personal finance articles

Nearly a decade ago, struggling auto makers began offering 0% financing deals for new car buyers.

The goal of these programs were to sell cars and the auto makers hoped that 0% deals would do just that – and they were right.

Car buyers (currently in the market or not) flocked into auto dealerships seeking these financing deals. And, while some qualified for them, most did not. Once the buyer was in the dealership, the hard sell began – making it nearly impossible for the consumer to leave without a new vehicle – regardless if they qualified for the 0% financing or not.

Are these 0% financing deals really all that beneficial? Maybe? But, for the majority of auto buyers they really offer very little incentive – here’s why:

Most 0% financing deals are for only 36 months (3 years). Which is OK if you can afford a very high payment. Example, Ford is offering a 36 month, 0% financing deal for their Focus product line. A standard Ford Focus is priced around $17,000. Financing this vehicle, assuming 5% down, puts a payment around $449 for 36 months at 0%.

A high monthly payment for a low budget consumer. The only real benefit is that this vehicle buyer would pay no interest over the life of the loan (provided that the dealer or manufacturer has not built some level of financing into the price of the vehicle).

However, Ford is also offering 2.9% financing for 60 months. The same vehicle (with the 5% down) at 2.9% for 60 months (5 years) sets the payment at about $290 per month.

Much more affordable for consumer who seeking to purchase a vehicle of this nature (meaning that this is a lower priced car, with limited features, geared for the low income buyer – low income buyers who cannot afford $449 per month in car payments). But, $290 is much more affordable than $449 per month (a monthly cash flow difference of $159).

The one problem with this financing deal is that at 2.9%, the borrower (car buyer) would have to pay interest for the 60 months loan. But, what does this interest really costs?

A 17,000 vehicle, with 5% down, at 2.9% for 60 months equates too approximately $1,300 in financing (interest). If looked at over 60 months, this is about $21 per month.

But, Ford is also offering, on this same vehicle up to $3,000 cash back (not applicable with the 0% financing deal). This cash back option would more than cover the cost of financing – in fact, this cash back option would essentially pay the borrower some $1,700 (in overall benefit) for financing the vehicle and not taking the 0% deal. That’s $1,700 to the buyer’s good ($3,000 cash back minus the $1,300 in financing costs equals $1,700).

Interestingly enough, this auto buyer could essentially have their financing rate increase to 6.9% for the 60 months before the cash back of $3,000 losses its financial benefit.

The bottom line here is that 0% financing can be a good deal provided that other options do not offer better benefits. Instead of just looking at the financing rate (where 0% is always better than anything else) one should consider all offers and choose the one that makes the most financial sense.

All the above assumes that the purchaser would qualify for both the 0% financing and the 2.9%, 60 month financing options.

About the Author

Joseph Lizio holds a MBA in Finance and Entrepreneurship, is the founder of Business Money Today, has a strong commercial lending background and is regarded as an expert in business and finance.

The rapid evolution and modernization of the global foreign exchange trading markets have necessitated the development of several strategies, governing the purchase and sale of foreign exchange. Some of these strategies are very conservative and plain vanilla and focus on hedging the exposure at all times, while looking to make marginal gains at an appropriate time. Similarly, some other strategies are very complex and require a very intricate understanding of the forex market to be used effectively. A few popular forex strategies prevalent these days are carry trade strategy, forex news strategy, trend trading system and automatic forex system trading.
Carry trade strategy looks to compare the intrinsic interest rates in countries with differing currencies. While interest rates prevalent in any economy are based on the economic policies, a carry trade strategy presumes that a positive interest rate differential between two currencies will tend to appreciate the currency which the interest rate is on an upward trend and vice versa.
Forex news strategy attempts to capture sudden peaks and troughs which may happen in the forex market based on sudden news flashes. The impact of such news could be substantive in forex terms which an astute trader would be able to capture.
Trend trading system looks to make forex strategies based on the trends between two currencies over a period of time. There are certain forex rates like EUR/USD which have been on the upward trend for several years. However, making buy or sell decisions based on long term trends may not always be accurate in case the market is volatile.
An automated trading system looks at defining a set of rules in a software system within which the purchase or sale of currencies can take place. These are more popular as a short term strategy. There are several other strategies which are available in the market, but it is appropriate for each player to decide the strategy which best suits them. It is also important to keep reviewing the strategies periodically and make course corrections wherever applicable based on the movement in the forex market.

About the Author

Chris is the writer of this article , you can visit us for more information on forex scalping .

Learning how to make a budget can be one of the most important financial decisions anyone ever makes. It can be the one thing that saves many people from financial ruin simply because it allows them to take back control of their money. The goal of any budget is to ensure that you and your family have the necessary money to cover life’s necessities. Once those are covered any left over money can be used for any number of things, including fun and entertainment. The other thing to remember is that a monthly budget is like a living thing, with changing income, expenses and other things affecting it each month.

A budget is nothing more than some simple accounting that even kids can do. The ultimate goal of any budget is to have more money coming in then is getting paid out in bills each month. This is just common sense, but unfortunately many people have a real hard time making this happen because they have no idea where their money is going. The pay check gets deposited and before they know it all the money is gone until next pay day.

The best way to get started making a budget is to simply write down all your pertinent financial information on a piece of paper. There are free budget sheets that can be found on the internet that are useful in helping you get a good start on the budgeting process. You can also use a spreadsheet or budget software, but it is easiest to just start by writing it down with pencil and paper.

Determining your income is the first step in how to make your budget. If your job is your only source of income, look at your paycheck. Your income is the actual amount of the check, not the biggest number shown on the check. The biggest amount on the check is your gross income, which means no taxes have been deducted yet. Your net income, which you will use in making your budget, is the gross income minus all taxes and other payroll deductions. If you have other income sources such as a second job, child support, or alimony, these count as income too. Add all these income sources together.

The next step in how to make your budget is determining your expenses. This is harder than it sounds. The amount surprises many people. Make a list of every bill and expense you pay on a regular basis. These expenses include rent, mortgage, utilities, car insurance, home insurance, groceries, gasoline, parking fees, and even pet expenses. Use your checkbook register to help you remember the bills you pay. Some of these expenses change monthly, such as utility bills and credit card payments. Use an average or best guess for these. Add all these expenses together.

Once you have your income and expenses added up all you have to do is compare the two amounts. Your budget is balanced if the income column is greater than the expense column. If the expenses are greater than the income then you can use your written budget to start eliminating and cutting expenses to try and balance you incoming and outgoing cash flows.

Once you know how to make a budget it is important to do it every month. In fact it may take two to three months before your budgeting skills really begin to click. Just be patient with the process because in the end it will help improve your overall financial situation.

About the Author

To learn more about a Household Budget please visit the website Household Budgets by clicking here.

The decision to withdraw funds from an IRA, 401k, 403b, and 457 retirement accounts to pay for service credit is a difficult one. The cost can be very high. There is no guarantee that the decision will be advantageous. However, there are three factors that may tilt the decision far into your favor.

Early Retirement and Health

The more time you spend in retirement, the more likely you’ll come out ahead when you purchase CalPERS airtime service credit. CalPERS assumes each retiree will live an average number of years in retirement. If you have excellent health or increase your effort at improving health, you may be able to beat PERS’ actuarial estimates significantly. If you can live to age 85, you’ll collect much more money by buying service credit for your pension.

On the other hand, if you have a serious condition such as cancer, a purchase would be a bad idea if you feel your life expectancy has a high probability of being reduced. The same thing applies to many who need to retire due to disability.

Government Job Promotions and Salary Increases

CalPERS estimates do not consider the possibility of greatly increasing salary by moving to much higher positions. Finishing a college education or doing well in your job may lead to salary increases that far outpace the rate of inflation. This is especially important for young workers who are just starting out but are capable of reaching senior management ranks someday. For those young workers, it’s best to buy service credit while it’s very cheap during the years as an entry level worker.

Poor Investment Results

CalPERS assumes it will make 7.75% on its investments to pay the obligations of their retirees. If that amount is not enough, it will go to the taxpayer to make up the difference. In order to beat this in your brokerage account, IRA, 403b, 401k, or 457 account, you have to beat 7.75% for the rest of your life, including time spent in retirement.

The stock market returns in the last 20 years have been disappointing. Investing in government bonds in 1989 would yield better results than the stock market. There is no guarantee that you’ll be able to meet or exceed 7.75% on your own. Think of this another way, if the S&P 500 is the same as it was 10 years ago, you’re way behind the person earning a guaranteed 7.75% on their CalPERS pension.

The decision to buy service credit is difficult, but you can take actions to improve the probability of coming out ahead by staying healthy and buying CalPERS service credit early in your career.

Copyright © 2009 – Do not copy without written permission from Mr. Wu.

About the Author

Mr. Wu is a freelance author that has covered many subjects in business and personal finance. More information on early retirement, personal finance, and investing, especially for government workers, can be found at http://www.early-retirement-plan.com

One of the reasons many people never achieve financial freedom is because they never stop to think about what it is they really want…it’s not money. It’s the lifestyle which they believe that money is going to give them: the freedom to go where they want, when they want and with whom they want. It’s the freedom to live life on their terms and to not have to answer to someone who doesn’t appreciate them or pay them what they are worth. Or how about being able to sleep as much as your body needs to and not having to force yourself out of bed before you’re ready?

Is this ringing a bell? If so, you’ll be glad to know that you don’t need to be a millionaire anymore to live this kind of lifestyle. I know this, because I’ve been living it for the past two years, and it doesn’t take being a millionaire.

Financial Freedom is About More Than Money

There are two things that people deeply desire when it comes to having the life that they want: freedom of time and freedom of mobility. How much easier would your life be if you could work from anywhere in the world and work whenever you want to? You might have heard a promise like this before, but I’m not talking about some internet marketing course. What I’m talking about is setting new goals by focusing on freedom of time and freedom of mobility BEFORE you start worrying about making more money. If you can gain these two things, everything in your life becomes easier and the need for more money isn’t as strong as it once was.

In my coaching, I’ve found that most people’s lack of discipline when it comes to spending money has nothing to do with discipline at all. Instead, many people who are working jobs that they hate feel the need to purchase things in order to make up for the lack of excitement and fulfillment in their life. I know, because I used to do this. When I was in the corporate world making six figures a year, I spent a LOT of money on things that didn’t matter. However, now that I’m running a virtual organization and have the freedom and flexibility to live my life as I want, most of that overspending has disappeared.

The bottom line is that if you want financial freedom, it’s important to realize that what you really want to do is design a different lifestyle, a lifestyle which is now available to those who know how to create flexibility of time and of mobility.

The “New Rich” and the New Rules of Wealth

What you’ve just been reading about are the new rules of wealth, and those who understand these rules and can use them to create a better lifestyle for themselves are no longer on the hamster wheel trying to make millions. Again, I know this because I’m one of them. If you’re interested in learning the details of these new rules of wealth and how you can escape the rat race of the “real world,” the answer is not far away.

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You can gain financial freedom in one year or less, all you need is a solid and simple strategy. Discover the financial principles of the new economy and how you can leverage them to create financial freedom and put an end to money worries for good.

About the Author

Seth Czerepak is a personal achievement expert, professional copywriter and the Vice President of VQ Success LLC.

Seth has been practicing and studying the strategies of behavioral transformation and personal leadership development for fifteen years and has empowered hundreds of people to make positive changes in their lives. He has coached people from various backgrounds: athletes, salespeople, corporate executives, parents, couples, teenagers, medical professionals, artists, freelance entrepreneurs and even people suffering from substance addiction and depression.

Seth Czerepak is no stranger to the challenge of personal adversity, having successfully used the method of Value Driven Transcendence to overcome addiction, poverty, divorce, obesity, and financial ruin, and to restore the broken relationships in his life. He has learned the difference between personal leadership development theories which have no place in real life and practical strategies which can be used to create genuine results.

In today’s scenario, the growing prices touching the sky, it is very important that your salary is enough to give you a life in which all your basic necessities and a little more than that is easy to achieve. But it really does not happen. Wage structure in front of a snail’s pace, and product prices scale new heights. The question is, what man should do in that situation. The answer is a privilege, or benefits to which the company proposes to base salary. The privileges that are supplemented with basic salary, a source of relief. Labour, which offers a base salary of $ 90,000 per year with no bonuses should be discarded for a job that brings you the monthly payments to $ 84,000.

These benefits are significant not only for the money factor, but the important points that they make up over our lives. Such as dental care insurance for all costs associated with dental problems that workers face after joining the company. Thus, the incentives to lend to the employee more or less trouble learning. They provide him with the greatest assistance in the form of financial and through some of the most expensive areas. Thus, the benefits are incredibly high.

However, all companies and businesses do not offer these benefits. In addition, different types of benefits from job to job. As the bank’s employees used the health care, travel benefits during the leave, insurance, etc. because many international companies and corporations to provide benefits on a daily basis that includes in particular the Food and switching the tax expense.

Some of the important principle of common benefits are listed below-

and 401 (k) plan – is meant to exempt from the tax burden, the government employee. This plan is a productive long term it allows the employee to make a good save to stabilize the whole of his work. This benefit is available only to those private rather than public sector.

and 403 (b) plan – as well as extremely help save money for retirement, it is removed from the tax, but only until its abolition. This time the individual retires and begins to use the money from 403 (b) account through the regular income tax. There are some other differences between the 401 (k) and 403 (b) plans. 403 (b) plan is designed for those who are working under, as per the IRS definition of companies that are organized and working specifically religious, charitable, public safety testing, scientific, literary or educational purposes. In addition to the 401 (k) all permits to invest in stocks and 403 (b) does not.

insurance and of course, many employers give their employees insurance benefits. These advantages are very useful when an employee can not work and need financial assistance to sit at home. Some companies offer full insurance to their employees, but there are others, for a relatively small application of new employment. This coverage is growing slowly but the years of the employee. Under-insurance facility also includes a similar prohibition of disability insurance, dental insurance, short-term and long-term disability, etc.

and health care benefits are included in the compensation package. There are a variety of health care packages with different scope. Ordinary health care plans are HMOs, the WTO, and trade areas.

and Vacation packages are also offered each year for some companies. This benefits the company gives you a certain amount of money that you can use to leave with his family. If the trip is not on your route, the money can act as a savings, as per the company rules.

The severance package and is active in the situation where a person loses his job without fault. It is not only very helpful staff, but also saves any legal action against the employer in kind.

in addition to these, many multinational companies to serve their most important and efficient staff house, free to make and choose-and-drop facilities.

About the Author

Visit checksandbalances for information about another service Financial Planning For Retirement.

Your credit report is an exclusively important document in your life. It carries weight in almost every aspect of your life. A credit score lowered by just a few points can literally cost you thousands of dollars in raised interest rates over a course of time. These are just some of the reasons that you should review your credit report regularly.
When you get your credit report, you need to review it with the eye of an expert. There are some specific things such an expert would consider.
Review the Late Payments

Late payments should remain on your report no longer than seven years. If you discover one lingering on your credit report longer than seven years, contact the credit reporting agencies and ask that it be removed.

Review Collections

Accounts that have gone into collections must also come off after seven years.

Check the Records of Payment

Installment loans or collection accounts that have been paid in full should show a zero balance due. Collections companies have a poor record of clearing accounts after payment has been received.

Identify all credit accounts

You should recognize each and every credit account on your credit report. If there is one there that you do not recognize, you need to ask that creditor to check the social security number on that account. Sometimes there are mismatched records in your credit report. If you believe this is possible, request a validation of debt. If you think the mismatch is a fraud (someone’s attempt at identity theft) you should ask the creditor for a fraud affidavit.

Check Credit Length

Every credit account reflects the date of origin. Sometimes errors are made on this date, especially if the creditor’s company was merged or sold. Length of credit goes to credit history, which is about fifteen percent of your total credit score.

Check Available Credit

The ratio between available and actual credit is paramount in determining your credit score. Be sure that all your credit limits are correctly entered.

Confirm the title of accounts

Be certain that all your credit accounts are correctly labeled.

Check reason codes

Each credit-reporting agency codes their scores by reason. They all use a different method. If your credit score is low, you will need to research the reason code and make certain your account has been properly scored.

Because mistakes can happen, it is important to regularly review your account with an expert eye toward problems.

About the Author

Chintamani Abhyankar, is an expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and tips on personal finance.

There will be many effects that your foreclosure procedure will have on your life. It will affect your credit, your emotional wellbeing, and your finances in a major way. So what can you do to minimize the effects in all of these areas?

If you are trying to prevent your foreclosure from going through, try to do it as quickly as possible to minimize the damage to your credit. The longer that you are delinquent, the worse it looks on your credit. If you know that losing your home is inevitable, try to workout a solution with your mortgage company to prevent a foreclosure from showing up on your record. A deed in lieu of foreclosure can do this. A short sale can as well although opinions are mixed on the damage that a short sale has on your credit.

When it comes to minimizing the emotional effect that your foreclosure procedure has on you, taking good care of yourself is your best bet. Take time to think about something other than your foreclosure. Take time to have fun. And remember that fun does not have to cost money. Spending some time with family and friends just hanging out can work wonders for your mental state. Finding at least one thing to laugh about every day can help too. Remember to keep your sense of humor.

Your finances are the most obvious thing affected by your foreclosure. Whether you are planning to keep your home or not, developing a sound budget based on your current income and expenses is important. Know exactly what is coming in and going out each month. Figure out where you can cut back. If you are planning to keep your home, be sure that you know that you can keep making the payments. You do not want to end up in this same situation in a few more months or a year from now.

About the Author

The most important thing to do during your foreclosure procedure is to remember to take care of yourself. At the end of the day, a house is a house. There are other houses but only one you. Get more information at http://www.Stopping-Home-Foreclosure.com/ForeclosureProcedure.html

Transferring or wiring money from party to another can be an expensive undertaking. This happens more so when it comes to international remittances. Due to the laws and regulations of this country it can be difficult to send money to someone effectively and within a small time frame.

Unfortunately in most cases it will take anywhere from 6 to 8 weeks before the recipient will have access to even a small amount of the money. Why does it take so long? Checks that are sent from the US can take a few weeks to arrive in country. Once they have arrived and are deposited to a bank, banking officials can put a hold on the funds that can last up to 3 weeks or more. By the time the depositor actually access his or her funds, they face the possibility of the US dollars converting into Rupees as a less amount than expected. This is due to such a high rate of change in international currency.

But there isn’t too much that can be done to speed up this process. A US citizen can send a number of post dated checks in the hopes of the other party gaining quick access to the funds over a course of time, but this is a risky situation to attempt. The Bank of India is working towards creating a more efficient way to transfer money to and from their country. They have opened several US branches that allow someone to open an account, deposit US dollars and convert the balance into a check of Indian Rupees. This can at least negate one step in the transferring of money internationally but with this can come exorbitant fees and confusing paperwork.

Requesting the help of a bank or international representative can ‘mitigate’ any unnecessary roadblocks that may pop up along the way. Citibank, Moneygram or any other bank of this nature is a great resource for the wiring of your funds. Be careful however when searching for a lender and company to help in the process as there are many that are less then credible. Research thoroughly and be sure you understand the process that it takes to complete a transfer successfully.

Keep in mind that if you are going to be transferring various amounts of funds over the course of time, it would probably be in your best interest to set up an account with the Bank of India or a US bank offering such services. If you do this, then the matter of getting your money to where it needs to be is the simple process of transferring between bank branches. This is the quickest way possible, albeit the most costly. Some banks may offer a one time or annual fee for multiple transfers. However, more than likely it will be on a per transfer basis. Do not let the statistics waylay you though. If money needs to be transferred, whatever way you use, officials have worked to make it as easy for the average consumer and business as possible.

About the Author

Learn about money transfers around the world and what options are available based on country and fees. For more information on send money overseas Visit home page http://www.sendmoney101.com/

We all know divorce has huge effects on spouses’ emotional life, not to mention the kids’. More often than not, kids are the biggest losers especially when they are at teenage or younger. However, most couples don’t realize that divorce can also be among the worst and ruinous financial moves anyone can make. The more obvious financial losses are the two major costs or more like culprits: legal bills and the sudden need for an additional residence. These two things affect far more people financially than anything else in a divorce.

“The risk that any marriage will end in divorce is about 45 percent. The chances fall to about 40 percent for first marriages and decline further for college-educated couples, people from intact families and couples who share the same religion,” says David Popenoe, a professor of sociology emeritus at Rutgers University.

It can be detrimental to any marriage if both spouses are big spenders. “Success in marriage is only partly attributable to compatibility. It’s about how you manage those financial differences and whether you have a style for doing so that is successful,” says Gregory A. Kuhlman, a New York City psychologist who runs marriage success training programs with his wife, Patricia Schell Kuhlman.

In a Nutshell

Think about what the professor found in his research. I repeat it one more time: “Divorce declines for 1) college-educated couples, 2) people from intact families and 3) couples who share the same religion.” Does that mean your best bet to stay together till death do you apart are the three things the good professor pointed out. Can you do something about it? Would you do something about it now before it’s too late?

Before you talk to your divorce lawyer after you have talked to your marriage counselor, I am sure, you would be wise to talk to a financial adviser. If you don’t have a financial adviser, then Find a good Financial Adviser. If you have some financial problems you can Find a good Credit Counselor as well as Find a good tax preparer.

About the Author

Shafi Farooq owns http://www.mywebsiteworkout.com/ about How to create your first website and two blogs: One about http://www.mywebsiteworkout.com/personal-finances/ and another about http://www.mywebsiteworkout.com/wordpress/.