Why is it a must to have mutual funds in your investments?

Mutual funds are usually considered as good sources of investments because it comprises of a wide dimension, ranging from low risk to high risk options; it is also the reason that mutual fund is suitable for all kinds of investors. Those investors who have recently come out of the web of debts and the debt relief programs may not find the high risk funds as a favorable option as the inconstancy in the value of the high risk funds are more compared to the low risk ones. The low risk mutual funds are those which comprises of the banker’s acceptance and the treasury bills, while the high risk ones are those which invest in equities and stocks of companies. But why is it a must to include mutual funds in your investments? Let us have a glimpse:

·         The mutual funds are managed by full time money managers who are accomplished with the necessary expertise about the economic trends that will follow and invest accordingly.

·         Mutual funds are known to evade your investment risks by putting your money into a diverse range of investments, so even if one of the investments is faring badly, your money will not go into waste.

·         There are a host of benefits which are provided by the mutual fund companies like automatic reinvestment and systematic payments etc which will provide you with the option of reinvesting in dividends and capital gains; this on the other hand will help you to buy more mutual funds.

·         Mutual funds can be started even if you may not have too much of funds because only the initial payments are more which gets reduced at a later stage.

·         Moreover the mutual funds can be sold at any time to obtain liquid cash.

Mutual funds are therefore the best form of investment particularly for the beginners.

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Financial resolutions for the year 2011

The last few years have completely changed the way in which American citizens have viewed their finances. The credit crunch and the recession have forced the consumers to have a sharp focus on saving money and planning for the future as a lack of these have pushed them towards an array of financial irregularities. It later emerged as the greatest cause of anxiety which the citizens have witnessed during recession as a majority of them had to utilize credit card debt management services to resolve their monetary obligations. But lately, even the young people in the twenties have started thinking about their retirement plans and have begun to handle money more wisely. Here is a list of the financial resolutions for the year 2011:

• §  A financial plan is the first take for this year and it is of prime importance as it allows the consumers to have a look at their financial goals both long and short term; for instance, the goal of resolving the debts. A good and solid financial plan may constitute the first step towards financial independence and help the consumers to have an easy and effortless life with their finances.
• §  It is worth considering, that a budget should not be always meant for saving money. It should have a similar effect on the expenses as well, which will help the consumer to decide and make the right purchases, whether it is a grocery item or a financial product.
• The one goal which should remain constant is to save more and spend less. The same will act as a better safeguard during financial disasters or to pull up the sudden arrival of some expenses which are unexpected.
• §  Due to extreme competitiveness in the job market which is coupled with a series of layoffs occurred during recession, it becomes important that the career goals should fall in place. Thus it is not only important to make oneself valuable to the employer, but it is also mandatory to stay competitive in the job market.
• §  The last but not the least of financial planning is to save for retirement and the earlier it is started, the better it is.

These are few of the trends of financial resolution for the year 2011 which will help the customers to sail through the tough times with an utmost ease.

Bookmarking description: The consumers should have a set of strong financial resolutions to save themselves from the intermittent problem of debts.

When the Issues Related to Money Turn into Ego-Battle between Spouses

The passage of time often brings in added existential dilemmas and complications in life, and money plays a very dicey and tricky role in this aspect. The recent financial wounds caused by debts and other financial downturns has touched all our worlds equally and made us turn to various debt settlement companies and debt management programs in order to re-shape our distorted face of personal finance and to put together the scattered pieces of financial security. Since ages we have run and chased money to debt at times and at worst moments, monetary issues have seeped into our familial life as well, and at many times, it has wrecked havoc in marital lives; sometimes in form of ego hassles and at times in form of financial deficiencies. Till now you must have read many blogs related to financial deficiencies which damages marital bliss and understanding between couples and partners due to several forms of economic stress and financial insecurity but very few people read about the most common threat posed by money-related aspects in married couples or partners, and that is the ego hassles between them. We are living in a century of complete gender parity where both men and women are equally positioned as professionals, as well as personal domain.

 It has thus been noticed several times that disparity in income earning and slightly unequal material possession by either of the partner creates an environment of envy, ego and latent feelings of complex on the partner who is comparatively falling behind the other one in terms of income generation and wealth building. This situation generally occurs at home where both the partners are equally ambitions and career-driven, apart from belonging to the same professional field which leads to subtle competition between each other resulting into professional resentment and personal self pride, if not checked at proper time. For example the recent conditions of debt had brought a curse called recession which saw many people jobless and unemployed and there appeared many homes where the male counterpart have to sit back at home in search of a new employment prospect, while the female partner somehow managed to retain her source of income. At such cases, the infamous male ego triggered by a feeling of financial loss and insecurity starts playing dirty to loosen the chords of marital faith and maturity between partners. Numerous such anecdotes can be found around you where money and wealth have played a critical role in imbibing ego tussles between partners. But above all, everyone should remember the fact that at such financially turbulent times, money and its assistance is much more important as any decent source is much more important than the fact that the woman of the house is earning it for the family.

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This year is great to start your own business

There cannot be no better time to start your business than this year at least. As by this time probably many of you may have come out of the evils of the debt cycle which had begun with the onset of recession. All of you who have been consulting the best debt management programs till now, can actually think of giving a boost to your finances particularly those who have been victims of a job lay off. Initially when you try to conjure images of a business ownership, you may visualize the problems and hassles of funding, securing the business and paying for the materials which may seem as the major obstacles in the way of your dreams, but you are certainly wrong, as being a business owner will actually get you rid of the concerns that you may experience before asking for a raise from your boss to put it simply. So the important thing is the need to remain focused on your goal before being pessimistic about the risks.

For the first timers however, starting with your own business can be exciting because you may finally give up your fears of being laid off and simultaneously you can think of your business as a form of career insurance and you will surely have all the authority to work for yourself rather than for somebody else. According to a study, the average time for which a person can serve an organization is four years, after which they are handed pink slips. Moreover there are many organizations which do not comply with the benefits which they had promised in the beginning and do not treat their employees with sufficient respect which at times can be highly embarrassing. But as soon as you will gather momentum on your efforts to start a business, you will start to get more productive and eventually experience the rewards of your hard work. The aspect of self success was perhaps never ever looked with the required value by your previous employer as what you can experience in your own business, apart from the financial benefits that you can enjoy. So what are you waiting for? Did you ever think of this option as your resolution for this year? As they say “Better late than Never”!

 

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The excuses that Americans make about money

Money does not grow on its own, rather we have to work hard to make it a multitudinous component, for money is an integral part of our lives. But Americans are not known to follow a strict regimen when it comes to saving; instead they have earned a name for being the greatest money wasters, a fact which the recent financial meltdown has correctly furnished with a host of consumers who have opted for debt settlement programs owing to their huge debts and complicated finances. Basically nothing can justify this apathetic attitude which the people of America have, as far as money is concerned, but let us read about few of those excuses that the Americans frequently make about money in each single day of their lives:

•The first excuse is their ardent wish to generate more passive income particularly now that the economy is looking weak, and although it is a good idea but not untill it  is implemented, for as long as they would be thinking about the passive income options,  they can earn the same through an active income for which simply brushing off the skills will suffice.

•The US consumers think that they will try harder till they succeed on their motto of saving  money but despite all the vows that they take each day, they will never reduce their spending habits.

•The commonest of the reasons and explanations that the Americans have to put about money matter is that they have realized how bad their financial condition is and they  have accordingly decided to act on the basis of a monthly budget, and though they have   been repeating this since decades, now it is actually very hard for them to live within   a budgeted expense and it’s too much of limitation and pain so debts are there for them      either ways.

•When it is the question of investment, a little less than 5% of the people can actually put   their investment strategies into practice.

•The most intriguing excuse is that thinking of money or finances actually increases the greed and so it is better to keep away from all financial issues and this is the reason for which we Americans kept on imagining that we have not actually fallen back on our payment schedules which was not true, and as a result of which the debt issues became unimaginable.

However all said and done, the best way to deal with money is to avoid thinking more about it and to make the best use of it by way of financial management tactics.

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Think Twice Before Gifting Your 18 Year Old with a Credit Card

Owning a credit card by an 18 year old brings in galore of feelings of freedom, power and affordability, but often the accompanied senses of responsibilities, sensible spending and financial maturity is underestimated and ignored, which results into the existence of several credit card debt relief options and credit counseling services. Thus it is but common for the maximum number of parents to worry about their 18 year old children and their growing wants and demands that undoubtedly include the possession of a personal credit card. The same thought perhaps have moved the lawmakers to make it much harder for young adults of age 18-20 to obtain their own credit cards, according to the Credit Card Act of 2009. Under this act, anyone falling under the age group 18-21 has to meet few extra requirements before being eligible to hold a line of credit. They either have to give evidence of their high monthly and regular income in order to pay off the bills, or must have someone over the age of 21 with sufficient income and credit who will co-sign the clauses and terms with the card holder.

This is where the decision and duty of the parents come into play. The new age teenagers and young adults have a heightened level of awareness and information about all aspects and sources of consumerism, and have gathered knowledge of how to harness and exploit the same for gaining material luxuries and finding hedonist pleasures. What can be a greater and easier way than possessing a credit card in this respect! Thus the parents have to take a strict call on deciding whether it’s the right time to consider gifting a credit card to their otherwise grown up children or do they still need more lesson and wisdom of handling this responsibility. Unless you are blessed with an extraordinarily hard working, sincere and ambitious kid who would not rake his income for credit card, you have the power to acquiesce or deny their request. The fact is that, if your child’s income fails to satisfy the requirements of regular credit card payments, and does not meet the standard that creditors deem as satisfactory for handling the expense, then probably he/she should not have any business owning a credit card, and you too as a parent should understand the situation without being rushed in with parental emotions which can harm your child in the long run. On other hand, credit card should not be denied to a child who has taken care of his/her financial responsibilities and is not dependent on parents’ money; someone who has the credibility to pay off the loans regularly and can take charge of his/her own wants and needs. 

So the parent can exercise their sense of judgment by denying and restricting their undeserving children from owning a credit card if they lacks maturity and financial stability to handle their money wisely.

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What to pay first: high interest or high balance credit card?

A very common question that comes up all the time when a person wants to start getting their credit card debt under control is whether to pay the high interest credit card first or to get rid of the high balance credit card first! This is a situation which does not fall under the domain of help provided by the debt relief companies by services like credit card debt consolidation or credit counseling etc. At one end if you are anxious about having high interest credit cards that costs you every month and compounds the monthly amount you owe, if you are not paying off the entire balance. For some the interest rate may go up to even 30% on the amount borrowed which basically means agreeing to pay one third more for everything you bought on the card or more depending on how long you owe. While on the other hand, you have a credit card, with such an overwhelming balance that no matter what are you paying, the balance does not seem to ever go down. Thus even if you have a low interest rate you may be paying a lot of interest because of your high balance. 

So deciding about which one to choose to pay over the other can be the trickiest question of the moment especially for those who are not particularly great in handling their personal finances. The card holder tends to feel whether he will lose out on picking the right option first! As every dollar counts and is to be used most effectively, however, sadly enough these thoughts of saving penny never occurs at the times of our frivolous spending sprees! Anyways, this is the situation when a consumer often feels most frustrated and puzzled about their personal finances. The answer actually does not exist in this particular condition as the decision varies to either choose the credit card with highest interest rate or to choose the card with the highest balance depends upon the financial urgency and situation of the card holder. For example for someone who is neck deep in credit card debt, it is most important to take an immediate action than choosing between the two options which actually have a similar consequences at either cases.

 

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