Opportunity Cost in Trading

Opportunity Cost in Trading
All traders have gone through a period they wished they
never placed the trades. It could be impulsive and
emotional factor that drove the trader to commit these
trades. These are trades that he wished he can forget
forever and hope to never repeat them sagain.

What is opportunity cost in trading?

Opportunity costs happen when we lose unnecessarily while
we pass up the higher probability trades with higher
reward-to-risk ratio. Everything in life has opportunity
costs and in trading, it's no different. This happens more
often to new traders who do not understand this concept,
usually causing them to blow out their accounts that
shorten their trading career or hobby (however the trader
views it).

When traders first start out, they usually begin trading
without realizing the consequences of how they select their
trades. These unnecessary trades would eventually would
affect the future opportunities to profit and better their
batting average. These trades tend to be losing trades but
without calculating the probability of the success of the
trade. When they lose, the equity has less of a chance of
getting a better trade in the future. This is opportunity
cost. For example, the trade takes a bad trade, loses $300
on the trade. Little by little $300 becomes $500, and then
more. Finally when the market condition has turned in favor
of the trader's strategy, he no longer has the capital to
take advantage of the opportunity.

The other opportunity cost that many don't realize is a
psychological cost. When a trader takes a bad trade, loses
money, regrets for making a bad decision, causing him to be
confused and losing his confidence. This loss of self
confidence will affect the next trade which could be a
high-probability trade. Due to the trader in a state where
he's scared of losing again, he may hesitate on the next
trade that could be the next winner. He will realize it
only after a long while the cause and effect and the
vicious circle this opportunity cost creates.

How does solve this problem? The first thing is to
re-evaluate the trading records and sort out the trades
that were part of the trading plan and trades that were not
(impulsive, on the fly trades). If they are more than a few
at least 10% of the total trades made, then a solution must
be found to eliminate these impulsive or unplanned trades.
Better yet, add the total amounts from these impulsive
trades to get a reality check on the costliness of these
trades. 10% or more is excessive. Most successive traders
would not even permit 1% of the trades based on unplanned
setups. Understand that these impulsive trades tend to lead
more unplanned trades, such as overtrading. This causes
mental exhaustion and leads to losing streaks.

One way to eliminate these trades is to write down and
memorize the setups that are part of the plan. Better yet,
start with one setup/strategy only and trade it repeatedly
until it becomes a routine setup the trader takes day in
day out. This way, the trader knows exactly what to do when
the setup comes up. Once it's proven that he can trade it
with discipline and timeliness without giving in and take
impulsive trade then he can add another setup. This is the
start of the road to recovery from losing opportunity costs.

As for the losing trades that are part of the trading plan,
almost nothing can be done to them. Accept them and move
on. Losses and losing trades are part of trading. No
successful trader ever trade without losses, far from the
truth. Very few successful traders manage to have a
percentage of wins to losses higher than 60-70%. Normally
it's much less, around 50%. So they must accept the fact
that at least 30% or more trades will be turn into losses.

If a trader cannot handle losses, he can either quit
trading or alternative find a new or different strategy
where he can find an extremely high percentage of wins to
losses. But keep in mind that this is a Holy Grail, meaning
it may not exist. If they do, the trader may have to wait a
long time to find such a strategy.

Before taking a trade, make sure to ask if the next trade
will hinder and pay for an opportunity in the future. That
is, if the trade meets all the right condition and rules of
the strategy and not another "intuitive gut feeling" trade
that will add another check on the loss column. Giving up
this type of trades will open up more opportunities for
profitable trades in the future.

----------------------------------------------------
Larry Swing is the President of the popular day and swing
trading site http://www.mrswing.com a place where you can
find free daily articles and videos covering education,
market analysis and picks from Larry and other well known
traders in the industry.

Understanding Your Credit Score

Understanding Your Credit Score
When you apply for credit, whether for a mortgage, an auto
loan, or a credit card, your credit score will determine
whether or not you can secure financing, and what type of
interest rate you can get. While you probably have at
least some idea of how good or bad your credit is, it is
important to understand your credit score and how it is
calculated.

A credit score is a three digit number that ranges from 300
to 850. Each of the three major credit bureaus use this
rating system that was devised by the Fair Isaac
corporation - commonly called a FICO score. Your FICO
score is calculated by measuring three distinct aspects of
your credit.

1.A third of the score is based on your payment history.
If you have defaulted on one or more loans, or been more
than thirty days late making payments on your credit
accounts, your credit score will be adversely affected.

2.The next portion of your credit score is determined by
your credit to debt ratio. If you have a number of credit
accounts close to being maxed out, or if your total debt is
too great, this part of your score will suffer.
Conversely, if you keep your credit balances reasonably
low, your score will be higher.

3.The final part of your credit score takes three separate
factors into account: the length of your credit history,
the amount of credit for which you have recently applied ,
and the type of debt you have. Of the three, the length of
your credit history holds the most weight. If you have
established a long history of repaying your debts on time,
you will be looked upon as less of a credit risk. Another
aspect of your credit score is the number of recent
applications you have. The greater the number, the lower
the score. Finally, the types of credit you carry will
affect your credit score. A credit card from a bank would
have a more positive effect on your score than would a
store credit card. Applying for credit with a finance
company could label you a higher credit risk, and may be
seen as a last resort for someone who could not get a bank
card.

Once your score has been determined and made available to
prospective lenders, it is often the only factor considered
in determining your eligibility for credit and the interest
rate you will receive. A higher FICO score will translate
into savings when you apply for credit. A lower score may
increase your interest rate which may cause you to have to
borrow more money than you would have otherwise.

Also, information provided by credit reporting companies is
not always accurate. You should acquire a copy of your
credit report for inconsistencies and inaccurate items. If
you find any questionable items on your credit report, you
have the right to dispute them and possibly have them
removed.

Once you understand the effect that debt and use of credit
has on your credit score, you can devise a plan to make any
necessary repairs to your credit. As your credit score
improves, you will pay less when you borrow money, and you
will find more and more lenders eager to do business with
you.

----------------------------------------------------
Gregg Pennington writes articles on a number of topics
including loans, debt and credit. For more information
about debt help and credit repair visit:
http://www.onlinemoneysources.net/debt-and-credit.html

How To Borrow Money Safely - Get It Right

How To Borrow Money Safely - Get It Right
Don't ever borrow more money than you need and always make
sure you will have the means to pay it back. Shopping
around for the best possible interest rates will save you
often a large amount of money in the long term. Do your
sums, it's really not that difficult, if unsure always ask
for the final total cost of your loan, to include insurance
protection etc. It's easy for a £1,000.00 loan to end up
costing you over double if you don't check. Always take the
time to read ALL of the small print.

Borrow against the equity of your house. Home loan interest
rates are often the cheapest source of money, so it makes
sense to use the equity to buy essentials like a new car,
extension etc. Avoid borrowing if you have funds available
else where, but feel you'd rather leave them along for a
rainy day (if you need to borrow, then today is that rainy
day). You will save interest as the interest you will be
receiving on your savings will be far less than what you
will be charged for borrowing. Should at a later date a
real emergency arise, then you can then borrow or use a
credit card.

Sadly unsecured loans will be more expensive, likewise if
you have a bad cedit history or earning a low wage. Under
these circumstances it's vital to shop around. Not all
companies are loan sharks and there are reasonable offers
to be found. Dependant on the amount to need to raise and
how soon, it's also worth considering selling a few items
that you no longer require or could manage without. eBay
has to be the quickest and simplest method of obtaining the
best price for an item. It's also extremely useful for
finding the current value of an item and just what people
are willing to pay, with the knowledge you could then
decide to sell via your local newspaper.

It's usually cheaper to borrow from a bank than a credit
company, but still shop around. It's not necessary to hold
an account with a bank to be able to borrow from them. If
you are looking to re mortgage, then it's worth employing a
mortgage broker. There will usually be a small charge, but
they will have access to all the different offers
available. Just a point here it's essential you check that
the broker is an independent, and does not receive a
commission or fee from money lenders, which in turn could
cloud his judgment on who he advises you borrow with.

A simple Golden Rule - 'Delay any decision for 24hrs' take
your time and do some homework.

----------------------------------------------------
How To Begin Something New Today from
http://www.how2begin.com offers free help and advise, that
will enable you to have a go.
If needed use our free research box, to request a new How
Do I ? No login required.

Investment Club Software: Keeping Your Club Organized

Investment Club Software: Keeping Your Club Organized
All investment clubs must keep proper financial records.
The club treasurer is responsible for keeping the books
organized and accurate. However, this can be a rather
complicated and time consuming task when there are many
members in the club. That's why investment club software
is an essential tool that every club should have.

There are three main types of investment club software
available - accounting, tax, and investing. Some software
packages combine all three functions. Accounting club
software makes it easy to manage member contributions and
withdrawals, buying and selling of shares, distribution of
dividend income and preparing tax returns. Since all club
financial information is in one place, members can easily
be updated on the club's investments and their individual
shareholdings. Specific reports and graphs can also be
generated and printed.

As most investment clubs are formed as partnerships, they
must file an annual tax return irrespective of whether they
make a profit or not. Keeping financial records with a club
accounting software ensures accurate reporting for tax
purposes. Investment club tax software enables the
treasurer to simply print federal tax forms for the club
and for each member. Once the forms have been reviewed and
signed, they can be sent off. There's no need to fill in
tax forms by hand, which can be tedious and difficult if
the treasurer does not understand tax law. Investment club
tax software is updated every year for changes in IRS tax
forms so clubs can be assured that they are filing the
correct forms.

Investing software is an essential tool for investment
clubs and investors. It helps to analyze stocks, markets,
company's fundamentals, graphs and charts so you can make
an informed decision about which stocks to invest. If you
are a novice investor, investing software takes the mystery
out of investing. It teaches how to invest by introducing
time-tested methodologies that enable individuals and clubs
to assess stocks right away. This type of software can
provide interactions through the internet to give current
market information as well as trends.

The 3 types of investment club software can be purchased
individually or as a package. It may be cheaper to buy as a
package. Then again, choose a software or package that is
flexible and easy to use.

The benefits of investment club software far outweigh its
cost. It saves time, frustrations and reduces human errors
arising from making computations and entries by hand. It
also eliminates the need to hire an accountant or tax
professional, thus saving money for the club. Best of all,
it keeps the club's books organized.

----------------------------------------------------
Investment clubs have been growing tremendously in recent
years. Many people who feared about investing on their own
have reaped the rewards by joining or starting an
investment club. Learn more about investment clubs and at
http://www.aboutinvestmentclub.com/art-soft

Why New Home Sales Predictions Were Wrong

Why New Home Sales Predictions Were Wrong
This last spring new-home sales jumped 16 percent -- the
biggest percentage increase since 1993 -- but despite the
positive news, sales and construction activity may not have
hit bottom yet because the U.S. Census Bureau reported new
single-family home sales rose from a seasonally adjusted
annual rate of 844,000 in March to 981,000 in April.

This data flies in the face of predictions of doom and the
lowering of prices around the country. It seems that this
cycle will seem more like a dip than a wave because the
information on prices flew around the market via the
Internet, causing people to adjust their behavior and
modify their listings.

Here is another way of looking at things. Any time
inventory disappears, homes that come on a healthy market
disappear fast, which takes down the average listing time.
This causes people to put inventory back on the market at
increased prices. Inventory disappears when the average
time on listing goes higher than around 60-70 days. Through
a price slump, people keep watching the correct indicators
to wait for the inventory to bottom out.

Realty Trac released its May 2007 U.S. Foreclosure Market
Report on June 12, showing a total of 176,137 foreclosure
filings - default notices, auction sale notices and bank
repossessions - during the month of May, were up 19 percent
from the previous month and up nearly 90 percent from May
2006. Home sales prices were falling, with a saturated
supply of for sale signs. All this pushes new homes prices
down.

Ultimately it is the responsibility of the broker or loan
officer to determine if the borrower can indeed make the
monthly payments. The problem with many of these default
loans is that loan officers encouraged people to exaggerate
their ability to pay while the lenders abetted the deal by
allowing these highly suspect loans to be funded.
Investors, companies and people who buy the loans from
lenders, also suspended disbelief, that overleveraged
people with weak credit histories deserve a loan, and
bought the collateralized debt obligations that the loans
are based on. Many loans are packaged into large CDO
packages designed to spread the risk and allow single large
transactions instead of hundreds or thousands of single
loan purchases.

Mortgage brokers and banks typically start their interviews
with those seeking a home mortgage lender by asking about
the person's credit in general, then working their way to
the critical question: What is your Social Security Number
(SSN)? They need to do it this way because the rate sheets
are divided between credit and collateral. Almost all
mortgage brokers take into account three things when
looking at credit: credit which is the probability that the
borrower will pay; collateral which is the value of the
property which ultimately acts as a guarantee of last
resort for most loans; and capacity to pay the monthly
payments.

However there are new companies such as Dogtor Paco, Inc.
doing what's is known as the frictionless loan, which
starts off with mortgage quotes and moves quickly to the
loan application and an electronic submission. The
conditional letter of approval (CLA) details the steps to
close the loan. If the initial submission is denied,
Dogtor Paco will help users select and resubmit to
alternative banks that will do the loan. The goal here is
to lock the loan transaction to processing within two hours
after the start of the loan application.

----------------------------------------------------
Dogtor Paco, Inc. (http://www.dogtorpaco.com ) is a
patent-pending online lending services engine where real
estate agents, brokers and lending professionals can
facilitate the approval and processing of loans for
customers faster. Dogtor Paco's powerful on-demand mortgage
payment calculator provides good faith estimate (GFE)
quotes with full disclosure including monthly payments and
all closing costs. Dogtor Paco uses instantaneous rates to
calculate closing costs and monthly payments for a
particular property. The powerful Loan Organizer' tells
licensed subscribers how much they will make by submitting
a client's application electronically through Dogtor Paco's
engine where the loan will be completed quickly and
frictionlessly.

The Differences Between Motivated Sellers and Real Estate Investors Online

The Differences Between Motivated Sellers and Real Estate Investors Online
Joe and Suzy both have similar houses to sell in a hurry.
They both know that the internet is a great way to move
property quickly, and they both logged online yesterday
evening to see what kind of help they could find there.
They even both found the same website - Bob the Real Estate
Investor's Fantasy Property Solutions page.

This morning, Joe awoke with a light heart because he felt
confident that Bob would be able to sell his house for him
quickly and enable him to walk away with almost $10,000.
Suzy, on the other hand, awoke in despair, certain that
she'd never be able to get her property off her hands
without losing everything in the process. 3 weeks later,
Joe got his $10,000 check at closing and Suzy went into
foreclosure.

Joe and Suzy have nearly identical houses and were in
nearly identical situations, so why did they get such
different results? Bob the Real Estate Investor could have
helped Suzy just like he helped Joe, but he never got the
chance, because Suzy never even contacted him. It was a
lose-lose situation, because Bob would have made a profit
on Suzy's property, and Suzy wouldn't have lost her home to
foreclosure. Instead, Bob lost a valuable property deal and
Suzy lost the house, her credit and probably a lot of her
self respect.

The key to this situation is Bob's Fantasy Property
Solutions webpage. Bob is a real estate investor, and his
webpage reflects this:

•He's very straightforward about what he does: He assigns
contracts on properties to other investors for a fee. His
website asks that any interested investors who are in a
position to purchase distressed properties contact him
immediately.

•He does not explain where he gets the properties from,
just that he sells distressed properties. He assumes that
investors won't care that much about the source of the
deals as long as they can make a profit.

•He doesn't define the word "distressed," and it is not
easy to find his contact information on the page. In fact,
Joe had to sign up for an email newsletter, then reply to
the "noreply" address in order to get in contact with Bob.

Because Joe was patient and persistent, he was able to
contact Bob, find out that his property met Bob's criteria,
and even get contract negotiations underway. However, Suzy
was in a very different boat: she was frantic with worry
because foreclosure was closing in, and Bob's website
didn't calm her worries at all. She thought about calling
him to ask him personally for help, but couldn't find a
phone number or even an email address. Plus, she didn't
know exactly what "distressed" meant anyway, and figured
that she was long past that point. Suzy surfed away from
Bob's page after just a few minutes, and 3 weeks later she
lost everything.

Even when they have the exact same situation on their
hands, motivated sellers and real estate investors have
very different wants and needs, and they need very
different websites to achieve the exact same results! Many
investors who advertise their services online do not
realize this, and assume that one website will serve to
catch all their business. In fact, you must always factor
in the mindset of your viewer when you design your
websites, and make sure that you address their
psychological requirements as well as their logical ones.

----------------------------------------------------
Carole VanSickle is a freelance research reporter based in
the southeastern US. She has taught lay audiences
everything from molecular biology to real estate investing
and internet marketing. Learn more about using the internet
to flip real estate and how to explain things in order to
get your point (and your way) most effectively by visiting
http://blog.cv-investing.com .

What are the 5 Laws of Money?

What are the 5 Laws of Money?
In Physics, there are certain laws which stay true
regardless of time, one example is the Law of Gravity. When
it comes to personal finance, there are also certain laws.

In fact, there are 5 Laws of Money which I like to share
with you:

1. Money comes gladly and in increasing quantity to any
person who saves at least 10% of his/her earnings (first
step to Financial Freedom).

There are only 3 Cashflow Scenarios:

a. You spend more than you earn: This person has negative
cashflows and is likely to end up owing other people money.

b. You spend all that you earn: whether this person is
earning S$2,000 a month or S$200,000 a month, he/she is
just getting by and not getting ahead.

c. You spend less than you earn (eg. save 10% of your
earnings). As time goes by, this person will automatically
get richer and richer.

The question is which cashflow scenario do you want to
CHOOSE for yourself?

2. Money can work for you, if you become the "wise owner"
of money and make money work for you. (note: you're the
Master, money is the slave, while many people are guilty of
being slaves to money).

Money is just a tool. We should Love people, use money. The
sad thing is there are people who Love money and use people
instead.

3. Money will be safe and grow if you invest it wisely or
if you invest under the advice of people who are wise in
money. ie. investment knowledge is key to making money
grow. You can either acquire investment knowledge yourself
or you can invest money under the advice of people who have
investment knowledge.

4. Money will slip away from the man who invests it in
businesses or investments with which he is not familiar
with. You should ask the opinion of those who are wise in
money, they might be able to offer you information or
advice that can prevent you from losing money.

5. Money flees the man who falls into scams created by
tricksters and conmen, who promise "impossible earnings".
One common weakness of human beings is "greed". Greed can
make a person who is usually alert and smart "stupid".
Greed can blind a man and is the main reason why financial
scams continue to exist whether in ancient times or in the
modern day.

Thus, if you abide by the 5 laws of money, you will
definitely get ahead financially and be able to accumulate
wealth.

----------------------------------------------------
Dennis has 15 years of bank lending experience. He founded
http://www.HousingLoanSG.com - a Leading Mortgage
Consultancy Portal in Singapore. He is often quoted in
newspapers for comments on Housing Loans. Please send your
comments to dennis@housingloansg.com or call him at +65
6737 8801

Credit Repayment Times Are Extending

While overall borrowing in the UK may be on the up, people
are succeeding in better managing their loans and other
finances, one commentator has suggested.

Loans firm Picture Financial has suggested that credit
levels are on the increase but states that as consumers
borrow more they are getting savvier about which loans or
other products they choose. Julia Dallimore, marketing
director at the company, remarks: "Our UK credit levels may
seem high but with the vast majority of this taken up by
mortgages and other secured lending we are increasingly
spreading our credit repayments over longer periods to
better manage our monthly finances."

The firm was reacting to research released today by
business advisory company Grant Thornton which has
contended that consumer borrowing has outstripped the
national gross domestic product for the first time. It was
announced that British consumers currently hold debts
consisting of loans, mortgages and borrowing on credit
cards amounting to 1,345 billion pounds, for the first time
exceeding the overall production of the British economy
believed to be 1,330 billion pounds. "The research issued
today highlights that we are a nation of significant credit
users, however, many of us use our borrowing as an
acceptable means of maintaining our standard of living," Ms
Dallimore stated.

However, Picture Financial adds a note of warning - while
people may be beginning to approach their finances from a
better informed position, repeated increases in the
interest base rate will continue to put pressure on
household budgets. The firm believes that those consumers
who have borrowed from a number of different sources and
are struggling to balance repayments on their loans might
benefit from debt consolidation as a way of restructuring
their credit. "It is important for people to ensure that
they review their credit arrangements and, if necessary,
restructure their borrowing to allow themselves greater
financial freedom each month," Ms Dallimore explains. "This
can mean taking the time out to seek independent advice,
switching to credit providers with more favourable rates or
consolidating all borrowing into one place."

The company asserts that gaining a thorough understanding
of your outgoings and monthly finances can be useful in
ascertaining whether repayments can be comfortably covered.
The advice follows recent statements from the UK Insolvency
Helpline which urged consumers struggling with debt to
write a budget. Calculating the difference between income
and living costs can give a good indicator of how much
could be considered spare income and how much is available
for paying off loans.

Ian Boden-Smyth, spokesperson for the lawyer and
accountancy network, also recommended any consumers
experiencing problems or foreseeing future difficulties to
get advice from professionals who can help to draw up a
budget as well as provide guidance.

Recently, Picture Financial published research which
suggested that despite worries about their ability to
control their finances, millions remain unhappy about the
prospect of discussing their financial situation. The firm
found that Britons were more comfortable discussing sex,
current affairs and religion than broaching the subject of
financial difficulty.

----------------------------------------------------
Abbi Rouse writes for All About Loans where visitors can
apply online for cheap loans. We also specialise in bad
credit loans, and debt consolidation loans. Vist Today:
http://www.allaboutloans.co.uk

How To Find An Investment Club

For many people, taking the plunge into investing can be a
daunting experience. They may have little investment
knowledge or limited funds. Joining or starting an
investment club is a great way to learn about investing in
stock or real estate. Investment clubs enable members to
pool their money for joint investment so you don't need to
have massive capital to start investing.

Finding an online investment club
There are many online investment clubs available. To start
with, choose an investment club that fits your investing
style and interests. Do you want to invest in stock or real
estate? If you are a male (or female), do you prefer to
join an all-men (or all-women) or mixed investment club?

Finding a good fit is important for an online investment
club. Keep in mind what your main objective is for joining
a club. If you are new to investing and need support and
knowledge, be sure to choose a club that offers lots of
hand-holding for its members.

Another important feature of an online investment club is
the forum or discussion board. It allows members to
communicate with each other since they don't meet face to
face. They can ask and answer questions. Newbies can learn
a lot from others who are more knowledgeable and
experienced. People from all over the world can join an
online investment club. Distance is not a problem as the
internet has made it possible for them to stay connected.

Choose a long established online investment club that is in
line with your approach to investing. You should contact
the club directly if you have any questions. Enquire about
its past and current investment performance.

Finding an offline (or local) investment club
For people who have time to socialize, they may prefer to
join a local investment club. These clubs are similar to
online clubs except that members meet locally, typically
once a month, to discuss and evaluate what stocks to invest.

The meetings incorporate educational talks on various
investing subjects. You have the opportunity to hear
investment experts speak and share their experience – not
from someone with textbook knowledge only.

Local investment clubs are often advertised in the local
newspaper classified ads. You may also find them through
postings on bulletin boards. Your local bank may also have
information about investment clubs. Another good way to
find a local investment club is through word of mouth. Ask
your co-workers or friends. Chances are they may know
someone who is a member of an investment club and can make
a recommendation to you.

----------------------------------------------------
Investment clubs have been growing tremendously in recent
years. Many people who feared about investing on their own
have reaped the rewards by joining or starting an
investment club. Learn more about investment clubs at
http://www.aboutinvestmentclub.com/art-find

Here's sharing a Powerful Concept that can help you achieve Wealth and Riches...

Albert Eintstein said that the "power of compounding" is
possibly the most powerful financial concept. What is the
second most powerful financial concept then?

In my opinion, it is Leverage.

What is Leverage?

Leverage comes from the word "Lever".

Simply put, it means the ability to do ever more with less.
If you understand how to harness the power of leverage, you
can achieve maximum results with minimum effort. Think in
terms of doing more and more with less and less.

What is the greatest Leverage in the world?

It's the leverage of your mind!

What you think is real becomes your reality.

So what is your reality? Whatever "belief" you accept would
eventually become your reality." Some people believe they
can never succeed. Some people who are born poor believe
they can become rich. So what is your belief

Humans will never fly was the reality for most people less
than 100 years ago. However, the Wright brothers who
invented the aeroplane think it is possible for human
beings to fly! And they went on to "invent" the aeroplane.

Most people have "limiting beliefs". When you think about
it, the only "limit" is the limit we place on ourselves and
accept.

Give you another example. Singapore was just a sleepy
fishing village years ago. However, Sir Stamford Raffles
saw in his mind that Singapore can become a great port and
even today, Singapore still remains one of the busiest
ports in the whole word. Thus, the ability to leverage your
mind to see "possibilities" instead of negativity and
obstacles is one way one can move ahead in life.

So the number one lesson I want to share with you is:"our
mind is our most powerful tool of Leverage."

Most people do not achieve MORE because they have NEVER
grasped the concept of Leverage.

What are the things we can leverage on?

1. Other people's money. For instance, if you start a
business, and you get other shareholders in to chip in
money. That is leveraging on other people's money. When you
run a business and you borrow a loan from the bank, that's
also leveraging on other people's money!

2. Other people's experience. For example, I worked in the
bank for 7 years before I move out to set up my own
business. While I was in the bank, I keep tapping on the
experience of "business owners I meet"; my superiors who
were in their 40s and 50s. I asked them about the Oil
crisis in 1973, the Singapore recession of 1985. In 1973, I
was just a 4 year old, but does it mean that I cannot tap
on the experience of those people who are older than me? Of
course we can!

3. Other people's knowledge. For example, I consider myself
a financial expert. It took me more than 14 years to
acquire the expert knowledge I have. However, am I an
expert in say "Information Technology"? No, I can simply
leverage on the expertise of IT specialists. Am I an expert
in SMS marketing? I'm not, but I can leverage on the
expertise of a SMS marketing expert.

4. Other people's customer base Human beings seem to be
very different. We can be tall or short, slim or plump, old
or young, we can be from different races. But if you think
about it, each of us are in a different business. Our
customers, no matter who they are, ultimately, they need
the same things!

5. Leverage on a Network: eg. Business Community, such as
Chinese Chamber of Commerce. By tapping on Chinese
Chamber's broad membership base, a business can reach out
to potential suppliers/clients easily if they are members
of Chinese Chamber as well.

6. Leverage on information eg what services/products would
be in demand in next few years in Singapore? Keeping up on
information on business trends can help one leverage on the
profit making opportunities.

7. We can leverage anything and everything. Even a computer
can be a tremendous tool of leverage. SMS can also be used
as a effective tool of leverage.

If you understand and apply the power of Leverage, then you
are likely to achieve greater results with less efforts.

Before you get too excited, here is a note of caution: you
must know what is the upside potential and what is the
downside risk. For me, I'll only do something if I estimate
the upside potential is at least double of the downside
risk.

Make sure the risk-reward ratio is in your favour! Think in
terms of risk and reward instead of risky or safe.

----------------------------------------------------
Dennis has 15 years of bank lending experience. He founded
http://www.HousingLoanSG.com - a Leading Mortgage
Consultancy Portal in Singapore. He is often quoted in
newspapers for comments on Housing Loans. Please send your
comments to dennis@housingloansg.com or call him at +65
6737 8801

Looking at Debt Backward: An Interesting Approach to Financial Freedom

Which is easier? Making more money or spending less?

Judging by the number of folks who play the lottery and
people who daydream over pay raises, most of us think that
the key to wealth is making more money. But for every
family that thinks they could make it "if only" they earned
15% more a year, there is another equivalent family already
earning that amount, thinking they could make ends meet "if
only" they earned 15% more a year.

While income is undoubtedly important and no one should
scoff at the opportunity to ethically and honestly increase
earning power, what we take in is somewhat out of our
control. If you work for somebody else, your pay is based
on a number of factors, including overall business
performance and market conditions-two things you don't have
much influence on. If you work for yourself, your business
depends on competition, market conditions, and how well
your potential customers are doing. Again, these are things
that are largely beyond your control.

However, most of us have tremendous control over what we
spend. We don't usually care to exercise this control and,
in fact, our sense of mastery in this area has probably
atrophied. But we can all restrict our spending, sometimes
in ways that have startlingly little impact on our
lifestyle.

Lee Iacoccoa, former president of Ford and later turnaround
boss at Chrysler, once wrote that he could trim 10% out of
any budget anywhere without any noticeable pinch. Most of
our household budgets have a lot more fat in them than a
lean-mean business budget.

Trimming expenses means evaluating expenses in view of the
fact that every cut you can make will increase the amount
of money you get to keep for yourself. If you spend $40 on
a cell phone, $45 on cable Internet, and $90 for cable TV,
you are spending $175 a month for those services. If you
could consolidate them and get the whole package for $99 a
month, you get to keep $76 for yourself.

Most people who are spending that way don't bother to save,
because they don't think of that $76 as something they
could rightfully keep. And don't just think $76. In a year,
that's $912. In five years, it's well over $4,000.

One way to cut the fat out of your budget is to look at
everything you spend and see where there is overlap (are
you a member of two gyms? Do you have too many phones?) or
ways to consolidate services into packages that offer
better deals.

But that's just the beginning. Look at other things you
spend and start to see where you can whittle down the
spending. For a lot of people, food is a huge item on the
budget. Eat out less often and you'll save money. If you
already eat mostly at home, start cooking more from scratch
and less from packages and you'll spend less.

The famous "tightwad" Amy Daczycn (Tightwad Gazette) once
wrote that the food budget was one of the areas where
frugal masterminds could keep exercising continuous
improvement. Almost everyone can cut expenses here.
Strangely, some of these cost-cutting efforts will result
in better, healthier eating.

Can you reduce what you spend on utilities? There may be
ways to use less air-conditioning or reduce your water
bill-without your even noticing!

Look at other areas where you spend a lot. Clothes can be a
huge expense, particularly if you're outfitting lots of
school-age kids, but if you can deal with the garage sale
scene, you can cut your clothes bill to a tenth of what it
used to be. Granted, working the garage sale circuit takes
time, nerve, and the ability to get up early on weekends.
Some people dislike the whole notion of the garage sale
wardrobe and I certainly don't advocate buying all your
clothes used. But if you can get a decent pair of jeans for
$1 or some gardening shorts and tees for a quarter apiece,
why spend more? Kids outgrow their clothes so quickly that
most families are quick to use hand-me-downs. Garage sales
just expand the hand-me-down universe!

If you just save for saving's sake, you can end up getting
burned out quickly. You need to figure out a way to "count"
your newfound wealth. If you've got debt, funnel your
savings as quickly as you can into paying down
high-interest loans. If you're debt free or close to it,
you may want to take your savings and put them in a savings
account. For instance, if you've figured out a way to trim
about $30 off your electric bill and $50 off your food bill
and $20 off your cell phone bill, take that $100 and put it
aside. Use it to fluff up your savings account or start a
specific savings fund (for college, a new car, or whatever
you figured you were going to take out a loan to get).

If you play the lottery, here is a great and easy way to
start saving. I once worked with a bunch of folks who
bought group lottery tickets for $5 a week plus many of
them kicked in another $5 a week for a football pool. Lots
of my colleagues were throwing away $10 week in, week out,
with little return and a lot of good humor.

I started to do the same, except I didn't go in on the
lottery or the football pool. I took $10 a week and put it
in a jar at home. I put my money in the jar every Friday
night, faithfully, and in a year, I had over $500. I used
that to help fund my vacation that year. The idea that I
was visibly saving the money and had a purpose mapped out
for it made it not only easier to save, it got to be fun.

Earning more money is always a good way to increase your
wealth, but most of us ramp up our spending as our income
goes up. Reducing your spending is a great way to increase
your wealth and, best of all, you have a lot more control
over how much you spend than you realize.

You can even get radical and decide you don't need cable
TV, a lawn guy, or designer handbags. But even people not
prepared to make a major overhaul in lifestyle can still
reduce about 10% of their household budget and not even
miss it. If you earn $50,000 a year, that's $5,000 more in
your pocket in just a year!

----------------------------------------------------
If you're faced with overwhelming debt or just believe that
you could manage lots of smaller debts better, check out
how to consolidate debt at
http://www.debt-consolidation-diva.com .

3 Affordable Health Insurance Choices

What are your 3 affordable health insurance choices?

There are many different types of affordable health
insurance. Each has pros and cons. There is no one "best"
plan. The plan that's right for a single person may not be
best for a family with small children. And a plan that
works for one family may not be right for another. Blended
families may have a divorced spouse paying for the
children's coverage. Look at all angles upfront.

For example, if your family includes just two adults, it
may be less expensive for each of you to have individual
coverage than for just one of you to have a family plan. If
you have children, or if you might have children soon, you
need a family plan. If a child is going off to college, be
sure they are covered as most policies allow students
continued coverage. Because your situation may change,
review your affordable health insurance regularly to make
sure you have the protection you need.

Choosing an affordable health insurance plan is like making
any other major purchase: you choose the plan that meets
both your needs and your budget. For most people, this
means deciding which plan is worth the cost. For example,
plans that allow you the most choices in doctors and
hospitals also tend to cost more than plans that limit
choices. Plans that help to manage the care you receive
usually cost you less, but you give up some freedom of
choice.

Cost isn't the only thing to consider when buying
affordable health insurance. You also need to consider what
benefits are covered. You need to compare plans carefully
for both cost and coverage. Some of the newer plans will
offer high deductibles and a health savings account. For
healthy families, this is great benefit going forward.

Although there are many names for affordable health
insurance plans, the information here groups them as three
main types:

* Fee-For-Service (or Traditional Affordable health
insurance).

* Health Maintenance Organizations (or HMOs).

* Preferred Provider Organizations (or PPOs).

Which Type Is Right for You?

For each group, simply choose the statement 1 or 2 that
best describes how you feel (your spouse needs to be in on
this decision also):

1. Having complete freedom to choose doctors and hospitals
is the most important thing to me in a health plan, even
if it costs more.

2. Holding down my costs is the most important thing to me,
even if it means limiting some of my choices.

1. I travel a lot or have children that live away from me
and we may need to see doctors in other parts of the
country.

2. I do not travel a lot and almost all care for my family
will be needed in our local area.

1. I don't mind an affordable health insurance plan that
includes filling out forms or keeping receipts and sending
them in for payment.

2. I prefer not to fill out forms or keep receipts. I want
most of my care covered without a lot of paperwork.

1. In addition to my premiums, I am willing to pay for the
cost of routine and preventive care, such as office visits,
checkups, and shots. I also like knowing that I can get an
appointment for these services when I want one.

2. I want a health plan that includes routine and
preventive care. I don't mind if I have to wait for these
services to be scheduled for an available appointment with
my doctor.

1. If I need to see a specialist, I probably will ask my
doctor for a recommendation, but I want to decide whom to
go to and when. I don't want to have to see my primary care
doctor each time before I can see a specialist.

2. I don't mind if my primary care doctor must refer me to
specialists. If my doctor doesn't think I need a special
service that is fine with me.

If your answers are mostly 1: You want to make your own
health care choices, even if it costs you more and takes
more paperwork. Fee-for-service may be the best plan for
you.

If your answers are mostly 2: You are willing to give up
some choices to hold down your medical costs. You also want
help in managing your care. Consider a health maintenance
organization.

If your answers are some 1's and some 2's: You might want
to look for a plan such as a preferred provider
organization that combines some of the features of
fee-for-service and a health maintenance organization.

The differences among fee-for-service plans, HMOs, and PPOs
are not as clear-cut as they once were. Fee-for-service
plans have adopted some activities used by HMOs and PPOs to
control the use of medical services. And HMOs and PPOs are
offering more freedom to choose doctors, the way
fee-for-service plans do. By studying your affordable
health insurance options carefully, you will be able to
pick the one that provides you with the coverage you need,
no matter what it is called.

----------------------------------------------------
Affordable health insurance protects you financially but
staying in shape is up to you! Keith Crovatt has assembled
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hoices.html

The Psychology of a Winning Forex Trader

Each and every day I'm contacted by traders from around the
globe and there seems to be a very common question floating
in the air, a question that if answered with any degree of
certainty could endow the inquirer with untold confidence
and success. The question is simple but it's implications
are powerful: "If I start trading Forex, what are the
chances that I'll succeed?"

If I answered this question by stating: "On average 80% of
today's Forex traders will succeed" you might be justified
in calling me crazy, however some 15 years ago one might be
inclined to answer with such bold figures. Certainly it
would not be uncommon for at least 50 to 60% of the chosen
few Forex traders to achieve success in those days. The
currency market was fresh and opportunities were wide open.
Daily price movements were somewhat more predictable and
the competition was not nearly as aggressive as it is today.

As time moved on from the late 80s, early to mid 90s and on
up to our Present day the success rate dropped drastically
as the Forex market progressively became saturated with day
traders; this in turn made for a more unpredictable trading
environment. The "white noise" we experience intra-day is
in part the efforts of the masses, each trader grabbing at
what they can to secure their daily profits. However, the
cold reality under present circumstances is that less than
10% of today's Forex traders succeed in achieving
consistent profits.

Let's take a closer look at the real ratio of winners to
losers. You see, it's important to understand that this
isn't a luck of the draw situation. When you look at
figures like 1-in-10 there is certainly much more than
meets the eye beneath these numbers. Let's explore this
thought further.

If you take 10 traders who have each asked the question
"What are my chances at succeeding in Forex" and place them
in a trading room together for any length of time, you
surprisingly will not end up with 1 winner and 9 losers.
The same holds true if you conducted this experiment with
100 traders, or even 1,000. But how can this be the case if
the odds of success are 1-in-10? That is a very good
question as within the answer lies one of the keys to your
trading success regardless of which system, method or
school of thought you subscribe to.

You see, the 5 to 10% percent who are succeeding
consistently are not asking self-defeating questions like:
"What are the chances that I'm in the losing percentile?"
and alternatively the 90 to 95% percent who lose on a
regular basis are left completely bewildered at where they
could be going wrong; constantly asking: "Why do I keep
losing in Forex?" and inevitably receiving rather
discouraging and uninformative answers. The answers may be
"Because you're not good enough" or "You're not making
enough pips per month", these answers do not help in the
least as far as taking a hold of your financial destiny as
a Forex trader. Clearly a shift in thinking needs to occur
for fear that one might be left with the majority of those
who are unsure of how to consistently succeed.

Transitioning into the winning crowd involves adjusting the
questions you ask from self-defeating questions to the sort
of questions that will inspire you to find solutions,
methods or systems that utilize your strengths. Rather than
getting discouraged when you suffer loss, simply refocus
and center your thoughts on a new empowering question. For
example try not to ask: "Why do I keep losing these
trades", rather try asking: "What can I do to start
winning". They may sound like similar questions however the
answers you receive will always be drastically different,
and without a doubt these questions and answers will play a
lead role in defining the destiny of your financial future
as an investor. An empowering psychology is at the heart of
every great Forex trader.

The category we find ourself in more often then not is self
inflicted simply due to the fact that we are in the habit
of asking the wrong sort of questions. Don't underestimate
your ability to find the answers you seek simply by asking
positive questions and never fail to realize that this tool
alone can play a large role in helping you to take control
of your financial destiny.

----------------------------------------------------
Ranked in the Top 10 by Google as an International Forex
Money Manager Aaron Stokes is a professional in the field
of managed Forex accounts with an average of 10% growth per
month on managed accounts. For details visit:
http://www.forex-cipher.com

Garden Improvements ‘Add Privacy And Value’

Taking out a cheap loan to pay for some improvements to a
garden could enable potential house sellers to raise the
value of their home, with the aesthetic pleasure, privacy
and protection offered by a well-developed garden often an
enticing proposition for those looking to buy a property.

According to comments from a partner of chartered surveyors
Cluttons, while putting money into your garden solely for
the purposes of adding value to a house is not that common,
it would more likely be used to offer privacy or block out
eyesores, especially in areas of the country where gardens
are small and properties and buildings are close together.

"For example, if you've got an ugly block of flats behind
you, or if you've got another house really, really close to
you looking into your garden, it's quite nice to do
something that's going to take your eye off that and give
yourself some privacy from whatever's going on behind, [by]
maybe planting a tree or something like that," said
Alasdair Mackenzie, the Cluttons partner in charge of sales
for Clapham and Battersea.

While a cheap loan could be a good way to fund any large
developments to a garden, any money borrowed should not
just be focused on the back of the house. Presentation of a
home, especially when it comes to making a sale, can be
crucial, with people "always quite keen on how their house
looks from the outside", according to Mr Mackenzie.

Crucial in any changes to gardens or even the interiors of
a house, Mr Mackenzie said, is the need to create a feeling
of space. The partner suggested that it is not necessary to
improve the actual space that is on offer in a garden,
rather enhance the perception that there is space beyond
the kitchen window, through choosing the right flooring to
match the garden, something that could be paid for through
a cheap secured loan.

"Very occasionally people will do their garden, if it's
quite small, in a way that it blends in with the house. For
example, they may have a wooden floor going on to decking
or a slate floor with a slate patio beyond it. That's quite
good because it gives more of a feeling of space," Mr
Mackenzie said. He also added that some people like the
idea of bringing the garden into the home, using
concertinaed glass doors that offer a view on to the garden.

Any homeowners that are considering splashing out on any
improvements to a garden or house should certainly avoid
store cards when purchasing their goods from DIY shops or
garden centres. Earlier this month, Martyn Saville from
Which? said that unless consumers plan to pay off the
entire balance of the store card once the bill comes in,
they should "avoid store cards altogether". Which? is
attempting to get credit providers to use scenarios for
customers to see the outcome of, for example, leaving a
balance on a store card, some of which carry APRs
approaching 30 per cent.

----------------------------------------------------
Abbi Rouse is Editor in Chief for All About Loans. Our
visitors have access to cheap loans of all types: From home
improvement loans to bad credit debt consolidation loans.
Visit our site today: http://www.allaboutloans.co.uk

Insurance Quotes Free – Auto Insurance Quotes, Home Insurance Quotes

When it comes to getting insurance quotes free, one should
try to find out the best way to obtaining them. One of the
best and fastest ways to get free insurance quotes is to
use the internet to shop for auto insurance and home
insurance.

The internet allows us to shop for auto insurance and home
insurance in an instant by simply filling out one page
instead of contacting each home and auto insurance company
one by one. Since insurance quotes are free, it is a good
idea to get as many quotes as you can in order to make sure
you obtain a competitive insurance rate quote.

There are many insurance companies out there and not all of
them will give you a good rate. Some insurance companies
will be cheap for one person, but not for the other. Auto
insurance companies look at a few factors to determine the
quote amount. Since each driver falls into a certain
driver category, you must get as many free insurance quotes
as you can from several companies in order to ensure a
great rate quote.

Home insurance quotes are based on a few factors as well.
The territory, or zip code of a certain home will be a very
important factor when it comes to home insurance quotes.
Value of the home, including factoring in the square
footage is also an important factor among others. Type of
roof, year build, and whether you have had any losses in
the past will also affect your rate quotes.

It is a great idea to obtain multiple home insurance quotes
free in order to also find competitive rate quotes. Many
consumers will buy a package policy which will include
buying auto insurance and home insurance from the same
company in order to obtain additional discounts.

Shopping for home insurance and auto insurance quotes
online will be your best bet, especially if you find a
website that will provide free insurance quotes for your
auto and home insurance from the same website. Finding a
website that provides both auto and home insurance quotes
online will save you time and money.

Some websites even allow you to buy the home or auto
insurance online which comes with many benefits such as
managing your policy online, making payments and inquiries
to your policy and so forth. Thanks to the internet,
shopping for auto insurance or home insurance is much
easier these days.

----------------------------------------------------
http://www.insurancequotesfree.com offers free insurance
quotes for your auto insurance and home insurance needs.
Save time and money by finding the right insurance company
from one single source.

The Fundamentals of Forex Trading for Beginners

Forex, the largest financial market in the whole world
includes trading between large banks, multinational
corporations, currency speculators, other financial markets
and the government. The daily trade in Forex on an average
exceeds to 1.9 trillion US dollars and retail traders are
just a fraction of this market and indirectly participate
through banks or brokers. Forex trading is becoming a very
popular trend among people who are looking for some
financial freedom, free from the hassles of conventional 9
to 5 jobs. The financial freedom with minimal efforts is
the most appealing feature of this trading.

Although the equity market and Forex market are very
similar to each other, some key differences do exist. If
you are a beginner the most important thing you need to do
is to choose the right broker. Since there are so many to
choose from, you need to consider the following factors:

- Types of account: A number of brokers offer more than two
types of accounts. Mini account is the name given to small
accounts and it has a requirement of trading for a minimum
amount of 250 dollars. Besides this, there are standard
accounts and premium accounts as well. Make sure that your
broker offers you the right advice.

- Quality of institution: The Forex brokers have
connections with the large lending institutions or banks
because of the requirement of large amounts for trading. A
good Forex broker needs to be registered with the Futures
Commission Merchant (FCM) and regulated by the Commodity
Futures Trading Commission (CFTC). Never select a broker
who has no backing from any reliable financial institution.

- Extensive tools and research: Forex brokers provide
various trading platforms for clients like other brokers.
Technical analysis tools, real time charts, support for
trading system and real time news and data are included in
the trading platform offered by the Forex brokers. Before
you commit to any broker make sure that you request some
free trials so that you can test the different trading
platforms. Usually brokers even provide fundamental and
technical commentaries, economic calendars along with
research work. So find one who is equipped to provide all
the required tools to succeed.

- Wide leverage options: It is essential to have leverage
in Forex because the deviations in price are just fraction
of a cent. Leverage is a ratio that is between the total
capital available and the actual capital. It is an amount
that is lent by a broker for trading, to any client. For
instance, 100:1 ratio will mean that your broker will lend
you 100 dollars for every 1 dollar of actual capital. You
need to remember that low leverage will mean low risk of a
margin call. So if you have limited cash ensure that your
Forex broker offers you a high leverage. In case there are
no financial issues with you, then you can select any
broker who has a wide variety of leverage options.

- Lower spreads: Spread is the difference between the price
at which any currency is purchased and the amount at which
it can be sold anytime. Since the Forex brokers charge no
commission, this difference acts as the base for them to
make money. Lower spreads will save you a lot of money.

As a beginner in Forex trading, there are certain things
that you need to avoid like Hunting and Sniping (buying
prematurely or selling at near preset points). Many brokers
attempt these so that they can increase their profits. Such
activities are not reported by any organization. Visiting
online forums can also be of great help if you want to find
out which broker is genuine. There are some strict marginal
rules that also need to be followed. When trade is taking
place with borrowed money, the broker has a say in how much
risk can be taken. For instance, suppose you come across a
situation where you have a margin account and before you
rebound to an all-time high, your position takes a dive.
Even though you have enough cash to cover everything, there
are chances that your position will be liquidated by some
brokers and it will cost you dearly. As a beginner, it will
help to try out a combination of technical as well as
fundamental analysis that can help you in making long-term
projections and determining the entry and exit points. So
develop your own strategy and make it perfect with time.

Since the Forex market is the largest financial market in
the world many people are becoming interested in it and it
is essential to have some Forex trading education before
you start.

----------------------------------------------------
Andrew Daigle is the owner, creator and author of many
successful websites including ForexBoost at
http://www.ForexBoost.com and
http://forex-trading-system.typepad.com , Free Forex
Training Resource for the Novice and Advanced Forex trader.

Get Rich Fast With 5 Simple Principals

Face it, everyone would like to get rich real fast. Here
are some very simple principals you can use that when
combined and all utilized together will allow you to create
massive wealth quickly.

1st Get Rich Principal:

This is a big one if you want to get rich fast. You should
own your own home because if you are renting, you are
simply throwing money down the drain. If you are going to
make a payment each month, why not have it have it working
for you instead of just wasting it on rent.

2nd Get Rich Principal:

Pay yourself first. You should get in the habit of making
it a normal thing to put money in your savings account
immediately following any time you earn income whether from
a job or a business. You should try to pay yourself a
minimum of 10% of your earnings. To really get rich fast
utilizing this principle, you should save 25%.

3rd Get Rich Principal:

The next principal to help you on your way to fast wealth
is to have a strict budget and cut out any unneeded
expenditures. You see, it doesn't matter how much you earn
if you simply run to every store on earth and spend it all
as soon as you get it. This money can be more wisely used
on buying assets such as investment real estate, etc.

4th Get Rich Principal:

You should take some time to study and find out what has
the best possible rewards with the lowest possible
downside. There are a lot of great options to choose from
in creating wealth but we want to look for a couple that
have some great benefits and the lowest risk involved.

5th Get Rich Principal:

This last principal is important because it will help you
not only make more money, but also allow you to keep more
money. You should invest in a home based business because
it will allow you to take advantage of tremendous tax
breaks and benefits that you wouldn't normally be entitled
to as an employee. A couple of options for starting a home
business are becoming a independent representative of a
network marketing business or selling through the
conventional way of a direct sales affiliate program.

If you utilize all of these simple techniques and keep
yourself committed to stay on the straight and narrow, you
will be on your to climbing the mountain of getting rich
fast.

----------------------------------------------------
About the Author: Brian McCoy is a top internet marketer
who works with other industry top marketers from around the
globe. To learn more about him, check out his website at
http://www.RoadmaptoRichesLaunch.com .

Student Credit Cards 101

Almost all students have and use student credit cards. Some
of the students use them wisely and build for them an early
credit history but others accumulate lots of debts that
would have to be paid off once the student life is over.
Students that have a credit card should learn how to take
charge and manage their own finances as soon as possible,
because the time between teen years and adulthood is very
short. So, the sooner a student starts managing his own
financial matters the sooner he will develop useful
financial skills. Student credit cards are no longer a
privilege for wealthy students but now are considered a
social entitlement.

A student can very easily obtain a student credit card.
Offers for student credit cards are everywhere students
are: in campuses, at social functions, in their mail boxes,
in bookstores, etc. That is because credit companies
consider students to be good customers. First of all they
are loyal; once a student obtains a credit card, he is
likely to keep this particular card for years to come and
instead of getting other new cards they upgrade it every
time they fill the need to do it. Nowadays, the conditions
to obtain a student credit card are very weak, so more and
more students have access to them even though they don't
have a steady source of income. And this is a second reason
why credit card companies offer more and more credit cards
to students: they usually can't repay their debts in time.
And this is what credit cards companies rely on; they make
lots of money from late payment penalties, interest fees on
unpaid credit card balances, annual fees and more. So,
students that don't repay their credit card balances in
full each month are the best customers.

Every college freshman wants to have at least one credit
card because it will help him very much during his college
years; the student will be able to rent a car, buy books or
concert tickets, provide himself help with medical or other
emergencies and more. Apart from financial help during
college years, student credit cards offer other types of
help by building a credit history. Credit history is the
record of all that happens in your financial situation
throughout the years. Credit scoring is a system based on
all that happens to your accounts: late payments, bill
paying history, number and type of accounts, outstanding
debts and more. If the credit history and scoring are good
the student will more easily obtain a house or a car loan,
certain types of financial jobs, insurance premiums and
more other benefits. So, the student must pay his bills in
full or in time, in order to benefit later of their first
years of credit history.

The most difficult thing for a student is to choose from
the large number of student credit card offers. And the
best way for a student to choose a credit card for himself
is to talk to other students and get advice from the ones
that already have and use a credit card and compare credit
card offers online. Before choosing a credit card, the
student must be aware of the card's terms of use. Most
student that already have a credit card recommend for the
others a card with no annual fee and the option to limit
the amount to be spent. And apart from these safety
measures, wise students that think of their financial
future often take a personal finance course in order to
learn all kinds of financial management skills that will
help them throughout their entire life.

Students must be very careful when using their student
credit cards; they always have to be cautious about the
amount charged on the credit card and, at the end of the
month, to review the amount of interest they have to pay
monthly. It is also recommendable that the credit card
balance to be paid as soon as received. If for some reason
the balances cannot be paid in full, the student must pay
at least the minimum payment required. If problems with
paying the credit card balances appear, the student must
ask help from a financial counselor that will always have a
solution for him as student loan repayments are much more
flexible than consumer loan repayments. And another thing
students must be careful about is identity theft; the
credit card or social security numbers should not be given
to anybody over the phone. These are important information
that cannot get into the hands of wrong people because will
very much damage the credit history. So, we can consider
that it is best for students to have a credit card starting
with their freshman college years because, if used wisely,
the credit card history built in this period will very much
help them throughout their entire life.

----------------------------------------------------
This articles has been provided by
http://www.creditorweb.com .

Value Added Tax, Vat Schemes and Vat Thresholds

Value Added Tax Registration.

Businesses become liable for value added tax when sales
reach the vat threshold set on 1st April 2007 at £64,000
p.a. regardless of whether that business has registered for
vat purposes. Businesses whose customers are vat registered
should consider opting for voluntary vat registration as
sales would not be affected by vat registration and
registering would permit that business to also reclaim vat
input tax on purchases. Businesses with mainly non vat
registered customers may wish to delay vat registration
until the point is reached at which liability to vat tax
becomes inevitable. Consideration should be given to
maintaining sales below the vat threshold provided this
does not result in a significant loss of profit. When the
vat threshold of £64,000 p.a. is exceeded Customs & Excise
should be advised. It may be possible to delay vat
registration if sales breached the vat threshold due to an
abnormal sales period that may not necessarily be repeated
in the foreseeable future. Having reached the point of vat
registration consideration should be given to the various
vat schemes which are available to either simplify the vat
calculation or smooth the vat tax liability.

Choose the right vat scheme.

Unless a vat scheme is adopted then the standard inputs and
outputs vat scheme would be applied. This involves charging
all customers vat on sales known as output vat and paying
this amount to the Vat office each quarter. Vat Registered
businesses can also deduct from the vat liability the input
vat on purchases that suppliers have charged the business.
It is important to ensure all sales and purchase invoices
are retained and an audit trail from the individual
transactions to the vat tax liability is maintained as
Customs & Excise do inspect vat records, the frequency of
those visits, often once every three years can increase
dramatically if the vat records are considered inadequate.
Accounting Software can provide a solution to record
keeping and DIY Accounting produce automated vat
calculations from the basic data entry of sales and
purchases on excel spreadsheets.

Vat Schemes

Vat Flat Rate Scheme

The vat flat rate scheme can be adopted by businesses that
have an annual turnover excluding vat of under £150,000
p.a. Instead of paying the difference between vat on sales
and vat on purchases businesses that have adopted a vat
flat rate scheme pay vat at a percentage of sales in line
with the average for that trade sector. Vat is not
reclaimable on purchases under the flat rate scheme. The
Customs & Excise website contains details of the vat flat
rate percentages for each sector. Customers are charged vat
at the normal vat rate, 17.5% if standard rated goods. The
actual vat payable is then calculated at the appropriate
percentage of the total sales figure including vat. An
adjustment to the accounts would then be required to adjust
for the difference between the vat paid and the amount
payable if an inputs and outputs basis had been used. DIY
Accounting software automates this flat rate calculation by
automatically calculating the vat on sales at the flat rate
and expensing the vat input to the purchase accounts.
Businesses in their first year of vat registration also
receive a 1% reduction in the vat flat rate for their trade
sector which can save tax.

Annual Vat Accounting Scheme

Not suitable if you receive repayments of vat, the annual
accounting scheme is based upon an annual estimate of the
vat bill which is then paid in monthly or quarterly
instalments throughout the year with the balance payable or
received at the end of the year when the annual vat return
has been submitted. The vat threshold for this scheme is
businesses with a sales turnover not expected to exceed
£1.25m. The main benefit of the annual accounting scheme is
to smooth the vat payments over the year.

Vat Cash Accounting Scheme

Under the vat cash accounting scheme the vat return and
liability to pay vat is based upon the date sales were
received and the date purchases were paid rather than the
invoice tax points. The vat threshold for the cash
accounting scheme is businesses with a sales turnover
excluding vat of under £1.35m.which can be extended for
existing users to a turnover of £1.6m and left in place for
up to 6 months after the vat threshold has been breached.
Accounting for vat using the Cash Accounting Scheme may
require businesses to record sales and purchases on cash
received and paid basis and adjust accounting records for
accruals. Alternatively, sales and purchases can be entered
into the Accounting records based upon the invoice tax
points and a quarterly adjustment made for debtors and
creditors at the beginning and end of each quarter. Such
accounting adjustments would not be suitable for everyone.

Vat Retail Schemes

Retailers selling to the general public may not easily be
able to produce vat sales invoices to individual customers
and there are various vat retail schemes available on the
Customs & Excise website that retailers can adopt. The main
benefits of the vat retail schemes are to dispense with
every customer being issued a vat invoice unless requested.
Vat retail schemes can be used in conjunction with both
flat rate schemes and the annual vat accounting scheme.

----------------------------------------------------
Terry Cartwright provides automated VAT Accounting Software
at http://www.diyaccounting.co.uk/index.htm
VAT Accounting Software for Self employed at:
http://www.diyaccounting.co.uk/selfemployed/vat.htm

An Online Balance Transfer Credit Card Application vs. Offline

Should you opt for an online balance transfer credit card
application or opt for the old-fashioned way and mail it
in? Balance transfer credit cards are all the rage, and
it's no wonder with low interest rate offers abounding and
consumers becoming increasingly-conscious of paying down
their debt. But what is the best way to apply for a balance
transfer credit card? Online or off?

Here are some things to consider.

1. Instant Approval

With the old fashioned balance transfer credit card
application, you had to have the application mailed to you
(or pick one up at a store or a bank) and then fill it out
and mail it back in. Then wait a few weeks for the credit
card company to process the application and wait even
longer for the reply (or the card) to be mailed back.

Kiss all that waiting goodbye.

Nowadays, thanks to online balance transfer credit card
application websites, long waits are no longer the norm.
Simply log onto the Internet, find the best balance
transfer credit card for your needs and fill out the online
balance transfer credit card application. Click the
"submit" button and you're done.

Many websites will process your application instantaneously
and those who don't can get you a response in as little as
a few days. Forget waiting weeks. Your new balance transfer
credit card can be in your hands in just a few days thanks
to today's online balance transfer credit card application.

2. Better Access to Information

When you have a paper balance transfer credit card
application, you can see the terms and conditions of the
card (in legal jargon) and a few lines of info regarding
the card's benefits, but it's not a lot to go by. With on
online balance transfer credit card application, however,
you have access to an entire website.

Today's credit card application websites are much more
informative than the three-fold pamphlets of days gone by.
Many websites offer pages of information regarding the
card's terms and conditions, benefits and contact
information.

3. Hand Cramps

Of course, filling out on online balance transfer credit
card can be a lot faster than filling out a snail mail
application. Instead of manually writing all of your
information in, you can type it into the application in
just seconds (depending on how fast you type).

With today's hectic lifestyles, every minute counts. Faster
processing, more convenience, better information -- the
list goes on. It's not hard to see why so many consumers
are opting to fill out an online balance transfer credit
card application rather than the old-fashioned snail mail
version.

----------------------------------------------------
For more tips on balance transfer credit cards, saving
money and avoiding getting taken, check out
CreditCardTipsEtc.com, a website that specializes in
providing credit card tips, advice and resources.
http://www.creditcardtipsetc.com/balance_transfer_credit_car
ds/

Steps to Eliminating Debt

Debt is easy to get into. We all buy things on credit,
take loans out to get instant money or pay for goods on
credit cards. Credit can take minutes to build up, but
years to pay off. When debt builds up we end up paying
regular monthly payments that simply increase every time we
get more credit.

The first thing we all have to do to clear debt is stop
getting into any more debt. If you never took out another
loan and cut up your credit cards then after a while you
will pay off all your debt (provided you are making regular
monthly payments).

However, there are lots of clever ways to pay off debt
quicker and help you to become debt free. Simply make a
list of all the debt you have. This is everything that you
pay to a creditor and includes any loans, credit cards,
financed items such as the finance on your car or furniture
and also the big one, your mortgage.

You should know:

1. How much the debt is for or the total amount
2. How much is left to pay off the debt
3. What you pay every month
4. How many months you have left to pay
5. AND the interest rate you are being charged

If you add the amount of debt (number 2 above) you have
left on each one of your debts then this is how much you
owe to creditors. If you then add up all the monthly
payments (number 4 above) then this is what you have to pay
every month. Once you have worked this out then you are in
a good position to start working out the fastest and
cheapest way to clear this debt.

Paying off the debt as quickly as possible:

There are several ways you can pay off debt quickly. Some
will be better than others and it also depends on the type
of debt you have.

The interest pay off - Targeting number 5 on the list above

If you have a credit card or mortgage then you should be
charged interest monthly on the amount of credit you have
left to pay. If you pay off larger amounts off this then
amount you have to pay every month goes down. The more you
pay off the less you have to pay in interest every month.
If you take the credit card or loan that charges you the
highest rate of interest, then paying this off earlier
saves you the most amount of money every month. Once it is
paid off, you move to the next credit with the biggest
interest rate. Because mortgages usually have the lowest
interest rate out of all your loans or credit cards and is
secured debt you should leave this until last on your list.

For some loans, creditors can sometimes charge the entire
interest on the full amount across the time you have to pay
the loan so that if you decide to pay a loan off early, you
may still end up paying the same amount as if you continue
to pay the loan every month. In this case you are probably
better off not paying that specific loan early and focusing
your efforts on a different loan.

The minimum loan pay off - Targeting number 2 on the list
above

If you take a look at all your loans and start paying extra
on the smallest loan then this will be paid off the
fastest. Once you pay this off, take the amount you were
paying on that loan and use it towards paying off the next
smallest loan. Eventually you will again end up with only
your mortgage left which if you use all the money you used
for your other loans this will also be paid off much faster.

The biggest payment pay off - Targeting number 3 (or 4) on
the list above

This works best for small loans with fixed payments and is
great for people who find themselves with lots of loans
with money to pay off on all of them. Because you want to
reduce the amount of time and money you have to use to pay
off the loan you simply target the largest payment you have
to make every month. This may be the loan with the highest
interest or the one the one with the highest balance. Once
you put everything you can into paying this off your
monthly payments will suddenly drop.

You can also do this by targeting the loan that has the
least number of months left to pay off the debt. This will
reduce the monthly payments quicker.

This will leave you with a lot more money every month and
helps to control your finances better especially for people
that struggle to pay off their loans. Clearing the loan
that takes the highest payment every month has the biggest
effect on your bank balance every month. Clearing the loan
that has the least number of monthly payments left has the
fastest effect on your monthly bank balance.

The clever part is to then use the money you save once you
have paid off the loan to pay the other loans off faster
and not to get comfortable with the debt you have left.

----------------------------------------------------
Learn more about student loan debt consolidation and
student credit card debt at
http://www.studentdebtconsolidationshed.com

Should I use a credit repair service?

There are some benefits to using a credit repair company
and there are some real disadvantages too. The first thing
to think about is why you want to use a credit repair
service? Is it because you have bad credit that you want
to fix but simply don't know how? If this is true then try
reading a bit of information about how to fix bad credit to
see if you think this is something you can do.

If you don't have time to sit down, write letters and go
through the credit reports to see what you can dispute,
then a credit repair company is probably for you. A credit
repair company will take care of all the tedious tasks that
are involved in disputing bad credit marks on your credit
report. You should however make sure that you use a
company that knows the law so that they can properly
understand your needs.

To fix bad credit yourself, all you have to do is request
your credit report, read what's on it when it arrives, and
write a letter to dispute the bad credit that you believe
is unfair or untrue. At this point you can also write to
your creditors to try and negotiate a reasonable pay off
plan in return for removing the debt from your credit
history. When you pay a credit repair service, this is
practically all they do. Firstly they request your credit
report or reports, if they are requesting more than one
report from the three big credit bureaus.

When not to use a credit repair company

A good credit repair service will be upfront and honest
about what they can and can't do. They will be clear about
how much they charge and clear about what you will get from
the service.

A bad credit repair service will probably do some the
following:

* Try to confuse you with financial jargon so you don't
understand what they are doing
* Don't tell you what your legal rights are
* Tell you not to contact one of the credit bureaus
directly yourself
* Suggest that you try to invent a new credit identity and
then apply for a new credit report. This can be done by
applying for an Employer Identification Number (EIN) to use
instead of your Social Security number.
* Tell you to try and remove all your bad credit regardless
of whether it is true or not. If you do this and are found
to be committing fraud, you may be held responsible
yourself.

So if you are thinking about using a credit repair company
you should remember three things:

* Only inaccurate information on your credit report can be
removed. So if a credit repair service says they can
repair you credit 'guaranteed', this simply isn't true.
Credit repair companies have actually been successfully
sued for claiming they can remove bad credit when in fact
they can't.

* Credit repair companies can charge high prices for doing
something that is pretty routine, so don't pay big prices
because it probably isn't worth it.

* When a credit repair organization requests your credit
report, the credit companies won't accept any disputes
unless it is accompanied by a notarized power of attorney
that authorizes a licensed attorney or if the power of
attorney is unlimited and irrevocable. Alternatively you
or a family member can do it on your behalf.

Using a credit repair service can greatly help you to start
to repair your credit score quickly as they can quickly
identify where the problems lie in your credit report and
highlight any errors that may have been made.

----------------------------------------------------
Get a free credit report and debt elimination strategies at
http://www.creditrepairshed.com

Charges For Financial Products 'Increasing'

Britons are facing more fees than they did last year on
financial products and services such as personal loans,
secured loans, mortgages and credit cards, as well as on
savings and current accounts, according to the latest
research from online comparison service moneysupermarket
The website has found that across five financial products
British consumers now face a combined total of 112 fees, a
number that is slightly higher than the 110 faced at the
same time last year. The areas investigated were mortgages,
loans, savings, current accounts and credit cards, with the
findings of the research dubbed as "galling" by the
managing director of moneysupermarket, Stuart Glendinning.

"It is unbelievable that five financial products can be the
root of so much penalty pain. With so many default fees and
charges in place, even the most astute consumer can fall
foul. People deserve financial penalties to be transparent
and fair from the outset," Mr Glendinning said.

Mortgages were found to be the cause of most problems when
it came to fees and penalty charges, with a total of 51
different fees attached to the products. While exit fees
may have been curbed, moneysupermarket said, fees for
copying documents, charges for changing payment methods and
other ways for banks to make money have been introduced in
their place.

Some 11 different fees and charges are attached to loan
products, according to the website, with personal loans,
secured loans and debt consolidation loans in certain cases
carrying late payment fees or early settlement fees. Unpaid
direct debits or bounced cheques related to loans can set
consumers back about 35 pounds a time too, moneysupermarket
claimed.

Credit cards and overdrafts attached to current accounts,
two further methods of borrowing, also carry fees. While
the Office of Fair Trading has capped credit card fees at
12 pounds, moneysupermarket notes that the number of credit
card charges has risen from 17 to 19, suggesting that the
providers are introducing further fees to replace capped
revenue. Where current accounts are concerned, slipping
over the agreed overdraft limit can result in a charge, as
can having a payment bounced, just two of 27 possible
charges consumers face in relation to their current
accounts.

"A year on and providers are still giving with one hand and
taking with the other. It is understandable that banks want
to make up any profit lost by the clampdown on fees. But we
are seeing sneaky tactics by some providers, who are
renaming charges or introducing a new fee in their place -
a practice that doesn't treat customers fairly," Mr
Glendinning added.

The area that least charges or fees are attached to is
savings accounts, where just four such penalties are
imposed. Withdrawal charges or problems through not
depositing the required monthly funds are two of those
involved, but these are far less in number than those
associated with loans or mortgages especially.

Last month, the managing director of Picture Financial
emphasised the importance of structuring debt in the best
possible way to make payments more manageable, something
that would potentially avoid some of the fees highlighted
by moneysupermarket.

----------------------------------------------------
Abbi Rouse writes for All About Loans. Our visitors are
offered advice and information all about loans, they can
also apply online for tenant loans and secured loans for
any purpose. Visit today: http://www.allaboutloans.co.uk

Why Women Stay Poor

The UK Equal Opportunities Commission has stated that it
will take at least two more generations for women to bridge
the gap and reach the same earnings as our full time male
colleagues. This is despite the fact that the first equal
pay legislation was introduced over 30 years ago. Progress
is being made, but ever so slowly. Why is it that women
can't seem to catch up?

There are certainly enough motivators. We hate the fact
that we don't have enough money, we know we probably spend
too much and we certainly know we don't save as much as we
should. There are also all the horror stories about
failing pensions and old age poverty. These are still not
enough to spur us into action and take control of our
income generation. The answer is deep seated and lies in
our conditioning. Until we understand how this impacts our
attitude to money, all the changes in legislation and
extended maternity leave in the world will not raise our
earning levels.

Our conditioning is determined at a very early age. Some
time between the ages of 0 and 8 we are taught a set of
values or beliefs. In fact, David McClelland,
Distinguished Research Professor of Boston University,
proved it could be as early as 0 to 3 when our 'values' are
determined by our parents and those most closest to us.
These values impact how we feel about and respond to all
sorts of things including our attitudes to money, wealth
and the types of work we should be pursuing.

The emphasis on should is deliberate. Values are all about
what we believe we should be doing to please others, to
please society in general and to fit in.

For women and money this is complicated. Women today are
taught the importance of being financially independent, to
be self reliant because, afterall, 'a man is not a plan'.
However, sometimes the messages we hear growing up are
inconsistent and conflicting. On the one hand, we're
taught about the importance of money the need to spend and
save it wisely. On the other, we're implicitly and
explicitly taught that it's equally important to be kind,
nurturing and collaborative; that the most important thing
is our relationship with others and not our relationship
with money. Unlike men, we are not taught to be powerful
and 'go for the kill'. This makes us reluctant to demand
what we think we deserve, including equal pay.

To add insult to injury, we are told at a very early age
that girls are poor at maths. From this we conclude that
we must be bad at finance and managing money as well. As a
consequence, we lack confidence in dealing with money,
preferring others to take charge.

If our parents were raised during or shortly after the war,
we also inherited a mentality of scarcity which continues
to impact our attitude to risk and money as we become
adults and parents in our own right.

What has been the result?

Besides the earnings gap which persists, a recent survey by
the Economist Intelligence Unit on behalf of Barclays
Wealth showed that we are far less likely to take risks
with our money, whether in personal finance or business
affairs. Women tend to place less importance than men on
our income from investments and we save to reach a goal.
Once the goal is reached we will often act to protect what
it is that we have built up. This means we are limiting
our potential to create even more wealth and be superrich.

Men have a different attitude and game plan. The same
survey showed that men claim to have better knowledge than
women of every aspect of personal finance. They are more
confident and as Dr Ros Altmann, Governor of the London
School of Economics states, "Men have more of a mindset
that you have to just go out and get it and you can see
their attitude towards risk taking in the games they play."
It may just be a matter of confidence or bravado, but men
play to win, take less time researching investment products
and invest in the longer term.

Does this all mean we are doomed to stay poor for the rest
of our lives? No! It means that what you focus on is what
you get and it's time to focus on getting rich. Being rich
is a positive thing. It is about flexibility, freedom and
being in control.

What do we to become rich?

1. Choose to do something about your financial literacy
Financial skills are not innate but learnt. We need to
learn financial skills and practice them to gain
confidence. This means undertaking short courses in
financial literacy which teach you how to prepare a balance
sheet or income statement. Read the financial pages of
daily newspapers to build an understanding of the financial
world at large. Don't be put off by 'big words', buy a
jargon buster such as "The Dummies Guide to Investing".

2. Spend don't save Invest a defined amount (minimum 10% of
your net income) every month into a high income bearing
savings account – but don't leave it there. Once you have
accumulated enough, buy an asset which will produce passive
income indefinitely. This could be a buy to let property
which produces positive cash flow. Use this positive cash
flow to buy a second income generating asset and continue
to build assets.

3. Develop financial goals and stick to them After you've
built your financial skills and have learnt to prepare a
balance sheet and income statement, define how much income
and assets you need to make you feel 'rich'. This will be
different for each individual. If you are planning your
retirement fund aim to build a fund that contains 25 times
the annual amount you want to have when you retire. So, if
you want a total income of £30,000 each year when you
retire, you need to have £750,000 in your retirement fund.

4. Reward achievement in investment – don't use spending as
an emotional crutch

Our client wanted to buy a new Audi sportscar for £500 per
month. Our challenge to her was to develop a stream of
passive income to produce £500 per month within a year and
then buy the sportscar as a reward.

5. Network, network, network – but network with
financially literate and clever people.

We are told that women are great at networking so use this
skill to build networks with others (both men and women)
who are interested in building wealth. Ask around to
identify good tax accountants, IFAs, property companies and
so forth. Build your own 'wealth team' with those
individuals and companies who share your views and your
ideals.

----------------------------------------------------
Pam Kennett is a Director of WealthBeing. Pam has first
hand experience of the confusing world of finance and money
through building a buy to let portfolio of £2 million.
WealthBeing is a wealth education and coaching company
which helps individuals develop practical skills and
knowledge to build their wealth.
Find out more by visiting http://www.wealthbeing.co.uk or
contact Pam direct at pam@wealthbeing.co.uk