pay for things only in dollar bills. So that way you can take the change and save it so later on you can put it into a jar.We're gonna call this your "Saving Jar". You will be surprised at how much money accumulates.

Step 4.) At the end of every month, take your jar and put it in your savings account.

When you look at a penny or a nickle, you think its pretty much worthless, but when you have a whole jar of em and you keep putting them in your savings account every month, it adds up. So it just takes time and patience. But what more you got to lose? This way you can spend and save at the same time, how much easier can it get?

Problem with everyone who "wants" to save

Okay, lets face it, we all know that we should invest but heres the problem; investing is hard to do! We all love to spend our hard earned money but cant bare to save any of it, why?

Well let me tell you why, its because we cant get enough of it. There are people who makes 60k+ a year and still have more debts than those who make 30k. How is this possible?

Problem; No matter what salary bracket your in, you have your own idea of what is "expensive" . The person who makes 30k a year will generally have a tighter budget than the person that makes 60k because they have to live with what they got. So when your budget is higher, than you tend to let yourself buy more things.

Solution; So put your shoes in the poor mans shoes, cause thats a great way to start. You'll notice that half of the junk you buy you dont really need. And with that money, you can be saving. You just have to adjust your lifestyle so that you have the room to save. For those of us who doesnt make 60k, which according to statistics most dont, you can start buy putting away your credit cards and only carrying cash. This way you can visually see whats being spent and whats being "preserved".

Tuesday, October 24, 2006

Desire to Retire: "3 things to consider when thinking retirement"

You must have a desire to retire in order to even start to wish you have anything saved up for retirement. There are two types of people when it comes to saving money; those who save and those who wish they were saving. Here are 3 things you should consider when thinking about retirement or just saving in general:

1.)Expect the unexpected-
Whether or not you think you got it all, all can be lost in a heartbeat. It always good to have something as a back up. Because emergencies happen to all of us, you have to save as if you got something important coming up.

2.)UnLimited Freedom-
When thinking about your retirement, you dont want to think about what your not going to be able to get or where you cant go, instead you want to think about the things you can get or places where you can go.

3.)Just feels darn good!-
When thinking about saving in general, its a hassle to put x amount in some savings account, but in the long run, you'll find it to be worthwhile."Self-sufficiency can be seen as patriotic, too -- when you can take care of yourself, society won't have to. ".

Having money in general just saves us all kinds of problems from taking places because when it comes down to it, everything revolves arounf money. Money can save a relatinship or break it, it can stress the crap out of you or it can make you feel like your a kid again with no worries. This is what it comes down to, money can break you or make you. Its just a good habbit to save and those with savings also tend to be a little more open-minded. :D

Investing is a hike

Investment or investing[1] is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. Literally, the word means the "action of putting something in to somewhere else"

Types of investment:
1.) Business Management
2.) Economics
4.)Personal finance