Investing 101: Before You Start Investing Money

Doesn’t it make sense to learn to invest (some basics) before you start investing money for real? Maybe a course called investing 101 or personal investing would be helpful. Here this retired financial planner relates a story, and then points the new investor in the right direction so he or she does not start investing uninformed.In the dean’s office of one of the largest universities in America, I recently asked if they offered investing 101, personal investing, or any finance course where the student could learn to invest. “After all, we all need to start investing money someday, and it is much to one’s advantage to be informed vs. uninformed, isn’t it?” That was my response when told, “no, or at least I can’t find one” by the dean. I was informed that they had well over 50,000 current students enrolled and offered THOUSANDS of courses in the various colleges throughout the university. But he could find no course under the heading of personal investing or investing 101, and he was in charge of the curriculum.We spent about an hour together searching and were both laughing out loud at what WAS offered. How about a course in “the art of falling down”? It’s offered. Investing 101? Which college in the university would offer such a course? “The athletic department is real big here; maybe they could help”, I suggested. After all, professional football players make big money. They need to learn to invest money (in case their career is short) and should start investing early. I knew a few players when I was a financial planner, but like most folks they tend to procrastinate when the money is flowing in. They’re too busy earning it, and don’t have the time to learn to invest.The truth of the matter is that I don’t find it funny that it’s difficult to find a down-to earth practical course that most people could truly benefit from, because as a new investor you need to learn to invest money before you start investing for retirement or any other financial goal. As a new investor you may not be able to find a financial planner you can work with or afford. Even if you found one, do you really want to start investing money with him or her without first getting your feet wet in the basics of personal investing? Let’s start at the beginning.Before you get into financial concepts like asset allocation and strategy, you should first learn the very basics: investment characteristics. How can you compare various alternatives to determine which best suit your needs, financial goals and comfort level? In other words, you need to decide what you are really looking for. And you need a list of factors to consider before you start investing money. For example, do you have a long term goal like retirement, and are you willing to accept a moderate level of risk? If so, there are numerous investment alternatives to consider, and you can also get tax breaks.On the other hand, if you have a shorter term financial goal and might need access to your money at a moment’s notice, that’s a totally different picture. You need to match your financial wants and needs to the various alternatives that have characteristics best suited to your personal investing goals. There is no single best choice for every financial goal. It’s a matter of give and take. I have a list of 5 factors you must consider and a few other things you should consider before making a decision. This is basic investing 101. Whether you are a new investor or you’ve been at it for a while and have never really taken the time to learn to invest – you should learn the basics.This is the first in a series of investing 101 articles I plan to write. In my next article I plan to put my list of characteristics you need to consider before you start investing money in black and white. Don’t feel bad if you are an uniformed new investor (or a want to-be). Do something and learn to invest starting with the basics.Once you have a handle on a few basic financial concepts you can start investing with confidence. Once you learn to invest you can reach your financial goals. If you think I’m trying to build your confidence, you are right. Stay tuned to investing 101 as we get back to basics. No offense to anyone at one of THE largest universities in the country, but there’s a void out there and I plan to fill it.

Posted in investments | Tagged | Comments Off

Low Interest Rate Credit Cards – Why So Popular!

For many people searching for a new credit card online, the annual interest rate, or APR seems to be the only important factor, and many will only check out low interest rate credit cards before making an online credit card application. Credit card issuers also tend to advertise the low interest rate credit card more that any other kind of card. But should low interest credit cards be the only ones on your list when searching for the best credit card deal to suit your personal requirements? Probably not. APR is not the only thing to look for when choosing your ideal credit card.It may help if we start by understanding exactly what an APR (annual percentage rate) is and where its relevance lies. APR is quite simply the interest rate used by the issuer to calculate interest on the balance of your credit card account. This interest is then added to your monthly statement to form your new balance. Therefore a low interest credit card account would have less interest charges applied to it at the end of each monthly period, hence its popularity.However, there are those who donĂ½t really require low interest rate credit cards. This group are those who, for the most part will use their credit card in much the same way as a charge card, paying the full balance on the account on the due date each month. Remember that there are no interest charges added to your credit card account if you make the full balance on your statement by the due date. So it would make no difference what interest rate was applied if you were to use it in this manner. Therefore a low interest rate credit card would not be such an good deal to this group of card holders. These individuals are much more likely to be attracted by other card offers such as cash rewards or air miles rewards credit cards.A low interest rate credit card will definitely help to slow down the rate at which your credit card debt builds up. Thus low interest credit cards are more appealing to a particular group of people, who are confident only in making part payments on their card account balance each month.Another group of credit card applicants in search of low interest rate credit cards would be those people who are wanting to consolidate their total debt from one or more other cards onto a new credit card. In this instance a low interest rate credit card may be much more desirable, as they would typically be looking to reduce their monthly commitment, and it would make little sense to transfer the debt to a credit card with a higher interest rate attached to it.So the need for low interest rate credit cards is felt more by a particular group of credit card holders. However, it is worth remembering that a low interest rate credit card is generally offered only to applicants who have maintained a good credit rating. Obviously the card issuers will make less profit from card holders with a low interest credit card, which means that the risks involved will be increased. This is the main reason why credit card issuers will usually only offer a low interest credit card to card holders with a proven track record in credit repayment.Once you have made the decision that a low interest rate credit card would be more likely to suit your personal requirements, you will then need to take time to compare the other benefits offered along with these cards. Low interest rate credit cards are mainly split into two categories. There are the low interest credit cards which will often offer APRs of less than 8% on purchases. And, for cash advances the low interest credit card will often offer APRs of 10% or less. Then there are certain rewards programs attached to some cards which offer cash back rewards on all purchases, gas or even office supplies. Cash rebates are usually automatically credited to the cardholder’s statement each month, and there is no limit to the amount of cash rebate that can be earned.There is one thing you must always do regardless of which low interest credit card you choose to apply for. Read and make sure you understand the small print with regard to the contract you will be asked to sign once your application has been accepted. Be aware not only of the interest rate (APR) attached to the low interest credit cards you may be considering, but for how long will this lower interest rate continue. Is it likely to rise to a higher rate after a given period of time? A variable rate card is often offered with a low introductory rate, but this rate can increase at any point in time. You must keep in mind that the APR is actually where the credit card company earns their profit. If they were to continue offering card holders an extremely low APR indefinitely, the chances are they would not stay in business for too long.Remember, it is definitely worthwhile your effort in researching the various credit card options available, taking advantage of website comparison charts etc. Should you choose a low interest credit card, do the math and choose well. After all, it’s not every day you go searching for a credit card.Trevor Taylor

Posted in credit cards | Tagged | Comments Off

How to Make Money Online: A Beginners Guide to Earn From Home

How To Make Money Online
Making money online is NOT EASY at all. But it’s NOT THAT DIFFICULT too, if you are following a proper path. Without these following three things making money online will always remain a dream for you:-
Hard work

Perseverance

Patience

If you think you have got the above mentioned three things, then let’s jump right into the topic.Below are some of the most authentic and legit ways to make money onlineFreelancingWhat is Freelancing?
If you are into making money online, you must have heard the term Freelancing. But what does it really mean? Freelancing means working on a contract basis rather than on a regular basis for a company or organization and getting paid for hour of work, days of work or per project.YouTube
Now a day You-tube is booming like anything. More and more people are coming to YouTube to find a solution to their problem, to learn something new and to entertain themselves. With this increasing popularity YouTube is also becoming a money making machine for content creators. Yes! In case you don’t know you can earn a decent amount of money by creating YouTube videos. Although YouTube videos don’t pay by themselves, you can make money by placing Google AdSense ads on your videos (of course there are other ways to make money on YouTube but for now we will stick to Google AdSense). The more views and clicks your ads get the more money you will make.Blogging
Blogging basically means writing posts on any niches on the internet, which are updated frequently. You can write on different niches which include but not limited to personal journals, News, Technology, Health and Fitness, Gaming, Parenting or any other topic you are interested in.Affiliate Marketing
These days almost every product is available online, whether it is as small as a needle or as big as a car, everything is available online. And people are inclining more and more towards buying products from online stores may be because of the easy accessibility of products and convenient home delivery system.These online stores need to advertise their products in some way and affiliate marketing is one of the many ways they promote their products. So affiliate marketing is a form of advertisement in which the affiliate (in this case you) promotes the products from different online store in his/her blog or website through a unique link (generally referred as affiliate link). The affiliate gets a commission when someone buys a product through that link then (generally some percentage of the price of the purchased product).Almost every big online store has an affiliate program which you can join to promote their products in your website and get a commission in return if someone buys from your affiliate link.

Posted in Money Online | Tagged | Comments Off