Archive for August, 2011

Shopping for the Best Credit Card

Author: sciaq

Aug 19

Although it’s wise to pay off all your credit card debt, it’s also practical to have one or two good credit cards.

When you travel or want to order something online, it makes good sense to have a credit card. Plus, using your card responsibly will positively contribute to your credit score.

But which card is the best? The answer can be found in which one best meets your own personal needs. The best credit card for someone else may not be the best one for you.

Use these strategies to help you determine which card may best meet your needs:

1. Choose a credit card that has no monthly fee. Never pay a monthly fee just to have a credit card.

2. Avoid a variable interest rate credit card. A variable interest rate credit card has fluctuating interest rates over which you have no control. Make an effort to get a credit card with a fixed interest rate.

• Also, be leery of any cards that advertise 0% interest for the first 12 months. Find out what the interest rate will be after the initial interest-free period. You may find the interest so high that it’s simply not worth it to get the first year at 0% interest. Plus, know what can trigger the end of your 0% interest – you might not even enjoy it for one year!

3. Read the fine print. Even though the fine print “legalese” is difficult to decipher, it’s important to be on the lookout for hidden fees and charges.

• Read the terms and conditions of the card at home when you have plenty of time.

• Highlight any areas of the terms that you have concerns about or need to clarify.

• If you’re unable to get answers to your questions or receive clarifications for a better understanding of the card issuer’s policies, walk away. You’re wise to say ‘no’ as opposed to getting stuck with extra fees.

4. See what’s in it for you. When you’re selecting a credit card, focus on those that either give you cash back, credit toward travel awards, or reward points toward free items – whichever perk you feel you would get the most benefit or enjoyment from.

• The cash back cards are, in essence, reimbursing you with “free money.” Some cards issue cardholders one check per year for a percentage back on specified purchases. Receiving a check in December between $1 and $1,000 based on your credit purchases is a nice perk.

• If you’re a traveler, you might prefer receiving points toward your next flight, car rental, or hotel.

• The third type of rewards credit card awards you points in relation to the amounts charged on the card. The points can be cashed in to purchase various items such as stereos, portable DVD players, kitchen pots and pans, dishes, and a variety of other items.

Shopping for the best credit card takes time and patience. Protect yourself and your financial life by taking every precaution when selecting your credit card. Discover the freedom of using just one good credit card, paying it off monthly, and enjoying its rewards.

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How to Handle Investment Fears

Author: sciaq

Aug 18

A bumpy stock market can provide quite a ride. For many, nothing matches the thrill of knowing you made a bundle investing in a certain stock or fund. But when the stock market begins to drop, investment fears set in. Those fears can take over your capacity to manage your money and investments successfully, unless you confront them head-on.

Warren Buffett’s Ideas Regarding Investment Fears

Consider the advice of financier Warren Buffet:

• According to Buffet, people who place money in the stock market should do so with a long-term outlook. You need to be comfortable with short-term losses to reap the rewards of long-term gains.

• Interestingly, Buffet postulates that the two emotions most experienced by those who invest in the stock market are greed and fear.

• Buffet believes that the public has it backwards when it comes to managing their feelings during market fluctuations. Smarter investors do the opposite of what the majority of investors do.

o When “everyone” is saying how great the stock market is doing and discussing the incredible growth of their stocks and funds, this is the time to be leery. In other words, don’t follow the crowd when it comes to your investment portfolio.

o On the other hand, when the market is down and everyone’s investment fears are on high alert, that’s the best time to buy. His reasoning is that, since everything costs less in a down market and we’re in the market for the long haul, we’re bound to make a profit long-term.

Additional Points to Ponder Regarding Your Investment Fears

1. The stock market will rise and fall. Accept the fact that investing in the stock market is unpredictable. It is what it is. Even if you’re a stock analyst, you can’t predict with perfect accuracy which stocks and funds will soar and which will tank.

2. A word to the wise. Ask yourself how you can apply Warren Buffet’s sage advice to your investment portfolio.

• Take your current situation into consideration: if you’re due to retire in 5 years, you might not have enough time to invest in aggressive growth stocks and experience growth. However, if you still have 15 or 20 more years of working and saving, Buffett’s logic might work for you.

3. Be vigilant about diversifying your stock portfolio. Diversification provides some built-in protection against suffering major losses in the stock market.

4. Avoid letting your fear run amuck. It’s best not to let your fear consume you to the degree that you’re withdrawing from opportunities to invest and reap benefits long-term.

Confronting and Handling Your Investment Fears

How can you minimize your investment fears? Try these strategies:

1. Recognize that fear is a normal human emotion. You’re bound to experience fear at some points in your life and in varying situations.

• Fear is healthy in the sense that if your gut is telling you something is scary, there may be a good reason for that fear. But if you can reason through the fear – in this case, your investment fear – you stand to experience healthy increases in your stock accounts.

2. Minimize your risks. Remind yourself that if you’ve diversified your investment portfolio as investment experts suggest, your chances of losing large amounts of money are greatly reduced.

3. Make wise investments in spite of your fear. Thoroughly research your investments and establish “Feel the fear and do it anyway” as your personal mantra. With judicious investments, your money will grow and this, in itself, may lessen your fears.

• Make one or two investments when prices are down, as long as you’ve got some years to watch your money build.

• As your profits grow, make a few more investments. Getting used to making investments puts this activity into your comfort zone, where it’s less scary.

Learning to confront and handle your investment fears are important aspects of your investment life. Gathering information from market experts, such as Warren Buffet, and examining your feelings about investing can make the difference between allowing your fear to consume you and moving through your fear to skillfully manage your portfolio.

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Working Smart to Maximize Your Income

Author: sciaq

Aug 3

Although you might be focused on working hard while at work, a different way of approaching your work tasks is to work smart. The smarter you are about the work you do, the more likely you are to maximize your income.

Promotions, raises, and lucrative career opportunities come more often to those who work smart.

If you want to stand out at work, apply these suggestions for working smart:

1. Keep your mind open to learning new software and new methods for old tasks. Working smart means you’re willing to learn something new that will eventually save you time and trouble.

• It might take a time investment to learn something new, but the payoff will be worth it.

2. Observe the co-workers whose work you respect. Learn by watching.

• Notice what these co-workers do that you don’t. Take note of the differences in how they perform from your own approach to a task.

• Learning to do what your respected co-workers are doing might earn you a raise or promotion sooner than you think!

3. Ask questions to clarify any work-related issues or confusion. Avoid feeling “out of the loop” of communication at work.

• Get the information you need right away – before you work on a task.

• Listen to what your supervisor and co-workers are saying. To work smart, it’s necessary to have a clear understanding of what’s important to them.

4. Become indispensable at work. If you know how to perform your co-workers’ jobs and can fill in doing their tasks whenever they’re absent, you’ll demonstrate to your supervisor how important you are to the company.

• After all, can he really afford to lay you off if you can fill in for every worker in the place?

• Plus, the ability to do the tasks of others means you truly have a grasp on your workplace and how it functions.

5. Be honest about what you can and can’t do. Working smart is not saying ‘yes’ to everything but, instead, judiciously using your time to do your best work.

6. Be ready for your workday. Get plenty of rest, prepare for your day, and manage your energy and effort to be alert and efficient while you’re at work.

7. Is your desk and office in good order? Working smart means you have ample work areas, order and organization in your space and can easily put your hands on that file that you might quickly need.

8. Think it through before you do a project. Take a few minutes to cogitate over the task at hand. Plan your work and work your plan.

• What’s the purpose of the project?

• What are the goals you’re working for?

• What do you want to accomplish?

• One of Steven Covey’s Seven Habits of Highly Effective People is especially helpful: “Begin with the end in mind.” Visualize how you want the project to proceed before you begin. That is truly working smart.

Although working hard is admirable, make it a point to work smart. Being open to new ways of doing tasks, making yourself indispensable at work, and thinking through work tasks before you tackle them are all smart ways to ensure you boost your income!

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How to Save Money on Back-to-School Clothes

Author: sciaq

Aug 1

Every year parents deal with the challenge of buying back-to-school clothes. Stores are crowded, items are expensive, and you know your kids will probably outgrow everything before the clothes wear out. But there are things you can do to minimize the cost and avoid the crowds.

1. Set a budget. As with anything else, the first step to limiting how much you spend is to set a budget and actually stick to it.

• Consider how much you’ll need to spend up front as well as what will be required for purchases during the school year. Stretch that budget as far as possible by only buying what you really need and by shopping when the sales occur.

2. Assess your current situation. What does your child currently have? What fits? What can be reused for the new school year? Figure out what you’re actually going to need, make a list, and keep it with you.

• When anything on your list goes on sale, you’ll be in the position to take advantage of the situation.

3. Consider hand-me-downs. Do you have older children whose clothes would be appropriate for your younger child? What about the children of your friends, neighbors, and co-workers?

• Many people just throw perfectly good clothes in the trash. You may be pleasantly surprised at what others may offer you, and usually everything is free!

4. In the spring, buy winter clothes for the next school year. Winter styles are amazingly inexpensive in March. So buy ahead.

• Of course, the same situation applies when buying clothes for the rest of the year. Out-of-season clothes are much less expensive. The stores want all that merchandise out of their way.

• Remember to consider your child’s growth.

5. Consider buying used clothes. Your kids might not be thrilled if they knew, but thrift stores and consignment shops have many pieces of clothing in excellent condition. Some are designer items that cost a ton of money new.

• Much of the apparel has only been worn a couple of times, and it’s not unheard of to find stuff that’s never been worn. Your kids will never know, but your bank account will be able to tell the difference.

6. Trade in the old clothes. Many stores like Once Upon a Child and Plato’s Closet specialize in used clothing. Not only can you get some money for those clothes your child can no longer wears, you might also find a great price on something they’ll love!

• Also consider selling last year’s clothes at a garage sale or on eBay. Your child’s old clothes may have value to someone, especially if they’re in good condition.

7. Check to see if your state has a back-to-school tax holiday. Some states have a couple of weeks or weekends before school starts when they temporarily eliminate sales tax.

• The amount you save can be considerable, so check if your state has this tax break before you plan your shopping trips.

If you utilize the above money saving tips, you can save a lot of money on back-to-school clothes! Follow at least a couple of the suggestions in this article and you’ll be well on your way to having a happy, well-dressed child and keeping more of your hard-earned money in your pocket. For more information please see How to get him back

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