Tuesday, April 19, 2016
Investing in shares can be quite a rewarding experience. There are plenty of risks, however the benefits outweigh the risks if you do your homework.
Following are my top 4 benefits of investing in shares
Capital growth - Capital growth occurs when the value of your investment increases. Many people invest for capital growth to build their wealth and protect themselves against inflation.
People invest in shares because they offer the possibility that their price will rise. Owning shares in a company with a rising share price is one way to achieve capital growth.
Capital growth is essential to investors as long as there is inflation. Inflation is a measure of the rise in the price of goods. The Reserve Bank of Australia (RBA) aims to keep inflation within a range of 2-3%. With no capital growth, your money will buy less in the future than it does now.
Income - A dividend is the distribution of a company's net profit to shareholders. Dividend yields vary greatly from company to company. It is not compulsory for a company to pay a dividend.
Tuesday, June 12, 2012
Say that you have 50k in credit card debt and that your minimum monthly payment is $1500 a month. If you only pay the minimum amount every month it will take 42 years to pay off the entire amount.
What happens if your circumstances change and you can no longer afford to pay the minimum monthly payments?
The quickest way to pay off your credit card debt is to make extra payments. There is a catch though. If you are now paying $1500 a month, the catch is to continue to pay this amount even when your minimum required payment goes down. If you consistently pay $1500 a month using this strategy, you will finish paying your debt in less than 5 years.
More often than not, people make the mistake to pay only the minimum amount and continue paying only the minimum amount even as the required amount reduces every month. That is the mistake. The trick is to start paying the minimum amount but, as the principal goes down and the required minimum monthly payment reduces, you need to continue paying the higher amount.
There you have it, a simple way of paying off your credit card debt much, much faster.
Click here for great resources on becoming financially independent.
For more information on how to eliminate unsecured debt refer to the following articles:
Personal finances management for when you are broke
Top 10 money tips to become debt free
Sunday, February 6, 2011
Welcome to the February 6, 2011 edition of financial independence.
Muhammad Talal presents Government Grants for Individuals � The Fact posted at Free Government Grants, Small Business Grants, Housing Grants by MyGrants.
Rosette presents IRA Basics posted at IRA Rules, saying, "Are you confused about the different types of IRA and the individual rules and regulations? Read through our IRA basics guide which will answer all your IRA questions."
Barbara Jones presents Change of Address: 10 Mistakes First Time Home Buyers Make posted at Change of Address.
Ophelia Pierce presents The Top 50 Real Estate Agent Blogs posted at Online Business Education, saying, "Whether a first time home buyer or investor with decades of experience, everyone likes to look before they leap. But with realtors interested in dealing exclusively with those actively buying or selling, it can be hard to pin one down. No problem if you have an internet connection and a few minutes."
Tax Debt Help presents Mortgage Interest Deduction and More Is Potentially In Jeopardy posted at Tax Debt Help Blog.
Pinyo presents Expiring Tax Credit For Homeowners: Do It Now or Lose It! posted at Moolanomy.
Pinyo presents Save Money Giving Discounted Gift Cards This Holiday Season posted at Moolanomy.
Rosette presents Best IRA Company posted at Stock Tips, saying, "Finding the best IRA company to invest in is critical to protecting your nest-egg for retirement. Get our top recommended IRA companies and additional IRA investment advice."
BC Russell presents MLM Money - Compare With These 5 Alternatives posted at Internet Marketing... while being careful with your cash., saying, "It's about what the alternatives are..."
Unbalanced Passions presents Black Friday is For the Dumb Yuppies and the Stupid.Slaves Who Are Funding There Own Enslavement Buying Junk From China. posted at Unblancedpassions, saying, "Personally every time I had to work on Black Friday. The most stupid yuppies are out in force. They do not know how to drive. They are rude and absent minded of the most. These are the ones who drive in cars and minivans so ugly to show how pathetic they are as people. I am not going to get up at midnight or 4am to save a dollar at a big box stores selling that junk from China."
Rosette presents Best Instant Access Savings Accounts posted at Stock Tips, saying, "Learn how to protect your savings and money by using instant access savings accounts. Find out how to choose the best instant access savings account that's available today."
nzpcs presents Student Loans posted at Finance | Loans | Mortgages, saying, "There are a lot of different ways of funding your way through college. You might be one of those students lucky enough to have a full scholarship. You may also have rich or generous parents who are willing or able to pay the bills. However, many students are not so lucky. Most of the above funding sources will only pay part of the bill, not the total."
Everything Finance presents Installing the Best Security System for Your Company posted at Small Business Resource, saying, "Security is very important no matter what kind of business you are in. It is important to protect not only your business interests. It is important so that you can protect the interests of those you do business with. The more you invest in a good system, the more likely it is that you will be able to enjoy greater savings. These saving are in regards to avoiding the losses you would have incurred if you did not have a system installed in your business. Thus, taking your time is of the utmost importance."
debt kid presents Shred or Melt Your Credit Cards in 2011 and Win Cash posted at DebtKid.
Everything Finance presents Upside Visa Prepaid Card Review posted at Everything Finance, saying, "Metabank offers this credit card which is the best choice for teenagers. It promotes the acquiring of adequate money management skills, absorption of credit scores, attaining of financial literacy and provision of allowances and pocket money."
BC Russell presents Free MLM Leads posted at Internet Marketing... while being careful with your cash., saying, "That can’t be a real offer, can it? Well sort of. Here are 3 ways you can generate MLM leads free, if you understand the downsides."
DebB presents Watch Other Speakers & Consultants To Improve Presentation posted at Direct Sales / MLM Cash Flow, saying, "Not everyone is born a “people person”, but if you hope to succeed as a home party plan consultant, it’s essential that you gain a comprehensive understanding of what will lead to public speaking success."
Pinyo presents 2010 Tax Tables: IRS Federal Income Tax Rates and Tax Brackets posted at Moolanomy, saying, "The tax season is upon us. To help you better understand how federal tax works, this article provides information about tax rates and brackets, as well as shows you how to calculate your tax liability."
DebB presents Fun Home Party Plan Games posted at Direct Sales / MLM Cash Flow, saying, "Everyone Loves Home Party Show Games! Probably the most often asked for topic that I get second to BOOKINGS is home party show games!"
Neal Frankle presents Keep Your 401k Safe From Employer Fraud and 401k Fraud posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "If you’ve been saving money for retirement with your employer’s 401k plan, you might ask yourself if it will be there when you want to make withdrawals."
DebB presents Worldwide Direct Selling Professional Awards posted at Direct Sales / MLM Cash Flow, saying, "The Direct Selling Power Awards were announced showcasing the top direct selling professionals worldwide. The direct selling industry’s premier list of global leaders was made public on live radio and simulcast around the world."
Saymour Hodge presents How To Be Frugal: Fitness on a Budget posted at All Things Frugal, saying, "It can seem hard to stay physically fit when you don't have money for gym memberships, in-home workout equipment, yoga classes, or a personal trainer."
Pinyo presents 15 Ways to Make Money posted at Moolanomy, saying, "Whether you are looking to supplement your income, or whether you need something more like a “day job”, there are ways you can make money. Here are 15 ideas for making extra money."
Matthew Oliver presents Top 25 Blog Posts for Saving Money on Your Cell Phone Bill posted at MBA Degrees Online.
Todd Jensen presents 40 Best Blogs for Your Retirement Planning | BSchool.com Business Schools Directory posted at BSchool.com.
Neal Frankle presents Professional LLC - FAQs in Plain English posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "Let’s say you have a great idea for a small business. Now, you need to do the paperwork. There are so many ways to form your business, it can get confusing."
Tax Debt Help presents Ways To Get Prior Tax or Past Tax Return Information From The IRS posted at Tax Debt Help Blog.
Pinyo presents How to Become a Millionaire posted at Moolanomy, saying, "Becoming a millionaire is a popular dream amongst Americans. This article discusses the strategies on how you might become one, and the pitfalls that you will want to avoid."
money and finance
CreditShout Kevin presents Does Budget Software Really Help You Get Out of Debt? posted at CreditShout.
Moneyedup presents Investing In Fixed and Variable Annuities posted at MoneyedUP, saying, "Annuities are a popular product in the financial world as investors love the prospect of a guaranteed income stream for life."
Sun presents 10 Reasons Why You Should Pay Attention to Your Finances posted at The Sun’s Financial Diary.
Tim Chen presents Citibank Forward: Best Rewards Credit Card For Urbanites posted at NerdWallet Blog - Credit Card Watch, saying, "The Citi Forward is quite possibly the hands-down winner of best rewards credit card for city-dwellers."
David de Souza presents The Top 10 Things To Know About Income Tax When Leaving The UK posted at UK Tax Blog, saying, "Guide to the 10 things you need to know about paying tax when you leave the UK to live or work overseas"
Randall Davidson presents 277 Ways to Save Money posted at Transcription Blog, saying, "In order to achieve financial independence, most people must put money into savings at every possible opportunity. To that end, here is a very comprehensive array of 277 ways to save money, spanning everything from how to save money on groceries to how to travel frugally."
Jessica Bosari presents Debt Free with No Clue? How to Manage Your New Found Freedom | billeater.com posted at Billeater, saying, "Finally debt free? How to stay that way."
Clair Schwan presents What’s Your Definition of Retirement – Have You Been Fooled by a False Belief? posted at SELF RELIANCE WORKS, saying, "This article questions the long held belief of the mainstream worker - work hard all your life and then retire. If we start to think outside of this belief, then we realize that we can define financial freedom as we'd like to and live a life that doesn't require a "job" or compliance with what most people see as the road to success. The key is to know what you're shooting for, and position yourself through your own initiatives so you can accomplish goals that you think are important - no matter what others are doing."
Chris Tompson presents 3 Ways To Make Money Online posted at Inspirest - Inspiring Entrepreneurship, saying, "Three great techniques for making money online.The benefit of making money via the internet is that you can work from anywhere in the world and while you sleep."
Mike Piper presents Annuity Payouts: Why Are They Higher than Bond Rates? posted at The Oblivious Investor, saying, "Want to spend other people's money? Annuities let you do exactly that. (Sometimes.)"
Jeff Weber presents Savings with a 0% Balance Transfer for 24 Months posted at Smart Balance Transfers, saying, "An examination of how much can be saved by consumers with various interest rates and credit card debt levels on a balance transfer that lasts 24 months. Thanks for the inclusion."
Neal Frankle presents Financial Tax Planning Tips To Save You Money posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "Here’s a few important financial tax planning tips (and an important warning) if you’re an investor... especially if you own ETF’s or mutual funds."
Patty Pedersen presents Contrarian Investors: Best Stock Investment posted at AlphaProfit MoneyMatters - Investing Blog, saying, "With 2010 drawing to a close, beaten down stocks are likely to come under more pressure from investors selling these names to recognize losses for tax purposes. The article discusses opportunities in one of the most ‘unloved’ groups in the stock market today."
Kimberly Cole presents New To Credit Guide posted at Credit Card Hub, saying, "Hey John, I hope all is well! I think your readers will really enjoy my submission because it will educate those who are new to credit by answering frequently asked questions and by making them more aware of certain pitfalls so they can start building their credit and become financially independent."
Michael Pruser presents Chase Freedom® Visa – $100 Bonus Cash Back posted at The Dough Roller, saying, "Chase has reduced the spend amount required to earn the $100 cash bonus, making this our favorite credit card."
Michael presents The Best Small Business Credit Cards, December 2010 posted at Consumerism Commentary, saying, "Any small business in need of credit might want to consider a small business credit card."
PT presents Why You Should Seek Year-End Tax Planning Services posted at Prime Time Money.
Boomer presents Retirement Income | Boomer & Echo posted at Boomer & Echo, saying, "You see, I was a late starter. Like most young people of my generation who listened to song lyrics that stated, “hope I die before I get old”"
Alexander presents Qualified Dividends posted at Dividend Stocks, saying, "Qualified dividends are currently a subject of frequent discussion in the national news media, especially in relation to the future status of US federal government tax cuts."
Tim Chen presents New Citibank ThankYou Rewards Cards: Premier vs Preferred posted at NerdWallet Blog - Credit Card Watch, saying, "Citi has revamped their reward credit card offerings by rolling out two new cards – the Citi ThankYou Premier and the Citi ThankYou Preferred."
Neal Frankle presents 3 Weekend Jobs that Pay $50 an Hour posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "If you want to earn some extra serious cabbage and don’t have a lot of time to do it, I have 3 ideas you’ll be interested in learning more about."
Kimberly Cole presents How to Get a Higher Credit Limit posted at Credit Card Hub, saying, "Hey John, I hope all is well! I think your readers will really enjoy my submission this week because it answers a frequently asked question concerning credit cards. There are a number of factors that can affect your credit line, and depending on your situation, there are a few steps you can take to try to raise it."
Tim Chen presents Best Way To Buy Gas ? Gas Credit Cards or Discount Stations? posted at NerdWallet Blog - Credit Card Watch, saying, "Figuring out how you can score the cheapest gas can get complicated."
Alexander presents Kellogg’s Consistent Dividend posted at Dividend Stocks, saying, "Kellogg’s stock pays a dividend of $1.62 which equates to a dividend yield of 3.20%. This yield is slightly higher than the historical yield of 2.60%"
Ramsay presents Supplemental Income Ideas For 2011 posted at MoneyedUP, saying, "The idea of earning more implies that you are truly taking charge of your income – and taking responsibility for actively improving your financial situation."
Tim Chen presents Chase Freedom - Comparing The Versions posted at NerdWallet Blog - Credit Card Watch, saying, "Chase has a few versions of the Freedom card available. In situations like this, we like to put together tables to make your life easier!"
Jessica Bosari presents Resolved to Organize your Finances? How to Make it Work | billeater.com posted at Billeater, saying, "How to stick to your financial resolution of getting organized."
Tim Chen presents Finally, a Card With a 0% Balance Transfer APR & No Transfer Fee posted at NerdWallet Blog - Credit Card Watch, saying, "When it comes to balance transfer credit cards, you usually can’t have your cake and eat it too. But Discover has now come awfully close."
Alexander presents Find A Stock Broker To Meet Your Needs posted at Dividend Stocks, saying, "Look for a broker that meshes perfectly with your investment strategy and goals. One of the best ways to find the right broker is by comparing their services and making sure that they are in line with your financial goals."
Moneyedup presents How To Increase Your Salary posted at MoneyedUP, saying, "If you have worked hard, improved the business, demonstrated value and helped your coworkers then you are ready to ask for a raise. But what if the boss says no?"
Craig/FFB presents Lending Club Peer to Peer Lending for Investors and Borrowers – Review posted at Free From Broke, saying, "Lending Club offers up an alternative to traditional stock investing where lenders pool funds to invest on borrowers notes."
Craig/FFB presents Free Online Checking Accounts posted at Free From Broke, saying, "With the fees that traditional banks have been adding to checking accounts lately, we need an alternative. Check out some free online checking accounts and the benefits they provide."
Tim Chen presents Capital One Credit Cards: Which is Right for You? posted at NerdWallet Blog - Credit Card Watch, saying, "Capital One is one of the largest credit card issuers in the US, so it stands to reason that they offer a little something for everyone."
Moneyedup presents Start Your Own Freelancing Business posted at MoneyedUP, saying, "A freelancer performs work for individual clients on an as-needed basis. Although many freelancers accrue long-term clients and projects, the bread and butter of any freelancer is the once-off project."
Robert Alan presents Top Balance Transfer Credit Card Offers posted at Credit Card Assist, saying, "Often villified, but totally understood, some of the top balance transfer credit cards, offer 0% interest for up to 24 months right now. Card issuers are being more aggressive than ever about the length of their introductory offers."
Craig/FFB presents TurboTax Online Tax Software 2010 Review posted at Free From Broke, saying, "TurboTax proves they are the industry standard in tax preparation software. See how TurboTax can benefit you."
Tim Chen presents NerdWallet's Best Rewards Card Roundup, Winter 2011 Edition posted at NerdWallet Blog - Credit Card Watch, saying, "At NerdWallet, we don’t believe that credit cards are one-size-fits-all. Even if a credit card advertises big rewards rates, signup bonuses, and bonus categories, that doesn’t necessarily mean you’ll be able to take advantage of them."
Saymour Hodge presents How To Be Frugal: Frugal Car Shopping Tips posted at All Things Frugal, saying, "Shopping for a car can be an anxiety-inducing experience. It’s a major expense and a purchase most people usually only make once every handful of years. The goal in shopping for a car is to walk away feeling good about your purchase. Follow these tips to achieve that goal"
Craig/FFB presents The Best Travel Rewards Credit Cards posted at Free From Broke, saying, "Finding the best credit card to fit your particular traveling needs is a great way to maximize your credit card and your spending. You can earn airline miles, hotel bonuses, flight bonuses, as well as rewards points and more."
Tim Chen presents Continental 50,000 Mile Credit Card Sign Up Bonus (United Too!) posted at NerdWallet Blog - Credit Card Watch, saying, "Continental and United are merging their mile programs at the end of 2011, as part of their recent merger, so users of both mile programs should take note of this huge sign up bonus offer."
Moneyedup presents 6 Actionable Ways To Make Extra Money Using Your Writing Skills posted at MoneyedUP, saying, "There are ways that you can build up your bottom line using your writing skills."
Warren Stephen presents Does a 401K Distribution Count as Income for a Payday Loan? posted at FastPaydayCashAdvanceLoans.com - Payday Cash Advance Resources, saying, "The main thing that payday loan lenders care about is your ability to repay the money they loan to you. You can borrow as much as $1500 from a lender but they will not give you a dime if they do not think you will be able to pay it back."
David de Souza presents Record numbers of people submit tax return online posted at Tax Return Blog, saying, "Guide to submitting a tax return online and avoiding the penalty for filing your tax return late"
Judith Leeson presents Lending Money to Friends? Here’s what you should know! posted at Law Degree.
Lee Phillips presents LLC Formation | How to Form an LLC | Forming an LLC | LLC Forms Blog posted at LLC Wizard, saying, "Your LLC is a business vehicle. It should get you asset protection, tax benefits, and business protection. You get your articles of organization filed (some people call the operating agreement an “LLC company agreement”), and technically you have an LLC."
Patty Pedersen presents Best Oil ETFs: Looking Beyond Energy Select SPDR XLE posted at AlphaProfit MoneyMatters - Investing Blog, saying, "Energy Select Sector SPDR ETF wins the contest among oil ETFs when it comes to popularity. This ETF however wasn’t the best performing ETF in this category in 2010. This article analyzes different energy ETFs and explains why energy service and natural gas ETFs have the potential to be top performers in 2011."
CreditCardGuru presents Chase Ultimate Rewards Mall posted at credit card forum [the blog], saying, "An in-depth look at the Chase Ultimate Rewards Mall and how to get the most bang for your buck when using it."
Aussie Investor presents Investing In Shares Or Property - Which Is Better? posted at Australian Investing, saying, "This is a question which can almost cause good friends to come to blows. It seems that investing in residential property is such an emotional issue for some people. Well to add fuel to the fire I found the results of a study published last year found that investing in shares produced a better after tax return than investing in property."
Jeffrey Weber presents Discover No Fee Balance Transfer & 24 Month 0% Credit Cards posted at Smart Balance Transfers, saying, "A comparison of two limited time credit card offers from Discover aimed at consumers looking to save money via balance transfers."
Joe Morgan presents Is Gen Y Irresponsible, Or Is It A Matter Of Perspective? posted at Simple Debt-Free Finance, saying, "Is Generation Y really just a bunch of selfish, entitled ne're do wells, or is it a generational misunderstanding?"
Ryan Hudson presents 10 Terrific Tips to Help You Stay Out of Credit Card Debt posted at Best Credit Cards IQ.
Judy Blackburn presents Eliminating Debt: Understanding Your Options posted at Debt Consolidation, saying, "Becoming financially independent requires the elimination of all bad debt and thus an improvement in invest-able income."
Craig/FFB presents Love and Taxes – Tax Filing Date Changed to February 14 For Some Tax Filers posted at Free From Broke, saying, "For some who file one of three particular IRS claims on their taxes, the first day to file your taxes is delayed. See if this affects you."
Moneyedup presents Save Up For College By Earning Extra Money posted at MoneyedUP, saying, "Whether you plan to foot the entire bill, or whether you plan to just help out in some specific areas, chances are that you will need to save up some money to help pay for kids’ college"
Arjun Rudra presents On A Quest To Turn $3000 Into $100000 With Trader Mark Li, DMS posted at Investing Thesis, saying, "An interview with a equity and currency trader attempting to turn $3000 Into $100000."
BankMan presents Simplify You Banking and Financial Needs posted at High Yield Savings Accounts, saying, "Simplifying your finances can go a long way toward making your life easier and reducing your financial stress. Find out the benefits of consolidating your financial accounts."
Ryan @ MFN presents Understanding Tax Exempt Contributions and Withdrawals to the TSP posted at The Military Wallet, saying, "The Thrift Savings Plan (Govt. version of a 401k) allows military members to make tax exempt contributions when they are deployed to tax free combat zones."
That concludes this edition. Submit your blog article to the next edition of financial independence using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Tuesday, February 1, 2011
It is a good time now to start to take control of your finances. We are after all all worried about money and if the news are true we continue to borrow more and more.
In order to avoid financial disaster, it is important to take control of your finances. The following 3 points will give you a good start towards taking control of your finances and achieving your financial objectives.
- Have a plan
It is important to have a plan in order to achieve your financial objectives. Just like any project you may be part of at work, if you don’t plan you are more likely to fail.
Make a plan for your personal finances, have achievable milestones along the way to help you to stay motivated and keep your eye on achieving your objective.
It helps you to stay motivated and the achievable milestones, if you achieve them, will slowly take you closer to achieving your financial objectives.
- Cut discretionary income as much as possible
With personal finances it is easy to get carried away and spend a little more. Little expenses done often add up to an incredible amount.
A working person who eats out every day is likely to spend about $100 every week on lunch alone.
Watch every little expense and cut as much as possible. It will help you to stay on track towards achieving your financial objectives.
- Keep track of your expenses
It is very little to loose track of where your money is going. Little expenses that you don’t pay too much attention to are likely to be dragging you down.
The best way to keep track of your expenses is by having a budget, following it and keeping it up to date with the latest expenses, no matter how little they are.
After a while it is actually enjoyable to take control of your expenses, get rid of debt and invest your cash.
It feels much much better than being caught up in large monthly credit card or other unnecessary bills.