Personal Finance Tips

Understanding My Credit Score

Understanding your credit score is divided into five areas. Each area helps lending instituions determine how risky you are. If you are a new creditor, with limited types of credit, and have made late payments, your credit score will be very low. On the other hand if you have a long history of payments with various types of credit your credit score will be very high.

The Five Areas in detail are:
What is your debt to available credit ratio? Simply put, are you maxed out. If you have a $1,000 credit card are you carrying a balance of $999 which goes past the limit occasionally? If you give yourself a zero here. Another part of this calculation is your debt to income ratio. If you make $35K a year and you have $20K in credit card and auto debt your ratio is not looking very good. Paying off your debt and living below your available debt will raise your credit score.

How long is your credit history? This is an important because it helps creditors discover your spending and debt habits. The longer you have handled debt responsibly the more credit they want to give you. When my brother was applying for a loan on his first house the loan agent told him to get a department store credit card. After he got a card and used it for a few months he was eligible for a mortgage. Kind of scary that a $100 in-store credit card could make it possible to buy a house but there it is.

Are you timely with your payments? Never be late on a single payment. In my experience if you are late by a day or two it doesn’t show up on your credit report. Besides having to pay a fee you won’t be in trouble there. If you are more than a month late you are getting a permanant mark on your credit report. While your score will rebound over time creditors will always be able to see your little boo boo.

How many credit cards are you applying for this month?
If you are loading up on credit card accounts and buying new cars it will hurt your credit score. Every time you open a new line of credit your score takes a hit. If you open 2 or 3 cards within a month your sending the message that you’re crazy and intend to leave the country or something. Try to avoid this mistake before making a big purchase. It could cost you from buying your dream home.

How diverse are your lines of credit? If you have a number of different types of credit is shows that you’re mature with your accounts. If all you have is department store credit, and nothing else, it shows that you may not be capable of handling more credit. Try to apply for a signature loan instead of going to mom and dad for that small loan next time.

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Can you imagine getting $279 worth of groceries for 39 cents? A woman named Kathy Spenser is feeding a family of 6 on less than $4 a week. Occasionally she goes negative and has to buy something so the store doesn’t end up giving her some change back! How is she doing it? She clips coupons and looks for loopholes in sales. When the time is right she uses both to her advantage and ends up getting many items for free. In some cases she actually makes money on a given promotion.

The most common techniques she’s using are:

1) Pairing Coupons with items that are on sale. A $1 coupon for something that went on sale for a dollar equals free!
2) Networking online with other moms that are doing the same thing. She’s part of these groups How to Shop for Free, Big Tent Free Shoppers
3) Stock piling common items. When an item is almost free (or completely free) she’ll buy all she can.
4) Collecting coupons from newspapers, grocery stores, manufacturere’s websites, ebay, and using free printable grocery coupons online.
Free Grocery Coupons - Stock Pile Toilet Paper

Source:
http://www.boston.com/bostonglobe/magazine/articles/2009/08/16/the_queen_of_coupons/

She was first featured in the Boston Globe

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online stock tradingOnline stock trading is fast, easily available and profitable. This is why there are so many aspirant traders who want to profit part time or full time while sitting at their own computers. Online stock trading can be done globally, from the location of the trader twenty four hours a day. Transactions are executed and results are available within minutes. Online trading can baffle the beginner and learning before acting is the best course for beginners who want to trade in stock online.

The first step is to get the required equipment for online trade. These include a PC with plenty of memory, a large monitor or monitors, trading software, a broadband internet connection and a UPS. Beginners should also open a bank account where profits can be deposited and purchases can be paid for.

For beginners, information and learning are the keys to successful trading. There are books by famous stock traders available at online shopping portals and in bookstores to help a beginner to understand the many facets of online trade. E books, articles and courses are available online for free and for a fee. Online classes and webinars on online trading can be accessed on the internet.
Beginners should keep a small amount of money in their budget while trading online. The budget can increase as profits flow in. The trader should not trade beyond the budget for starters. Any profit made should be wisely invested. The budget should include fees and commissions charged by the broker for each transaction.

Beginners should explore and experiment with different strategies. They should mix and match different methods to find the strategy that suits their needs best. Beginners should keep backup strategies in case the strategy used does not work. The best approach is a flexible approach. Beginners should learn to combine strategies or use a single strategy at different times to make the trade profitable.
Stock trading aspirants should use demos and simulated trading platforms that are available online for as long as they remain uncomfortable about investing real money. Experts believe that beginners should trade with money after making at least ten successful simulated profits. Beginners should make as serious an effort in simulated trading as they should when trading with money.
Beginners should find a good trading platform and sign up. The trading platform should be a well known low cost platform that caters to traders with a low budget. Beginners should choose a platform that has an efficient support system. There should be tools on the broker’s website that offer instant access to the account of the trader and the trader should be able to view all transactions instantly. The platform should be secure and the broker should be a member of an investor protection organization. The system must have state of the art hacker proof functions in place.

Success in online stock trading is a slow and steady business. With careful study and experimenting with strategies, beginners can start making profits in online trade in a matter of months. It is also a good idea to compare online discount brokers for the best value.

TradeKing Online Stock Trading Review


Overall TradeKing Rating

Five star rating

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Finding the right online stockbroker is a personal choice, which is normally based on your preferences, level of preferred services and financial requirements. It is without a doubt one of the more crucial decisions you can make next to choosing what to invest in. In this article, we have highlighted some of the top online brokers, and we are going to go into some of the things you should consider. A useful suggestion would be to prioritize features as you will often struggle to find one separate company or broker that can meet all your requirements. Below is a ’09 survey that was sourced from “Smart Money’s” they are the top 16 online stock traders and have been given a star rating from one to five.

Obviously one of your main requirements is that of the accessibility online. So to answer this question, you will need to find out if they operate a software platform, meaning you have to download software in order to use it, or does it have an encrypted account that you have to log into. In deciding which of these two options are important for you, you will need to examine your current situation. Are you continuously traveling, and say, prefer to do your Stock trading while on the beach in Baja, or is this a part-time hobby, and you have a set location. Basically you need to determine the level of security you’re prepared to accept.

Find out what hidden fees there are and also what the minimum deposit is. The majority of brokers will have a minimum deposit for you to open accounts. Bearing in mind some of the larger companies will require between $5000 and $10,000 deposit and if you haven’t made your millions just yet, this might be an unrealistic requirement for you. Be sure to read and study the fine print, there are all sorts of clauses and restrictions, don’t think just because there is no minimum balance that you get away scot free. Most of the time, they will have a higher maintenance fee. Ideally you should find a broker that meets your deposit budget and has a low maintenance fee. Another issue to consider is your commissions, although they are a normal part of trading. You don’t want your profits being shared out to graciously to your broker. The best is to find a flat fee for stock trading.

Depending on the type of person and personality you have on trading, the tools your online stockbroker provides will also help sway your decision, as well as what up to date information or news they can provide you. Remember to always use the free trial offer or send an e-mail asking to get limited access to their back office to see all the tools and features and how user-friendly they are for you. Some online brokers, depending on the situations will also offer you broker assisted trading; this will provide a world of benefits to you and can help you conduct trades. If you ever get stuck or unsure the broker might be able to point you in the right direction.

TradeKing Online Stock Trading Review
 

 

Overall TradeKing Rating

Five star rating

Having an online community for traders is also very handy. It will allow you to converse with other traders, and learn from their mistakes.

Rank
& Broker Name

Cost
Per Trade

Investment
Products

Trading
Tools

1.
E-Trade

$9.99

4
stars

5
stars

2.
Fidelity

$10.95

5
stars

5
stars

3.
Charles Schwab

$12.95

5
stars

3
stars

4.
TradeKing

$4.95

3
stars

5
stars

5.
TD Ameritrade

$9.99

5
stars

5
stars

6.
Muriel Siebert

$14.95

3
stars

5
stars

7.
Scottrade

$7.00

4
stars

4
stars

8.
Firstrade

$6.95

4
stars

3
stars

9.
OptionsXpress

$9.95

3
stars

5
stars

10.
Bank of America

$14.00

4
stars

4
stars

11.
Just2Trade

$2.50

2
stars

4
stars

12.
WellsTrade

$19.95

3
stars

1
star

13.
ShareBuilder

$9.95

2
stars

1
star

14.
WallStreet-E

$9.99

4
stars

3
stars

15.
Zecco Trading

$0.00

2
stars

2
stars

16.
SogoTrade

$3.00

1
star

2
stars

 

zecco review rating

With Zecco there are no minimum balances to open an account. To get 10 free trades a month a $2,500 minimum is required. They have very little fees with the exception of a 30 annual fee on IRA accounts. When I signed up for Zecco the paperwork was a nightmare but I think they’ve fixed that now. They seem to be adding more and more to their offering and will be a viable broker into the future.

Start an Account with Zecco

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These are some great personal finance videos. They cover some basic and advanced strategies for personal finance, investing, and saving.


Mint Video- The Three Principles of Personal Finance

There have been over 10,000 books written on personal finance. This video summarized the main points into three major areas of personal finance. The CEO of Mint.com talks about making smart decisions that have greater impact in the long run. Things like renting instead of buying, investing early in life, having a credit card that pays out rewards, and other personal finance tips are discussed.


SNL Video – Don’t Buy Stuff

In this video a couple are having a hard time making ends meet. They continue to get more bills and have tried a number of things like pulling out loans to make payments on their existing debt. The author of a new system teaches them a sure fire way to get out of debt. The ideas are strange to the couple but the author helps them understand tips like: “If you don’t have money, don’t buy stuff.” and “You make sure you have money, then you buy stuff.”

Warren Buffet Speach to Univeristy of Florida MBAs – Three Videos

In speaking to an MBA class Warren Buffet provides great words of wisdom. He talks about what makes a wise investing decisions. In this video talks about the idea of investing in a person you know. Would you pick the smartest? The most social? What qualities do you look for? Hopefully you become the type of person that you would like to invest in.

Words of Wisdom

  • “Japanese companies earn very low returns on equity.”
  • “Time is the friend of a good business and the enemy of a bad business.”
  • “If you risk something that is important to you for something that is unimportant to you, it just does not make any sense – and the odds don’t matter.”
  • “I was going to do the same things when I had a lot a money as when I had very little money.”
  • “You are out of your mind if you keep taking jobs you don’t like because you think it will look good on your resume.”
  • “The beta of a stock doesn’t tell you the risk of a stock. It doesn’t tell you a damned thing about the stock.”
  • “Taking a job you don’t like is a little like saving up sex for your old age.”


‘Money As Debt’ Video – How money is created.

The “Money as Debt” video describes what money actually is. The video explains how money is being created through debt. The video provides a history of money and how bankers have created money. Modern financial policy and fiat money principles are not sound or logical. This video goes in depth about how the current financial system works.

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Free personal finance software helps you keep track of your expenses, income, and everything in between. There are a number of free apps you can download for free. Some of these are opensource, freeware, or online accounts.

Free Online Software


Mint Personal Finance Software

Mint – This is the most popular free solution online. Mint automatically pulls in your financial information from a variety of different sources. It keep tracks of checking balances, credit card bills, stock trades, and home loans. Best of all Mint categorizes your expenses and lets you see your spending habits at a glance. Mint also provides recommendations for new credit cards, new savings accounts, and other services that could save you a lot of money. Mint has the easiest interface and provide a lot of value for the price…free.

Quicken is now free

Quicken In the last year Quicken became free. To make a profit Quicken evaluates the information you enter and suggests some of it’s personal finance products. One thing that makes Quicken unique from Mint is the software download and installation. Personally I prefer online access because when you have a hard drive go out losing all that work can be really disappointing. If you choose the internet route I would choose Mint; they are easier and have a better interface and you won’t be up sold…ever.

Free finance software gnucash logo

GnuCash – Built for Mac, Windows, and Linux. GnuCash is ideal for personal and small business. It can track bank accounts and investments. It is freely licensed under the GNU GPL.

Open source personal finance software - Grisbi

Grisbi – Grisbi is an open source personal accounting app released under the GPL licence. Grisbi is simple, intuitive, and very powerful if you spend a little time on the setup. Made for Windows and Linux. This is not considered freeware but it is free. Open source software is made possible by developers donating their time for the betterment of an application.

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Free ways to get in shape.

Getting fat is expensive. Weight loss shouldn’t have to be. Why spend a lot of money on equipment, gym memberships, and special diets when there are a lot of great free weight loss tips that work wonders.


Weight Loss Paradigms


Burn More Calories Than You Eat

This is a lot like the personal finance tip, spend less than you make, in reverse. If only switching the two could be easier.

Routine Trumps Everything

Routine is the most powerful weight loss tip. The Grand Canyon was carved out of stone by the persistent routine of rivers and streams. The day you make up your mind to lose weight it’s really easy to get excited. In the excitement a lot of goals, equipment, and extreme measures are taken. After about a week or two most people are back in their old routine and all their goals fade into the past. If you make a single weight loss goal forget about how much you want to weigh or anything else. The one goal you should have is to stick with a routine for a very long time.

System Improvement

If you have a broken system, or a system that is doomed to make you fat, you’ll be fighting an uphill battle all the way. What is a system? A system is like routine but it also includes mindsets, friends, and behavior. If you really want to lose weight you have to change the system. In a way it’s much like quitting smoking. There needs to be a system level upgrade for this to work longterm.

Bring a friend

Peer pressure and companionship are very powerful forces in our lives. Sharing a goal to lose weight with a friend can be a source of motivation and support. Even better, involve your friends, join a team, or make it interesting with a bet (the more money the better).

Make changes you can live with forever

If you make a change make it something you can do for a very long time. You shouldn’t dread your diet or workout routine. Try to incorporate changes that will stick. If you make sacrifices, make sacrifices that don’t hurt too bad. An example of this is when I made the goal to run every morning. The first week was no problem. The second week got even harder. There were some mornings I didn’t want to wake up and get ready. Sadly my routine died in the second week. There was one thing that made it die, the challenge was too much for me. The solution to this was easy. Instead of running everyday I made the goal to get out the door everyday. If I felt like running, fine. If I wanted to walk for half an hour that’s fine too. This flexiblity made this much more manageable. I can see myself doing this for a very long time.


Systematic Weight Loss Tips


A recent study found that it doesn’t matter what kind of fad diet you try. The bottom line is calorie intake. It doesn’t matter what you eat as long as you’re eating less.

For people who are trying to lose weight, it does not matter if they are counting carbohydrates, protein or fat. All that matters is that they are counting something.

While the diets were not named, the eating plans were all loosely based on the principles of popular diets like Atkins, which emphasizes low carbohydrates; Dean Ornish, which is low-fat; or the Mediterranean diet, with less animal protein. After two years, every diet group had lost — and regained — about the same amount of weight regardless of what diet had been assigned.

The lesson, researchers say, is that people lose weight if they lower calories, but it does not matter how. Source New York Times and HarvardScience

It’s been shown that those that follow Atkins diets tend to eat 20-30% less calories. This is a result of shortage of acceptable protein in everyday life and due to boredom with an all meat diet. Most diets limit calories by cutting out major portions of available calorie sources. By cutting out all sugars and carbs you’ve cut out 80% of casual calorie consumption for most people. The same idea works with scheduling or portion control. In addition to cutting out boredom and over eating you might also include some type of routine you need to follow before eating. Here are a list a ways to limit calories in a major way.

Pick one of these things.

Leave off the Fats

Make a commitment to avoid butter on things, deep fried foods, junk food, or potato chips. Because fats are so concentrated with calories you have to eat much more to feel full. You could easily eat three to four times more calories because it tastes better than normal food and it takes the same amount of mass to fill you up. Avoiding fats can cut hundreds of calories out of your diet and leave you feeling healthier too.

Cut back on Carbohydrates & Sugars

Soda pop, juices, and alcohol have a lot of hidden calories. Eliminating calories that you drink will have a major impact on your weight. Try to drink water when possible. The relationship is still unknown between diet soda and obesity but there is a connection. Try to avoid all forms of good tasting drinks and stick to old fashioned water.

Another tip that works is cutting out over processed breads and snacks. Avoiding white bread and eating whole grains is more nutritious and helps you feel full longer.

Reduce or Eliminate Meat

There have been a few stories lately of Vegans (more strict vegetarians) killing their babies with non-animal product diets. The babies starve to death because the parents won’t provide the nutrition the babies need. These are extreme cases but it can be argued that animal products can provide important nutritional values.

To lose weight you might consider cutting out red meat, pork, or fast food meat. Another possibility is cutting meat out of every meal except dinner.

Cut out processed foods

One easy test for this is counting they number of steps it takes for the food to get to your mouth. If all you need to do is open a wrapper and eat, the food is highly processed. The more steps required to prepare a food the better it probably is for you.

Another aspect of overly processed food is the amount of nutrients the producers remove in order to preserve texture, flavor, and shelf life.

Avoid Eating Out

Restaurants have one goal in mind and that’s to make sure you enjoy your food. Part of making your taste buds happy means adding extra sugar, salt, & fat to your meal. You might be surprised to know that a Big Mac has 9 grams of sugar in it. When you make food at home you generally use 50% fat than what restaurants think is normal. Packing your own luck can save you a lot of calories and help you slim down. It will also save you a bundle from a personal finance perspective.

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Scottrade Review
 

 

Overall Scottrade Rating

Rating of four and a half stars

 

Get free trades using code HXOA4390 when you sign up.

 

Summary

 

Scottrade strikes a good balance between quality and value. They have the most physical branches than anyone else online. This gives them an edge with customer service and convenience. With their online set of tools Scottrade is one of the best brokers around. Scottrades biggest downside is that they are more expensive than other brokers with comparable service.

 

Fees & Pricing

 

Scottrade is slightly more expensive than other discount brokers. Any additional fees are kept to a minimum and many costs found in more expensive brokers don’t exist. Most notably is their no fee IRA, no fee for inactiviy, and no minimum balance. Their no

Stock Trade (limit and market) : $7.00
Broker Assisted Trade: $27
Options $7.00 + $1.25 per contract

Mutual Funds (No Load, No Fee): Free
Mutual Funds (No Load): $17

IRA Fees: None
Inactivity Fee: None
Closing Fee: None

Minimum Initial Deposit: $500

 

Investment Products

 

Scottrade offers a full range of investment products including: stocks, options, mutual funds, IRAs, ETF, and ESAs. Their fixed income products include: US Treasuries, bonds, and CDs.

 

Tools and Resources

 

Scottrade has led the pack in real-time, up to the minute, reporting tools. They continue to push the envelope with their ScottradeElite trading platform (but you need $25K to access it). All of their tools have ample video tutorials and documentation to help first time users get started. Their web trading platform is also quite nice with fully customizable columns, reports, and charts.

In addition to software they also provide free access to Dow Jones News.

 

Scottrade Cons

 

Scottrade’s network of brokers is a good thing and a bad thing. It’s good because you can talk to a real person very quickly. It’s bad because they want you to use that instead of resolving many problems through email. They have also made parts of their online program lazy because of the dependence on these branches. To get your money into and out of Scottrade is a real pain. With no electronic transfer to and from a bank account you need to send your money to a Scottrade office for processing. To get your money out you need to request a check. With electronic transfers it cuts the time to a third of what you’d expect at Scottrade. UPDATE: Scottrade now accepts and supports ACH deposits and withdrawls. There was a time they didn’t have this option.

No automatic dividend reinvestment (DRIP) is kind of a downside too. If you invest heavily in dividend stock and like reinvesting the dividends Scottrade might not be for you.

For more advanced trading Scottrade’s system and customer support can be lacking. If you are an experienced trader executing non-traditional trades Scottrade might not be equip to help you much. If, on the other hand, you are a executing standard trades they will work great for you.

 

Scottrade Summary

 

Scottrade offers a competitive investment service and at $7.00 a trade they are hard to beat. The biggest complaint with Scottrade is that they don’t serve the more sophisticated or advanced trader very well. But for 95% of active traders Scottrade is one of the best options around. I still prefer TradeKing or Zecco because they provide the same level of service with less commissions. With that aside they provide a great value and offer a wide range of investment vehicles.

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Internet Shopping Tips
Shopping online can save you a bundle. Information and products are at your fingertips. Internet retailers need to be extremely price conscious to stay competitive. When companies compete the consumer wins. These tips will help you get the best deal and have a safe experience.


Look for security

There is a quick way to find out if a site is secure. Look for HTTPS:// instead of HTTP:// in areas of the website where you are entering sensitive financial information. It is common for most websites to switch to their secure pages only when nessicary. You usually won’t see https:// until you’re in the checkout area. If you are entering your credit card information always check before proceeding. If there is no https your information can be easily stolen. When a page is secure it encrypts the data going to and from that page. So even if your data was intercepted it could not be read.

Look for https in the address bar and a lock to verify website security
Look for https and the little lock

If you are entering your credit card information make sure the page is secure. If the page is not secure your information can be easily stolen. Secure pages encrypt data going to and from pages.


Compare Prices

Comparing prices on websites isn’t as easy at might first appear (especially if your searching for a non-standardized item). The first step is to narrow your search to exactly what you want. Find a part # or a model # and search for it in a comparison shopping engine. I prefer Google Products but there are others as well. They have an incentive to place higher paying vendors near the top of the list and their products seem to be less organized.

Avoid the lowest priced vendor (unless you’ve bought from them before). Most of the time they will require that you buy the warranty, a bunch of accessories, and join some mailing list to get the “lowest price”.


Have the deals come to you

Using RSS feeds and some basic filters you can have deals come to you when they are ripe for the picking. Automatic deal finders using RSS is an easy way to get low cost gifts and surprizes for yourself. You will need to be patient but the wait is usually well worth it. Hot items like the Nintendo Wii won’t likely drop in price but just about everything else goes on sale periodically.

If you don’t mind buying used you can also set up a way to search through Craiglists for misplaced bargins. Many times people will post items you want in strange categories or forget to write a good desciptoin. Other bargin shoppers will miss those deals and you’ll have the item delivered to your feed reader.


Look through deal websites

Finding a deal website with up to date offers is a good way to browse for things like laptops, HDTVs, cameras, or other everyday electronic items. All of my laptops and computers come from sites like this because they usually offer more power and features for much less.


Keep all your records

Keep records of your reciept page, the items ordered, and what credit card you used. If you want to return an item or dispute a charge you’ll need all the information you can. Most merchants make it easy to return or cancel an order. For infrequent purchases it’s best to have a folder in your email labeled ‘shopping receipts’ to stay organized. If you buy from individual stores, through Amazon or Half.com, keeping these reciepts will be cruitial.

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