Wealth

Gold Investment for Beginners

Gold Investment for Beginners

Throughout history, gold has remained a smart option for stable investment. In recent years, uncertainty about the future value of paper money has led to increased interest in gold, and the soft, precious metal is now popular with investors at all levels. Here’s a look at the key facts regarding smart gold investment for beginners.

Calculate Investment Size

All smart investors have limits on how much they spend on individual parts of their investment portfolio, including gold. If you’re just getting started, you’ll probably want to devote about three to five percent of your portfolio to gold and other precious metals. If you later decide you want to invest more heavily in precious metals, it will be easy to do so.

Gold Investment Options

When you add gold to your investment portfolio, you have plenty of options in front of you. Depending on the size of your investment and the percentage devoted to gold, you’ll want to invest your money carefully. Here are the three basic forms of gold investment.

Keep Gold In A Brokerage or Mutual Account

With a gold exchange traded fund, or ETF, or a gold mutual fund you can easily trade gold into and out of your investment portfolio. With these types of accounts, you can trade gold quickly and there’s no risk of theft, unlike with investment in gold coins or bullion. In addition, there are no issues with state taxes concerned with these types of gold assets. However, this type of investment prevents direct access to coinage or bullion if they are needed during a financial emergency.

Keep Gold Bullion or Coins

This option involves the purchase of physical gold and keeping it in either a home safe or safe deposit box. Investors can purchase these items from coin dealers, bullion companies or the U.S. Mint. By having these forms of gold on hand, an internationally recognized form of currency is available for emergency use. At the same time, however, this form of investment involves storage expenses and exposure to the possibility of theft.

Purchase Gold Industry Stock

Investors can also buy gold mining or processing company stock in their brokerage accounts. Company shares often follow current gold prices, and this method of investment is considerably safer than keeping physical gold. Investors who go this route often enjoy greater capital appreciation associated with increased share values that follow higher bullion prices and discoveries of gold stock. Unfortunately, investors in gold stocks may also suffer loss of investment capital in cases of mining company mismanagement or bankruptcy.

Specific Portfolio Strategies

Although the above investment strategies can be used on their own, combinations involving additional funds, bullion, gold ETFs or mining company shares may offer more stable growth over the long term with wise investment. For direct physical gold investment, investors should shop around to locate the best prices from dealers.

Transportation and storage of precious metals, including gold, invariably involves the risk of theft. For this reason, special arrangements should always be made to ensure safe delivery of gold bullion and coinage.

No matter which investment option is chosen, gold is a reliable addition to any investment portfolio. As the world’s economy changes over time, gold’s value is likely to remain high and stable.

Michele Golden is usually an outspoken and driven blogger along with photographer heralding from Vermont. Shes is presently studying to become a personal financial consultant that can help those using financial troubles.


Claiming a Home Office on You Taxes

Claiming a Home Office on You Taxes

A home office can be one of the best tax deductions for professionals that choose to work at home. Unfortunately, a home office tax deduction is also one of the biggest red flags for an IRS audit. To avoid tipping off the IRS audit monsters, make sure your home office follows the guidelines for a true home office.

Here are a few guidelines to follow to ensure that your home office won’t trigger an audit.

  • According to the IRS, areas in your home that are used for anything that’s not business related can’t be considered home offices. This means that you can’t use your dining room table as a tax deduction. Instead, make sure that your home office is a separate room in your house that you use for business and business only. Ideally, your home office should be a completely separate room from the rest of your home. If this isn’t possible, you may be able to separate a small portion of a larger room using room dividers.
  • In order for your home office to qualify for a deduction, you must use it for business more often than not. This means that you should spend more time doing business related tasks in your home office than anywhere else. For example, if you have an office at your employer’s place of business, you can only use your home office deduction if you spend over half of your business time in it.

Once you’ve determined whether or not your home office qualifies as a real home office in the eyes of the IRS, you can then start deducting your business expenses.

For example, a portion of your rent or mortgage, along with portions of your utilities and home insurance, can usually be deducted. You can’t deduct all of the money that you put into your home, however, and you must first calculate what percentage of these expenses that you can deduct.

To find out what percentage of your expenses that you can deduct, you will first need to measure the square footage of your home office as well as the square footage of your entire home. Once you have these measurements, divide the square footage of your home office by the entire square footage of your home.

Here’s an example…

  • Your home office is 150 square feet, and your entire home is 1,500 square feet.
  • Divide 150 by 1,500 to get 0.01.
  • Multiply 0.01 by 100 to get 10%.

This means that you can deduct 10% of all home expenses. As long as they are used solely for business, you may be able to deduct other expenses as well, including internet service and phone service.

Even if you follow all of the rules and deduct only business related expenses, there’s still a chance that the IRS might audit you. While this shouldn’t be anything to really worry about if you have nothing to hide, it can be quite inconvenient and annoying.

There are a few things that you can do, however, to lower the chances of being audited.

  • Don’t lie about your income. Ever. There’s really no point in trying to hide the amount of money that you make. Not only is it dishonest, but it’s the IRS that you’re trying to hide it from. They will find out.
  • Back up your deductions with physical proof. This will usually mean filing a paper tax return, but also lowers the chances that the IRS will pay you a visit. Keep all of your receipts throughout the year, and include copies with your tax return.
  • Include an explanation about any drastic income changes. One of the biggest red flags for an audit is an extreme change in income from one year to another. For example, if you made $200,000 last year and only made $20,000 this year, attach a note explaining the reason for this.

This article was written by Jonathan Koenig, who is an expert blogger on many different topics.  In addition to writing about finances and technology Jon also writes about cna training on http://cnathive.com


What You Should Know If You Want To Send Money Abroad

What You Should Know If You Want To Send Money Abroad

For anyone looking to send money abroad, the number one priority has to be to do it securely, ensuring that all your cash gets to its recipient intact. You also need to consider the fees involved in these transactions so that the amount of money you send is not eroded by the cost of the transfer.

There can be many reasons why you need to send cash overseas. It might be emergency money to help someone out who may have had their credit cards and foreign currency stolen. Or it could be a large sum of money for a big, planned purchase such as a holiday home.

Make Sure Your Money Gets There Safely

As with many areas of finance, moving money abroad is open to being targeted by fraudsters. So even if you are in a hurry to complete a transaction quickly, take the time to use a reputable and trustworthy company.

Paypal

As long as both parties have an email address, PayPal is an excellent way to send money overseas and at speed. If your accounts are already set up, then the money will arrive almost instantly into the recipient’s PayPal account. From the comfort of your own home it takes just a few minutes to tap in the details. The cash then needs to be transferred to a bank account to be withdrawn.

Other Options

Your own bank is also worth thinking about and offers peace of mind. UK banks will often have a link to a bank abroad, allowing you to transfer money with no fees. If, for example, you are a parent with a child travelling or working abroad, then it can be a good idea for you to set this up before they go so you know you have a secure and quick way of getting cash to them. If your current bank doesn’t offer the service then it could be worth moving to one that does.

It’s also possible to send money abroad to someone without a bank account, or someone without easy access to one, perhaps because they are living somewhere remote.

In this situation, you can go to a money-transfer company. Well-known names include MoneyGram and Western Union. They allow the recipient to collect the money at one of their agent locations, which can typically be found widely abroad.

For convenience, you can do the transaction at an agent, on the telephone or via the internet. It’s important to know, however, that you will not be protected by the Financial Services Compensation Scheme as money-transfer companies are not covered. That means you may not get full compensation if anything goes wrong with your transaction.

Sam is a freelance journalist who writes widely about financial products and services for www.moneysupermarket.com.


Top 5 Movies About Wall Street

Top 5 Movies About Wall Street

With the Occupy movement coming to the fore last year, Wall Street features prominently as a hot topic for current filmmakers. The latest slate of movies to come out tend to focus on the recent financial collapse of 2008, but with a setting so ripe for dramatic storytelling, Hollywood has explored the inner workings of Wall Street many times before. Here are the top five Wall Street movies in no particular order.

The Classic Wall Street Movie – Wall Street

Cementing its place in film history with the phrase “Greed is good”, Wall Street explores the underhanded and corrupt side of trading. Gordon Gecko as played by Michael Douglas takes a young and eager protege, Bud Fox (Charlie Sheen), under his wing and teaches him that ethics and scruples can be traded away for power as easily as stocks being traded on the floor. The temptation of fast money and easy success proves too hard to resist for a time, but when Bud’s own father is negatively impacted by the firm’s shady dealings, his perspective changes. To redeem himself he cooperates with the SEC’s investigation and is instrumental in taking down his mentor.

The Humorous Wall Street Movie – Trading Places

A successful commodities broker (Dan Ackroyd) and a homeless man (Eddie Murphy) switch places when they unwittingly become pawns in a careless bet between the owners of the brokerage firm. When the two men discover the hoax, they exact their revenge against the owners by supplying them with false insider information which leads to the loss of their fortune on a bad investment. Despite its age this movie holds up as funny and surprisingly relevant. In fact “The Eddie Murphy Rule”, which dealt with insider trading as depicted in this film, was put into effect in some of the legislation that passed in 2010 under the Dodd-Frank bill.

The Young Person’s Wall Street Movie – Boiler Room

A young college dropout (Giovanni Rabisi) goes to work at a small brokerage firm to live up to his father’s expectations for him. He spends his days in the boiler room with a group of young and cocky traders making cold calls and finds that he is adept at selling which makes him a rich man in a very short time. In order to stay wildly successful, he must execute increasingly unsavory and illegal deals which eventually leads to an FBI raid.

The Horrifying Wall Street Movie – American Psycho

In this psychological thriller, the antihero of the story is Patrick Bateman (Christian Bale) a young Wall Street banker by day and a psychopathic monster at night. His materialism, narcissism and greed are not satiated by his work, so he takes out his frustrations with violent sprees of mayhem and murder. Though the subject matter is dark, there are comic moments scattered throughout making the film truly unsettling.

The Most Realistic Wall Street Movie – Margin Call

Though loosely based on events that transpired at Lehmen Brothers leading up to the financial crisis of 2008, this movie is a dramatization of the 24 hour period after executives at a fictional investment bank discover that risky mortgage-backed securities are going to destroy the firm. As the situation runs up the chain of command, the decision is made to dump all the risky inventory regardless of impact to the investors or economy at large. The psychology of Wall Street gets summed up with the CEO (Jeremy Irons)rationalizing the reckless strategy that leads to market crashes as merely a part of the normal cycle of gains and losses.

Aaron Fisher is a corporate accountant and guest author at Best Finance Schools, a site with guides and information to help prospective students review the top finance schools online.

You can easily buy all five of these films, as well as a plethora of other Wall Street themed movies, through online stores. Though some may claim that the digital medium is becoming popular, there are still some undoubtable benefits to owning a DVD. First and foremost, buyers don’t have to worry about their movie getting accidentally deleted. This format is also easier to carry around, meaning you don’t have to mess with any dongles or external hard drives if you want to bring any of the aforementioned films to a friend’s house.

cc licensedFlickr photo shared by Poster Boy NYC


How to Manage Your Money and Invest in Your Future

How to Manage Your Money and Invest in Your Future

Money management doesn’t come easy. It’s something you must learn and practice. This explains why so many people around the globe are stricken with large amounts of debt. Sometimes it’s hard to decide what you want versus what you need. Today, we are going to give you some of our personal favorite tips so you can begin managing your money and feeling better about your current situation.

                                                                  

 Where Do I Start?

The word ‘budget’ and the phrase ‘manage your money’ tend to freak people out. They sound so harsh and drastic. Well, we have good news; they aren’t as intimidating as they sound.

To begin managing your money, you need to first recognize that no matter how much or how little money you have; the importance of understanding money is still the same. Everyone, even those who are rich, need to know how to manage money. Those who do have large amounts of money are typically those who have learned over the years how to properly take care of their finances.

Calculate Your Income and Expenses

While all of us want to do whatever we can in order to save money, it’s surprising how many people do not know how much money they make versus how much money they need to in order to pay for their expenses. Take a moment to figure out how much you make each month after taxes. From there, you want to add up all of your bills. Don’t forget to add in things that are variable such as clothing items, food and entertainment. Even just a rough estimate to start will do.

Now, you want to minus your expenses from your monthly income to get an idea where you stand. Shocked by the numbers? Many people are, but this doesn’t mean you can’t turn things around.

Track Your Spending

Knowing where your money is being spent is extremely important. Too often people spend their money without really keeping track of where it’s going. One must figure out the root of their money problems before they will be able to track them and fix them from the roots. Keeping a spending log is one great way to better determine where your problems lie.

Spend Wisely

A lot of people tend to spend their money on things that they do not actually need. If this sounds like you, then it’s time to make a change. Instead of purchasing something the moment it pops into your head, give yourself some time to think about it. Ask yourself, “Can I live without it?” or “How will this benefit my future?” If you can live without making the purchase and there is no benefit to your future; then it’s best to go without spending the money. Take the money you would have spent and put it into a savings account where you gain interest. You’d be surprised how quickly money can add up over time.

Savings is Only for Emergencies

A lot of individuals will make the mistake of dipping into their savings accounts at the drop of a hat. Just like when making an everyday purchase, really think it over before touching your savings. Your savings is an investment in your future and should be treated as such; pretend it doesn’t exist whenever possible.

Credit Cards Must Be Used Carefully

While it’s easy to become intimidated by credit cards; they actually aren’t all that bad, if used with care. It’s important to only use your credit card if you know you are going to be able to pay it off. Also, keep the amount owed on your card lower than 30% of your total available credit. This way, it’s much easier to pay off and your credit score will not be negatively affected.

Another thing to keep in mind is that you should always at least pay the minimum payment each month. Doing so is going to keep you from having to pay penalties or fees. If you do not like the idea of using a credit card, you can always stick with a debit card; this way you are spending money you have and not getting into a position where you owe anyone money.

Give Yourself Some Wiggle Room

Whenever you go about saving money, it’s important to not over save in the beginning. If you start right off the bat limiting yourself too much; this can make it harder for you to stick with your plan. Give yourself rewards for little accomplishments and don’t forget to enjoy life. You don’t want to save every last penny; you’re allowed to have fun in the present while also saving for your future.

Nick Thomas works as a financial advisor to many registered representatives. He also writes blogs on money management and personal saving tips on www.debtconsolidation.com.au. You can learn many ways of personal saving and investments through his blogs.


Tips for Mom to Help with Military Family Finance

Tips for Mom to Help with Military Family Finance

Military financing issues are unique to military families, and very few financial experts possess the know-how needed to manage military financing. However, with the help of a carefully planned budget and spending plan, it is possible for a military family to gain control over their finances.

The trickiest part of military financing may be devising a budget while your husband is deployed. Unfortunately, many financial institutions fail to understand the difficulties surrounding military financial issues during this transitional period. Not only is your husband stationed in another state or country, it can become problematic trying to communicate with your husband about the family’s finances.

To prepare for deployment, you and your husband should develop a “stateside” budget. Make sure to include bills, future expenses, savings, and an emergency fund. Many families also choose to put aside a small amount of money as a deployment fund. This money is meant to cover the issues and needs that arise during deployment.

The time leading up to when a family member deploys can be stressful, especially when it greatly impacts the family’s budget. It is not uncommon for a family to spend thousands of dollars on equipment, clothes, and other necessary items. It usually takes about a month for a family to receive deployment pay, making it necessary for the family to maintain a budget beforehand. For this reason, financial experts recommend saving for deployment a few months ahead of time.

After a military family member deploys, the budget needs of the family will change. Even though a wife will receive money while her husband is away, she may need additional funds to compensate for time lost due to having to take time off of work. This is especially true for women with children.

In addition, many military families incur extra expenses during deployment. Stateside spouses may need to hire a lawn service, babysitter or pay for postage to send packages overseas. Furthermore, it typically seems to be true that emergencies tend to creep up as soon as a family member deploys, forcing the family member that’s left in charge to pay out-of-pocket most of the time. For instance, plumbing problems now require the assistance of a costly handyman.

The best way to handle this is to add these extra expenses into the family budget. In addition to budgeting for extra services, it’s also a good idea to put aside even more money to cover the expenses of the deployed member. Some military finance experts say to put aside at least five percent of income to cover the expenses of the deployed member.

Be sure to include the extra pay from the deployed family member into the budget. You may also want to try to cut expenses. Many spouses find that they save money on utility costs and groceries simply by having less people in the house.

Taking care of the family’s expenses can seem like a daunting task, especially when you’re husband is hundreds of miles away. To ensure the welfare of your family, make smart choices when it comes to managing your money.

Robby is a retired financial advisor, who through the years has helped numerous of our Veteran’s discover loans and financial help. Now retired, he spends his days sportfishing, guest blogging and still offering advise on finance. Military fiancing advice will always be is true passion of Robby’s.


Five Things to Do with Your Tax Refund – Other than Spend It

Five Things to Do with Your Tax Refund – Other than Spend It

What are you going to do with your tax refund this year? If your immediate answer was “spend it,” you might want to think again. According to the IRS, the average tax refund in 2012 is $2,899. That’s certainly a significant amount of money that could buy you a lot of fun, nice things. But if you really want to make a smart decision, consider using your tax refund for one of these five purposes instead.

Pay Down Student Loans

If you still have student loans lingering from your college days, use your tax refund to take care of a significant portion of them. If your refund is big enough, you might be able to pay off your loans completely. The peace of mind that comes with reducing or eliminating your student loans is amazing. It means all the future benefits of your education are entirely yours.

Pay Down Credit Card Debt

If you have credit card debt, and lots of people do, use your tax refund to pay a portion of it. If you can pay it all off, even better. Using your refund to work on your credit card debt is one of the smartest things you can do with it. If you can reduce your credit card debt, you will significantly reduce the amount of interest you have to pay on it before it’s paid off completely and save money in the long run.
Add to Your Child’s College Fund

If you have any children, you hopefully have college funds started for them already. If you don’t, now is the time to start saving. If you do, add your tax refund to them for a big boost in savings. By the time your child is in college, the price of their education will probably be even higher than the current ridiculously high price of it. The extra savings from your refund, plus any interest it will accrue over the years, will be a big help to your child when they do enroll in college.

Add to Your Retirement Fund

If you have a retirement fund, and hopefully you do, consider putting your tax refund into it. If you don’t, you should start one now. Whether it’s an IRA or a 401(k) or otherwise, the amount of your tax refund will represent a significant contribution that could be a tax write off next year, and it will greatly increase your savings for your future. Especially in a time when Social Security is threatened, it’s very important to prepare for your own retirement as early as possible.

Donate to Charity

If you don’t have a significant, immediate need for your tax refund, or if you’re just feeling very generous, you could donate it to charity. Your donation can be a deduction next year, but more importantly, it can help out those who are in great need. There are many fabulous charities all over the world, so do some research and find one that you’re most interested in contributing to.

Andrew Clarke is a college student and avid writer who fancies himself an expert on spending money. He often writes for blogs and generates content pertaining to the benefits of writing and how it can make you money.

Photo Credit: 401K


5 Quick & Easy Money Saving Tips For The Urban Lifestyle

Living in the city can provide you with easy access to many of the things that you need or want. Although living in the city can be convenient, it can also be pretty expensive. If you are living in an urban area, it doesn’t necessarily mean that you have to pay an arm and a leg for everything. Here are five quick and easy money saving tips that can help you save some cash even while living in the city.

Use Public Transportation

One of the best ways to save money while living in an urban area is to utilize public transportation. If you live in an area that has a good public transportation system, you can get around almost anywhere you need to go without paying for a car. If you own a car in the city, it can be very expensive. Besides paying for gas and maintenance on your car, you also have to frequently pay for parking. By riding the subway or bus, you can get around for cheap and its often quite a bit faster than driving.

Find a Roommate

In most urban areas, you can find a roommate relatively easily. If you already have a place, you can put out a classified ad mentioning that you need a roommate pretty quickly. If you don’t yet have a place, you can check the classified ads and see if anyone is looking for a roommate. Once you roommate, you be able to cut your expenses substantially. You can get someone to pay half of the rent and the utilities. Since real estate and rental fees are typically very high intermarriage is, this can be a big savings overall.

Enjoy Free Activities

Instead of paying big money to go to a play or a movie, why not enjoy some free activities? There are a number of free things to do in big cities that you can take advantage of. Many organizations host free gatherings, performances, and activities for people in the area to participate in. You could go to the park, take a walk on a walking trail or engage in one of many other free activities that are available in most cities.

Shop Online

When you live in the city, it can be costly to go out and do your shopping. You have to pay for the transportation costs and you’ll have to pay the high prices that come with most city retailers. Instead of shopping in this manner, consider buying most of the things that you need online. By doing a little bit of online shopping, you can get your purchases delivered directly to your door and you won’t even have to pay sales tax. In many areas, the sales tax savings alone is worth the process.

Shopping online also has the potential to save you quite a bit of time. Instead of walking down to the subway or bus station, traveling to the store, and then carrying your items back to your home, you can simply get online, make a purchase and have your purchases delivered to you.

Use Public Libraries

Most big cities have some very large public libraries that you can take advantage of for free. By getting a library card, you can check out books, DVDs, computer software programs, audio books and other items without paying anything. In many public libraries, you can also check out e-books with an e-reader such as a Kindle. This makes it possible for you to get most of the things that you need for entertainment purposes without spending a dime. Just make sure that you get your items back before the due date.

Teresa Wilson is a CPA and guest author at TopCollegesOnline.org. Click here to visit her full list of online college rankings.

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Getting Something New: Renting vs. Buying

Getting Something New: Renting vs. Buying

When it comes to buying something for your home, you have the option of renting or buying a particular item. Each approach comes with its own set of advantages and disadvantages. Renting an item allows you to offset the expense of paying the purchase price for an item; however, it’s no different than renting a car or a tuxedo. Regardless of how much money you pay, you will never own the item. You have to be careful with the items you rent because they’re someone else’s property. If you damage the items you rent in any way, you will have to pay the cost to replace or repair the item. You’re going to be careful with item you own, but not as cautious as you need to be when you’re in possession of the property of a stranger. The only difference between purchasing an item on credit and renting is that no matter how much you pay to rent an item, you will never own it. At some point, when you purchase an item on credit, the full balance is paid off and you have no obligation to the company you purchased it from. In the case of renting, you have an obligation to the company that owns the item you’re renting for as long as you want to use it.

One advantage of renting is that you get to figure out whether you want to keep an item long term. This becomes especially important when you’re dealing with big ticket, high dollar items. Most stores won’t allow you to return an item that costs a lot of money unless it has some sort of defect. Some of them only give you a store credit even in those situations. You have to put up quite a stink to get a store to take back a high priced item and refund your money. The requirements for when you can return an item have become more rigid over the years. You don’t have the option to try out an item unless you received it as a gift. Even then you have to have a receipt and a solid reason as to why you are returning it. Without either you’re left with an item you don’t want and little recourse if you want to return it. Businesses do not want to lose out on the potential profits they receive from high dollar merchandise.

Another great option you can do if you can’t afford to purchase an item but don’t want to rent the product without getting to keep it you can go to a company like Rent A Center. They allow you to make weekly payments and then after a certain amount of payments the product is yours. This is a great option for many people that need to items but can’t afford it otherwise.

Purchasing the item is the way to go for people who are too worried about ruining someone else’s property. You have to make sure you know what you want before you decide to purchase something. In buying an item, the chance you have to return it is remote, depending on its price. Lower priced items can be returned within a certain timeframe, no question asked. Expensive merchandise will require you to jump through hoops to get it back to where you found it. Each approach is advantageous to a certain group of people. You should consider each one a pick out the route that will work the best for you.

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Making the Most of Your Income

Making the Most of Your Income

When managing your finances it is important to look at income and expenses alike. Often times we are burdened by the enormity of our expenses and can become saddened when we watch the expenses grow while our income remains the same. Although increasing your income is easier said than done, it is possible. All you need is a little diligence and creativity.

Turn Your Hobby into a Business

If you are someone who has a hobby as a crafter, there is no reason why you can’t make a little extra money. You do not need to go into mass production of what you create, but you do need to ramp up the quantity. Start by making a few extra items and showing them off to your friends, family, coworkers, church members, parents of your children’s friends, and anyone else you come in contact with. You do not need to be pushy, just proud to show off what you do. When you receive a compliment, mention that you do sell these items for a nominal fee.
In addition to exposing those around you, you can list your product on the internet. There are wonderful sites like ebay, Etsy, Craig’s List, and the like where you can post your products for free. All you need is an email address and a PayPal account. Pretty easy to get what you have out there to the world.

Make Money on Your Skills

Do you have skills that others can benefit from? If so, get the word out. Just like if you are attempting to sell a product, tell everyone about what you can offer. Post flyers, market yourself on Craig’s List, make some business cards and distribute them everywhere. You would be surprised as to what others are looking for to help them in life. People want someone who can organize, proofread, type, run errands, do yard work, go grocery shopping, help them move, or whatever else you can provide to others.

Reduce Your Expenses

Although reducing your expenses sounds easy, it can be a very painful experience. Reducing expenses means that you need to cut out some things in life and that may be something that you just don’t want to do. If you have cut out everything that you possibly can (cable, internet, magazine subscriptions, unused gym memberships, and the like), it may be time to look at changing some of your expenses. Really examine where your money is going and see if a change in who offers you your services can help. Look at your cell phone carrier and see if you can get a better deal from elsewhere. Examine your insurance policies and call around to see if you can get the coverage you need for a better price. Often times you can get better deals from other companies.

Income Increased – Now What…

Once you have additional income coming in and/or fewer expenses going out, you will need to determine what to do with what you have gained. Most people simply spend what they have saved instead of turning it into something useful. If you were meeting your financial needs before you increased your income, you should consider putting your money away for debt payoff or for an emergency fund. More money should not equal more spending, so be smart with your increased income. Although you should be smart with your money, don’t forget to take a little and reward yourself for all your hard work.
Most everyone gets to a point where they desire more money coming in and less going out. This can be achieved if you take the time to examine your situation and determine what you can do for yourself. Be creative and you will surly find yourself with at least a few extra dollars in your pocket.

Jerry Edgars is a financial consultant and often recommends getting car insurance from Kanetix Canada.

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