To become a financial planner, you first must know what their job profile is. Financial planners help in determining the financial resources required to meet the company’s operating program. They also help in forecasting the extent to which these requirements will be met by the internal generation of funds, and the extent to which they will be met from external sources. It’s the job of financial planners to develop the best plans to obtain the required external funds. They also help in establishing and maintaining a system of financial control governing the allocation and use of funds. Financial planners formulate programs to provide the most effective cost-volume-profit relationship. It’s the job of financial planners to analyze the financial results of operations, report the facts to the top management and make recommendations on future operations of the firm.
To do all these functions efficiently, financial planners first need to establish the financial objectives of the enterprise. Both long-term and short-term objectives should be established for the effective utilization of the financial resources. Then comes the next step of formulating policies. Policies are broad guidelines. Financial policies relate to procurement, administration and distribution of business funds. The next step financial planners have to do is to formulate procedures. Procedures are the specific order of doing things. They are formed for ensuring consistency of actions. In financial procedures, the financial executives decide about the control system, develop standards of performance and evaluate the performance. Lastly, they have to forecast the future. In order to take proper action to achieve the objectives established, it is necessary to know the future positions. This is facilitated by forecasting the future.
While doing these activities, financial planners must take into perspective the cost of finance and nature of business. In any assessment of the financial needs of the firm, the cost of finance is the basic criterion. This is so because only projects with net positive cash flow can be selected.
Saturday, August 7, 2010
Friday, August 6, 2010
Be Cautious Of Those Offering Foreclosure Help
If you are facing a potential foreclosure, you are in a tough situation. But you aren't alone. With interest rates on the rise and home appreciation on the slow down, many homeowners are having trouble hanging on to their homes.
And there are plenty of people banking on the desperation that this causes. You may have noticed advertisements popping up for help avoiding foreclosure. Are they legit?
First of all, no matter what your situation, you should always treat any offer of assistance with caution. Many cons use "helping" as a way to cheat struggling homeowners out of their equity. You could lose the money you have in your home and your home too.
Mortgage foreclosure rescues come in several forms. You may be loaned money by the rescuer in order to pay off the mortgage that is facing foreclosure. You will be asked to sign a loan agreement, but it isn't what it seems. You are actually transferring all of your interest in the property to the rescuer. You are then evicted from the home.
Sometimes, the homeowner knows that he is signing over the title to the property. The rescuer pays off the property and the homeowner agrees to lease the home and continue to live there until he is back on his feet financially. But the lease payments will become larger than the mortgage payments. The victim falls behind and is evicted. If the victim doesn't fall behind, the rescuer will set the price of the home so high that it cannot be repurchased.
Many homeowners believe that if they are foreclosed on, they loose everything. Even if you lose your home to the lender, you may still receive money for it. The lender will only take any unpaid mortgage and associated fees out of the sale price of the property. The rest is your equity and will be paid to you. If you sign over your property to someone else, they will receive the proceeds from the sale.
How do you recognize and avoid scams?
1. Ignore any signs or bulletin board notes that offer foreclosure help. If they are advertising on the windshield of your car, they probably aren't legit.
2. Don't give out any information to anyone who contacts you wanting to help. Cons frequently check the public foreclosure notices for potential targets. They are betting that you are desperate to find a way out of your situation.
3. Read every single document, front and back. If an offer is too good to be true, it probably is. If someone says that you won't get a dime after your home is sold, don't put your trust in them. There is often a good chance that you will. For a few hundred dollars, you should have an attorney accompany you to read through every document that you are expected to sign. Also, watch out for documents with blanks and empty spaces.
4. Check out any company you are considering turning to with the Better Business Bureau and the state Real Estate Commission. You might even want to contact the state attorney general's office to see if there are any open investigations of the company or its owners.
And there are plenty of people banking on the desperation that this causes. You may have noticed advertisements popping up for help avoiding foreclosure. Are they legit?
First of all, no matter what your situation, you should always treat any offer of assistance with caution. Many cons use "helping" as a way to cheat struggling homeowners out of their equity. You could lose the money you have in your home and your home too.
Mortgage foreclosure rescues come in several forms. You may be loaned money by the rescuer in order to pay off the mortgage that is facing foreclosure. You will be asked to sign a loan agreement, but it isn't what it seems. You are actually transferring all of your interest in the property to the rescuer. You are then evicted from the home.
Sometimes, the homeowner knows that he is signing over the title to the property. The rescuer pays off the property and the homeowner agrees to lease the home and continue to live there until he is back on his feet financially. But the lease payments will become larger than the mortgage payments. The victim falls behind and is evicted. If the victim doesn't fall behind, the rescuer will set the price of the home so high that it cannot be repurchased.
Many homeowners believe that if they are foreclosed on, they loose everything. Even if you lose your home to the lender, you may still receive money for it. The lender will only take any unpaid mortgage and associated fees out of the sale price of the property. The rest is your equity and will be paid to you. If you sign over your property to someone else, they will receive the proceeds from the sale.
How do you recognize and avoid scams?
1. Ignore any signs or bulletin board notes that offer foreclosure help. If they are advertising on the windshield of your car, they probably aren't legit.
2. Don't give out any information to anyone who contacts you wanting to help. Cons frequently check the public foreclosure notices for potential targets. They are betting that you are desperate to find a way out of your situation.
3. Read every single document, front and back. If an offer is too good to be true, it probably is. If someone says that you won't get a dime after your home is sold, don't put your trust in them. There is often a good chance that you will. For a few hundred dollars, you should have an attorney accompany you to read through every document that you are expected to sign. Also, watch out for documents with blanks and empty spaces.
4. Check out any company you are considering turning to with the Better Business Bureau and the state Real Estate Commission. You might even want to contact the state attorney general's office to see if there are any open investigations of the company or its owners.
Thursday, August 5, 2010
BBC Banned Music: Top Singles Banned By the BBC
The British Broadcasting Corporation also known as the BBC is a public broadcasting corporation. Therefore, it allows itself to ban materials that deviate from certain standards of civility. During the years, many singles that were seen as too explicit, distasteful or bear the potential for offending the British public were banned from BBC airplay. Here you can read about some of them.
In 1977, when England was celebrating the Queens Jubilee, the Sex Pistols had released their second single titled God Save the Queen. The single includes controversial lyrics that rhyme the national anthem title with fascist regime. Moreover, the record cover displayed a picture of the Queen with a safety pin stuck in her nose.
The single was found to offensive to be air played by the BBC, but it did not stop it from reaching number two on the BBC official singles chart. According to the myth, God Save the Queen was the top selling single in the UK at the time, but it was held back of number one to avoid controversies.
Serge Gainsbourg and Jane Birkin scandalous duet Je TAime ... Moi Non Plus, translated: I love you... me neither, was the first ever number one hit to be banned by the BBC. Although at the time of its release, in 1969, the sexual revolution was celebrated, the British radio still was not able to cope with such explicit lyrics, not to mention Birkins moans and groans.
The BBC ban and The Vatican denounce, did not stop Je TAime ... Moi Non Plus from being a top selling single in the UK and worldwide. In October 7, 1969, the single reached number one in the BBC official singles chart. At the same time, it had reached number 69 at the US singles chart.
Je TAime ... Moi Non Plus was a major influence on another BBC banned single, Donna Summers disco pioneer from 1976 titled Love to Love You Baby. After counting 23 faked orgasms performed by Summer in Love to Love You Baby, the British Broadcasting Corporation banned the song. However, it did not stop it from becoming a massive hit. Love to Love You Baby reached number four on the UK single charts but peaked to number two on the Billboard pop chart.
Relax by Frankie Goes to Hollywood is one of the most controversial singles as well as commercially successful singles in history. The BBC did not only ban the song it also did not stop BBC Radio 1 DJ Mike Read to publicly express his feelings of disgust from the single's explicit lyrics. In 1984, Relax stayed in the UK singles charts for 42 weeks. In five of them, it stayed in number one. By the end of 1984, embarrassed Auntie Beeb removed the ban. Relax is still very popular worldwide and it is one of the most recognized symbols of the era. The arguments on whether it gained such a huge success despite the BBC ban or the BBC ban helped promoting it have not been settled yet.
Paul McCartney and the Wings response to the 1972 Bloody Sunday events titled Give Ireland Back to the Irish, was banned by every media resource in the UK. It was forbidden from being broadcast by the BBC, Radio Luxembourg and the Independent Television Authority. In addition, the song title was not allowed to be pronounced on the air, so when it arrived to the BBC Radio 1 chart show it was presented as a record by the group Wings. However, Give Ireland Back to the Irish hit the top of the Irish singles charts.
In 1977, when England was celebrating the Queens Jubilee, the Sex Pistols had released their second single titled God Save the Queen. The single includes controversial lyrics that rhyme the national anthem title with fascist regime. Moreover, the record cover displayed a picture of the Queen with a safety pin stuck in her nose.
The single was found to offensive to be air played by the BBC, but it did not stop it from reaching number two on the BBC official singles chart. According to the myth, God Save the Queen was the top selling single in the UK at the time, but it was held back of number one to avoid controversies.
Serge Gainsbourg and Jane Birkin scandalous duet Je TAime ... Moi Non Plus, translated: I love you... me neither, was the first ever number one hit to be banned by the BBC. Although at the time of its release, in 1969, the sexual revolution was celebrated, the British radio still was not able to cope with such explicit lyrics, not to mention Birkins moans and groans.
The BBC ban and The Vatican denounce, did not stop Je TAime ... Moi Non Plus from being a top selling single in the UK and worldwide. In October 7, 1969, the single reached number one in the BBC official singles chart. At the same time, it had reached number 69 at the US singles chart.
Je TAime ... Moi Non Plus was a major influence on another BBC banned single, Donna Summers disco pioneer from 1976 titled Love to Love You Baby. After counting 23 faked orgasms performed by Summer in Love to Love You Baby, the British Broadcasting Corporation banned the song. However, it did not stop it from becoming a massive hit. Love to Love You Baby reached number four on the UK single charts but peaked to number two on the Billboard pop chart.
Relax by Frankie Goes to Hollywood is one of the most controversial singles as well as commercially successful singles in history. The BBC did not only ban the song it also did not stop BBC Radio 1 DJ Mike Read to publicly express his feelings of disgust from the single's explicit lyrics. In 1984, Relax stayed in the UK singles charts for 42 weeks. In five of them, it stayed in number one. By the end of 1984, embarrassed Auntie Beeb removed the ban. Relax is still very popular worldwide and it is one of the most recognized symbols of the era. The arguments on whether it gained such a huge success despite the BBC ban or the BBC ban helped promoting it have not been settled yet.
Paul McCartney and the Wings response to the 1972 Bloody Sunday events titled Give Ireland Back to the Irish, was banned by every media resource in the UK. It was forbidden from being broadcast by the BBC, Radio Luxembourg and the Independent Television Authority. In addition, the song title was not allowed to be pronounced on the air, so when it arrived to the BBC Radio 1 chart show it was presented as a record by the group Wings. However, Give Ireland Back to the Irish hit the top of the Irish singles charts.
Wednesday, August 4, 2010
Basic Tips on Personal Finance
Do you ever wonder where your money goes every month? Does it sometimes seem as though you cannot afford to do things because your financial obligations are holding you back? If you find that you are asking yourself these sorts of questions, perhaps you should take a look at your financial situation and assess whether you are practicing good personal finance management or not. Good personal finance management spends within their income, plan for the future and solve financial problems as they arise. Poor personal finance management pay more, do without and fall behind. If you find yourself in the second category, you can do something about it. You can learn to take charge of your finances by planning your personal finances.
Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.
Evaluate your current financial situation. One of the most important goals for most people is financial independence. Collect accurate information about your personal financial situation. Calculate your net worth which includes the real estate, saving and retirement accounts, and all other assets. This will help you decide how much money you can set aside for meeting future needs and goals.
A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.
All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.
Get an electronic bill pay. This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your personal finance budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy.
Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.
You can prepare for a secure personal financial future by following these simple tips. When you take control with your money, you don’t have to worry about debt taking control of you.
Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.
Evaluate your current financial situation. One of the most important goals for most people is financial independence. Collect accurate information about your personal financial situation. Calculate your net worth which includes the real estate, saving and retirement accounts, and all other assets. This will help you decide how much money you can set aside for meeting future needs and goals.
A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.
All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.
Get an electronic bill pay. This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your personal finance budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy.
Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.
You can prepare for a secure personal financial future by following these simple tips. When you take control with your money, you don’t have to worry about debt taking control of you.
Tuesday, August 3, 2010
Basic Financial Information Tips (Part II)
Scams & bad deals. Identity theft is the #1 scam. Keep your account #s, and Social Security # out of the hands of those who don’t need to know them. Don’t pay up-front fees in hopes of obtaining a loan or a credit card. An exception to this rule is a home loan, which usually involves appraisal and credit report fees - paid in advance. Popular loan scams ask people to send a fee for a promised loan or credit card even if their credit rating is bad. Watch out for someone who pays you too much with a phony “certified check” and asks you to wire them the difference. If you do, you lose. Don’t sign untrue statements! Beware of companies who loan to people with bad credit.
Credit cards. If used well, great tools, if used poorly, financial ruin! If you’re too impulsive, hide your card! To avoid paying interest and fees, pay off your entire balance each month (on early or time). Most charge no interest if the balance is paid off within the billing cycle. If you pay only the minimum required payment, like one in four Americans, you lose.
Unauthorized use of credit cards. If a charge - which you did not authorize - appears on your credit card statement, contact the credit card company immediately. Follow-up your dispute in writing within 60 days to ensure your rights.
Disputed items. If you are dissatisfied with a product or service you charged with your credit card, first make a “good faith” attempt to resolve the dispute with the merchant. If you are unable to resolve it, contact your credit card provider and file an official dispute. Do this within 60 days of the charge to preserve your rights and avoid negative credit, etc.
Debit cards. If you, or someone else, uses your debit card, money is deducted from your checking account. For pre-authorized purchases (e.g. gasoline or motels) a “hold” is placed on your checking account, usually for an amount larger than the expected charge. This hold can cause other checks or charges to be returned -- if you don’t have a sufficient cushion of funds in your account, or a backup system (e.g. overdraft line of credit loan). Once funds are deducted from your account, it is often difficult or impossible to get your money refunded. Don’t use a debit card for mail order, telephone, or internet purchases. Even if you don’t get what you ordered, you may not be able to get your money back.
Reconcile your checking account. The sooner you do it, the easier it is. As soon as you receive your bank statement, compare it with your check register – item by item. Make sure both you and the bank have recorded things correctly. If you find that the bank has made errors, or the statement includes unauthorized deductions, contact them immediately.
Blank checks. Keep your blank checks in a safe place. Although you may not be technically responsible if someone steals your checks and forges your name, consumers are often unable to recover their funds which have been deducted from their account. Financial institutions have several defenses including consumers’ negligence.
Bounced checks. To avoid costly bounced checks, tie your checking account to a revolving line of credit (an empty loan). If you have such a pre-arranged plan, and write a check for more than your available balance, a loan advance is made to pay the check. If you pay off that loan quickly, most financial institutions charge you very little in interest and fees. Keep that line of credit reserved as your checking account backup – and don’t use it for anything else. Bounced check fees, are very costly. Beware; many banks automatically provide very high-cost “bounce protection” programs for those who don’t.
Solicitations. Don’t give your account numbers, credit or debit cards, or your Social Security numbers to anyone who phones or e-mails you. They may not actually be who they claim to be. They may fraudulently use your information, and the damage done to you financially, or to your credit rating, may cause huge headaches, and a horrendous waste of your time, money and energy trying to correct the problems.
Investing. If you can’t afford to lose it, don’t speculate with it. The greater the rate, the higher the risk.
Risk Free. Nothing is “risk-free”. Especially nothing involving money.
Too good to be true. If something sounds too good to be true, it is! Don’t fall for the scams. Heed the clues!
Credit repair. Be weary of credit repair services. Some claim to be able to “fix” bad credit. If you have inaccurate information on your credit report, you may contact the credit bureaus directly and correct it yourself. If you have had credit problems, any attempts to remove the relevant information from your credit report are illegal, fraudulent, and only temporary.
Credit cards. If used well, great tools, if used poorly, financial ruin! If you’re too impulsive, hide your card! To avoid paying interest and fees, pay off your entire balance each month (on early or time). Most charge no interest if the balance is paid off within the billing cycle. If you pay only the minimum required payment, like one in four Americans, you lose.
Unauthorized use of credit cards. If a charge - which you did not authorize - appears on your credit card statement, contact the credit card company immediately. Follow-up your dispute in writing within 60 days to ensure your rights.
Disputed items. If you are dissatisfied with a product or service you charged with your credit card, first make a “good faith” attempt to resolve the dispute with the merchant. If you are unable to resolve it, contact your credit card provider and file an official dispute. Do this within 60 days of the charge to preserve your rights and avoid negative credit, etc.
Debit cards. If you, or someone else, uses your debit card, money is deducted from your checking account. For pre-authorized purchases (e.g. gasoline or motels) a “hold” is placed on your checking account, usually for an amount larger than the expected charge. This hold can cause other checks or charges to be returned -- if you don’t have a sufficient cushion of funds in your account, or a backup system (e.g. overdraft line of credit loan). Once funds are deducted from your account, it is often difficult or impossible to get your money refunded. Don’t use a debit card for mail order, telephone, or internet purchases. Even if you don’t get what you ordered, you may not be able to get your money back.
Reconcile your checking account. The sooner you do it, the easier it is. As soon as you receive your bank statement, compare it with your check register – item by item. Make sure both you and the bank have recorded things correctly. If you find that the bank has made errors, or the statement includes unauthorized deductions, contact them immediately.
Blank checks. Keep your blank checks in a safe place. Although you may not be technically responsible if someone steals your checks and forges your name, consumers are often unable to recover their funds which have been deducted from their account. Financial institutions have several defenses including consumers’ negligence.
Bounced checks. To avoid costly bounced checks, tie your checking account to a revolving line of credit (an empty loan). If you have such a pre-arranged plan, and write a check for more than your available balance, a loan advance is made to pay the check. If you pay off that loan quickly, most financial institutions charge you very little in interest and fees. Keep that line of credit reserved as your checking account backup – and don’t use it for anything else. Bounced check fees, are very costly. Beware; many banks automatically provide very high-cost “bounce protection” programs for those who don’t.
Solicitations. Don’t give your account numbers, credit or debit cards, or your Social Security numbers to anyone who phones or e-mails you. They may not actually be who they claim to be. They may fraudulently use your information, and the damage done to you financially, or to your credit rating, may cause huge headaches, and a horrendous waste of your time, money and energy trying to correct the problems.
Investing. If you can’t afford to lose it, don’t speculate with it. The greater the rate, the higher the risk.
Risk Free. Nothing is “risk-free”. Especially nothing involving money.
Too good to be true. If something sounds too good to be true, it is! Don’t fall for the scams. Heed the clues!
Credit repair. Be weary of credit repair services. Some claim to be able to “fix” bad credit. If you have inaccurate information on your credit report, you may contact the credit bureaus directly and correct it yourself. If you have had credit problems, any attempts to remove the relevant information from your credit report are illegal, fraudulent, and only temporary.
Monday, August 2, 2010
Basic Financial Information Tips (Part I)
Savings. Pay yourself first. Start now stashing 10% of your income in an “Emergency” savings. Don’t use it for anything but real emergencies. Keep a “For Sure” savings account for yearly expenses you know are coming and you can estimate (e.g. Christmas, insurance, taxes, etc.). Also have a “Buy Stuff” account. If you do, you’ll be able to avoid many financial disasters which will face you, and you can avoid borrowing money from high-rate lenders.
Borrowing. Don’t borrow money unless you are willing and able to pay it back. Failure to pay debts – on time – causes severe financial, emotional, and family problems. Experts recommend you don’t borrow for wants, only for needs, or for things that increase in value. Many lenders will loan you money you can’t afford to pay back, especially high-rate lenders.
Co-signing. Don’t co-sign on a loan unless you are willing and able to pay it back. Often, co-signers end up paying off loans they are unprepared for, and financial hardships follow. Numerous co-signors now have negative credit ratings because a primary borrower paid late. Many lenders do not notify the co-signor before reporting delinquencies or repossessions to the credit bureau.
Compare. Before you decide who to borrow from, compare! Find out who is offering the best deal at that time – look for the loan with the lowest rate (APR).
APR. The Annual Percentage Rate (APR). It is the standard rate, so we may compare the cost of borrowing. It is the cost of credit expressed as a yearly rate. When you borrow, always beat 13% APR (consider “13” to be unlucky when it comes to borrowing). Some have been illegally stating other rates such as weekly or monthly rates. Compare APR to APR. If you pay your bills on time, and you aren’t over-extended, you can nearly always find loans or financing arrangements at rates lower than 13%. Beware though, because beating 13% does not always mean you are getting a good deal. For instance: the difference in total interest paid on an 11% versus an 8% 30-year, $100,000 mortgage loan is $64,283 (assuming all payments are made as agreed).
Consolidation Loans. A consolidation loan can result in great savings to borrowers if the new interest rate is significantly lower, and if you don’t run-up debt similar to what was just consolidated. But beware, because consolidation loans usually result in substantially more money out of your pocket into the lenders’. For instance, mortgage loans usually involve closing costs. They increase the total debt. Many refinances involve reducing the monthly payment, but increasing the length of payback, which substantially increases the total interest paid. Borrowers, who refinance unsecured debt (e.g. credit cards) into a home mortgage, also increase their risk of losing their homes. Also, remember to keep all of your payments current until the old debt is paid off. Too many people have damaged credit ratings, and are in bad financial condition because they counted on money which didn’t come when they expected it. Expect delays when applying for loans, especially consolidation loans. Don’t spend money before you get it.
Desperation. Don’t get desperate for money. The more desperate you are, the less likely you are to get a good loan.
Auto insurance. Keep your auto insurance current. If you fail to keep your insurance up-to-date, you could end up making loan payments for years after your car has been totaled.
Establish good credit. To avoid bad credit, don't borrow too much, and do pay your bills on time. Inexpensive ways to establish good credit: (1) Obtain a good credit card. When you charge things, pay off the balance each month – on time – and pay no interest. (2) Establish a revolving line of credit (an empty loan) as an overdraft protection against bounced checks, and don’t use it as a loan. (3) Get a loan to buy a car, or furniture, or etc.) and pay it off within a few months.
Late fees. To avoid late fees (which multiply the cost of borrowing), pay early, or at least on time.
Repossessions. To avoid repossessions and associated fees, pay early or on time, and keep your insurance current.
Extra principal ® less interest. To pay less interest on loans, pay more than the minimum required payment. Even small amounts of extra principal, can significantly reduce the total amount of interest you would otherwise pay over the life of the loan. Before doing this, however, make sure your lender accepts extra principal payments, and find out what particular procedure you need to follow to ensure your extra principal is properly applied.
Bi-weekly payments. If you get paid weekly, or every other week, paying bi-weekly is a very convenient (almost painless) way to reduce your loan term and interest. For instance, if you make ½ of your required monthly payment every 14 days (a bi-weekly period), you pay the equivalent of 13.052 payments in an average year. If you don’t get paid bi-weekly, or if your lender doesn’t like biweekly payments, you can pay the equivalent amount in monthly installments. If you pay 1/12 of the sum of 13.05 payments each month, you will match the bi-weekly advantage (minor rounding differences).
Contrary to popular belief, the frequency of paying ½ payments bi-weekly doesn’t accomplish much, the real advantage is paying the extra principal (13.05 payments, or more, each year) which reduces the term and the interest paid. If you are considering signing up for a bi-weekly program, pay close attention to the cost. Some servicers have large set-up fees and transaction fees. Also consider the credibility of any company handling your money, some have diverted payments into their own pockets, leaving borrowers to make payments twice (once to a corrupt servicer, and a second time directly to the lender).
Borrowing. Don’t borrow money unless you are willing and able to pay it back. Failure to pay debts – on time – causes severe financial, emotional, and family problems. Experts recommend you don’t borrow for wants, only for needs, or for things that increase in value. Many lenders will loan you money you can’t afford to pay back, especially high-rate lenders.
Co-signing. Don’t co-sign on a loan unless you are willing and able to pay it back. Often, co-signers end up paying off loans they are unprepared for, and financial hardships follow. Numerous co-signors now have negative credit ratings because a primary borrower paid late. Many lenders do not notify the co-signor before reporting delinquencies or repossessions to the credit bureau.
Compare. Before you decide who to borrow from, compare! Find out who is offering the best deal at that time – look for the loan with the lowest rate (APR).
APR. The Annual Percentage Rate (APR). It is the standard rate, so we may compare the cost of borrowing. It is the cost of credit expressed as a yearly rate. When you borrow, always beat 13% APR (consider “13” to be unlucky when it comes to borrowing). Some have been illegally stating other rates such as weekly or monthly rates. Compare APR to APR. If you pay your bills on time, and you aren’t over-extended, you can nearly always find loans or financing arrangements at rates lower than 13%. Beware though, because beating 13% does not always mean you are getting a good deal. For instance: the difference in total interest paid on an 11% versus an 8% 30-year, $100,000 mortgage loan is $64,283 (assuming all payments are made as agreed).
Consolidation Loans. A consolidation loan can result in great savings to borrowers if the new interest rate is significantly lower, and if you don’t run-up debt similar to what was just consolidated. But beware, because consolidation loans usually result in substantially more money out of your pocket into the lenders’. For instance, mortgage loans usually involve closing costs. They increase the total debt. Many refinances involve reducing the monthly payment, but increasing the length of payback, which substantially increases the total interest paid. Borrowers, who refinance unsecured debt (e.g. credit cards) into a home mortgage, also increase their risk of losing their homes. Also, remember to keep all of your payments current until the old debt is paid off. Too many people have damaged credit ratings, and are in bad financial condition because they counted on money which didn’t come when they expected it. Expect delays when applying for loans, especially consolidation loans. Don’t spend money before you get it.
Desperation. Don’t get desperate for money. The more desperate you are, the less likely you are to get a good loan.
Auto insurance. Keep your auto insurance current. If you fail to keep your insurance up-to-date, you could end up making loan payments for years after your car has been totaled.
Establish good credit. To avoid bad credit, don't borrow too much, and do pay your bills on time. Inexpensive ways to establish good credit: (1) Obtain a good credit card. When you charge things, pay off the balance each month – on time – and pay no interest. (2) Establish a revolving line of credit (an empty loan) as an overdraft protection against bounced checks, and don’t use it as a loan. (3) Get a loan to buy a car, or furniture, or etc.) and pay it off within a few months.
Late fees. To avoid late fees (which multiply the cost of borrowing), pay early, or at least on time.
Repossessions. To avoid repossessions and associated fees, pay early or on time, and keep your insurance current.
Extra principal ® less interest. To pay less interest on loans, pay more than the minimum required payment. Even small amounts of extra principal, can significantly reduce the total amount of interest you would otherwise pay over the life of the loan. Before doing this, however, make sure your lender accepts extra principal payments, and find out what particular procedure you need to follow to ensure your extra principal is properly applied.
Bi-weekly payments. If you get paid weekly, or every other week, paying bi-weekly is a very convenient (almost painless) way to reduce your loan term and interest. For instance, if you make ½ of your required monthly payment every 14 days (a bi-weekly period), you pay the equivalent of 13.052 payments in an average year. If you don’t get paid bi-weekly, or if your lender doesn’t like biweekly payments, you can pay the equivalent amount in monthly installments. If you pay 1/12 of the sum of 13.05 payments each month, you will match the bi-weekly advantage (minor rounding differences).
Contrary to popular belief, the frequency of paying ½ payments bi-weekly doesn’t accomplish much, the real advantage is paying the extra principal (13.05 payments, or more, each year) which reduces the term and the interest paid. If you are considering signing up for a bi-weekly program, pay close attention to the cost. Some servicers have large set-up fees and transaction fees. Also consider the credibility of any company handling your money, some have diverted payments into their own pockets, leaving borrowers to make payments twice (once to a corrupt servicer, and a second time directly to the lender).
Sunday, August 1, 2010
Baseball Betting: How to Bet Basics
Article Body:
If you know nothing about sports and you still feel the urge to wager, baseball is the easiest sports to wager on. As opposed to football and basketball, where you are mixed up with the point spreads and other confusing calculations, in baseball betting you simply put your money on the outcome of the game. In addition, the baseball season lasts longer, which means more matches and bigger chances to go home with the winning money. Here is a step to step guide to baseball betting.
The main difference between baseball betting and other team sports betting such as football and basketball is that while the latter ones use point spreads, the former uses the money line.
What is a Point Spread?
Point spread is the most common betting type offered in football and basketball betting. The sportsbook spreads the odd of a certain match by subtracting points from the favorite team, which is the team most likely to win and adding points to the underdog, which is the team that will raise a lot of eyebrows if wins.
What is a Money Line?
In baseball betting, the sportsbook sets the odds strictly on the outcome of the match. In order to even the action, bettors would have to risk more money on the favorite and risk less on the underdog. This is called the money line.
For example, if the money line is minus 170 on the favorite and plus 150 on the underdog, then you would have to bet 170 dollars on the favorite in order to earn 100 dollars. On the other hand, if you bet 100 dollars on the underdog, you would win 150 dollars if they would eventually win the match.
The difference between the minus 170 on the favorite and the plus 150 on the underdog is known as the twenty cent line. If the money line was minus on the favorite and plus 150 on the underdog, it is called the ten cent line or dime line. The fifteen cent line is also common in baseball betting.
Sportsbooks also offer total bets and run lines in baseball betting.
1) Total Bets:
These wagers are based on the sum of the runs scored by both of the teams. For example, if the sportsbook sets the over under total of a match as 7, the over wins if the sum of the runs scored by both teams exceeds 7 and the under wins if it sums up to less than 7.
2) The Run Line:
This wager is the baseball variation of point spread. When you are betting on the run line, you are betting on whether one of the teams wins by more than one run, which is marked as minus 1.5 or stays within one run, marked as plus 1.5.
Conclusion:
Although the money line makes baseball betting simpler than football and basketball betting, it causes the payoffs calculation to be more complicated:
1) In order to calculate the payoff when wagering on the favorite you should add 1 to the favorite price and divide it with the favorite price.
2) In order to calculate the payoff when wagering on the underdog you should add 1 to the underdog price.
If you know nothing about sports and you still feel the urge to wager, baseball is the easiest sports to wager on. As opposed to football and basketball, where you are mixed up with the point spreads and other confusing calculations, in baseball betting you simply put your money on the outcome of the game. In addition, the baseball season lasts longer, which means more matches and bigger chances to go home with the winning money. Here is a step to step guide to baseball betting.
The main difference between baseball betting and other team sports betting such as football and basketball is that while the latter ones use point spreads, the former uses the money line.
What is a Point Spread?
Point spread is the most common betting type offered in football and basketball betting. The sportsbook spreads the odd of a certain match by subtracting points from the favorite team, which is the team most likely to win and adding points to the underdog, which is the team that will raise a lot of eyebrows if wins.
What is a Money Line?
In baseball betting, the sportsbook sets the odds strictly on the outcome of the match. In order to even the action, bettors would have to risk more money on the favorite and risk less on the underdog. This is called the money line.
For example, if the money line is minus 170 on the favorite and plus 150 on the underdog, then you would have to bet 170 dollars on the favorite in order to earn 100 dollars. On the other hand, if you bet 100 dollars on the underdog, you would win 150 dollars if they would eventually win the match.
The difference between the minus 170 on the favorite and the plus 150 on the underdog is known as the twenty cent line. If the money line was minus on the favorite and plus 150 on the underdog, it is called the ten cent line or dime line. The fifteen cent line is also common in baseball betting.
Sportsbooks also offer total bets and run lines in baseball betting.
1) Total Bets:
These wagers are based on the sum of the runs scored by both of the teams. For example, if the sportsbook sets the over under total of a match as 7, the over wins if the sum of the runs scored by both teams exceeds 7 and the under wins if it sums up to less than 7.
2) The Run Line:
This wager is the baseball variation of point spread. When you are betting on the run line, you are betting on whether one of the teams wins by more than one run, which is marked as minus 1.5 or stays within one run, marked as plus 1.5.
Conclusion:
Although the money line makes baseball betting simpler than football and basketball betting, it causes the payoffs calculation to be more complicated:
1) In order to calculate the payoff when wagering on the favorite you should add 1 to the favorite price and divide it with the favorite price.
2) In order to calculate the payoff when wagering on the underdog you should add 1 to the underdog price.
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