Top 20 Personal Finance Tips

If you are like me, you have never had any formal training on managing personal finances. You may have read books and researched the topic on the internet, however you probably don’t have any formal training on the subject.
It amazes ma that personal finances is not included in our school curriculum. It is such an important part of our lives however, our education system does not address.
It is time that we all take control of our personal finances, learn about the topic and take control of our personal finances. Following are 20 tips to give you a head start on the topic.

1 – Pay yourself first. Try to save a fixed percentage of your income every time you get paid. Don’t leave the cash in your day-to-day savings account because you will probably end up spending it. Transfer the money to a different account in order to increase the chances of actually saving it.

2 – Spend less than you earn. This is basic in personal finances. You need to take control of your cash flow and ensure that you spend less than what you earn. Make sure you don’t use your credit card to improve your cash flow, this is a common mistake.

10 tips for financial security

Many people strive to achieve financial security. It is however very difficult to deal with the pressures and expenses of the normal daily life and at the same time try to achieve financial independence.

However, being financially independent can deliver many benefits including peace of mind. Nowadays, in Australia, it takes two incomes to raise a family. Recent financial reports also indicate that many young families, with two incomes, will not be able to afford to own a property in Sydney.

These reports are very alarming to me. It shows how the cost of living is increasing and how many people will be negatively affected by it.

It is therefore important that we all take responsibility for our financial affairs and strive to achieve financial independence. This process does not need to be a torture nor an exercise in self-deprivation.

I found these tips by searching on the internet and from personal finance book I have recently read. They are designed to help you to achieve financial independence.

Is it possible to live without a credit card?

During the weekend I read an article on the newspaper about how hard it can be to live without a credit card.
Our society pushes us into debt. Marketing campaigns, online marketing, junk mails and other strategies are all designed to lure us into acquiring stuff that we don’t need.

Wait, there is more. A few months ago I was walking on a shopping centre and saw the advertisement on a modest clothing shop. It said something like “buy your clothes now and pay for them later”.
It is very easy these days to get credit and get into trouble with it.

Vanquish credit cards is an example of how individuals with poor credit profiles can acquire a credit card. If you follow the link provided you will see on their home page that the say “…if you use it sensibly…”. That is the trick with credit cards, most people don’t have the control not the knowledge to know how to manage credit cards.

Furthermore it is becoming increasingly difficult to live without a credit card. I admire people who want to live without credit cards. My in-laws never had a credit card until a couple of years ago when they wanted to travel and could not book their accommodation.

Top 10 money tips to become debt free

 

One of the purposes of this blog is to help myself to learn more about money in order to help me to become debt free and, hopefully, financially independent.

Being debt free is almost a dream for me at moment, with the power of compounding interest working against me I keep on paying my credit card debt every month and it doesn’t seem to go down no matter what I do.

This post is a result of my own research around the internet on 10 strategies to help me to become debt free.

#1 Stop using the credit card

If you are liking me you have a bit of credit card debt hanging around. No matter what you do you don’t seem to get ahead those monthly payments. Every month interest is credited back into the account and part of your effort to reduce the balance on the card is absorbed by the interest.

The first step towards getting rid of credit card debt and being debt free is to stop using those cards.

Put them away, cut them up if necessary, do whatever it takes for you to stop using those cards.

Some of us are in a situation that you use your credit card to pay for your monthly bills. This means that you probably don’t have enough cash flow to pay for your living expenses and then you use the credit card to supplement your income.

If you are in the situation above then you need to get on top of your cash flow and ensure that you spend less than you earn. Keep reading to find out how to get on top of you cash flow.

The following article discusses how credit card debt can be avoided:

• Credit card debt - how to avoid it

#2 Get on top of your cash flow by spending less than you earn

In order to get rid of your debt you need a debt management plan. You need to take a hard look at your cash flow and come up with a debt management plan to ensure that you spend less than what you earn.

If you continue to spend more than what you earn  you will never be able to get out of debt, it is as simple as debt.

The are two ways to take control of your cash flow, cutting the expenses or increasing your income. The next tip relates to reducing your expenses.

With regards to increasing your income, I believe that the best way to impact your financial life in the long term is to have streams of passive income. The tip #4 relates to passive income.

To learn more about the importance of cash flow in personal finances have a look at the following articles:

• Managing your cash flow to pay off debt
• Basic accounting principles for personal finances

#3 Reduce your expenses

The key to financial independence is to manage your cash flow. You need to ensure that you spend less than what you earn. The first step to achieve a positive cash flow is to reduce your expenses.

If you don’t have a budget it is a good idea to create one. Once you have it you can have a look at your expenses item by item and find out where you can save.

Take a look at my article about creating a budget, it contains detailed, step by step instruction on how to setup and use a budget to help you to manage your personal finances:

• How to create a budget and stick to it!

#4 Passive income, the key to financial success

Saving alone is not enough to have a positive cash flow. In order to take control of your finances you need to increase your income. My favourite way to increase income is also the hardest one, passive income.

Passive income is income that you earn without working for it. Once the passive income stream is step all you need to so is to sit back and watch the money come in.

Passive income to me is the key to achieving financial independence.

The following articles will helps you to understand passive income and will provide you with some tips on how to generate passive income:

• How to generate passive income
• The most important money advice

#5 Debt consolidation

Debt consolidation is another debt management strategy that you can employ to get rid of debt. You do have to be careful before consolidating your debt though.

When you are pressured by debt you may get emotional and look for easy ways to get out of debt. Organisations that offer debt consolidation loans are very clever in how they offer their products.  They present the information in such a way that it is very convincing and attractive if you a buried in debt.

Before consolidating your debt take a hard look at how much interest you are paying on your debt and compare it with the interest you will pay if you get the new loan (don’t forget to include fees in your calculation).

I have often come across debt consolidation loans with interest rates so high that it would not be advantageous to consolidate my debt.

Do research debt consolidation loan, do your homework and make sure the numbers make sense before you sign any papers.

#6 Home equity debt consolidation. Refinance you mortgage to pay off the debt

Refinancing your mortgage to pay off your unsecured debt makes sense. Interest rates on mortgages are usually much lower than the interest rates you pay on unsecured debts such as credit card.

If you do have enough equity in your home loan consider refinancing your mortgage and use some of your equity to pay off your unsecured debt.

Don’t forget that once you refinance your property and take the money, your mortgage payments will increase. Make sure that you plan ahead so you can afford your mortgage payments in the short and long terms.

#7 EBay is your friend

Take a good look around your house, you can probably find many items laying around that you don’t need. Consider selling them on eBay and use the profits to reduce your debt, every little bit helps

#8 Get an extra job

The fastest way to increase your income is to get a second job. It is very hard to find sustainable, alternative sources of income. If you do want to fast track your debt payments then consider getting a second job to boost your income and pay off the debt a little faster

#9 Make money through blogging

Blogging can be a very enjoyable way of increasing your income. These days you don’t need to be a computer programmer to have your own blog.

I did not write a single line of computer code to have this blog up and running and although it does not generate a significant income at the moment it is helping me to learn more about personal finances and, with the benefit of time, has the potential to put some money in my pocket.

Blogging can be fun because you can choose whatever topic you like. It is fun to write about the things you love. It is a way of making a little income doing doing something that you like.

I will finish this section with a little warning. It takes time and persistence to get a good amount of traffic into your blog so if you decide to start one make sure you stay motivated and stick with it.

#10 Setting goals

Getting rid of debt can be  very long process during which you may loose focus and motivation.

Goal setting is a strategy that can help you to remain motivated as you achieve small goals that one day will help you to get rid of your debt.

The following links refer to some very interesting articles regarding goal setting:

•  The importance of goal setting
• Smart Financial Goal Setting

Stay motivated and take action

One of the most important tips I can give you is to stay motivated.

Being in debt is very frustrating, you work very hard and you you sometimes have the feeling that you are not getting anywhere. It is very important to remain motivated, focus on your goals and believe that you can achieve your objectives.

One of the most influential books to me, and in fact the book that started me on the road to financial independence, is the The Science of Getting Rich. one of the most valuable advices I got from the book was to believe in myself, focus on my goals and to remain motivated.

You can get rid of your debt if you remain motivated and take action. Stop taking about the things you want to do and do something. You are the only one that can do something to take control of your personal finances.

Technorati Tags: debt management,credt card debt,blogging,passive income

Financial Independence Compilation

 

Welcome to the October 31, 2010 edition of financial independence.

Your Financial Independence Articles

How to waste your money with good deals or bargains - We all love bargains don’t we? I really like getting items at a heavily discounted price. I’ve noticed that when things are on special there are heaps of people at the shopping malls with their trolleys full of staff…

Organise your finances with online banking - Using online banking can be a quick way to take control of your finances. These days online banking offers many tools that can actually hep you to save money. Here are some ways online banking can help you….

A few tips to save money - Do you want to save some money? When times are tight and you are struggling to make ends meet you will face the inevitable decision to cut back in some expenses. Here are some ideas to help you to cut back on those expenses without sacrificing too many of life’s pleasures…

Reader’s Articles

Youdondour torres presents Get your payday advance today! posted at Quick and easy payday loan!.

Youdondour torres presents Great facts about ACAI posted at Acai juice, the healing powers and benefits!.

Youdondour torres presents If you need cash now, apply for a quick cash advance now! posted at Pay Day Loans For You Today!.

Youdondour torres presents Get a quick cash advance now! posted at Pay Day Loans For You Today!.

Youdondour torres presents Apply now, get approved for a unsecured cash advance! posted at Quick and easy payday loan!.

Youdondour torres presents Apply now and get approved for a quick cash advance payday loan! posted at Quick and easy payday loan!.

Youdondour torres presents FACTS ABOUT A NO FAX PAYDAY ADVANCE LOAN! posted at Pay Day Loans For You Today!.

Sheri Schmeckpeper presents Good Budgets Support Goals; Good Goals Define Budgets « Center for Excellent Living posted at Center for Excellent Living, saying, "It's important to build a budget that tracks your month-to-month living, but it's equally as important to consider the future. For this reason, I want to stress the importance of goals."

debt kid presents How much savings is enough posted at DebtKid.

money and finance

Marvin Grossman presents Dave Ramsey is Bad at Math posted at fivecentnickel.com, saying, "If you’re familiar with Dave Ramsey, then you’ve no doubt heard of his ’snowball’ approach to paying down your debt. In short, Ramsey suggests that you make minimum payments on all but the debt with the lowest balance."

Marvin Grossman presents We're No. 4! What the slip in U.S. competitiveness means posted at Money-Rates.com Savings Investor, saying, "Find out what the slip in US competitiveness might mean to CD rates."

Neal Frankle presents Saving Money For Retirement ? 6 Steps To Peace of Mind posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "Saving Money For Retirement – The Ultimate Guide You already know how crucial it is to save money for retirement – no matter what stage of life you’re in. Here are 6 steps to help you do just that..."

Tim Chen presents Just in Time for Summer: Save Money with the HHonors Hotel Rewards Program posted at NerdWallet Blog - Credit Card Watch, saying, "The Hilton Honors Reward Program is a great program, but there are 4 major components you need to understand before you can fully take advantage of the program."

Jeff Weber presents Best Holiday Shopping Credit Card Deals posted at Smart Balance Transfers, saying, "The top credit card offers of the holiday season can put up to $175 in your pocket or save you money on interest."

nissim ziv presents Behavioral Based Interview Questions and Answers posted at Job Interview Guide, saying, "Behavior-Based interviewing became a mile stone hiring process of many companies. The logic behind the behavioral based interviewing is that past performance in similar situations will provide the most accurate predictor for the … future performance of a candidate."

Andrea presents Money Makeover- 6 Steps To Get Back On Track posted at Savings Scoop.

Wenchypoo presents In Barter Nation, Old Forms of Commerce Are New Again posted at Wisdom From Wenchypoo's Mental Wastebasket.

Mike Piper presents Low-Risk Investment Planning posted at The Oblivious Investor, saying, "Instead of setting expensive goals and using high-risk investments to attempt to meet them, what if we started with low-risk investments and set goals based on modest returns?"

MoneyNing presents Investing In Nostalgia: 5 To Know With Making Money from the Memories of Your Youth posted at Money Ning, saying, "Do you have any toys or collections that you can dust off from your childhood? They could be worth quite a bit of money!"

Jim Nariel presents How you can Build a Successful Work from Home Business Now posted at Point and Click Program Revealed, saying, "blog post showing how you can build a work from home business today"

Neal Frankle presents Find A High Paying 2nd Job Using Craigslist posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "You Can Find A High Paying 2nd Job Using Craigs List. If you’re looking for high paying 2nd jobs, look no further than your computer screen."

Arjun Rudra presents How To Think About The Economy With Noted Economist Paul Summerville posted at Investing Thesis, saying, "How To Think About The Economy With Noted Economist Paul Summerville"

Madeleine Begun Kane presents Man Can?t Live By Bread Alone ? Or Can He? posted at Mad Kane's Humor Blog.

Robert Alan presents Best Financial Software to Track Your Expenses posted at Credit Cards Blog | CreditCardAssist.com, saying, "Never lose sight of your expenses, track your expenses today with the Best Financial Software."

BWL presents Long Term Care Insurance And Senior Citizens posted at Christian Personal Finance, saying, "Are Seniors the only ones who need long-term care insurance?"

Michael Pruser presents TIPS Auctioned at Negative Yield (And What It Means For Consumers) posted at The Dough Roller, saying, "A quick review of the TIPS recently auctioned off"

FMF presents How to Become Wealthy posted at Free Money Finance, saying, "There are three keys to becoming wealthy: growing your income, saving as much as possible, and getting a good return on your investments. This posts tells how you can use these three to become rich over time."

PT presents The Best Airline Miles Credit Cards posted at Prime Time Money, saying, "Complete reviews of the best airline cards. If you fly one airline all the time, these cards make sense."

Central Florida Real Estate presents 10 Tips To Consider When Buying A Foreclosure posted at The Central Florida Real Estate Site, saying, "If you’re shopping for a foreclosed house that you want to flip, hold your breath until the urge passes. Your checkbook and credit report will thank you. Why is it that people think that they can buy low and yet others will agree to buy high? But if you’re looking for a home to live in, or one to lease to others for years of positive cash flows, buying a foreclosure might save you some money. Foreclosed homes typically cost 10% to 15% less than comparable homes in the same neighborhood, even after you’ve made all the needed repairs. Savings of 20% or more are not unheard of. Just follow our 10 Foreclosure Tips for buying a foreclosure to make sure you get the best deal and avoid costly pitfalls."

Silicon Valley Blogger presents Online Bill Pay Account From FNBO Direct: Review posted at The Digerati Life, saying, "Do you do online bill pay? Here's a look at an account that can help facilitate your money management tasks."

freefrombroke presents Schumer Box And Credit Card Offers posted at Free From Broke, saying, "Know what that box with all the credit terms is on your credit card offer is? It's the Schumer Box. Here's why it's there."

FIRE Getters presents Direct Deposit to Bank Account - Handle With Care! posted at FIRE Finance, saying, "First of all let's try this pop quiz: Can anyone take out money from your bank account without your permission? You must be thinking "How on earth can that can be?" The next thought might be "Are these folks crazy?" Ahh...m, please read on to find out the truth!"

Darren presents SIMPLE IRA – Rules, Contribution Limits, & Benefits posted at MORE than Finances, saying, "The SIMPLE IRA is a retirement plan for small companies. Let's take a look at how it works, its rules, contribution limits, benefits, and more."

DCTrader presents Margin Calculator posted at DCTrader, saying, "This handy little calculator instantly figures margin requirements for any stock price / balance. You can use it here for free."

Khaleef @ KNS Financial presents 401k Advice – Stop Passing Up Free Money! posted at Faithful With A Few, saying, "Many people struggle with retirement planning, often paying thousands of dollars in fees in order to get sound advice. However, a recent study has shown that many of these people are neglecting the easiest way to get free money for their retirement."

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.

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Technorati Tags: money,financial independence,blogging,payday,make money,saving

 

Financial Independence Compilation

Welcome to the October 24, 2010 edition of financial independence.

Your Financial Independence Articles

Teach your child how to make make money - Want your child to be a millionaire? All parents want the best for their children so why not teach them how to manage and  make money?

Here are a few tips to help you to raise a millionaire.

Making money through blogging – developing highly profitable topics using Google AdWords - If you are into blogging you know that it can be very difficult to make money. You’ve heard it many times that the secret is on attracting the crowds. There is more to it, you also have to ensure that you are choosing topics that are highly profitable.

There are many articles on the web that tell you how to attract traffic into your site. Most of them say that the more traffic you get the more chances you have of making money either through advertising or via selling some sort of product. It is true, the more people come to your site the more chances you have of making money.

Thriving 30 million dollars business from a school project. Find out how she did it -  At 16 years of age, Lindsay Phillips had an idea to create flip-flops with straps that could be changed during a school project. It is project that this year her company will bring $30 million in revenue says AOLSmallbusiness.

The idea is very simple, you buy one pair of flip flops and renew their appearance with new straps. They look new and different every time and can be worn with different clothes depending on the occasion.

Her company is now producing other products such as shopping bags, scarves and sandals for children.

How to make some extra money - Do you need some extra cash. I think we can do with a little extra cash. The following sections describe some of the strategies you can use to make some extra cash.

Reader’s Sponsored Articles

Rick- presents Best IRA Rates posted at Stock Tips, saying, "To get the best IRA rates, portfolio diversification is necessary. Find out how to get the best IRA rates and IRA returns today."

Youdondour torres presents 1 HOUR Payday loan for fast cash now! posted at Pay Day Loans For You Today!.

Youdondour torres presents Payday advance for those with poor credit! posted at Quick and easy payday loan!.

Youdondour torres presents A Cash advance with no credit check! posted at Quick and easy payday loan!.

Mike Piper presents Types of Annuities: Annuity Definitions posted at The Oblivious Investor, saying, "What are the differences between the various types of annuities? Which ones are useful, and which ones are a raw deal?"

Youdondour torres presents 1 hour paday advance for quick financial assistance! posted at Pay Day Loans For You Today!.

Youdondour torres presents Quick ways to get cash now! posted at Quick and easy payday loan!.

ABConseil presents THE AMAZING WIDGET�S REVIEW :AutoBlog posted at AutoBlog, saying, "TheAmazingWidget.com claims to offer a breakthrough new way to generate �semi autopilot� traffic and commissions, with the launch of their new Software and accompanying Blueprint. Further, they claim to offer a dead simple way for virtually anybody to begin placing their oddly named �Amazing Widgets� in hundreds of free spots around the web, as a foolproof way to make money on autopilot once in place."

BudgetSnob presents Retire Rich ? Let Everyone Else Work posted at Budget Snob.

BudgetSnob presents Close Your Budget Gap posted at Budget Snob.

Robert Alan presents How Do I Make Bad Marks on My Credit Go Away? posted at Credit Card Assist, saying, "How to make bad marks on your credit go away in 6 simple steps."

CreditShout Kevin presents How to Deal with Credit Card Customer Support posted at CreditShout.

Victor del Rosal presents A social experiment: your finances solved posted at Internet Empire Formula, saying, "This article poses a hypothetic questions: if your financial life was completely resolved, forever, would you stop working? It analyzes the true meaning of work."

Sam presents New !! Is an Annuity Insurance Retirement Plan Best for You? Five Essential Points posted at Surfer Sam and Friends, saying, "Thanks for including my article on annuity insurance retirement plans. Here's an excerpt... Are you afraid that you will outlive your money? Are you worried that you might lose your savings in the stock market and face retirement broke? The past few years in the stock markets have upset the retirement plans of many investors. Today, people are living longer than ever. Seniors and baby boomers are concerned that they have enough money to support them during a long life. Annuities are an investment option for these people. Annuities guarantee that you won't outlive your income, no matter if you live 100 years or longer. Furthermore, with an annuity you do not risk losing the nest egg you have accumulated."

Jeff Weber presents Avoid Balance Transfer Mistakes posted at Smart Balance Transfers, saying, "Avoiding these three balance transfer mistakes will help you save the most money and avoid hurting your credit score."

nissim ziv presents How to Present Yourself in an Interview and Impress the Interviewer? posted at Job Interview Guide, saying, "When you are in the process of preparing yourself for your job interview, one of key prep steps is practicing your interviewing performance and reshaping your presentation level in order to create the best positive impression on the interviewer."

Madeleine Begun Kane presents Pigheaded Limerick posted at Mad Kane's Humor Blog.

Alexander Peter presents Catering Trailer Insurance posted at Catering Trailer Blog, saying, "If you are thinking of starting your business one important thing to consider is insurance. This article provides some advice for catering trailer owners."

David de Souza presents 5 Steps To Getting A Tax Rebate posted at UK Tax Blog, saying, "Are you due a tax rebate? Our guide will help you claim your tax refund"

FMF presents A New Rule-of-Thumb for Renting versus Buying? posted at Free Money Finance, saying, "Does this "new" rule for renting versus buying work?"

Marvin Grossman presents That's gross! Why home insurance won't pay for disgusting problems posted at Insure.Com Home Insurance Articles, saying, "Rats, mold, bed bugs? Here's why home insurance won't pay, and some exceptions to the rules."

Jim Nariel presents How you can Build a Successful Work from Home Business Now posted at Point and Click Program Revealed, saying, "Blog post on how to start a successful on line business from home"

Joanaa Tiger presents Top 10 Financial Blogs for College Students posted at Criminal Justice Degrees Guide.

BWL presents 4 Habits of Millionaires posted at Christian Personal Finance, saying, "This article looks at how millionaires really spend their money..."

Arjun Rudra presents Statistical Arbitrage Pairs Trading With Michael Kapler of SciVest Capital Management posted at Investing Thesis, saying, "While you may have heard of simple pairs trading which involves going long one security and going short another, it’s the statistical arbitrage aspect that you’ll be introduced to today."

FIRE Getters presents Tax FREE Money Market Mutual Funds! posted at FIRE Finance, saying, "Most astute investors are aware of municipal mutual funds also known as MUNIs. These funds invest in term debts issued by various state and local governments. In general dividends and gains from muni funds are exempt from federal as well as state taxes."

Jason @ Redeeming Riches presents 8 Financial Myths to Discuss with Your Kids posted at Redeeming Riches, saying, "Teaching kids about money can be a tough task to tackle, especially with these myths."

Barb Friedberg presents Can the Average Joe/Jane Expect Price Changes When the Dollar Fluctuates? posted at Barbara Friedberg Personal Finance, saying, "Understand the relationship between US dollar and how it MIGHT impact future prices. Use this knowledge to help you toward financial independence."

freefrombroke presents What Is A Reverse Mortgage Loan? posted at Free From Broke, saying, "What a reverse mortgage loan is and who it is for."

Joe Morgan presents Living on a Single Income: 7 Years and Counting. posted at Simple Debt-Free Finance, saying, "Some tips and lessons from 7 years of living on a single income with a wonderful wife and 3 children. It's not easy, but it's not impossible either."

PT presents Meeting with a Fee-Only Certified Financial Planner, Part 2: Planning Session and Retirement Recommendations posted at Prime Time Money.

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.

Technorati Tags: make money,blogging,business,mortgage,debt-free,financial independence money blog carnival

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Financial Independence Compilation

Welcome to the September 19, 2010 edition of financial independence.

Bruce presents Government Mortgage Assistance with Payments | Government Mortgage Help posted at Government Mortgage Help, saying, "Mortgage Help from the Government to assist you in keeping your home from mortgage foreclosure during this recession"

No Trust Fund presents How Much House Can You Afford? Part 1: Can of Worms posted at Where's My Trust Fund?.

Wenchypoo presents Cheapest Groceries This Side of a Dumpster posted at Wisdom From Wenchypoo's Mental Wastebasket, saying, "More frugal living tips."

Silicon Valley Blogger presents Transferring Your Brokerage Account? Switch Brokers With Ease posted at The Digerati Life, saying, "Thanks!"

BackTaxesHelp.com presents Basic Guide For Taxes on Vacation Homes posted at Back Taxes Help.

money and finance

Hussein Sumar presents How to Better Understand Roth IRA Conversions posted at Roth IRA, saying, "Roth IRAs and their sister retirement plans Roth 403b and Roth 401k offer oustanding retirement investing choices for American workers & savers. While most people have heard of these plans, they do not exactly know how to take advantage of them, or yet better understand them. This becomes even more difficult when an employee transitions from one job to another company while leaving behind his retirement plan with the old company, not knowing of the choices available."

Sun presents Credit Card Rewards: Gainers and Losers posted at The Sun’s Financial Diary.

Moneyedup presents How To Protect Your Savings From The Nursing Home posted at MoneyedUP, saying, "Nursing home costs are on the rise. Learn how to protect your savings in retirement."

Alexander presents How to Enroll in a DRIP Program posted at Dividend Stocks, saying, "DRIP programs reinvest your dividend back into the stock. Learn how to enroll."

Tim Chen presents Rewards Showdown - Chase Sapphire vs Capital One Venture posted at NerdWallet Blog - Credit Card Watch, saying, "The Chase Sapphire and the Capital One Venture Rewards cards are both high-profile travel rewards cards for people with excellent credit. At first glance they seem pretty similar, and even their signup bonuses and rewards programs overlap. But when you really look at the numbers, some glaring differences appear."

Charles Chua C K presents 10 Ways to Reduce Your Expenses and still Maintain Your Standard of Living posted at All About Living with Life.

FIRE Getters presents 12 Tips To Lower Your Heating Bill posted at FIRE Finance, saying, "The cost of energy is rising everyday. Whether it be electricity, gas, water or sewage, our utility bills are becoming higher with each passing month. Consequently most of us are looking for ways to trim our energy expenses and boost our savings. As winter sets in, the cost of heating our houses will be a major concern ..."

David de Souza presents UK Income Tax Blunder – How It Happened posted at UK Tax Blog, saying, "Over 2 million people are affected by a tax blunder in the UK. We look at how it happened"

Matt T. Henterly presents How to Live Without Credit Cards posted at The SimpleChecking Blog, saying, "How to live without those cursed plastic anchors - from one who's done without them for over seven years."

share presents Why use options? posted at Options Education for Beginners, saying, "A recently started blog with daily new posts about basic options trading education"

nissim ziv presents Best Careers for Women per Skill Sets & Advantages posted at Job Interview Guide, saying, "List of best careers for women where they can better utilize their skills and advantages - women have advantages over men on particular areas and thereby some careers fit them better"

Neal Frankle presents IRA FAQ ? All the Answers You Need In Plain English posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "You need to know IRA FAQ PDQ (Pretty Darn Quick). I say this because we have to take responsibility for our own financial future. Nobody else is going to do it for us."

Mike Piper presents The Best Places to Retire posted at The Oblivious Investor, saying, "For those considering retiring abroad, what countries should be at the top of the list for consideration?"

Brian Cull presents How-to graphical budgeting posted at Living at the Top of the Bell-Shaped Curve, saying, "Simple, easy-to-use way to control your finances by graphing your budget"

Arjun Rudra presents Be Mindful Of The Risk Of Inflation Says Norman Raschkowan, North American Strategist For Mackenzie Investments posted at Investing Thesis, saying, "This past summer has taken investors on a roller coaster of a ride with capital markets rising and falling so much, it’s no wonder investors are feeling queasy. Mixed economic data may be stoking fears of a “double dip” recession, but one North American strategist, says that while there will be an extended period of moderate economic growth, the chances are slim we’ll see another actual recession hit."

Mike Ross presents 5 Life Insurance Myths That Can Cost You a Pretty Penny posted at The Budget Life Blog, saying, "There are a number of myths circulating about life insurance, and you don’t want to fall victim of a myth that could cost you – and your family – down the road. Here are 5 life insurance myths you shouldn’t believe."

BWL presents Should You Buy Disability Insurance? posted at Christian Personal Finance, saying, "This article looks at some of the reasons one might want to consider buying disability insurance."

Ryan @ MFN presents Roth IRA Rules posted at The Military Wallet, saying, "Rules for Roth IRAs, including who can contribute, contribution limits, withdrawal rules, and more."

MoneyNing presents Five Reasons You Should Give Your Kids a Monthly Allowance posted at Money Ning, saying, "Giving your kids an allowance will teach them to be more responsible."

Praveen presents Bought General Dynamics (GD) Today posted at My Simple Trading System.

Roshawn Watson presents Is Extreme Frugality For You? posted at Watson Inc, saying, "So many of us do a job we hate to pay for a consumption-focused lifestyle that we can barely afford. However, is cutting down to beans and rice really for you?"

Madeleine Begun Kane presents Tax Cut Tomfoolery posted at Mad Kane's Political Madness.

Wenchypoo presents The 50% Solution posted at Wisdom From Wenchypoo's Mental Wastebasket, saying, "How to hang onto your money--while you make it, or afterwards."

Dan presents The 7 Deadly Sins of ETF Investing – Are You Guilty? posted at ETF Base, saying, "ETFs are better than mutual funds and stocks in many aspects, but there are several risks and downsides many investors are unaware of ranging from futures roll to how leveraged ETFs work. Learn about the 7 Deadly Sins of ETFs."

One Family presents A Peek Into Our Roadmap to Financial Independence posted at One Family's Blog.

PT presents Mystery Shopper Jobs: Deciphering the Mystery posted at Prime Time Money, saying, "The truth about mystery shopper jobs, a potential way to bring in extra income."

Wenchypoo presents What's It Like Living on Food Stamps? Take the SNAP Hunger Challenge and Live on $4.50/Day For the Next Week posted at Wisdom From Wenchypoo's Mental Wastebasket, saying, "If you can meet this challenge, then make it a part of your everyday life, then you will free up tons of money for investing, emergency funds, etc. that will lead to financial independence. Later on, you will wonder the same thing I do now: if current food stamp recipients have to meet this challenge every day, why aren't THEY financially independent yet?"

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.

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A few strategies to make some extra money

It is always a good idea to make some extra money. It can help you to pay off a debt, save or just buy something that you want.

This article outlines a few ways to generate some extra money. Depending on your commitment and goals, some of these strategies can be turned into significant streams of income.

Making Money on EBay
Think about all the stuff you have around you, do you really need all of that? It is likely that something you don't need anymore may be useful to someone else. There are several stories on the internet about people who have made a few bucks, hundreds or thousands of dollars.

All you need to do is take stock of what you have and sell anything that you don't need anymore.

Blogging

Blogging is a simple and quick way to start your own business. Over time, and with good and relevant content, you may build a loyal readership which may generate you some income through ads, affiliate marketing and other strategies.

It is also fun to be writing and exchanging ideas about a topic that you love.

EBooks

EBooks have the potential of generating significant income. Similarly to blogging, you can write an ebook on something that you are really interested, put it on the internet for sale and make some money.

Taking online surveys

Organisations all over the world need your opinion as a customer. They value your opinion so they can make various different decisions about the product, marketing and other aspects of their product management.

Your opinion is so important that they are willing to pay for it. You can find several online paid surveys. You can take a few each day and make some money from it.

Real estate investment

This strategy requires some start up cash in order to acquire an investment property. It is hard to get started, but once yo do you can make money from rental income and as your property value goes up you also make money.

Many people build a sizable property portfolio which generates passive income.

Invest in the stock market

Investing in the stock market is a common approach to generate income. As I have mentioned in previous posts, you need to learn before you start and you need to do a lot of research to ensure that you are investing in a good company.

You can also get stock market reports to help you to make your decisions. It is important to get the right advice, which can be of great help if you are a beginner investor.

I have recently blogged on the risks and benefits of investing in shares. For more information click here.

This short article is by no means exhaustive. The most important aspect of these strategies is to start. Do something about it , choose one strategy and get going, it may be the best decision you ever make.

Financial Independence Compilation

Welcome to the July 11, 2010 edition of financial independence. This week, Your Financial Independence is highlighting 2 recent posts. Please do take the time to review them and post your feedback. Thank you to all contributors. Your financial independence articles Some good advice on money matters. This article offers a few important advices to help you on your financial journey. Managing your cash flow to pay off debt. Debt is one of the biggest problems in our modern society. Young generations are growing up accustomed to debt, as if it is a normal part of life. Bad debt can affect individuals and families to the point of bankruptcy. This article offers a few advices on how to manage your cash flow to pay off bad debt. Weekly compilation Valery Zelixon presents Logistics is key for international business success posted at Supply Chain Notebook, saying, "great overview from a purchasing pro about selecting overseas suppliers." Valery Zelixon presents Supplier selection process part 1 - - how to select global supplier for your business posted at Supply Chain Notebook, saying, "great overview from a purchasing pro about selecting overseas suppliers." Silicon Valley Blogger presents Want To Day Trade? Try Paper Trading First posted at The Digerati Life, saying, "Lots of new investors jump into stock trading without enough experience and training. They lose their shirts in the process. But before you try this out, why not do virtual trading with play money and find out if this is right for you? You may find that you aren't cut out to trade and can save yourself a bundle!" Ryan @ MFN presents Improve Your Credit Score Quickly posted at The Military Wallet, saying, "These tips will show you how your credit score is determined and give you methods for improving your credit score quickly." Tim Chen presents 5 Reasons To Avoid Amex Blue Cash posted at NerdWallet Blog - Credit Card Watch, saying, "The Amex Blue Cash is a card that everyone loves to love, with it's enticing promise of 5% cash back. But there is a catch! So make sure you understand the fine print before you sign on the dotted line." Hussein Sumar presents Three Reasons Why You Should Sell a Dividend Stock posted at Dividend Stocks, saying, "If investors buy high yielding dividend stocks in an effort to generate income in the form of streams of dividend payments, but the company one day decides to reduce or cut its dividend altogether, then for those investors, there will be no point of holding that stock. This will put selling pressure on the stock and downward price movement. Here's an example of a dividend cut by General Electric." Corinne Reidy presents 52 Habits of Highly Effective Teachers posted at OnlineUniversities.com. MoneySecretRecipe presents Your 2 Top Options For Success If You Want To Make Money Online posted at MoneySecretRecipe. Jessica Bosari presents A look at the Big Four…Where Can You Get the Cheapest Cell Phone Plan? | billeater.com posted at Billeater, saying, "Who has the cheapest cell phone plan?" OmarAdams presents 12 Must-Have iPhone Apps for Serious Bargain Shoppers posted at Online Accounting Degree, saying, "These apps also allow you to save your time while getting the best price, so now you do not have to trade in your time to save cash. Get great deals on a tight schedule with the following iPhone apps for bargain shoppers." MoneySecretRecipe presents Do something that you have passion ... money and success will follow .. posted at MoneySecretRecipe. Carlos Sera presents A Competitive Tale; Financial Tales posted at Financial Tales, saying, "In every new client relationship the conversation always turns to how will the advisor be compensated? Periodically I am asked why I or others don’t charge clients based on the profits that we generate. When they ask me this question I always ask them to choose between two colors. I ask them which is their favorite black or red. When they look at me quizzically" CreditShout presents Beware of Joint Credit Card Accounts posted at CreditShout. Joel Ohman presents How to Find Cheap Car Insurance posted at Car Insurance Comparison, saying, "You don't have to be a Scrooge but there are still some quick tips to finding cheap car insurance!" Sam presents New !! Your IRA Retirement Savings Plan. Details for Tax-Free Savings posted at Surfer Sam and Friends, saying, "Thanks for including my article. Here's an excerpt... Almost anyone can set up an IRA and start saving for retirement. Retirement can be the best time of your life if you have enough money to enjoy it. Plan ahead. Avoid coming up short when you retire. 1. What is an Individual Retirement Account, IRA? 2. How Much Money Will You Need to Retire? 3. Three Steps to Set Up Your IRA Retirement Plan 4. There are Three Types of Individual Retirement Accounts, IRAs 5. How Much Can You Contribute to an IRA Retirement Plan? 6. How Much of My IRA Contribution Can I Deduct? 7. Making Withdrawals from Your Regular IRA Retirement Plan 8. How to Avoid the Penalty for Early Withdrawal From an IRA Retirement Plan 9. The Regular IRA Retirement Plan Has an Penalty for Under-Withdrawing 10. Use an IRA Retirement Account for Estate Planning" DepositAccounts presents 10 Mistakes People Make with Their Bank Accounts posted at Deposit Accounts. Patty Pedersen presents Sector Funds: Best, Worst, and Mid-Year 2010 Stock Market Outlook posted at AlphaProfit MoneyMatters - Investing Blog, saying, "As we cross the year's midpoint, investor's are focused on flat or worsening employment situation in the U. S., strained fiscal situation in Europe, and slowing growth in emerging markets. Yet, some sectors have been able to provide gains even in this crummy market. This article provides insights on whether momentum plays from the first half can continue to be top performers in the second or whether it is time for laggards to take charge." OmarAdams presents Broke Billionaires: 12 High-Profile Modern Tales of Riches to Rags posted at Online Accounting Degree, saying, "You might assume that being a billionaire equates to an easy life of no money problems, but for many high-profile people, this is certainly not the case. It is tough for most people to lose a job or a home worth thousands, but imagine losing millions or even billions of dollars in the blink of an eye." Roshawn Watson presents The Phony Rich posted at Watson Inc, saying, "The exotic cars, the homes, the private planes, chauffeurs, the celebrity hot spots, and nightly $300-plus per person dinners, etc. all encompass our vision of wealth. If this lifestyle is your aspiration, then there is a secret that you should know" BWL presents How To Avoid Taking Out Student Loans posted at Christian Personal Finance, saying, "Graduating debt-free is possible, but you’re going to have to rethink everything in order to make that happen..." Linda@NHE presents How To Find A Natural Health Insurance Plan posted at Natural Health Ezine, saying, "Find the best health insurance plan that will suit your needs for natural and alternative treatments." Arjun Rudra presents Correlation of mortgage rates with real housing prices: How increasing inflation could affect housing prices posted at Investing Thesis. The Dough Roller presents How To Get Your Private Pilot’s License (And How Much It Costs) posted at The Dough Roller, saying, "Flying high can cost you a pretty penny." MoneySecretRecipe presents How to Avoid Mistakes Made by 95% of NEWBIES INTERNET MARKETERS posted at MoneySecretRecipe. BIFS presents Maintaining Motivation on a Big Financial Goal «Budgeting In the Fun Stuff posted at Budgeting In the Fun Stuff, saying, "Great post about ways to keep your eyes on the prize." Dividist presents Investors Love Divided Government - Perception is Reality posted at Divided We Stand United We Fall, saying, "No studies unequivocally show a statistically significant correlation between longer term market direction and Republican, Democratic, or divided governments. But in the short term it is less important whether there really is a correlation so much as whether investors believe there is a correlation. Most investors believe the stock market will benefit from Republicans taking control of either the House or Senate in the fall. With that expectation, a rising market could very well be a self-fulfilling prophecy." Alexander presents Dividend Income Strategy posted at Dividend Stocks, saying, "When you invest in dividend-paying stocks or mutual funds, you will receive periodic dividend income." Claudia Gonella presents Is now a good time to buy Panama Apartments? posted at Real estate investing in Panama, Costa Rica, Nicaragua and Belize. MoneySecretRecipe presents Top 4 Ways For Stay-At-Home-Mom Who Want To Make Money Online posted at MoneySecretRecipe. 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.

Pay yourself first. Really?

When researching the internet for advice on personal finances, you will find advice from many people to "pay yourself first". This advice aims to support you in the process to accumulate enough capital to invest on assets. When you get paid you are meant to put away a certain percentage of your income, usually around 10%, for investment purposes.

In principal there is nothing wrong with this, nevertheless I believe that you need to evaluate your circumstances and your objectives before putting money away in a savings account.

Consider the following scenario: You have managed to get an extra $2000 when working overtime. Your cash flow is very tight and you sometimes need to either use your credit to cover day to day expenses. This has led to the accumulation of $10,000 in credit card debt over a significant period of time. You can only afford to pay the minimum payment and this situation continuously stresses you.

The question is, should you put the $2000 away in a savings account earning you 4% per annum or should you use the money to reduce your credit card debt?

If you put the money away at 4% per annum, you will get a total interest of $80.

The other option is to reduce your credit card debt. You pay 11% interest on your credit card balance. This means that at the end of the year, the $2000 will cost you $220 in interest. Therefore if you use the money to reduce your debt you will be saving $140 in one year. Therefore it makes more sense for you to pay the credit card debt than to save the money.

The difference may not be much, but in this case the longer you have the debt, the more interest you pay. This is the magic of compounding interest. In our example, the compounding interest in working against you.

You should always evaluate your options to make decisions on savings versus paying off debt or purchasing assets.

Getting rid of debt

There are 2 types of debts, good debts and bad debts.

Good debts are the ones incurred to purchase assets such as shares. It is important to mention that in this case, any dividends from the shares should be used to pay the debt.

Bad debts are the ones most people get to buy things that are not assets. Clothes, big TVs, cars, big and expensive houses, the list goes on.

Following are some simple tips to pay off bad debt:

Strive to make your payments on time
Most credit card companies will charge fees for late payments so make  sure you make your payments always on time.

Pay more than the minimum amount

Credit card companies are not interested in you paying off your credit card debt. They want you to have as much debt as possible so long as you can make your minimum payments.

The reason for it is that they want you to keep incurring interest charges so they keep on making money.

You need to pay as much as possible in order to reduce the amount of interest you pay. This is obviously conditioned in you having the cash flow to make the extra payments.

Make repayments as often as possible
In most types of loans, interest is calculated daily. In your to reduce that interest it is important that you make payments as soon as your money is available. Don't wait for the monthly statement to arrive, pay as much as possible, as often as possible.

Make payments where you are incurring the highest amount of interest

If you incur more interest charges than interest you earn on your savings account, use your savings to pay off the debt. It does not make sense to keep money away earning 4% where you are incurring a 12%, or even higher, interest on your unsecured debts.

Increase your cash flow
 
The quickest way to pay off your debt is by earning more money and using it to get rid of the debt. This is not easy, especially if you work hard during the week. You certainly don't want to spend your weekends doing some work away from your family.
 
This may be necessary until your finances are back on track.
 
The most important piece of advice is not to incur bad debt if possible. Prevention is always better than cure.