Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts

Friday, 23 March 2012

Finance Tips For Single Women

By Janet Fowler | Investopedia

The way most people live these days is drastically different than in generations past. People are generally waiting until much later in life to marry and have families. Considering this, many women will be single for at least part of their adult lives. Also considering the current rates of divorce, there is a reasonable likelihood that many women will find themselves single again at some stage after marrying. Those time-honored gender roles tend to suggest that most women are not great at putting their own needs first, though when it comes to personal finances, women must consider their own needs and wants in order to secure their financial future.
Budget First and foremost, build yourself a solid budget and stick to it. This is just good sense for absolutely everyone – single, married or divorced. Examine your monthly expenses, remembering to include everything from housing costs, utilities, groceries, car payments, gasoline, insurance and esthetics. Do the same for your income. Subtract your expenses from your income, and see what you've got leftover. You can divide the remainder up based on what you'd like to save and what you'd like to budget toward discretionary spending. Don't forget to factor in money towards repayment of credit card debt, student loans or any other debts you may have. You'll want to get debts paid off as quickly as you can in order to save yourself those pesky interest costs. You should also examine methods for reducing costs, like eating meals at home or reducing the amount you spend on entertainment expenses.
Avoid Giving in to ImpulseIt's probably true that most women love to shop. It can be hard to avoid giving in to impulse when you find a great deal on a pair of cute shoes or a new outfit. It's also important to avoid emotional spending. Learning to avoid unnecessary expenditures can really help to improve your financial situation – especially when you've got other expenses that are more urgent, or when giving in means you have to borrow money on your credit card. Try to spend only what you've allotted to yourself for discretionary spending, or budget for larger items like a big holiday or a car over longer periods of time. If you're unsure if you're being impulsive or giving in to emotional spending, try waiting a day or two before making up your mind about an item you're considering buying. If you've changed your mind or forgotten all about the item before the time period is up, you've made a wise choice in walking away.
Save for Rainy DaysIt's an unfortunate fact of life, but we can all expect things to go wrong on occasion. Keeping some money stashed away for those rainy days will help you to afford those unexpected expenses when they do come up. Think of vehicle or home repairs, or an unexpected illness that could keep you away from work for a long period of time. No one wants to worry about money in times of distress, so having a rainy day fund will help you to get over the hurdles life throws at you. Even if you're only able to set aside $25 a week, it'll add up over time. Get yourself a high-interest savings account to stash away your cash. You can then transfer your savings into other forms of investments with even higher interest rates once you've got a healthy stockpile. Just remember to set realistic expectations for yourself. Don't save more than you can realistically afford, but don't underestimate the importance of saving either.
Buy a HomePurchasing a home is a big step for anyone, whether you're doing it on your own or as a couple. Purchasing a home is generally a solid investment that will reward you in the future, especially since renting is essentially the same as giving your money away to someone else. As a single woman, you'll need to ask yourself a number of questions before buying. Can you afford this home on a single income? Is the area safe for a single person to live in? Will you need roommates to help pay the mortgage? What will you do if you marry or have a family? Make a list of what you want and understand what you can afford before you contact a realtor and start looking at what's out there. A condominium or town house can be a great option for single people, especially since they're generally smaller and less expensive than stand-alone houses. Keep in mind that you don't need to commit to living in your first home for the rest of your life. As you further establish yourself financially or as your needs change, you can move on to bigger and better. The important part of buying your first home is establishing yourself in the market and starting to build equity.
Consider Your Retirement PlansEven if retirement seems like eons away, you'll want to start thinking about it as early as possible. Financial security isn't only about achieving your short-term goals; you've got to consider your long-term goals as well. Even if you do intend to marry, you'll need to ensure you can take care of yourself in your retirement because statistically women tend to live longer than men. Build your budget so you can set aside some money. You can use monthly deductions or make yearly lump sum contributions to a retirement savings plan.
Don't be Afraid to InvestSo you've managed to budget and save your money. Now you've got a healthy stockpile of cash to get you through those rainy days. What should you do with all that extra cash? Though investing may seem like a scary thing, have faith in yourself and believe that you can learn the ins and outs of the finance world. You can always enlist the help of an investment manager or finance expert to guide you along the way. One of the biggest benefits of investing is the opportunity to earn extra money on your initial investment, referred to as return on investment. It may take a little courage on your part, but the payoff could be huge. Do some research and only take on as much risk as you feel comfortable with.
Invest in YourselfAlways keep in mind that you've got to enjoy life too, so don't completely give up on spoiling yourself once in a while. Go on a holiday, to a day spa or treat yourself to something truly special once in a while. View it as an investment in yourself and your own happiness. They key is making it a special treat, not an everyday event. You'll want to ensure that you budget for these occasional indulgences as well. Remember, it's not worth going into debt over a pair of shoes or a holiday.
Before You Walk Down the AisleThough it might be an exciting time when you're considering taking the plunge and getting married, don't forget that you really need to have a serious talk with your new partner about money before you get married. Though this may be an awkward discussion to have, you need to know what that person earns, what debts they owe and what their financial plans are for the future. When you make those vows, you're also agreeing to a financial partnership with your beloved. You will need to know that their goals and spending habits are compatible with yours and that you're not marrying someone who will drain you financially, destroying all the hard work you've done to create a financially secure life for yourself.
The Bottom LineLong gone are the days of considering single women to be spinsters. Women are becoming more and more comfortable in taking control of their own finances, shaping their financial futures and turning their goals into realities. There's no doubt that making big financial decisions independently can be a bit frightening, but there are also a lot of perks. You can enjoy complete control of your own financial situation, without someone else's financial interests impacting your own. Whether you're young and never married or newly single, it's never too late to grasp the reigns and take control of your financial destiny.


http://ph.she.yahoo.com/finance-tips-single-women-184319399.htm

Saturday, 3 March 2012

10 Money Lessons From The Bible

By Joe Mont

BOSTON (TheStreet) -- You probably won't find a copy of the King James Bible on the "business" or "personal finance" shelf of your local bookstore or library.



But while the ancient nature of the text may not offer much insight for those consulting it for advice on the derivatives market or the moral underpinnings ofGoldman Sachs(GS_) playing "both sides" of a deal, there are still plenty of financial lessons that can be applied to modern life.

As in any holy book, especially one with writings that span centuries, there are some seeming contradictions and passages open to interpretation. There is also certainly a fair debate over whether certain passages should be treated as literal guidance or more malleable allegory. Your own faith, view of religion or academic viewpoint will certainly come into play.
The following are 10 areas of financial guidance that can be found in the pages of the Bible:

10. Avoid greed


A strict, literal reading of some Bible passages might not sit well with the wealthy. In championing the poor and oppressed, rich men are often cast in a negative light.
"It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God" (Mark 10:25) is an oft-quoted passage that might not sit well with those looking to amass and preserve wealth.
Nor is the famous warning: "But those who want to get rich fall into temptation and a snare and many foolish and harmful desires which plunge men into ruin and destruction. For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs. But flee from these things, you man of God, and pursue righteousness, godliness, faith, love, perseverance and gentleness" (Timothy 6:9).
Even harsher words, particularly scary for the current wave of gold bugs: "Come now, you rich, weep and howl for your miseries which are coming upon you. Your riches have rotted and your garments have become moth-eaten. Your gold and your silver have rusted; and their rust will be a witness against you and will consume your flesh like fire" (James 5:1).

9. Reduce debt


Debt only empowers the wicked and drags down hope for your prosperity, the Bible says. Those ancient warnings against money lenders are just as relevant today for households that have maxed out credit cards, sought the immediate gratification of rent-to-own plans or taken on mortgages beyond their means.
Proverbs 22:7 cautions: "The rich rules over the poor, and the borrower becomes the lender's slave."
Bob Lotich, who created and oversees ChristianPF.com, a personal finance website that draws upon biblical teachings, says that bit of wisdom helped change his life.
"I remember having a ton of debt burdening me and I really did feel like a slave to various lenders," he says. "For me, I decided to work to a debt-free lifestyle -- knowing that it may take me longer to get some of the things that I really want, but that the financial peace would be worth it. I get email all the time from readers who feel so burdened by the debt load they are carrying, and since I have been there myself I know the feeling. The Bible warns us about debt from thousands of years ago, and I think one of the best things most of us can do is to follow that old, wise advice."
Those who leapt into subprime mortgages they couldn't afford or have a car in danger of being repossessed might have been spared a lot of grief if they contemplated the guidance in Proverbs 22:26 to "not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you."
As for those who profit from debt, banks may not be inclined to heed this warning found in Exodus: "If you lend money to my people, to the poor among you, you are not to act as a creditor to him; you shall not charge him interest."

8. Save more


For years, the rate at which Americans saved was so low it could nearly qualify as a rounding error. Scared into reducing debt by recession, the nation is a bit more serious about tucking aside some of each paycheck. Students of the Bible would certainly see this as a lesson that has long been stressed.
Corinthians 16:2 offers this advice for sticking to a savings plan: "On the first day of every week each one of you is to put aside and save, as he may prosper, so that no collections be made when I come."

7. The subprime mortgage crisis


As for those considering just walking away from an underwater mortgage, Psalm 37:2 might be seen as handing out some stern guidance: "The wicked borrows and does not pay back, but the righteous is gracious and gives."
Ecclesiastes 5:5 also warns that, "It is better that you should not vow than that you should vow and not pay."

6. Pay your taxes


Conservative talk radio kingpin Rush Limbaugh may have missed an important passage when he tried to use the New Testament as a basis for supporting tax cuts for the wealthy during an April broadcast.
"Taxes and budget cuts, what would Jesus do?" Limbaugh asked. "Well, what would Jesus take? That's the question people need to ask to put this in perspective. Of course the answer is, nothing. You want to start equating yourselves and your policies to Jesus Christ, you better first start asking, what did Jesus take, from whom, and how did he go about it? What was his plan for redistribution?"
Critics fired back by pointing to numerous occasions where Jesus defended taxation and, more broadly, the redistribution of wealth.
"Render to Caesar the things that are Caesar's; and to God the things that are God's," is a famous quote from Matthew.

5. Be a good boss for an ethical company


As an employer, are you always looking for ways to trim your payroll, reduce benefits or crack the whip for greater productivity? Are you outsourcing manufacturing to sweat shops? Are overseas vendors so stressed by your demands that some are actually killing themselves?
The Bible warns that you should start trying to earn that "World's Greatest Boss" coffee mug.
"Look! The wages you failed to pay the workmen who mowed your fields are crying out against you," says James 5:4. "The cries of the harvesters have reached the ears of the Lord Almighty."
Proverbs 22:16 similarly warns: "He who oppresses the poor to make more for himself or who gives to the rich, will only come to poverty."
As for employees, working hard is a recipe for success. Proverbs 10:4 puts it as, "A slack hand causes poverty, but the hand of the diligent makes rich."

4. Avoid "Madoffs"


Even the ancient writers who crafted The Bible's many books knew something that many investors targeted by fraudsters seem to forget -- if something looks too good to be true, it probably is.
Proverbs 14:15 cautions that, "The naive believes everything, but the sensible man considers his steps."
Think you can get rich quick? Think again, says Proverbs 13:11. "Dishonest money dwindles away, but he who gathers money little by little makes it grow."
The con men themselves don't get off easy. Proverbs 13:11 admonishes that, "Wealth obtained by fraud dwindles, but the one who gathers by labor increases it." More direct is the lack of wiggle room found in the commandment, "Thou shalt not steal."

3. Diversify your portfolio and assets


The Bible doesn't delve into portfolio rebalancing or the value of emerging markets weightings. But in a far more poetic way, it suggests a careful distribution of your assets.
"Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth," Ecclesiastes 11:2 says, relaying a lesson from King Solomon.

2. Leave a legacy


The first instance of a biblical estate plan goes all the way back to Abraham in the book of Genesis. At God's urging, he left "everything he owned to Isaac" and subsequent heirs all provided a will to dictate how their post-death belongings would be distributed.
Proverbs 13:22 promotes the value of such a legacy: "A good man leaves an inheritance for his children's children."

1. Give to charity


Bill Gates, Warren Buffet and the many other wealthy captains of industry who have pledged much of their wealth to charity may have a slightly better chance of squeezing through that eye of a needle. The good that comes through philanthropy is a recurring theme in the old and new testaments.
Proverbs 28:27 says: "He who gives to the poor will never want, but he who shuts his eyes will have many curses." A little later, Proverbs adds that "He who is generous will be blessed, for he gives some of his food to the poor."
"Go and sell all you possess and give to the poor, and you will have treasure in heaven," is the advice Jesus offers a rich man in the gospel according to Mark.
Just don't go issuing a press release or slapping your name on a plaque to trumpet your largess. "When you give to the poor, do not let your left hand know what your right hand is doing, so that your giving will be in secret; and your Father who sees what is done in secret will reward you" (Matthew 6:3).
"I believe we all have a responsibility to take care of each other and to love our neighbor as ourselves," ChristianPF's Lotich says. "But it truly is exciting to have guys like Warren and Bill step up and give in the way they have. They raised the bar for what is expected out of billionaires, and I think the precedent will result in a lot more charitable giving in the years to come."
-- Written by Joe Mont in Boston.
>To contact the writer of this article, click here: Joe Mont.