Your Financial Independence Compilation

Welcome to the August 22, 2010 edition of financial independence.


Your free gift

We are offering you a free gift that we are sure it will inspire you on your road to success. The book the Science of getting rich has inspired me and started me on my road to financial independence. I encourage you to download the book and join the SOGR network. You have nothing to lose. Click here to download your free book.

Your Financial Independence Articles

Share Types - Depending on their capital requirements, many companies issue different types of shares in addition to ordinary shares. Each type of share and separate classes within each type may have different rights attached. Your stockbroker can help you to understand the advantages and disadvantages of various types of shares before you invest in them. This article will give you a brief summary on the different types of shares.

The science of getting rich - the impression of increase - "When dealing with other people, whether personally, via the internet or any other means of communication, the key thought of all your efforts must be to convey to their minds the impression of increase." Convey the impression of advancement with everything you do, so that all people shall receive the impression that you are an “advancing personality” and that you advance all who deal with you. Even to the people whom you meet in a social way — without any thought of business and to whom you do not try to sell anything — give the thought of increase.


How to make money online - 10 ways to use the internet to make money - There are many different ways to make online. Better still, you can setup sources of passive income that will continually flow money into your life...

The most important money advice - There is only one rule that should direct your personal finances. If you are able to understand and apply this rule you have mastered all that you need to achieve financial independence.

The rule is...

Reader's Sponsored Articles

Moneyedup presents Invest to Improve Your Cash Flow posted at MoneyedUP, saying, "Income investing can improve your cash flow to help you meet your monthly budget needs."



Silicon Valley Blogger presents Stock Trading For Dummies: How To Profit From Trading posted at The Digerati Life, saying, "Thanks!"




Ryan @ MFN presents Best Investment Options for Deployed Military Members posted at The Military Wallet, saying, "Deployed military members have access to special investment opportunities not available to everyone. Here are some of the best investment options."



Tim Chen presents Amex is Hiking Fees on the Starwood Preferred Guest Nearly 50%, and it?s Still a Good Deal. posted at NerdWallet Blog - Credit Card Watch, saying, "American Express has started sending out letters to its cardholders, informing them that it plans to raise the annual fee from $45 to $65 starting October 14th, and it’s modifying the rewards program a bit. If you’re a cardholder, you may be considering canceling the card in anger at the prospect of a higher fee, but we don’t think you should."



Alexander presents General Mills Pays Dividends posted at Dividend Stocks, saying, "General Mills General Mills is a good stock for fixed income investors looking to add some income to their portfolio."



MoneySecretRecipe presents How Anyone Can Get Paid To Blog With Google Adsense posted at MoneySecretRecipe.



Ella Moss presents THE SILENT BANG « Zodiac Times posted at Zodiac Times, saying, "the 3rd page news (for now)"



Richard Adams presents The Insiders Guide To Cutting Your Cell Phone Expenses posted at Debt Assistance Guru.



Online Dividends presents ING Electric $50 Checking Bonus posted at Blogging Banks, saying, "ING Direct has another $50 Cash Bonus for new clients who open their Electric Orange Checking account. Check below for more details:"



nissim ziv presents How to Negotiate a Salary: Negotiation Tips, Questions & Expectations posted at Job Interview Guide, saying, "Negotiation skill is a skill that not many people possess. In general, negotiation is an art. Every word you say is important in the end results."



Charles Chua C K presents 10 Tips to Avoid Getting Into Debt posted at All About Living with Life.



mick presents Rental Insurance for Apartments ? Do All Renters Really Need It? posted at PadBlog.



Abbott Efrain presents What Are Low Cost Payday Loans? posted at Cheap Payday Loan Blog, saying, "Low cost payday loans are small sums of money that a person can use to handle the cash crunch in between his paydays"



Adam Park presents 10 Indicators That it’s Time to Buy a New Car posted at Computer Science Schools.



Mike Piper presents Replacing the 2% Schwab Credit Card posted at The Oblivious Investor, saying, "2% cashback on all purchases is hard to beat. Unfortunately, the card is no longer available to new users. What's the next best thing?"



FMF presents Three Myths About Earning More Money posted at Free Money Finance, saying, "If you want to be different and really start earning more money, you'll need to be able to identify and overcome three big myths of entrepreneurship."



Preity Smith presents 100 Lessons You Should Learn from Frugal People posted at College Crunch.



Aileen Black presents Steps to Overcome Debts Problems with Debt Consolidation Loans « Debt Relief Blog posted at Debt Relief Blog, saying, "If you are constantly worried about the thought of getting rid of your debts and are looking out for a way, then debt consolidation loans are the best option for you."



freefrombroke presents Why Invest In Stocks posted at Free From Broke, saying, "Stocks are a great way for an investor to build long-term wealth."



BWL presents 403b Rollover (and Conversion) To A Roth IRA posted at Christian Personal Finance, saying, "This article documents the steps I took to rollover and convert my wife's 403b to a Roth IRA..."



Jacob A. Irwin presents Rejuvenate Your Investment Strategy for Retirement Using Currency Exchange posted at My Money Blog - Personal Finance and Investing, saying, "A recent guest post detailing how an individual can incorporate currency trading in to their personalized investment strategy to achieve the goal of financial independence."



Michael Pruser presents How To Separate Finances During a Divorce posted at The Dough Roller, saying, "Becoming independent during a divorce can be hard but very necessary"



PT presents Does a College Education Equal Financial Security and Wealth? posted at Prime Time Money, saying, "Two takeaways from the college years that could trip you up financially in the long-run."



FitBuff presents Poor Credit Car Loans ? Best Online Lenders posted at Instant Credit, saying, "If you're in debt, chances are your credit is suffering, and you have to settle for poor credit car loans, but this article helps you get the best possible loan for your situation..."



Nesher presents Reverse Mortgage: Is it Right for You? posted at Planning your Retirement Smart Way.



Roshawn Watson presents The Rich Don't Need The Rest of America posted at Watson Inc, saying, "Fortunes of many American companies and investors use to be closely tied to American workers and consumers. However, this is no longer the case."



MoneyNing presents Money Matters, But Money Isn’t Everything posted at Money Ning, saying, "Money isn't everything even though it matters a great deal!"



Rob presents Best IRA Rates posted at Stock Tips, saying, "Being able to find the best IRA rates available today will help protect your money and financial independence tomorrow."




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.

Share
|

Technorati tags:

financial independence, blog carnival.

The science of getting rich - getting into the right business

"The various faculties of your mind are the tools with which you must do the work which is to make you rich. So it will be easier for you to succeed if you get into a business for which you are well equipped with mental tools."

We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich"  by Wallace D. Wattles.

Success in any particular business depends on one thing only: the  faculties required to operate in that business.

The various faculties of your mind are the tools with which you must do the work which is to

make you rich. So it will be easier for you to succeed if you get into a business for which you are well

equipped with mental tools.

You will get rich most easily, in terms of effort, if you do that for which you are best fitted, but you

will get rich most satisfactorily if you do that which you WANT to do.

All other things being equal, it is best to select the business for which you have the best developed

talent, but if you have a strong desire to engage in any particular line of work, you should select that

work as the ultimate end at which you aim.

As you go on in the certain way, opportunities will come to you in increasing numbers, you will

need to be very steady in your faith and purpose, knowing that you have to work hard and that your business will be a success.

Do all that you can do in a perfect manner every day, but do it without haste, worry, or fear. Go as

fast as you can, but never hurry.

Whenever you find yourself hurrying, call a halt. Fix your attention on the mental image of the

thing you want and know that you can achieve it. The exercise of GRATITUDE will never

fail to strengthen your faith and renew your purpose. Always be grateful for where you are now and also, more importantly for where you will be in the future.

Get into the right business, one that you know about it and that you have the skills to develop it in a way that it can help you to achieve your objectives.

Share
|

Technorati tags:

business, money, rich, make money, get rich.

The science of getting rich - efficient action

We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich"  by Wallace D. Wattles.

Wattles tells us to begin to do what we can do wherever  we are. The advice is simple, DO SOMETHING.

You can advance in life only by becoming larger than your present place,  only by expanding your skills, abilities and actions. The world is advanced by people who do much more than they are required to do.

In my case I want to be financially independent. Therefore I need to perform actions that take me closer to my objective. These actions may be learning about how to manage my finances, finding another job or starting my own business. I need to act in such a way that I can move from my current position and start to act in a way that will take me to the place where I want to be, financially independent.

Every day is either a successful day or a day of failure, and it is the successful days which get you

what you want. If every day is a failure you can never get rich, while if every day is a success, you cannot

fail to get rich.

If there is something that may be done today and you do not do it, you have failed insofar as that

thing is concerned — and the consequences may be more disastrous than you imagine.

You cannot foresee the results of even the most trivial act. You do not know the workings of all the

forces that have been set moving in your behalf. Much may be depending on your doing some simple

act, and it may be the very thing which is to open the door of opportunity to very great possibilities.

Your neglect or failure to do some small thing may cause a long delay in getting what you want.

Do, every day, all that can be done that day.

There is, however, a limitation or qualification of the above that you must take into account.

You are not to overwork, nor to rush blindly into your business in the effort to do the greatest

possible number of things in the shortest possible time. You are not to try to do tomorrow’s work today, nor to do a week’s work in a day. It is really not the number of things you do, but the EFFICIENCY of each separate action that counts.

On the other hand, every efficient act is a success in itself, and if every act of your life is an efficient

one, your whole life must be a success.

The cause of failure is doing too many things in an inefficient manner and not doing enough

things in an efficient manner.

Do, every day, all that you can do that day, and do each act in an efficient manner.

The trick is finding out what are the efficient acts. I am afraid this comes with experience and knowledge. That is why I encourage everyone to learn as much as possible about financial management and to learn from others. Learn the success, and failure, stories that others have to share. This way you will not make the same mistakes that others have made.

Do something today. You may want to start saving, or apply for a new job, or start a new business. Anything, take the first step today and start moving away from the place you are today and move towards where you want to be.

For more information about the timeless book the Science of Getting Rich click here.

Buying and selling shares

Buying and selling shares

The share market can be thought of in terms of its two main functions: The primary market where companies raise money by floating their company and selling shares to investors. Following this Initial Public Offering, the shares are then able to be traded on the share market (the secondary market).

So as an investor there are two distinct points at which you can purchase shares:

1. From the company itself in the very first instance of the shares being offered in the float.

2. Following the float, shares are bought from other investors via the share market. Shares can only be sold on the secondary market.

Buying shares in a float or Initial Public Offering

The word float is used when a company seeks to raise money by offering its shares to the public for the first time. The company must first submit details of its business and the proposed share issue to the Australian Securities and Investment Commission (ASIC) in a document called a prospectus.

Once the prospectus is lodged with ASIC, it is then available to potential investors for consideration. If you wish to buy shares in a float, you must first review the prospectus, fill in the attached application form, specifying the number of shares you want to buy, and send it with your payment to the company or lodge it with your adviser.

Lodging and/or registering a prospectus with ASIC and listing on the ASX does not guarantee the company will be successful once share trading begins.

Among other things, a prospectus is required to contain all the information that investors and their professional advisers would reasonably require to make an informed assessment.

When assessing a prospectus it may be useful to answer the following questions:

• Who – who is involved? (stockbrokers, underwriters, management, board, others)

• What - what is on offer? (growth, income-yielding, tax-effective or speculative shares)

• When - when does the issue take place? (bull/bear market)

• Why - why are they raising funds? (expansion, retire debt, sell down, takeover)

• How - how to participate in the issue? (public pool, firm share, entitlement, demutualisation)

If there is a great deal of investor interest in a new float, you may be allocated fewer shares than the number you applied for or none at all. With some floats, the initial share price (issue price) is not set until just prior to the first day of trading. You should obtain independent advice from a licensed professional adviser prior to making any final decision.

Following the float the shares are now listed on the share market. From this point shares can only be bought and sold on market through a stockbroker.

Buying and selling shares through a stockbroker

Establishing a relationship with a broker is easy. Each broker will have a slightly different process, but most require you to establish a client account. They may also need bank account details for the lodgement or receipt of trading proceeds.

When you place an order to buy or sell shares, you have a choice of two ways to tell your broker what price you will accept. You can place your order 'at market', meaning you will accept a price at or about the market price of the shares at the time you are placing your order.

Alternatively, you can place your order 'at limit', and inform your broker of the highest price you are prepared to pay or the lowest price at which you will sell. Orders where you set a 'trigger' point are known as conditional orders.

Determining entry and exit prices for shares is important. Investors are very capable of buying shares, however many fail to consider when to sell. Setting a target price to sell is an often overlooked skill.

When placing an order with your adviser, make sure you are fully informed and that your order is confirmed. Ask the current market price and write it down. Then tell your broker the details of your order (i.e. the amount of shares to be bought or sold and the price at limit or at market). They should then repeat the order back to you.

Internet based stockbroking websites provide confirmation screens for you to double check your order before it is processed.

Following a transaction on the share market you will be sent a contract note (confirmation). This outlines the details of your trade, including the number of shares and the amount paid or received for them.

Happy trading!

The science of getting rich - the will power

We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich" by Wallace D. Wattles.

This articles looks at the chapter regarding the will power. The bottom line about this article is simple: "what comes around goes around".

When you know what to think and do, then you must use your will to compel yourself to think

and do the right things. That is the legitimate use of the will in getting what you want — to use it in

holding yourself to the right course.

If you have a financial goal you have to use your will to remain focused. If you have such a strong will that you have no shadow of doubt that you are capable and that you will achieve your goals, this frame of mind will keep you motivated.

Let's face it, the journey to financial independence is very hard. My objective is to generate enough passive income to support myself and my family. By the very definition, passive income is income that once setup, will keep on generating income without your contribution, without you having to work on it.

Passive income is very difficult to get. People don't just give you money, they need to get value. We learned from Wattles that we need to give others more in use value than in cash that you receive from them, in other words, give people valuable and useful things that will positively affect their lives.

It is all very difficult and we will certainly face some failures on the way. Nevertheless your will can help you to stay motivated and on the path, don't quit it half way.

The science of getting rich - how riches come to you

We continue in our journey to look at the timeless advice contained in the book "Science of Getting Rich"  by Wallace D. Wattles.

This articles looks at the chapter regarding how riches come to you. It is one of the most inspiring and insightful articles for anyone reading the book.

Wattles makes a very good point in this chapter: "...give to every person more than you take from him". This is simply the best advice anyone could give me.

It does not matter whether you run your own business, you work for someone else. When dealing with anyone, give more than you take. If you do that, your actions will return to you, many times over.

If you give to anyone more in use value than in cash value, then  you are adding to the lives of the people you are dealing with.

If you are engaged in a business transaction, make sure that whatever you are selling is worth more in use value than what you are getting. If you are a mechanic, ensure that your work is reliable and addresses the needs of your customers.

This principle applies to employees of an organisation as well. If you are working for someone else, make sure that you always go the extra mile. Don't just do what you are asked to do. Always do a little more, or do it a little better. Understand the reasons for your task and deliver more.

Employers, generally, are not seeking to exploit you. All they want is to get more in use value than what they give you in cash value. If you follow this principle, you can be sure that you will attract more cash to you. Either from your current employer or from someone else that is contact with you and knows that you always over deliver.

If you apply the principles in this article you will eventually expand your business, you will get the promotion that you want or the new job. People will know that when they deal with you they get more in use value than what they pay you in cash. They will always come back for more.

Financial Independence Compilation

Welcome to the July 26, 2010 edition of financial independence.


This week, Your Financial Independence is highlighting three articles. "Why invest your money", "The science of getting rich - increasing your life" and "Managing your finances online".

Thank you to all weekly contributors who make this compilation possible.

Your Financial Independence articles

Why invest your money - This short article discusses two strategies for investing your money, capital growth or income.

Managing your finances online - There are many online resources to support you to manage your finances. This article discusses the potential dangers of using some of these websites.

The science of getting rich - increasing your life - This article talks about the right frame of mind. Start your journey by believing you can achieve your objective and continually think about your goals until they are realised.

Reader's sponsored articles

Silicon Valley Blogger presents Use Airline Credit Cards & Frequent Flyer Programs For Frugal Travel posted at The Digerati Life, saying, "Be wise about using credit cards. If you're a frequent flyer, then check out good airline cards."

Jessica Bosari presents Five Good Reasons to Dip Into Your Emergency Fund | billeater.com posted at Billeater, saying, "Guidelines for when you should use your emergency fund and when you should not."

7million7years presents An inch is not a mile - 7million7years posted at How to Make 7 Million in 7 Years™, saying, "Are you really SAVING when you buy that new TV at a discount, or are you just spending a little less?"

Tom Tessin presents 5 Ways to Build Credit History posted at FSC Blog, saying, "5 simple steps that you can take today when you're looking to build up your credit score."

Robert May presents Lethbridge Real Estate and Mortgage Info: Lethbridge Real Estate - Buy Rental Property NOW posted at Lethbridge Real Estate and Mortgage Info, saying, "Investing in Lethbridge real estate is a unique opportunity"

Jacob A. Irwin presents Home-Based Business Opportunities posted at My Money Blog - Personal Finance and Investing, saying, "A review at the different types of home-based business opportunities out there, and whether they are legitimate or not."

nissim ziv presents Can a Hobby Work For You? Turning a Hobby into a business posted at Job Interview Guide, saying, "Many have heard of great success stories from those who quit their day jobs to pursue active and lucrative hobbies from home.
Is this choice right for you?"

Lisa Kai Lee presents Finance | lisakailee posted at Does paying off your mortgage fast really pay off?, saying, "A new approach to online investing! Best of all, it is passive!"

Mike Piper presents HSA Contribution Limits: Health Savings Account Rules posted at The Oblivious Investor, saying, "A run-through of the rules for Health Savings Accounts, including eligibility requirements and current contribution limits."

Arjun Rudra presents An Introduction To Hedge Funds posted at Investing Thesis, saying, "Faced with the prospect of stricter regulation and a huge shift in investor sentiment post financial crisis, hedge funds have realized, in true Darwinian style, that sustainability is predicated upon their ability to adapt and evolve."

DepositAccounts presents Brokered CD: Higher Returns from Your Cash posted at Deposit Accounts.

BWL presents 24 Legitimate Home-Based Business Opportunities posted at Christian Personal Finance, saying, "These are 24 simple ideas of home-based businesses that you can start from home..."

MoneyNing presents Is Financial Compatibility Important When Choosing a Life Partner? posted at Money Ning, saying, "Did you and your spouse talk about financial compatibility before your marriage?"

Jane Bakerson presents Belize condos: A market snapshot posted at Real estate data for Panama, Costa Rica, Nicaragua and Belize, saying, "There is no Multiple Listing Service for property for sale in Belize so it can be hard to get hold of reliable data. This article provides a market snapshot of the Belize condo market to help overseas property investors make better decisions."

Huddson presents Internet Marketing: Making Money Online posted at Marketing Online Can Be Enjoyable & Profitable.

Matt T. Henterly presents What I Learned From My Small Business Failures posted at The SimpleChecking Blog, saying, "Learn from one individual's small business failures; so you won't have go through them yourself."

Michael Pruser presents What is a Social Security Statement posted at The Dough Roller, saying, "Understanding that Green Social Security statement you get in the mail every year"

Roshawn Watson presents Will The Dow Really Drop By 90%? posted at Watson Inc, saying, "We've been having a nice little stock rally lately. As of yesterday, the Dow stands at 10322. Still, the shocking warning of market analyst Robert Prechter is still being discussed all over the net. He predicted that the Dow will drop precipitously to below 1000 within the next six months. Do you believe him?"

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.

Share
|

Technorati tags:

financial independence, blog carnival.

Some good advice on money matters

The following list is a compilation of various financial advices I have come across over a period of time. Some of these have been of great importance to help me to get on the path towards financial independence.

No matter how much you earn always save a little bit

There is no excuse for not saving money. No matter how much you earn you should always strive to save a little bit. I am not talking about a set amount or percentage. Depending on your circumstances the amount you save may change periodically.

Nevertheless always save a little, no matter how little.

If you have bad debt such as credit card debt, then strive to always pay a little more each month. As you do that you are saving on interest that would be charged to your account.

Know the difference between needs and wants

This advice goes towards wise spending, especially when you are working towards achieving a certain goal.

You have to be able to differentiate what you need from what you want. It is actually simple. In summary, you need food, clothes and shelter. Those will cover the basics. Take a step back and think, do you really need that expensive coat, or shoe or watch. Most people have those basics and if you really think hard you have all you need and probably quite a lot of what you want.

Have fun too

I decided to position this advice right after the one regarding your needs and wants. It is important to have fun too. Don't give yourself too much pressure if everything is going well, don't relax too much either.

I like to enjoy things that don't cost a lot such as spending time with m family on the beach, or going for a walk, or simply playing with the kids, renting a movie and having a night in, etc...

There are many ways of having fun that won't cost a lot, or that won't cost anything.Don't live pressured, remember to relax, it is vital to you and your family.

When you buy something, ensure that you buy a quality item

When you buy something ensure that you buy the best item that you can. Buying items that are not of good quality will probably mean that you will have to purchase it again in a short period of time, there fore spending more money that you would otherwise.

Don't pay interest purchasing depreciating assets

Most of us will need to buy many things that loose value. The couch, the car, electrical appliances, clothes, shoes and others. When buying those items ensure that you don't pay interest for the purchase.

Don't borrow money to buy a car and don't buy anything on your credit card that you cannot pay before interest kicks in.

I usually say that when you purchase things on credit card or borrow to buy depreciating assets such as cars, they are taking your money while you sleep.

They do, think about it, the interest is charged to your account usually during night calculation done in the bank computers, so you actually loose money while you sleep.

Buy real assets

This advice is the very opposite of the previous one, when you buy something buy an asset.

An real definition of asset is something that puts money in your pocket. Your personal car does not do that. Following are some real assets that put money in your pocket: dividend paying shares, positive real estate investments, a business that generates money, some say that even your education is a real asset because you can use it to earn more money, etc...

The idea is simple, do you need what your are buying? Is the item you are buying a real asset?

Avoid using your home equity to pay your credit card debt

I see many professional financial advisers saying that your should use your home equity to pay off your credit card. I don't think that this advice should be always followed.

I believe that it is more important to pay the credit card debt though other means rather than your equity. If you effectively manage your finances and eventually pay off the debt you are better of many ways.

• Learning how to manage your finances - if you find other ways of paying the debt, you are actually managing your finances in a wise manner which can go a long way once you finish paying the debt.
  

• Taking money from your home equity can be a short term solution if you continue spending on the credit card.

• The money you borrow from your home equity is at first cheaper than the credit card but in the long term you will continually pay interest to the bank, so in reality it is also costing you a lot.

Before closing on this topic, if you are in financial difficulties and need to get rid of the credit card debt, then consider using your home equity to do so. This may help you to avoid a disaster. But remember, your mortgage repayments will go up and you need to have the cash flow to be able to afford the higher payments.