Exchange Ingredients

Consumer Hacks

2007-09-30T23:23:00.000-07:00

Hey guys, check out the brand spanking new site Consumer Hacks. You'll find great tips on new technology, gadgets, career news and just some general hacks to get through life.

Exchange Ingredients is back

2007-09-30T22:58:00.000-07:00

Hi guys, sorry for the long absence but exchange ingredients is back and running full time. We're excited to be back so check back for further updates.

Attractive people make more money?

2007-01-29T00:00:00.000-08:00

I came across an article called attractive people earn more money and I knew I had to read it. It's quite interesting. According to CNN Money, the good looking, slim, tall people tend to make an average of 5 percent more an hour than the average Joe/Sally.

"For example, the study found there was a higher beauty premium among private sector lawyers than their government-supported counterparts since private attorneys need to attract and keep clients. "

It also said that women who were considered obese in terms of their BMI (body mass index) earned 17 percent less than women within their recommended BMI range.

Sad to say but I think all this is true, especially in college life where job interviews and on campus career fairs are being taken place. If you've the following characteristics:

Tall
Slim/built
Good looking
Powerful voice

then you're more likely to get picked for that interview. I've noticed many of my friends who were obese and friends who were not and more attractive, with the same credentials go into career fairs and the only ones who came out with an interview were the more attractive ones.

Links around the corner

2007-01-25T18:34:00.000-08:00

Here are some good finance articles I came across today, check em out:

Stop overspending now, 14 ways to conquer binge buying

Three purchases that will ultimately save you money

Go open a roth Ira right now

Ten lowcost ways to reduce money stress

Cutting expenses part 1: utilities

How bad of a deal is a 50 year mortgage

10 Tips for Better Money Management

2007-01-25T12:22:00.000-08:00

See where you’re spending. Start your plan by writing down where you spend every dollar over the next month. You may be surprised at what you’re spending money on – and how much you’re spending on certain things.

Make a budget. Once you know what you’re spending and where, create a written budget and stick to it. It’s the most effective way to stay within your means and curb bad spending habits. Be sure to review your expenses against your budget monthly.

Stick to your budget. A budget won’t do you any good if you don’t follow it religiously. Build some self-discipline, and remember why you’re on a budget in the first place.

Reduce what you owe. The more debt you can pay off, the less interest you will have to pay, and the more you can funnel into savings and investments for the future.

Start saving. A savings plan helps meet financial goals and provides security. Set aside a percentage of your monthly income as savings. Ten percent is a good target if you’re in your 20s or 30s, more if you’re older and behind in your retirement planning. Make it the first “bill” you pay by setting up an automatic investment.

Plan for retirement. Contribute to an IRA or participate in your company’s 401k plan. The yearly maximum you can contribute to these tax-advantaged plans changes, so check with your accountant or company plan coordinator.

Pay with cash. It’s one of the surest ways to stay out of debt.

Get paid back. Your money is doing you no good in someone else’s pocket. Keep this in mind the next time you need to collect your roommate’s share of the gas bill or that $20 you lent to a friend.

Protect yourself from identify theft. Receive an early warning of potentially fraudulent activities.It’s also smart to request a credit report annually

Keep good records. Save yourself from scrambling at tax time – and don’t miss any deductions – by organizing your financial records early in the new year. Be sure to save receipts, cancelled checks, pay stubs, bank and investment statements, and proof of any other deduction you want to claim, such as alimony, charitable contributions, or mortgage interest.

This list was gathered from paypal.com

General tips on Insurance

2007-01-23T19:56:00.000-08:00

Most of us pay our automobile and homeowners insurance premiums by habit, rarely if ever making comparisons. With many families insurance costs totaling over $2000 a year, even a 15% savings equates to $300 annually. Some hints from the Insurance Information Institute on saving money on your homeowners insurance include:

Be sure to shop around. It may take a little time, but it could save you money. The insurer you select should offer both a fair price and excellent service

Raise your deductible. Deductibles on homeowners policies typically start at $250. By increasing your deductible to $500, you could save up to 12%.

Beef up your home security. You can usually get discounts of at least 5% for a smoke detector, burglar alarm or dead-bolt locks

For automobile insurance the Insurance Information Institute recommendations include:

Shop around. Prices for the same coverage can vary by hundreds of dollars from company to company, so it pays to shop around. Surf the net, ask your friends or call your state insurance department for ideas about companies and agents to contact.

Ask for Higher Deductibles. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15% to 30%.

Take Advantage of Low Mileage Discounts. Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.

Tips to make your new year happier

2007-01-19T13:28:00.000-08:00

By Gerri Willis

A new year has arrived. So it's time to get started on that January to-do list for your home. On top tips we'll give you the tools you can use to check these chores off your list.

1. De-junk
If you found a new computer, cell phone or camera under the tree, but your pile of old gadgets keeps piling up, it's time to give the heave-ho to that e-junk.
To donate your old Mac or PC, contact the National Cristina Foundation (www.cristina.org), which has affiliates in all 50 states. To find groups in your area that are in need of donated electronics, go to sharetechnology.org.
Of course, you'll want to completely erase your hard drive when you do this. There are a number of software programs you can use to do this, like McAfee's QuickClean program for about $24.00 or Acronis' Drive Cleanser.
If you just want to recycle some ink jet cartridges or cell phone batteries, check some retailers in the area. Often places like Best Buy or Circuit City will have recycle drop-off areas.

2. Check your insurance coverage
The new year is a perfect time to check your flood insurance coverage. If your area is prone to flooding, you'll want to get insurance. Contact the National Flood Insurance Program at (888) 379-9531 or www.floodsmart.gov.
Remember, it won't cover everything. In fact, you'll pay $400 to $500 for only about $250,000 worth of coverage. Floods aren't the only reason you might need to buy more insurance protection.
Home values have risen over 50% over the past few years. That means you'll need more insurance for your home in case it needs to be rebuilt. To get a grip on how much coverage you need, get a contractor to estimate the cost of rebuilding your house using materials at today's costs.
Oh, and while you're at it, snap a few photos inside your home. That may prove more valuable than you think when it comes to making insurance claims.

3. Call a handyman
If fixing that leaky faucet or finally patching that hole in the wall is something you want to tackle in the new year, you may want to consider hiring a handyman.
While word of mouth is still a pretty safe bet, here are some places you may want to check out: Handymanconnection.com, servicemagic.com and homefixology.com.
To get some reviews from customers, check out sites like Angies list where people report their customer experience with handymen and other areas of home improvement.
Keep in mind there is a monthly membership fee. Generally you'll want to interview at least three handymen for the job and of course, you should get references.

4. Trim your payments
If you pay private mortgage insurance because you didn't put down 20 percent when you bought your house, now is the time to take a close look at what you're paying. If you took out your mortgage after July 1998, and you've paid off about 22 percent of the loan, your lender must cancel your PMI.
Any gain in your home's value from appreciation may help you get rid of PMI. You'll have to prove to your lender that the value of your home - including price gains - has increased enough to let you off the hook for PMI.
This annoying burden can be up to $50 a month for every $100,000 worth of debt. A word of caution though...before you spend about $300 bucks for an appraiser to find out how much your home's value has risen, understand under exactly what terms PMI can be waived. Individual mortgage terms can vary.

Why you should use google

2007-01-14T16:20:00.000-08:00

Here are some benefits of using google's search engine.

Your search covers billions of URLs.Google's index, comprised of billions of URLs, is the first of its kind and represents the most comprehensive collection of the most useful web pages on the Internet. While index size alone is not the key determinant of quality results, it has an obvious effect on the likelihood of a relevant result being returned.

You'll see only pages that are relevant to the terms you type. Google only produces results that match all of your search terms or, through use of a proprietary technology, results that match very close variations of the words you've entered (e.g., if you enter "comic book", we may return results for "comic books" as well). The search terms or their variants must appear in the text of the page or in the text of the links pointing to the page. This spares you the frustration of viewing a multitude of results that have nothing to do with what you're looking to find.

The position of your search terms is treated with respect. Google analyzes the proximity of your search terms within the page. Google prioritizes results according to how closely your individual search terms appear and favors results that have your search terms near each other. Because of this, the result is much more likely to be relevant to your query.

You see what you're getting before you click. Instead of web page summaries that never change, Google shows an excerpt (or "snippet") of the text that matches your query -- with your search terms in boldface -- right in the search results. This sneak preview gives you a good idea if a page is going to be relevant before you visit it.

You can feel lucky and save time doing it. Google excels at producing extremely relevant results, and flat out nails many queries such as company names. We're so confident, in fact, that we've installed an "I'm Feeling Lucky" button, which takes you directly to the site of the highest ranked result in your search. Try it and let us know if our confidence is justified.

You can get it, even when it's gone. As Google crawls the web, it takes a snapshot of each page and analyzes it to determine the page's relevance. You can access these cached pages if the original page is temporarily unavailable due to Internet congestion or server problems. Though the information on cached pages is frequently not the most recent version of a site, it usually contains useful information. Plus, your search terms will be highlighted in color on the cached page, making it easy to find the section of the page relevant to your query.

Six Ways to Save on Auto Insurance

2006-12-25T14:19:00.000-08:00

The Insurance Information Institute (III) reports a mere 0.5% increase for 2006, bringing average annual costs to $867. This marks the smallest increase in five years.

But just because prices aren't breaking the speed limit doesn't mean you should be complacent about costs. With a few relatively painless steps, you can probably find yourself a cheaper policy. Here are six ways to save:

Shop Around

Get All Available Discounts

Increase Your Deductible

Drop Some Coverage

Clean Up Your Credit Report

Get the Right Car

10 tips for stress-free shopping

2006-12-14T22:19:00.000-08:00

I found this article on money.scotsman.com and its got nice tips on stress free shopping so I figured I post it here for my readers to read. I think since it's the holidays, many people could use these tips

Start sooner rather than later to avoid panic-buying.

If you're struggling for ideas, ask the people you are going to buy for what they would like.

If you want the gift to be a surprise, ask other friends or family members for tips.

Don't wander around the shops aimlessly - write a shopping list.
Do as much shopping as you can online.
If you don't want to buy expensive items online or want to see them first, use the net for research. This will give you an indication of how much you can expect to pay for items.
Consider taking a day off work rather than struggling with the weekend crowds.

Ask for a gift receipt (which does not show the price) - if your gift doesn't hit the spot, your recipient can exchange it easily, without embarrassment.

If you're worried about how much you might spend, leave your credit cards at home.
Treat your friends or family to dinner or an evening at the theatre instead. No shopping
required and you both get a treat.

How to negotiate a pay raise

2006-12-09T18:22:00.000-08:00

It can be really tough when it comes time for asking for that raise. But there comes a time when it makes sense to say to your manager, "I believe I am worth more to this company than what I am being paid. I would appreciate a raise."

Keep in mind that managers need more than a string of "really"s to make an effective argument for granting a raise. "I really, really, really need more money," will really, really, really fail in most cases. You want to never try to make a case for a raise on the basis of need. Organizations can stay in business only by paying people what they contribute to the bottom line, not their needs.

Things to do before you talk to your manager about the raise:

You want to start preparing by first researching salary levels.
Focus on your accomplishments, your commitment and the value you add to the company.
Ask for a one-on-one meeting and be confident about your proposal for an increase that reflects both your contribution and the company's considerable growth

Things to do while talking to your manager about the raise.

Bring along a copy of your performance review if it will help your case. If it's not a great review, be prepared to show how you've shown improvement.
Provide hard copies of positive e-mails you've received from your supervisor, other employees or customers.
Provide a list of major assignments that you've gotten good feedback on.
Use a salary calculator to see how much people who share your job title and location are making
Have some idea about how your role feeds into the bottom line. Do you attract customers, who in turn spend money? Do you support teams that generate revenue for the company? Do you constantly look for ways to save the company money?
Avoid issuing an ultimatum unless you're prepared to stand by it. Employees will often say, in so many words, that either they get a raise or they will quit. If you're just bluffing, be prepared for your supervisor to call your bluff. It happens more often than you might think

How credit scores are calculated

2006-12-04T23:50:00.000-08:00

You can definitely get lenders attention by filing for bankruptcy but the small things can also have just as big of an impact on your credit score. Here are 5 areas in which credit lenders look to judge your credit score:

1. Past payment history-Your payment punctuality weighs heavily (about 35%) on your credit score.On the flip side, by paying your bills consistently on time, you can greatly improve your overall score.

Amounts owed- Add up all of your outstanding balances and compare the number to the amount of credit that is available to you. If you are reaching or exceeding your credit limits (perhaps you've heard the term "maxing out"?), lenders will get antsy.

Length of credit history-Fifteen percent of your credit score is determined by how long you've been using credit.Obviously, the longer your credit history, the more favorable lenders will see you. Your score in this area also takes into account how long it has been since you used certain accounts

Amount of new credit-Each time you apply for new credit, an inquiry shows up on your report. Red flags start waving when you take on more credit -- or even just apply for new credit in a short period of time.

Types of credit-Types of credit include credit cards, retail accounts, and installment loans (like car loans and mortgages). Your use or over-use of these has a 10% impact on your overall score.

Surprising 6 figure jobs

2006-11-30T15:33:00.000-08:00

Want to make six figures? Here is a fun list of 6 figure jobs that I think are reasonable.

Court Reporter- If you got the skills to type 200+ words a minute, then this is your job. Special skills like this is always in demand
Professional Coach - About 20% of 10,000 coaches make six figures, according to industry estimates.
Mine Manager - Claustrophobia aside, this profession has a median of 106,000 dollars a year for those with the project management skills.
Sales person - Also know as the world's easiest high paying job for some, and the toughest low paying job for others. If you have a way with people, then this job is for you.
Truck Drivers - These long haul truck drivers whose willing to be on the road for weeks can pull over 100,000 dollars plus benefits.
Tech Writer - For those who understand high-tech issues, with the ability to write about them in way that makes them understandable to the masses, this job could be for you.
Restaurant Managers - If you able to work your way up from a kitchen staff or a waiter to a store manager, you could be making six figures.
Air Traffic Controllers - If you can manage the stress and then your looking at starting around 100,000.
Elementary Principle - The national median is said to be 76,000 a year but if you live in those higher income areas with large enrollment

Ideas to keep in mind to prepare for 2007

2006-11-29T19:00:00.000-08:00

We all know that 2007 is just around the corner so lets start preparing for the new year. Here are some things to keep in mind for this new up coming year and things you should consider.

Stop driving so recklessly. To save at the pump, be smart at the wheel. For every pound per square inch your tires are under-inflated, you cut mileage by 1% to 2%. Save up to 30% by replacing dirty spark plugs and air filters. Accelerating and braking quickly lowers your highway gas mileage by 33%. At home, plug leaks. Install a programmable thermostat and shave 10% off your bill.

It's a buyer's market. Drive a hard bargain. Real estate in 2006 turned a corner - and not a good one. In the past year, home prices have dropped 2.2%. In this kind of a market, once you've found the house you want, start the bidding at least 15% below the asking price. Barry Miller, a broker and owner of Denver-based Buyers Only America Realty, says that's the average discount his clients are getting.

Invest your tax refund for retirement, automatically. Starting with your 2006 tax return, you'll be able to directly deposit your refund in an IRA. Yield not to the temptation of spending your refund - just get yield.

Vanguard Growth Index.Blue-chip growth companies have returned only three-quarters as much as the S&P 500 this year and even less of the Dow's gains. And they're still at least 20% below their normal valuations, as measured by their price-to-earnings ratios.

When will you be a millionaire?

2006-11-28T23:12:00.000-08:00

It seems that everyone is trying to climb that millionaire ladder of success, that includes me. My goal is to get there by the early 40's. Think its reasonable? I certainly do, heres my plans/situations and what defereniate me from the rest.

I am currently in school and will have absolutely no loans after Im done. In fact, I am currently getting paid to go to school.

I will have a steady income of 50k+ a year after graduation, which is a nice start.

The company that I work for will pay for my masters and in returns will also give me a nice raise.

My plans to own my home by the age of 25 will help me by not dumping my money away to pay for rent. The monthly mortage will be going towards my house.

I have plans for investing in real estate and expect to own a few houses by mid 30's, where I will be renting out to people for monthly income.

I intend on putting away most of my checks in index funds.

I have a great start just because I started to save/invest at such an early age.

I think long term and have already started planning out my budget for my first home.

These are just some cases and plans I currently have. Here is a site that calculates when your gonna hit your million mark. After putting in my data, my results came out to be 20 years and 6 months. Have fun.

Smart ways to save money in a divorce

2006-11-27T21:00:00.000-08:00

I read a story from msnbc about how to save money in a divorce. Now we all know that divorces can get pretty expensive but where does all that money go? Here are some highlights from the article. Enjoy:

Down and Dirty:

"The average cost of a wedding is just under $28,000, according to Conde
Nast Bridal Group — double what it was 16 years ago. The average cost of a
divorce? "That's like asking how much a car costs," says John Crouch, a
family
law attorney who practices in Arlington, Va.

Divorce proceedings can range anywhere from several hundred to several
thousand dollars. Estimates on the average cost of a divorce in the U.S. range
from $15,000 to $30,000."

The eye opener:

"The simplest — and the cheapest — way of handling divorce proceedings is to do all the negotiating and paperwork on your own. Web sites like divorce.com, divorceonline.com and completecase.com offer an array of information and services to assist you, from state-specific legal forms to downloadable divorce kits.

If your finances are simple, you don't have any shared debt, and you and your spouse can reach an agreement on custody arrangements, this may be an attractive option, and it will generally run you between $50 and $250. "

Five rules for investing

2006-11-14T00:33:00.000-08:00

Setting your goals is an important step when considering to start investing. You should have an investment plan which can help you develop a strategy that suits your goals and financial situations. But im gonna assume that you have already done that. So here I present to you five rule for investing:

Diversify

Keep costs down

Pay attention to taxes

Buy and hold for the long run

Know yourself

1.)Keep in mind that all investments involve some risk. The best thing to do is to spread the risk around by investing in a mix of stocks, bonds, and cash investments and diversifying your investments within each of those asset classes. This way if some investments are not doing so well, the other investments may help even out the ups and downs of your overall portfolio.

2.)Dont let the costs fool you into thinking that higher costs and fees means you'll get more for your money. Normally, people think that you get what you paid for but when buying mutual funds, this is not the case. Overall , higher costs and fees will reduce your total performace.

3.)After the investment costs and inflation, taxes take the biggest bite out of your return. For your taxable accounts, consider investing in:

Municipal bonds or municipal bond funds, which are exempt from federal (and often state and local) income taxes.
Tax-managed mutual funds, which use special strategies in seeking to reduce taxes on investment returns.
Index funds, which tend to have lower turnover and so are less likely than actively managed funds to pass along taxable gains. (This may not always be the case for index funds that track a benchmark for a narrow market segment or industry sector.)

4.) Dont waste your time trying to figure out the picdict the martket. No one can predict the ups and downs of the market often enough to make market-timing a consistently winning strategy. Just be patient and hold your ground.

5.) Know what you are comfortable with. If you cant sleep at night because your over-worried at the fact that the value of your investments is bounding around, then you need to build a portfolio with a more conservative mix. This way may not reach you to your goals asfast, but as least you will be more comfortable and more rested along the way.

How to create your investment plans

2006-11-13T11:25:00.000-08:00

The concept of investing can be very intimidating at first. You ask your self, where do I start? Stocks, bonds, cash investment? In order to start, you need to set your financial goals, whether you want to save for your retirement, school education, new house or starting up your own business. To succeed as an investor, planning and discipline is a must.

First step in creating your investment plan is to know what you want to do with your money and when you'll need it.

Check your time frame, this is important because your investments will rise and fall in value throughout the time you own them.The longer your time frame, the greater your ability to ride out the ups and downs of the markets. Because you won't need your money right away, you can more reasonably select investments whose values might fluctuate in the short term in hopes of earning greater returns over the long term.

Consider all your goals. Ask your self how can I invest to meet my goals. Whatever your goals are, keep in mind that the sooner you start the better your off.

Understand and choose your assets. Take the time to understand the basics of each asset class and how you can spread the risks around.

Stocks. Stock represents a share of ownership in a corporation. Stock returns are based on a company's dividends and profits and how investors assess its potential for future profits. Historically, stocks have provided the highest returns over time, but stock prices fluctuate — sometimes dramatically. Investors typically choose stocks for growth of capital, which can help them stay ahead of inflation over the long term.
Bonds. Bonds are IOUs issued by governments, government agencies, and corporations. Interest-rate changes directly affect the prices and returns of bonds, but in general, bond prices fluctuate less than those of stocks. Investors typically choose bonds to receive income and to diversify stock portfolios.

Cash investments. A cash investment is a very short-term IOU issued by a government, corporation, bank, or other financial institution. Using the interest payments from such IOUs, money market mutual funds provide income—most often, less than that provided by bond funds—while maintaining a stable price of $1 a share. Investors typically rely on this type of fund to stash money they'll need for emergencies and short-term goals.

Once you have decided what asset your comfortable, your next step is to select the right investments. Although you could build your portfolio with your own individual stocks, I recommend starting with a mutual fund.

The next thing is to know when to change your investment mix. Life changing events can alter your financial situation and give you good reasons to change your mix. If you need to make a change, you can rebalance in three ways:

Make an exchange. If your asset allocation is dramatically out of balance, you can transfer money from one type of fund to another. If you move retirement money within your employer's plan or an IRA, you won't owe any taxes. Outside a retirement plan, however, you may incur taxable capital gains by exchanging shares. If this is the case, you may prefer to rebalance using one of the next two methods.

Redirect your new investments. You could simply add new money to the asset class that's underrepresented in your portfolio.

Redirect dividends and capital gains. Have your fund company invest dividends and capital gains from funds that have grown out of proportion in the funds that need a boost.

Next and final step is to take action. Once you have designed your plans, start working on it. Remember that the longer you wait, the more you miss out. Each day counts.

Thomas Edison once said "Opportunity is missed by most people because it is dressed in overalls and looks like work.".The truth is there’s no magic to investing, anyone can learn to do it with just a little effort.

5 easy steps to follow your "to do list".

2006-11-10T19:58:00.000-08:00

Here's an idea that i came up with which basically helps me accomplish my goals, this really works for me so try it out.

My 5 easy steps, here they are:

Step 1: Go buy some post-it note pads. You know, the ones where you can take each sheet and stick it on a wall or something. They're really cheap and you can find them anywhere.
Step 2: Now write down your goals and or activities you want to accomplish on these note pads. For each goal, write it on a separate post-its. Make sure to not get too detailed when writing these posts. You want to keep it simple and short enough so that you can read it just by looking at it for a second or two.
Step3: This is important, make sure that on each post-it pads you write down the expected date you want to accomplish your task, or else it will never get done.
Step4: On each post, get a red pen and write on the bottom "$five dollars". (starting to get the idea?)
Step5: Stick these posts where you can see them everyday. I have mines on my wall right next to where I sit when I'm on my computer.

Now your ready to start. The main idea here is this. Now you have posts on your wall (or where ever you decide to put them) and for every one you have an objective or a goal with a date in which you want to accomplish your task. Basically how it works is this, if you cannot accomplish your post within that due date, you pay the penalty fee, which is written on each of these posts. You can set the amount to whatever you want whether it be 2 dollars or 10 per post, just don't cheat yourself.

Look at it like this, think of these posts as price tags. For each of these tasks/goals you cannot accomplish, you have to pay x dollars. Now you ask "where does this money go?". That's the great part about this, they all go into the "savings stash" or your "savings account" or where ever, it doesn't matter as long as your saving it. So now, you will try harder to get these goals/objectives done because not only do you see them everyday but it has a price tag on it! Isn't that great? When i look at my post, it makes me want to get things done because i don't want to pay that red fine.

It can't get any better than this. You either get your "things to do" accomplished, or you have to put money away for savings. Regardless, your helping your self achieve more by supporting each cause. You just gotta love how this works, does it get any easier?

Retirement, start a 401(k) plan!

2006-11-09T14:40:00.000-08:00

Most people have questions regarding 401k plan, many wonders how it works, what it is or how you can revive the dwindling balance in your 401k.

The 401(k) plan is a type of employer-sponsored retirement plan named after a section of the United States Internal Revenue Code. A 401(k) plan allows a worker to save for retirement while deferring income taxes on the saved money or earnings until withdrawal.

If your company offers a 401k retirement plan, which most companies now do, then you are given the opportunity to start investing towards your retirement. Your company will provide you with a list of funds they use for the plans that they offer and gives you the choice of which to invest in and also the percentage of how much you can invest.

Now, all you need know is how to get started. Contributing to a 401k plan is like investing in a car, it can be very useful as long as you don't crash.

First off, you need to figure out how much you're allowed to put in your 401k each year. When you find out how much your able to put in, you need to max it out each year if possible. Especially if you're just now starting to plan for retirement and you have less then 20 years, you're gonna have to put more away then someone who still has more than 35 years left. Either situation, you should still try to put in as much as your allowed.

Then, find out if your employer offers any kinds of matching contribution. The typical employer will match 50% of what you put in, so 50 cents to the dollar, which is a sweet deal.

Overall you want to start asap. Starting early will give you a huge lead than someone starting later on.

So the major benefits of 401k plans:

Dollar-Cost Averaging - 401k plans are invested at regular intervals by payroll deduction. This helps force you to save, and it smooths out the bumps inherent in any futile attempt to time the stock market.

Employer Matching - Most, but not all, employers will match a certain percentage of the funds that you contribute. This is free money!

Tax Benefits - 401k plans allow individuals to invest up to the current federal limit (last time I checked it was $10,000 per year), and the interest earned is tax-deferred and continues to grow until you retire.

Compound Interest - Start saving just a little bit each and every month and you can build a size-able fortune over time. Check here for an interesting story about Rick and Harper.

401k plans are very popular and an excellent way to plan for your retirement. Keep in mind as with any other investment, you still need to carefully watch your portfolio and make wise investment choices.

Mutual Funds 101

2006-11-08T23:52:00.000-08:00

Buying a mutual fund may be the smartest decision you can ever make , however with over 12,000 mutual funds to choose from, it can also be your worst if you don't know what your doing. If your thinking to invest in a mutual fund, then your in the right process of thinking, but you have to make sure that you do your research first. There are some things you should know before you get into investing in funds.

Things to know:
1.) What is a Mutual fund
2.) Different kinds of stock funds
3.) Importance of low expenses
4.) Don't go after the "winners"
5.) Don't be too quick to dump a fund
6.) Be aware of taxes

1.) A mutual fund is simply a collection of stocks and/or bonds.A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real estate or other securities, according to its charter. Each investor in the fund gets a slice of the total pie.

2.) The different kinds of stock funds includes growth funds, which buy shares of burgeoning companies; sector funds, which buy shares of companies in a particular sector such as technology or health care; and index funds, which buy shares of every stock in a particular index, such as the S&P 500.

3.) The importance of low expenses are crucial when looking for a fund. Companies add on these expenses to cover their expenses and to make profit of course so watch out for these. They don't charge more a few percentage points a year, expenses may not sound substantial, but they create a serious drag on performance over time.

4.) Don't go after the winners because stats show that funds that rank very highly over one period of time rarely finishes on top in the later ones. When choosing a fund, do some research and look for consistant long term results.

5.) Don't be quick to dump a fund because every fund will have its off year. If you find your fund to be losing a little here and there don't be so quick to dump it. Although you may be tempted to sell a losing fund, check to see its previous behaviors and see if whether it has trailed comparable funds for more than two years. If it hasn't then be patient. However if earnings have been consistently below par, it may be time to move on.

6.) Be aware of taxes even if you don't sell your fund shares, you could still end up stuck with a big tax bite. If a fund owns dividend-paying stocks, or if a fund manager sells some big winners, shareholders will owe their share of Uncle Sam's bill. Tax-efficient funds avoid rapid trading (and high short-term capital gains taxes) and match winning trades with losing trades. Also don't double pay your taxes!

Now here are some advantages and disadvantages of mutual funds:

Advantages:

Low start -You can get started for as little as $100, but 2000 - 3000 is the common minimum.
Diversification- Buying a mutual fund provides instant holdings of several different companies.
Liquidity- Like individual stocks, a mutual fund investment can be converted into cash upon your request, in other words, it gives you convenient access to your money

Disadvantages:

The Wisdom of Professional Management- That's right, this is not an advantage. The average mutual fund manager is no better at picking stocks than the average nonprofessional, but will charge you fees as though he/she is.
No Control- Unlike picking your own individual stocks, a mutual fund puts you in the passenger seat of somebody else's car.
Dilution- Mutual funds generally have such small holdings of so many different stocks that insanely great performance by a fund's top holdings still doesn't make much of a difference in a mutual fund's total performance.
Buried Costs- Many mutual funds specialize in burying their costs and in hiring salesmen who do not make those costs clear to their clients.

The key thing is to research research and research. You want to have a very good understanding of how all the fees work and review their prospectus. Their Prospectus should provide things such as fees, objectives, risks, etc. All in all, study and know what your putting your money into. There are many websites with very useful information and here are some that are updated pretty frequently. Have fun!

Best and worst money moves

2006-11-07T15:12:00.000-08:00

This post was inspired by jims My Best and Worst Money Moves Ever (So Far!). and Henrys BD’s Best (and Worst) Money Moves . My best and worst money moves is also related to one another and it all happened within this year. Lets start with my worst..

Worst money move ever: So this summer started off with me getting a high paying internship. I was really excited and didnt know what to do with the money i was raking in so i was just looking for things to buy. Then the thought of buying a car came accross my mind. So of course ifound a nice car, a 2000 Honda Prelude for 8,700 dollars, which was a sweet deal at 85k miles(considering the original base cost was at 24 thousand).

So when i went to go test drive it,i fell it love with it. Such a great car btw. Then i did the stupidiest/worst move ever.

I bought the car wtih my credit card. STUPID ANDY!!!

When i bought it, i figured i would pay it off before the summer was over cause i was making some sweet dough over at my internship...however that was not the case. After putting 8,700 on my car, all other things started piling on top too. My insurance was about 600 at the time(for 6 months) and also had to pay for registrations fees which was another 500 bucks, and it gets even worse...i ended up buying 4 new tires for my car.(dont even ask why).

So by this point my credit card was almost at 10 thousand, insane! But it gets even worse...sometime a month from that point i got into this accident that costed me another 2,200 dollars. This accident was purely BS btw, long story short, some 100 year old dude ran into me from the side cause he wasnt looking and because there were no witnesses i had to pay the damage(you can check out the post here). So...after all that i was seriosuly hurting, which totaled the credit card debt to 12 thousand dollars!

As of today, i am still paying for this mistake and im currently at -6k, you can check out a post i made relating to how i plan on paying off my debt here. But hopefully all this nightmare will soon be over.

Best money move ever: My best money move ive ever made didnt physically save me or earned me a dime, or at least not yet. My best money move came from me learning from my previous mistake during this part summer. I now know the importance of saving and through this summers mistakes it put me on track of owning a home at the age of 25.

All in all, my worse move was also my best move, and if i were given the opportunity to take back buying my car i wouldnt because that experience was well worth the 12 thousand credit debt and eventually will make me a millionaire. :)

Hooray for casinos!!

2006-11-06T23:00:00.000-08:00

Even though the casino can be extremely fun and addicting, it can also really get to you when you realize that your 2 grand in. Have you ever been in a situation where your night goes by so fast and you keep telling yourself " I'm only down x and I can come back", then you realize that by the time you told your self this 5 times, the score becomes, CASINO : 1 YOU: 0. Yes, the casino has officially won that night, you have just been another victim of "the attack of the casinos".

Well let me say that you can't expect to beat them over an extended period of time. All their games like craps, video poker, roulette, slots, keno, my favorite..Texas hold em, must be regarded as being strictly entertainment because the odds in these games are always tilted against the player. The house enjoys an advantage in those games on virtually every bet, so players are bound to ultimately lose(exception to hold em and other poker type games where its mainly based on the players). And i think that everyone knows this fact, however people still go to casinos thinking that they can "beat" the system and become the next millionaire over night. It is mathematically impossible to keep winning for an extended period of time.

BTW casinos love these kinda people who think that they can beat their game. Yes, their game! One thing to keep in mind when your gambling is, have fun. I know you guys are thinking, no one goes to gamble to have fun, well no, they don't, but keep in mind that your bound to lose so try to make the best of it while losing. :)

The race to $0

2006-11-04T21:44:00.000-08:00

Doesnt that sound great? Forget trying to save, im trying to get to freakin zero. On my last post, i was talking about my plans on owning a home at the age of 25 and how im currently at -6k. Well my friend henry and i are trying to make our way into the postive networth here. He puts up a post similair to mines and he gives us a little update on his Net worth, check it out.

Henry says that he should be hittin the positive mark sometime in 3-4 months but im gonna try to get there within the next two months, i think i can do it i just have to stick real tight with my budget. This means no more frequent stops at mcdonalds or if any at all. :(

How i plan on buying a home at the age of 25

2006-11-03T16:07:00.000-08:00

I originally wanted to make this post about my top 10 goals, but when i looked at the list i realized that majority of my goals were leading toward owning a home. The toughtest part of buying a home is coming up with the downpayment so thats what im going to concentrate on. So heres what i came up with.

My Stats:
current saved so far: $0
Projected saved : $50,000

Buying a house:
My current status is at -6,423.23, this includes credit cards, car loans and whatever i felt like i owed.My goal is to have at least 50k saved up for downpayment on the house so here is the plan. After this december, i should be completely debt free! So i can start investing my money in an mutual fund. My general idea on how i plan on going about this is %75 percent of my check goes to the savings and the rest goes to paying life. Now heres all my sources of income:
Estimate per month while in school
1.) Work1 1,200
2.) Work2 600
3.) refund check 3,400 x 2 (once per semester)
4.) Girl friend's refund check 1,400 x 2 (once per semester)
*note: Basically, we're getting married so her refund check is going into savings also : )
-------------------------------------------------
Total amount in 8 months = 24,000

soooo....take %75 of this, which comes to 18,000. Now keep in mind this is only 8 months out of the time im in school. So lets also consider 1 month for winter break and 3 months for summer vacation, comes to 4 months.
Estimae per month while out of school

1.) Work1 2,200
2.) Work2 600
-------------------
Total amount in 4 months = 11,200

..and %75 of this comes to 8,400.Okay so we'll combine these two, only taking %75 and i get (18,000 + 8,400 = 26,400). I can save up a total of 26,400 per year if i can stick to this rule. Now, lets say i were to invest this in a mutual fund. According to a compound interest calculator this is what i got:

Inputs:
---------------------------------
Current Principal: $0.00
Annual Addition: $26,400.00
Years to grow: 4 years
Interest Rate: 5% *(fairly pretty low)

Outputs:
---------------------------------
Future Value: $119,476.67 *(Sweet!)

So, in conclusion i can have $119,476.67 by the time im 25. Now you guys are thinking....wait a minute, what about rent, food and all the other crap life has to offer. Well, i happen to have my room and board completly paid for til i graduate and that also includes food. So, this is pretty really realistic for me, i just have to stick to it.

Things to remeber:
-Keep up good credit score
-Keep researching the martket
-Keep girlfriend

Save $1000's by investing in pre-paid legal

2006-11-02T01:39:00.000-08:00

The average cost of a lawyer is estimated to be around $200 - $350 per hour, and this does not cover any kinds of other fees that might be attached. Now tell me who do you know that can pull out couple grand out of their pocket at any given time, cause thats about how much it would cost to get a lawyer. The solution to this is Pre-paid Legal. Pre-paid legal services refers to individual or group employee benefit legal plans in which members pay a monthly fee in exchange for access to a range of legal services on-call.

There are a number of reasons for choosing a pre-paid legal service.

Let me ask you this, have you ever..

Been overcharged for a repair?

Received a speeding ticket?

Been audited?

Purchased a home?

Tried to return a defective product?

Lost a security deposit?

Signed a contract?

Prepared a will?

Been in an accident?

Even though most people find themselves in these situations, the majority do not seek the advice or help of a qualified lawyer because

1.)It may cost too much.

2.)They may not know where to begin.

3.)The process is intimidating.

By having prepaid legal, you can call and talk to a lawyer about anything and get legal advise on how you should handle certain situations. Well theres a saying that goes like this," If you don't know your rights, you don't have any! ". If having prepaid legal services means having protection for me and my family and this only costs me 17 dollars a month, then its worth the investment cause you never know what lurks around the corner. When you get into a situation where you know your being taken advantage of, sometimes all it takes is a letter from a lawyer to end it right there. You just never know thats gonna happen.

This past summer i had a car accident(right after i bought my car btw) and it was %100 not at fault, but guess what, i had to pay the damage of my car which came to a total of 2200 dollars because of two things.

1.) the driver did not admit to hitting me on my side

2.) there were no witnesses

I later found out that all I needed was a lawyer to handle this situation and i would have saved 2grand simply because I didnt know what to do and how to approach the problem when it happened. So learn from my mistake and get prepaid legal because i dont know what else you can buy for $17 thats more important. You can check out their site by clicking here

Here are some general benefits of having prepaid legal:

*Writing a will for you and your spouse.

*Creating trusts.

*Court representation on charges such as DUI.

*Mediation in neighbor disputes.

*Representation in real estate transactions.

*Review of contracts.

*Divorce.

*Discounts on legal services through a network of attorneys;

*Free legal services, such as the preparation of a property deed or simple will;

*Access to a database of legal forms and documents.

CBCNEWS has an article Pre-paid legal services: Worth the money?, you should check it out.

Top 10 Jobs in America

2006-11-01T17:35:00.000-08:00

CNNMoney.com has an article that Lists the top 10 bests jobs in America. MONEY Magazine and Salary.com has researched over hundreds of jobs while considering their growth, pay, stress-levels and other factors, and these careers ranked the highest:

1. Software engineer
2. College professor
3. Financial adviser
4. HR manager
5. Physician assistant
6. Market research
7. Computer IT analyst
8. Real Estate appraiser
9. Pharmacist
10. Psychologist

WOOHOO! Go software engineering! The job comes to an average of 80,500 a year while starting is at 44,800. So the pay is decent and definitely enough to make a living on(leaves a lot of room for investing). Coming from an S.E perspectives, I think the greatest thing about it is that it gives you the room to be an artist. I like the fact that your in control of your own implementation (for the most part) and it makes you feel like you own a part of an application if not the whole thing, and thats a great feeling :)

Heres some interesting facts about S.E from Money Magazine:

1. Software Engineer

Why it's great Software engineers are needed in virtually every part of the economy, making this one of the fastest-growing job titles in the U.S. Even so, it's not for everybody.Designing, developing and testing computer programs requires some pretty advanced math skills and creative problem-solving ability. If you've got them, though, you can work and live where you want: Telecommuting is quickly becoming widespread.The profession skews young -- the up-all-night-coding thing gets tired -- but consulting and management positions aren't hard to come by once you're experienced.

What's cool Cutting-edge projects, like designing a new video game or tweaking that military laser. Extra cash from freelance gigs. Plus, nothing says cool like great prospects.

What's not Jobs at the biggest companies tend to be less creative (think Neo, pre-Matrix). Outsourcing is a worry. Eyestrain and back, hand and wrist problems are common.

Top-paying job Release engineers, who are responsible for the final version of any software product, earn six figures.

Education Bachelor's degree, but moving up the ladder often requires a master's.

If you want to see the rest of the list, it goes to 50, check it out on CNNMoney.

Saving account, super charged!

2006-10-31T18:41:00.000-08:00

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!

Rules for getting out of debt

2006-10-30T19:23:00.000-08:00

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.

The importance of having good credit

2006-10-29T20:47:00.000-08:00

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.

Spend and Save at the same time!

2006-10-26T14:38:00.000-07:00

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

2006-10-26T13:43:00.000-07:00

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".

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

2006-10-24T15:04:00.000-07:00

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

2006-10-24T13:22:00.000-07:00

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
3.)Finance
4.)Personal finance