Finanical Doom and the Power of a Budget
As things get worse and worse in the economy/stock market, it gets easier and easier to lose track and simply give up. This is not the time to give up and give into your fears, but to take control of them. The hardest part of a financial downturn is staring the demon of financial doom in the face and seeing what it really looks like... and the best way to do that is by running the numbers!!! Check you budget and see where you can save a few bucks and see where you may be losing a lot more. Beware of those who prey on people during tough times with their schemes and make a plan to protect yourself. This will be a shield against these dark times and as hard as it is to face these fears, it is better than facing the reality of losing your home, family, etc. because you never realized how much you could save if just sat down for a few minutes and ran a budget. You can use our free budget at uncommoncentz.com to get a head start. Good luck and everyone hang in there!
Budget - "Why do so few people actually sit down and do a budget?"
"Why do so few people actually sit down and do a budget?"
A budget is one of the most overlooked, yet powerful tools in a persons financial success. You have to know what you have, what you don't have, and follow a "road-map" in order to get where you want to be!
If you stick to your budget, it will be the best friend you have, because a lot of financial stress comes from not knowing where your finances are, and not having a plan. In your budget is where you lay out your plan of how your dollars are spent, what debts are being paid down (read about debt), and how much you can save for the future.
Question: So why do so few people actually sit down and do a budget?
Answer: Many people just don't know where to start.
In answering this question in its simplest term, a budget should be your income minus your expenses. If your expenses are more than your income there are problems ahead, and if you are bringing more money in than you spend (which is the goal) you are doing great!
Actually breaking down and having a consistent budget each month can be a little more complicated, so access the free "Budget Calculator" from the link below and get to using the most powerful tool in your financial arsenal:
Use the Free Budget Calculator or Visit thebudgetcalculator.com
TheBudgetCalculator.com
uncommoncentz.com has created thebudgetcalculator.com to make it easy to access a free budget calculator that allows you to print the results. Enjoy!!!
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Topics include Budgets, Debt, Investing and Retirement
Uncommoncentz.com Forum
Topics include Budgets, Debt, Investing and Retirement
Uncommoncentz.com Forum
Investing - "There is nothing wrong with a long term reasonable gain on an investment."
"There is nothing wrong with a long term reasonable gain on an investment."
Investing is not gambling, but many people treat it with fear, excitement and apprehension like they are playing a game of chance. They act under the assumption that an investor was born with money and understands rules that are not known by anyone else. While it is true that some of the biggest risks hold the largest gains, uncommoncentz is about taking a controlled and planned approach. There is nothing wrong with a long term reasonable gain on an investment.
Question: It seems so complicated, how does someone start investing?
Answer: In fact, it is easy start investing, without taking giant risks, and with a plan in place. The key is "3D Investing"; Diversify, Dollar Cost Averaging, and Determination.
Diversify: One of the greatest ways to instantly diversify is through the use of ETF's (Exchange Traded Funds). These investment instruments act like a mutual fund, but trade like a stock. One share actually represents a multiple of companies, and some ETF's even represent a whole sector of the market or the entire Stock Market itself. Talk about instant diversification!!! But buyer beware, as all ETF's are not created equal, so research before you make a decision.
Dollar Cost Averaging: By investing in a stock over regular intervals, rather than all at once, you can help prevent yourself from falling into the trap of buying high and selling low. Since you invest in say, 1 share a month for 2 months, instead of 2 shares all at once, you actually purchase a stock at its average price, rather than risk catching a stock at its highest price. Imagine if you bought 2 shares of stock at once for $100 a share and the price drops to $75. You will lose $50. But if you bought 1 share in the first month at $100 and 1 share at $50 the next month, your average cost is $150 and you would break even, and if the price rises to $85 you would be making money. However, if you didn't dollar cost average and the price rose to $85 you would still be $30 in the hole.
Determination: One of the most difficult aspects to finance is managing emotion. When investing, you have to keep emotions aside and focus on staying rational, doing your research, and sticking to a long term plan for success.
Question: That seems reasonable, but where does someone actually get some actionable advice???
Answer: MSN Money had a great article a while back that dealt with how to begin investing with only $100. It uses ETF's and dollar cost averaging to achieve reasonable long term gains. Remember to research any investment but to get you started...
...Access the MSN Money Article by Clicking Here
Disclaimer: unCommonCentz.com is not liable for any investing losses an individual may have. In short, do your research and make decisions with a plan in place!
Investing is not gambling, but many people treat it with fear, excitement and apprehension like they are playing a game of chance. They act under the assumption that an investor was born with money and understands rules that are not known by anyone else. While it is true that some of the biggest risks hold the largest gains, uncommoncentz is about taking a controlled and planned approach. There is nothing wrong with a long term reasonable gain on an investment.
Question: It seems so complicated, how does someone start investing?
Answer: In fact, it is easy start investing, without taking giant risks, and with a plan in place. The key is "3D Investing"; Diversify, Dollar Cost Averaging, and Determination.
Diversify: One of the greatest ways to instantly diversify is through the use of ETF's (Exchange Traded Funds). These investment instruments act like a mutual fund, but trade like a stock. One share actually represents a multiple of companies, and some ETF's even represent a whole sector of the market or the entire Stock Market itself. Talk about instant diversification!!! But buyer beware, as all ETF's are not created equal, so research before you make a decision.
Dollar Cost Averaging: By investing in a stock over regular intervals, rather than all at once, you can help prevent yourself from falling into the trap of buying high and selling low. Since you invest in say, 1 share a month for 2 months, instead of 2 shares all at once, you actually purchase a stock at its average price, rather than risk catching a stock at its highest price. Imagine if you bought 2 shares of stock at once for $100 a share and the price drops to $75. You will lose $50. But if you bought 1 share in the first month at $100 and 1 share at $50 the next month, your average cost is $150 and you would break even, and if the price rises to $85 you would be making money. However, if you didn't dollar cost average and the price rose to $85 you would still be $30 in the hole.
Determination: One of the most difficult aspects to finance is managing emotion. When investing, you have to keep emotions aside and focus on staying rational, doing your research, and sticking to a long term plan for success.
Question: That seems reasonable, but where does someone actually get some actionable advice???
Answer: MSN Money had a great article a while back that dealt with how to begin investing with only $100. It uses ETF's and dollar cost averaging to achieve reasonable long term gains. Remember to research any investment but to get you started...
...Access the MSN Money Article by Clicking Here
Disclaimer: unCommonCentz.com is not liable for any investing losses an individual may have. In short, do your research and make decisions with a plan in place!
Retirement - "You will be amazed at what even a little bit put away now can do for you down the road."
"You will be amazed at what even a little bit put away now can do for you down the road."
The word retirement sounds relaxing, but if you did not save for your golden years you had better start hoping for a miracle. If this statement does not scare you, lets put it into proper perspective. If you do not save for retirement you will be a burden upon your loved ones, your society, and yourself.
This is probably the shortest section on unCommonCentz.com because it is the most straightforward. Participate in your companies retirement plan, or get an IRA (Individual Retirement Account). IRA's are offered at most banks and brokerages. So if your company does not have a retirement plan or you are self employed, do yourself and the world a favor by starting your retirement savings today! The younger your start, the more you have at retirement, because the money put into an retirement account has more time to gain value before you need the funds.
Question: I don't have much money to put away, does it actually make a difference?
Answer: You will be amazed at what even a little bit put away now can do for you down the road. Make sure you are following your monthly budget and see if you can squeeze a few more dollars out for retirement. But if you want a measurable sense of the power of saving for retirement, MSN Money has a great retirement planner and graph.
Access the MSN Money Retirement Calculator by Clicking Here
The word retirement sounds relaxing, but if you did not save for your golden years you had better start hoping for a miracle. If this statement does not scare you, lets put it into proper perspective. If you do not save for retirement you will be a burden upon your loved ones, your society, and yourself.
This is probably the shortest section on unCommonCentz.com because it is the most straightforward. Participate in your companies retirement plan, or get an IRA (Individual Retirement Account). IRA's are offered at most banks and brokerages. So if your company does not have a retirement plan or you are self employed, do yourself and the world a favor by starting your retirement savings today! The younger your start, the more you have at retirement, because the money put into an retirement account has more time to gain value before you need the funds.
Question: I don't have much money to put away, does it actually make a difference?
Answer: You will be amazed at what even a little bit put away now can do for you down the road. Make sure you are following your monthly budget and see if you can squeeze a few more dollars out for retirement. But if you want a measurable sense of the power of saving for retirement, MSN Money has a great retirement planner and graph.
Access the MSN Money Retirement Calculator by Clicking Here
Debt - "At some point in our lives most of us have debt..."
"At some point in our lives most of us have debt..."
Debt is both physical and emotional, because it not only affects both all physical finances and value, but also weighs on us through stress and uncertainity. A lot of this uncertainty comes from not knowing where you stand each month, and that is why a budget is so important to determine what you can and cannot spend. But lets be realistic, at some point in our lives most of us have debt, whether it is in the form of credit cards, student loans, mortgage, etc.
Question: So if you have debt, how do you go about paying it off?
Answer: There are three approaches to paying down debt, and they are as follows:
Highest Interest: In this scenario, you pay off the debt with the highest interest rate first because it is costing you the most each month in money that is added onto your initial debt. Interest is where creditors make their money. Sure they are happy when you pay off your debt, because that gives them instant cash flow, but they are happy to accept the interest you pay them as well because it gives them a return on their investment!
Snowball: In this scenario you pay off the debt with the smallest amount of money first. It gives you the good emotional feeling of paying off a debt and teaches good payment habits. With this debt paid, you can then allocate the money you were using each month to pay off this smaller debt and apply it to the monthly payment of your next debt, then you move to to the third debt, etc.
Consolidate: Some companies will actually purchase your debt and consolidate all your debts into one monthly payment. They may also provide a lower interest rate on your cummulative debt, but be very careful, there are companies out there that are scams. Do you research and contact the Better Business Bureau with any questions or concerns.
Question: Is there a place where I could calculate my debts and learn how to get debt free?
Answer: CNN Money has a great Debt Calculator. You can access it...
...by Clicking Here for the CNN Money Debt Calculator
Important: Do not neglect the minimum payments on your other debts, as it affects your credit standing!
Debt is both physical and emotional, because it not only affects both all physical finances and value, but also weighs on us through stress and uncertainity. A lot of this uncertainty comes from not knowing where you stand each month, and that is why a budget is so important to determine what you can and cannot spend. But lets be realistic, at some point in our lives most of us have debt, whether it is in the form of credit cards, student loans, mortgage, etc.
Question: So if you have debt, how do you go about paying it off?
Answer: There are three approaches to paying down debt, and they are as follows:
Highest Interest: In this scenario, you pay off the debt with the highest interest rate first because it is costing you the most each month in money that is added onto your initial debt. Interest is where creditors make their money. Sure they are happy when you pay off your debt, because that gives them instant cash flow, but they are happy to accept the interest you pay them as well because it gives them a return on their investment!
Snowball: In this scenario you pay off the debt with the smallest amount of money first. It gives you the good emotional feeling of paying off a debt and teaches good payment habits. With this debt paid, you can then allocate the money you were using each month to pay off this smaller debt and apply it to the monthly payment of your next debt, then you move to to the third debt, etc.
Consolidate: Some companies will actually purchase your debt and consolidate all your debts into one monthly payment. They may also provide a lower interest rate on your cummulative debt, but be very careful, there are companies out there that are scams. Do you research and contact the Better Business Bureau with any questions or concerns.
Question: Is there a place where I could calculate my debts and learn how to get debt free?
Answer: CNN Money has a great Debt Calculator. You can access it...
...by Clicking Here for the CNN Money Debt Calculator
Important: Do not neglect the minimum payments on your other debts, as it affects your credit standing!
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