Are you thinking of starting your own business? Are you feeling unsecured with your current job in this recession time? If your answer is yes then i have a solution for you. I suggest you to start your own business. Internet business is a kind of business which shows investment and profit on a day to day basis. And in this business online auction is a very popular and successful kind of occupation as it involves less investment as well low risk.
Is it fascinating you?? Learn it more. It is no age bar business. All you need to do is invest quality hours after gathering knowledge about the type of products and services that are on high demand in the market. Here you need to be very innovative and come out with ideas which can make a product lucrative for others. It is very time saving as well as you can reach out to huge numbers of customers at a time. It gives you possibilities to work from home with several other household works. But it has disadvantages also as people take it to be a scam and do not really want to be believe that such kind of business or help can be actually provided. It also restricts purchasers as they fail to see the product physically. Along with this customers fail to give or take live feedback which can also create dissatisfaction. So we need to be little careful about the same.
Finally, you need to be convinced with the kind of work you start up to convince others about your products. People can come up with different views and ideas but you need to answer first whether this kind of business suits you or not. If the answer is yes you have it all for yourself. But yes for any kind of business to be successful, hard work and dedication is the main ingredient.
February 26, 2009-President Obama came up with his first financial budget of around a multi trillion dollar. His very ambitious first budget seems to cut the rate of federal deficit first via few steps like increasing business tax, wealth tax and by diminishing spending after Iraq and Afghanistan war. Here is an overview on his budget plan.
Economy:
Economy budget started with labour department. Expected budget rise for this is about $600 million which is almost 4.7%. Legislation also proposed that there will be extended benefits given to the unemployed. Retirement security plan has also got a boost as the employers who usually do not offer retirement plan has to enroll themselves in direct deposit IRAs. As a stimulus package helping poor has been approved. Around 13% additional help would be provided to the disadvantaged people which sums up to $79 a month. Budget is also offering an increase of $1 for child nutrition program and $25 increment weekly for unemployment benefit.
Defense:
Budget calls for a hike of $663.7 billion which comes to 4% from the last year. The expenditure for the wars has been included in calculating the deficit for the first time. Officials are saying that budget is giving a ratio which is definitely contributing in lowering the figure in this changed operation. It is giving a ratio of 20% for war funds and 80% for others.
Education:
Obama's perception for higher education was highlighted when he urged all Americans to start some kind of crash courses and keep oneself engaged and prepared for future. He also added "A higher education is no longer just a pathway to opportunity; it's a prerequisite." He wants a dramatically rise in the figure of college graduates by maximum 2020. President wants to do away with the student loan provided by different banks and lenders and replace it with direct student loan program given by the Education department itself. It promises a huge save of about $24 million.
Tax:
Rate of tax has been increased for families making more than $250,000 annual income where as tax rate has been cut for most of the families who are failing to make so. It is providing a tax credit of $400 for individuals and $800 for couples. Deduction rate has also been checked. Affluent taxpayers would get a 20% tax rate on the total capital gains and dividends.
Transportation:
Proposed transportation spending is around $70.5 billion but an additional $48 billion is also allocated for this need. This budget has proposed a new initiative like having a "National Infrastructure Bank" which can provide financial support for infrastructural projects on national or regional basis. $800 million has been granted for improving air traffic control system. Around $55 million fund to increase commercial air service in rural areas.
We all are facing the slowdown phase, where everything seems to be moving very sluggishly. Economic growths are facing a crisis situation, overall demand and growth rates for every product have melted. This crisis situation has spared none of the developed countries as far as review report status is concerned. At this condition everyone is busy in guessing what is coming up next. So, being your Finance Adviser let me give you tips which will help you pave your own roadway in this crisis crunch. Devote just 60 seconds and you can damage proof your own personal finance.
0:60 Prepare a budget
Preparing a budget will help you set a realistic target for every expenses like utilities, household, medical, grocery, transportation etc. Try to squeeze something from these expenses and pay off your debt.
0:53 Keep checking your Expenditure
Keeping a constant check on the spending is extremely necessary as it gives you the ultimate scope to manage your finance properly and come out of debt by paying them off.
0:46 Avoid interest and late fees
Make payment on time to avoid any kind of late fine charges. Also understand the impact of interest which if taken any time on anything that you pay, can actually double the charges. So try to avoid it. This will also help you in being debt free.
0:35 Read the Statement carefully
Credit card statement should be read very carefully in order to make sure that it is error free and every charge taken is accurate and no duplicate or wrong charge levied on the statement. It is your hard earned money, so be extra careful while paying.
0:26 Carry just as much you need
Carrying extra cards at one time doesn’t make any sense. So carry credit cards which are in need and use. Carry one for purchase purpose and another for emergency purpose. Any more than this can actually be over killing.
0:23 Try paying more than minimum
This is a good financial habit. Keeping an urge of paying at least something more than minimum can actually help you in getting out of the debt very soon and also have a good financial fund to support during crisis period.
0:18 Consolidate your creditors
Many people have huge number of creditors to pay which is one of their debt management problems that they face. Trying to reduce the same or opting for a consolidation program would be very good financial decision.
0:13 The most expensive debt should be paid first
Any size of interest can add on the total amount of debt at any point of time. So the most expensive debt should be given first priority in case of repayment.
0:05 Co-operate with your family members
Learn to co-operate with other members of your family by managing financial needs and also encourage them in saving money and paying off little debts.
0:00 Relax and sleep tight
Try follow these tips and you will find yourself relaxing at the end. This will definitely help you achieve your mission of managing Personal Finance within minimum time of 60 secs only.
So sticking to our financial budget isn’t easy at this crisis situation but we do not have plenty of alternatives open for us also. Hence, above mentioned tips would surely help you out if implemented correctly.
Credit card regulatory bodies are coming up with several new rules and policies for the consumers which would be more user-friendly for them. Most credit card users face inconvenience when they fail to get regular credit cards due to failure or delay in debt payment. This immensely affects credit scores/ratings. This is the reason why some banks came up with special credit cards for those having poor credit ratings. These cards are more like "prepaid credit cards". Here you get opportunity to fill up your own account when you have money available with you and use it in time of necessity. Like these there are several self help options which have got introduced. Some important ones are highlighted below:
1) Restriction is put up for credit card companies that they suddenly cannot raise the interest rate on current balances unless a user fails his payment to them.
2) The bill payment duration has become minimum 21 days. This is compulsory for every credit card company to provide a user for making the bill payment.
3) The credit card companies can no longer charge "double cycle billing" interest to you even in worst situation like you make full balance payment to nil one month and fail completely to pay anything the next month.
Hope these changes would be beneficial to users like us. Being a finance adviser i think one change should have come in the type of marketing that the companies do while selling credit cards to the users. They should disclose all factors, rules and regulations clearly.
Bigger down payment often become the reason for home buyers to cancel the deal as they fail to fund the standard amount of 20% down pay. Sometimes even happen that the home buyers do not know that there is a down pay required and in such a situation they fail to take correct decisions which often put them into great depression. This is where the Private Mortgage Insurance (PMI) plays a vital role. It is basically an insurance that a buyer with less than 20% down pay required to pay. This is how with PMI, the lenders actually ensure the balance payment in case of any default from the buyers end. However the price of PMI differs between lenders, but still it comes to 1% of the mortgage amount per year. This means if the loan amount is $250,000 then you land up paying $2,500 for PMI.
Benefits of Private Mortgage Insurance (PMI)
This kind of private Insurance is beneficial as they provide chance to more number of buyers get home ownership. This also gives good opportunity to low-income or medium-income families as well younger buyers to purchase a home as their own asset which they otherwise couldn’t have afforded. It also reduces risk for the lenders by ensuring a repayment in case of any default. It also enables one to buy a home with as little amount as 3% to 5% down payment. This also means that waiting for years to accumulate funds to purchase a home is no more required with the help of PMI.
Tenure of Private Mortgage Insurance (PMI)
Once the insurance payment balances 78% of the home's value, mortgage lenders usually cancel PMI. However, they review the payment history very carefully before doing so. For average home buyers, it normally takes 10 to 15 years to pay 20% of the home's value, however if you stay in an area where the home price increases drastically, then you can get a chance to pay off the balance much faster.
Alternatives to Private Mortgage Insurance (PMI)
PMI has definitely proved to be beneficial for many homeowners, but is costly at the same time. So as an alternative Piggybank loan or 80/20% loan can be suggested but after considering all possible options with various lenders.
Private Mortgage Insurance has actually allowed millions of people to buy homes with smaller down payments. It has also made people qualify for home loans. It has actually helped many people in accomplishing their dream of moving to their own house from an apartment.
Professional development and personal career option should always take the first priority regarding financial thinking irrespective of good or bad economic time. It is always a good idea as well a good financial habit to start securing life with whatever possible from today itself. We should always remember that recession fear is shaking up everybody, so would you like to know what is there in store for you? I am sure you or no one would like to become such another identity. So my advice here which comes as surefire tips to you to recession proof your career today is-“Do not waste time but make the most of it now”.
1) Live in a Knowledge Economy- according to experts it is widely believed that world is living in knowledge economy now, the reason why people are concentrating on lifelong education. Get committed to lifelong learning and training, this will make your career more recession proof. Do some online learning, on site training, flexible weekend course or any distance crash course. Education has become very accessible now days. So start utilizing your free time into such practice and keep wide knowledge about everything that surrounds you.
2) Always meet your targets or objectives and show dedication- concentrate on whatever work you do and do it with full dedication. This will help you in achieving own targets, helping own company to make more money and increase productivity as well getting appreciation from higher posts. Time is very important and very short, so do not waste the same.
3) Increase contacts with Professionals- get involved with more and more people in same career as well with people pursuing different courses or working in various industries. This will increase your knowledge about various products, the happenings around us as well increase your chance to apply services in any chosen field. Trust me references are very important for future and work like wonder.
4) Use your other skills and make money part-time- the toughest job for an individual is to find out own skill which are in demand. So devote time into it and do something productive to make some extra income without neglecting your main responsibilities. This does not only help you increase network with potential employers but also makes you experienced to start own business.
So paying attention towards our responsibilities and working hard for it is not too tough if we can understand the priority and show dedication. Knowing our own skills and abilities are very important because you never know what can work out for you the best in your life. So keeping adequate knowledge about everything around us is definitely a good sign of financially stabilizing future. This would surely help you out at some or other crucial turning point of life.
Time may arise when people become frustrated and start thinking that Bankruptcy is the only option open for them, without thinking the worse situation that need to be faced for rest of the years after filing it. Moreover the recent Legislation which has been passed has made it more difficult to file as well. Bankruptcy raises question against your creditworthiness, so as a financial adviser, my advice would be to avoid it or keep it as a last choice. There is also certain reason for people selecting bankruptcy as the only option. These are illness, unemployment, divorce or simply overspending. This is the reason why I suggest Debt consolidation or settlement if debt is getting over your head.
Debt settlement on the other hand helps to improve financial situation by providing gradual relief and peace. It helps you come out of harassing creditor calls, disturbance from collection agencies etc. It also enables you to pay off 40% to 60% of total amount that you owe within two to three years of time span. So the final aim should be achieving Debt settlement. To achieve it one's attorney may require to be re-negotiated on prices and payments that no one wants to part from. Lenders do extend help in such case with customer's attorney. Debt consolidation means making a plan of how to pay back things and executing that plan. Considerable items over here include cars, houses, appliances or any credit purchases not paid yet. So my suggestion would be before deciding to accomplish debt consolidation, think about all other conditions, talk to an attorney and then plan your action, because after everything is done there would be no one to blame. Debt consolidation or settlement improves debt ratio. If one is aiming to eliminate bad or unsecured debt, then without waiting apply for debt settlement today and consolidate all your debt problems and live a happy life ever after.
Recession survival is not too tough or too easy. It actually has got a secret to it, and the secret is finding the right opportunity. During recession time economy takes such a form that we fail to recognize and believe that there is always opportunity open for them who pursue it. In good times, we try to capitalize on things that are normally there with us. But in bad times, we need to abandon old stuffs and start finding new and fresh options. Recession itself is a opportunity, but yes it depends on us how we take it. So my dear readers, like always am giving you few ways to secure your finances in this recession time. One thing to note is that when recession is only not certain then why should we fear about the ugly prospects always. Read the article and fight against the downturn.
1) Delay big purchase- unless you know you can pay for it comfortably, do not go for big and expensive purchase right at that moment. This will help you avoid adding more to your debts.
2) Build an emergency fund- we all should be well prepared before the axe actually falls on us. It might not be always possible to get a second job or arrange for immediate fund during this tough time. So a tight fund to support that lean time will be a very good sign of financial sense.
3) Live a calculative lifestyle- think of managing your expense with 20% less income or even worse than it. This will actually help you out in prioritizing and spending in proper places as well saving some, which would definitely going to be a good financial focus.
4) Get rid of debt burden- try to get out of debt as fast as possible. This will certainly take a new dimension altogether but try doing exactly the same by not adding to any more debt and paying it off as quick as possible.
5) Go for extra income- boost up your energy of working more and try out all the options possible to earn extra dollar. You might not be aware of all the good options of earning extra, so try out all possibilities by talking to friends, neighbors, relatives and even the colleagues.
Recession fear continues to shake people till date in every possible ways. So, to survive a recession we all have to be very articulate. So, follow those five points for financial recovery. Good news always remains in stock. According to a survey done by the National Association of Business Economy, situation might worsen in the first half of 2009 but things will start looking up by end of 2009 and must have a solid recovery by 2010.
