Finance Roll

Money Saving Tips - How to Manage Money

What should you do with your hard earned cash? There are many choices we face on a daily basis that can create confusion and can point us in in a different direction at any time. There are many things that we should and shouldn't do with regards to our finances and how to manage money. Let's go through some of the more important ways to start saving and put your money where it belongs.

1. Understanding when you should stop

The issue most people face when knowing how to manage money is knowing when you should stop. This may be a somewhat vague statement but I'll help clear that up. Understanding when you should stop can pertain to all kinds of different parts of your finances. You should know when to prevent buying things on each day, week or month and that all comes down to budgeting. You must understand when to stop investing in each part of your financial portfolio and start in another. You must understand when it is time to stop using the credit card and begin to buy with real money. These 'stops' are of vital importance to our financial success and there are many more. Every situation is unique and you need to go through some of the trouble areas in your financial life to discover where you need to stop. It could be you are paying too much for for your telephone and web service. You need to know when enough is enough and put an end to cash wasting services or purchases. The amount of money you will save if you know when to the draw the line will amaze you.

2. Eliminate Impulse Buys

All stores rely on impulse purchases more than any other item sold. They will draw you in with a great deal on several things in their flyer. You end up getting those items up but while you shop you purchase several other things that were not on the list. All of us can be sucked into the impulse buys when we go to the mall, convenience stores or the grocery store. Often times we don't know we've made an impulse buy. If you chew gum, have an issue of 'Cosmo' magazine on the coffee table or have fuzzy dice dangling from your car mirror it's likely you have made an impulse buy. We make impulse buys on an almost daily basis. Those purchases empty our wallet and savings account of a lot of cash. Here's an example of how much you can spend: If you pack of breath mints {per|each|every| week you are spending about $78 every year. Throw in one magazine each week, a Starbucks coffee every day, a chocolate bar every two weeks etc. It's not hard to do the math you'll figure out that we spend thousands of bucks each year on these items that we didn't plan on buying. If you avoid them you'll easily save thousands of dollars for your retirement plus you will know the basics of how to manage money.

3. Plan Ahead

Planning is key when dealing with your finances. If we go around without putting any thought into where our money is going there is a high likelihood that it will all be gone after a couple of weeks. They key tofor solid financial planning is planning ahead.

My Step by Step Advice:

1st: Know how much every guaranteed monthly expenses are and place aside that sum from your paycheck. Those items include electricity, cable, car payment etc.

2nd: Set aside $25 (or more) every week that will go into your emergency fund.

3rd: Make a meal plan and then do your weekly grocery shopping. If you have all the food you need in the house it will prevent you from going to the corner store to buy a loaf of bread for $4.

4th: Budget no more than 10% of your paycheck for weekly spending. If you spend that 10% by Monday then you don't get any more. Don't dip into next weeks budget and don't let last weeks budget roll over into the current week.

5th: Make a financial goal at least once a week. If you want to go south this March, create a goal to make that dream come true. If you want to own a house next year, start making that goal happen. If you want to save an extra $20 a week, figure out a way to make it happen. This will show you how to manage money and get you on the right track to your financial freedom.

Should you go out and spend your money with reckless abandon or save wisely? I'm pretty sure you know the answer to that question. Managing money isn't as hard as you think and can be easy to save for the retirement, house or vacation you've always dreamed about. You simply need to understand when enough is enough when it comes to spending. You also need to stop impulse purchases. The last thing is good financial planning. If you make an honest effort at making those 3 things happen, you will be close to knowing how to manage money better.

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When it comes to real estate, the old saying "You need money to make money" is false!

There is a creative financing solution for every real estate situation, especially when it involves residential real estate. You can control such types of property and build income and equity by identifying and applying the appropriate financial solution. Here are some creative ways to purchase residential real estate:

Utilize Your IRA

Sometimes, creative financing is simply recognizing how to use the money right under your nose. Many people have money in a 401K or another type of individual retirement account (IRA). Sadly, most IRAs offer measly returns. Even worse, most people mistakenly assume their IRA funds are untouchable until retirement. The truth is your IRA is one of the most powerful investment tools available today.

The first step in unleashing the power of your IRA is to roll the funds in your current account into a "self-directed" IRA. The process for doing so is as simple as filling out a one page form. Once your self-directed account is established, you can direct your funds into almost any investment vehicle for purchasing real estate. Now, you have more control of the return on your money, and best of all, your profits are tax free.

Assume the Escrow

When purchasing real estate, you can often gain at closing an extra $2,000 to $4,000. This bonus can come from a clause I always include in my purchase contracts: "Buyer to assume all positive escrows." Often, when taxes and insurance are escrowed from a borrower's mortgage payment, the escrow account carries a positive balance. Over the years, that positive balance adds up. If taxes and insurance are escrowed from your real estate mortgage payments, check the balance. You may have extra money just waiting for you.

Pledge Stocks and Bonds

Stocks, bonds and mutual funds can be tempting investments. Unfortunately, such variables as new legislation, changing market factors, and sudden natural disasters make these "investments" unpredictable. Real estate values, on the other hand, take months if not years to fluctuate, so a building or land purchased at a fair price today is virtually guaranteed to become profitable tomorrow. To realize your real estate opportunity, cash in some of your stock market holdings or pledge them for a loan.

Consider Using Chattel

Unlock the potential value of your old car, boat, antiques, art, or furniture. In place of money, consider using chattel in your contract. For instance, you could propose a clause that reads: "Seller agrees to accept a 2003 Ford or a 23' boat with motor as a down payment valued at $X."

Ask for a "Front Porch" Clause

Often, you can find the cash you need from the investment property itself. Given that most properties need repair, ask the seller to make the necessary improvements to the property. (Fixing the front porch, for example.) Later, offer to save the seller the hassle of repairs by simply reducing the purchase price by the repair costs. In your contract, call the reduction your down payment: "Seller acknowledges receipt of consideration in the amount of $10,000 as deposit." That's a true no-money-down deal.

Offer the Seller a Lease-Back

When buying from an owner-occupant, ask the seller about his or her new home search. Sometimes, because a new home has not yet been located or settled on, the seller will want to continue occupying the property for a few months after closing. Thus, a no-money down opportunity is born. In such a situation, the seller will customarily pay rent to the buyer for each month of occupancy. Instead of collecting rent, give the seller a pre-paid lease agreement as your deposit. Have the seller make out a check to you for the cost of the lease, then endorse the check back to the seller.

The seller lease-back technique also works well when purchasing a multi-family property or apartment complex. Offer the seller to lease back one of the units at a deep discount, with the right to sub-let for a profit. Such an arrangement can give the seller the opportunity to make several thousand dollars, which can then be applied to your deposit.

Numerous other ways exist to be creative in financing the purchase of residential property, especially if your goal is investment or resale. You don't need much money to make money in real estate.

Not all Scores are Equal

There are many credit scores available, but the only one that matters is your FICO score. FICO, by the way, is an acronym for Fair Isaac and Company, the developer of the score. This is the score that virtually all lenders use. Other scores attempt to approximate the FICO score, but frequently vary by a significant margin.

One Score with Three Names

The FICO score may be referred to by three different names. This is because the three bureaus have branded it for their own marketing. Equifax calls it a BEACON score, TransUnion calls it an EMPIRICA score, and Experian calls it the EXPERIAN/Fair Isaac Risk Model. Because of this you will hear of three different scores, although they are all a product of the same formula.

Why Are Your Three Scores Different?

Your three scores are different because each bureau gathers information from a slightly different mix of creditors. If you were to look carefully at your three reports you will notice that some accounts are missing on each bureau. Timing also plays a roll. A recent change in your credit may be picked up sooner at one bureau than another.

What is Included in Your Score?

Are you working on credit repair? Be proactive. But in order to influence your score it is essential to understand how it works. Here is an overview of the contributing factors.

Pay History

Your pay history is the big ingredient. This category includes installment and revolving accounts, as well as public records and collections. The age of a derogatory item diminishes its impact on your score. The first step in the credit repair process is to examine your report for obvious errors in this category which makes up 35% of your score.

Balances

Your account balances make up the next category. The relationship between the balance and the credit limit on your revolving accounts is a major factor. Anyone involved in a credit repair effort should minimize their revolving balances as much as possible. The relationship between the current balance and the original balance on installment loans is also taken into consideration. This category makes up 30% of your score.

The Age of Accounts

New credit will have a negative impact on your score, and those accounts that you have kept alive and healthy for years have a good impact. Closing old accounts is a common credit repair error to be avoided. This category makes up 15% of your score.

New Credit & Inquiries

New credit and recent inquiries are a factor. Many credit repair candidates open new secured credit cards for the long term benefit. But generally, anyone involved in credit repair should limit new credit activity. Either way you will lose a few points on this one. Fair Isaac weighs this at 10% of your score.

Type of Credit

The type of your credit is the final 10% of the calculation. Fair Isaac won't define the perfect mix of mortgage, installment, revolving, and consumer debt, but in our experience the key to a long term successful credit repair effort is to be a moderate user of credit, make your payments on time, and try to keep those revolving balances down.

False Credit

As you begin your credit repair effort it is important to have reliable information. Amazingly, the same three credit bureaus that sell authentic FICO scores to lenders also sell unreliable estimated scores to consumers. Every day untold numbers of consumers go to TransUnion's "True Credit" website and pay for what they believe to be their credit scores. What they get are deceptively named "TrueCredit" scores which vary significantly from the FICO scores used by lenders. Here is the (almost impossible to find) small print from the TransUnion website. "TrueCredit is not connected in any way with Fair, Isaac and Company; the credit score provided here is not a so-called FICO score. The credit scores of TransUnion may not be identical in every respect to any consumer credit scores produced by any other company."

Real Credit Scores

Are you starting the process of credit repair? Do you want to see your real FICO scores? MyFico.com is the only place that consumers can purchase their authentic FICO scores. Want to save some money? It is handy to know that mortgage brokers typically look at all three FICO scores when pre-qualifying you for a mortgage. If you ask, they just might give you a copy of your report along with all three scores. It can't hurt to save a few dollars!

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

When the economy is bad, you are often inclined to spend less money. Your money and the way you spend it takes on a whole new meaning when the stock markets are down, your investments are losing value and you are forced to dip into your savings or 401K just to live from day to day. You start thinking about ways to preserve your wealth, instead of spending it. How can you do this in a down economy? What areas can you focus on to ensure you are preserving your wealth in a tough economy? 

You can save money just by starting in your own home in the following areas:

• Turn off your lights at home when you are not in the rooms.
• Purchase low watt light bulbs for lighting your rooms when possible.
• Sit outside and enjoy the wind in the summer months, instead of running the air conditioner or fans too     much. You can actually cool off by drinking plenty of water and enjoying some wind and shade under the trees or umbrella.
• Use a surge protector to plug in your electronic devices. They work great because you can press one button and turn off all devices at bedtime, or during the day when you are not home.
• Ensure your windows, doors and electrical outlets are insulated year round. You can save your heat in the winter and air in the summer months by insulating areas where heat and air can escape.
• Try to use window curtains that are insulated during the winter months, which can help further preserve your heat and potentially lower your heating costs.
• Change your furnace filter and have the furnace cleaned annually.
• Turn your thermostat down 1-3 degrees from the normal daily setting and watch the heat savings roll in.
• Try to use a Down comforter in the winter months and cotton sheets to help keep you warm, when turning down your thermostat 1-3 degrees from the normal daily setting.
• Wear socks on your feet and try to wear cotton pajamas to further help keep you warm in the winter months.
• Don't let the water just run when washing dishes. Wash them on one side of the sink and then rinse them afterwards. Some people just let the water run, which can increase their water bill.
• Don't let a leaky faucet go without getting it fixed. You can often purchase the rubber rings from the hardware store and fix a simple leak yourself, prior to calling in a professional.
• Try to cook a meal that can last a few days to eliminate using gas to cook every day.
• If you can walk to the store that is a few blocks away rather than drive, take the walk. The walk can save your car fuel and also ensure you get your daily exercise in at the same time.
• Finally, try to spend family time in one area looking at television rather than having televisions on in several rooms. It cuts down on the electric bills and also ensures you have that family bonding time.

These tips are not exhaustive, but they can be extremely helpful in preserving your money in a tough economy. Try them and watch the savings roll in.

My family has owned and operated apartment buildings for over 25 years. One of the most important component's of owning an apartment building is arranging the proper financing. This article outlines one of the most attractive financing options available in the market today.

Despite recent poor press and economic reporting, Fannie Mae continues to be the active leader in providing multifamily financing throughout the United States. They also currently offer the most attractive interest rates and terms for apartment financing.

While, Fannie Mae does not originate loans directly to borrowers or investors, they do work with a nationwide network of lenders (this network is comprised of Delegated Underwriting and Servicing [DUS] lenders). As of July, 2011 there are 25 DUS lenders in the United States that are very active in underwriting and funding apartment loans.

While the majority of DUS lenders are well equipped to provide financing, it is highly recommended to employ a qualified broker to help navigate the complicated process in closing a Fannie Mae loan. The loan application process can be grueling, as strict DUS loan requirements from cash flow, guarantor credit, management experience, property location, and property condition requirements can be difficult to circumvent at the credit level.

Assembling a proper application package is a key component to moving the underwriting process along smoothly. Aside from presenting three years trailing personal (or entity based) tax returns, a rent roll showing high occupancy levels (currently a 90% occupancy for 90 days) is key. The Fannie Mae program is reserved for stabilized apartment buildings (both in terms of occupancy and property structural condition). The DUS lender will also need to see a full Schedule of Real Estate Owned and Personal Financial Statement for all key principals and guarantors involved in the transaction.

Upon a review of all property and sponsor financial information, third party reports (including an appraisal, environmental, and often an engineering report) will be ordered to ensure the property condition qualifies for the DUS program. These reports can range from $2,750 to $5,500 for smaller transactions (and well above for larger loans) and are required to paid for upfront. While third party reports are being engaged and compiled, the lender will require a completion of the property and sponsor financial package.

Upon the receipt and review of third party reports and the completion of financial package qualifications, a commitment letter will be issued to the borrower. It is quite common for pre-rate lock and post close property improvement items to be listed in the commitment letter (as Fannie Mae is protected their collateral) to ensure that property condition standards remain intact.

Fannie Mae loans are typically fixed for 5, 7, 10, 15, or 30 years with hefty prepayment penalties. The prepayment penalties (often Yield Maintenance) or due to the loans being securitized and sold in the secondary market to investors. In order to maintain the investor's yield, these prepayment securities often match the term of the remaining life of the loan. While loans can be assumed upon the sale of the building to a new owner, the owner must qualify under Fannie Mae guidelines and pass a review of their financial information (and management experience) prior to taking title to the building.

Rates on Fannie Mae loans change daily (even hourly). It is best to contact a broker to fully understand what financing options are available in the current market. This financing product typically takes 45-90 days to close and it is highly recommended that borrowers turn to a broker well before an acquisition or refinance.

Does debt consolidation sound scary to you? Don't let it. A debt consolidation just means that several places where you might have debt-say a line of credit and two credit cards-get rolled together so you only make one payment. Sound better? Debt consolidation can be a smart decision for a number of reasons.

For one thing, debt consolidation is still a loan that gets reported to the credit agencies, and so it can work to improve your credit rating. And it means that several debts are now rolled into one, making tracking your payments much easier. It also can mean a lower interest rate. But even if the interest rate remains the same, just having fewer payments will mean less chance of missing a payment (and possibly hurting your credit score) and will help make budgeting a lot easier (because you do budget, right?).

Who qualifies? To qualify, generally you have to be working, and able to produce documentation of your employment. Sometimes, it is also necessary to put up collateral, such as a house or vehicle, against the loan. Check different financial institutions about the costs associated with a consolidation since, just like any other loans, terms and conditions vary from place to place.

Consider a car title loan. This might be a good loan for you, if you own your vehicle and it's less than eight years old. You can apply right online, and get a response the very next day. In fact, they will even direct deposit the loan into your account, for your convenience. It's fast and easy, and you can do it all from home. It doesn't require you to go to the bank, or meet with anyone, although you can talk to someone if you need to. And about 99% of qualified applicants are approved, so chances are good that you will be, too. By tomorrow, you could have as much as 40% of the wholesale value of your vehicle available to you to pay off your debts.

A vehicle title loan can work for you in different ways. Best thing, of course, it gives you money to pay off debts. Because you're consolidating your loans, the vehicle title loan makes it easier to track and maintain regular debt payments-and that means you'll get out of debt faster.

Vehicle title loans are also especially designed to help people who have trouble with their debt loads, perhaps difficulty in maintaining a good credit score, or have even declared bankruptcy or are thinking about it. But before you do that, apply for a vehicle title loan-it may be just the answer you need to get your debts under control, and your life back on track.

Several television ads lately have been pushing the concept of zero percent financing for various new vehicles. One offer will allow consumers to finance a new SUV for a 72 month loan, interest free. On the surface, this offer looks tremendously appealing and it could be that way for you if you are the right kind of consumer. Have you considered buying a car with zero percent financing? If so, you need to fully explore just what you are getting with this type of loan or you could end up being trapped in one heck of a mess!

Buying any vehicle that has interest free financing should get your attention. What better way to buy a vehicle then to pay it back over time interest free. However, there are some pitfalls you must be aware of before choosing this type of new vehicle financing and they include:

Few Models Offered - Check the deal out closely and you may learn that only one or two big SUVs qualify for this special financing offer. Naturally, if this is the vehicle you want then keep on reading. If not, you'll have to pay the market financing rate for your compact car or crossover vehicle.

Your Loan Term Is Too Short -- Some interest free deals have loan terms that are too short. A 42 month term means that your monthly payments will be very high while a 72 month term spreads out the costs and lowers your monthly payments.

High Sticker Price, No Negotiation -- To receive zero percent financing, the auto dealer may be less willing to dicker with the price. That $35,000 SUV already has an $8000 mark up in manufacturer and dealer profits; additionally, if you buy it at the end of model year its value has already decreased significantly. Ultimately, you may do better by simply taking the rebate along with negotiating a lower price. If you still need financing, you will probably find a decent rate somewhere else.

I Am Upside Down! -- There is a financing term that many customers are not aware of that can hurt you later on, especially if you plan on trading in the vehicle at some point before it is paid off. Being "upside down" means that you owe more money on the vehicle than what it is worth. This can happen if you put little to no money down on the vehicle and are financing close to the full amount.

After two years or so, you may think that you are making great progress on paying down that six year long loan. However, you could be in for a rude awakening if you decide to trade your car in as the depreciated value has dropped faster than your pay off amount. Thus, your SUV could be worth $15,600 at trade in, but you still owe $18,100 on your loan. This deficiency of $2500 must come out of your pocket to fully satisfy the loan. At this point you may be able to roll that amount over into a new loan or simply pay it out of your pocket on the spot -- either way it will cost you dearly!

Of course, if you are planning to keep your vehicle for more than six years than there is no concern for you as the loan will be paid off and your vehicle will still have some value to it.

So, is there anyone who can benefit from a zero percent loan? Yes, there is and they are the folks who have the money to pay cash for their vehicles. With zero percent financing available these are the types of consumers who recognize an opportunity when it has been set before them and decide to let the financing company fund their deal. Then, instead of plunking down the $28,000 for a new SUV they keep their money in the bank earning 5% or better interest which would result in a balance of more than $36,400 at the end of six years. Looking at it another way you could subtract the $9400 from the price of the vehicle and it would be like they paid $18,600 for their purchase! All they have to do is pay their monthly invoice and the extra money goes in their pockets.

Sure, most consumers cannot afford this option, therefore it is important for you to learn everything there is to know about your auto loan agreement before signing on the dotted line. If you can negotiate the lowest price and get zero percent financing on top of it, than you have a deal that is worth your pursuing.

(c) 2006; You may republish this article to your website with the following author resource information and link left intact.

I would like to make myself clear on a few items of interest before I get too deep into the sales processes at any dealership, including: automobile, recreational vehicles, boats, motorcycle, and even furniture or other big ticket items. A business has to turn a fair profit in order to stay in business. I believe that they should make this profit and use it to pay better quality employees a premium wage in order to serve you better. The financial strengths or weaknesses of any business can definitely have a dramatic effect on your customer service and satisfaction. I do not, in any shape or form, wish to hurt a dealerships profitability, as it is essential for his survival. I merely want to advise people how to negotiate a little better in order to make the profit center more balanced.

Let's get right down to this! Every dealership has a finance and insurance department. This department is a huge profit center in any dealership. In some cases, it earns more money than the sale of the automobile itself. Profits are made from many things that most buyers do not understand.

You as a consumer should understand the "flow" of the sales process to understand the profit centers that are ahead of you. Most negotiating from the consumer seems to stop after the original price is negotiated and agreed upon. Let's examine just a small portion of what leads up to that point.

The first thing that every consumer should understand is that when you go to a dealership several things come into play. One of the most important things that I could point out to you is that you are dealing with a business that has been trained to get the most amount of money from you as they can. They are trained and they practice these tactics everyday, day after day, week after week, month after month, and year after year. Let me point out a couple of important facts that I have said in this paragraph. First, you'll notice that I said a dealership and not a salesman and secondly, I emphasized times of day after day, week after week, etc. etc. This was done to let you know that the salesman is working very closely with the sales managers in order to make as much money as he can. Your interests are really not their objective in most cases.

One tactic that is used heavily in the business is that the salesman says he is new to the business. This may be true or not, however; keep in mind that he does not work alone. He is working with store management, who gives him advice on what to say and when to say it. These guys or gals are very well trained on how to overcome every objection that you may have to buying from them. They have been trained in the psychology of the buyer and how to tell what your "hot buttons" are. They listen to things in your conversation that you may say to one another as well as to the salesman. They are trained to tell their desk managers everything that you say and then the desk manager is trained to tell the salesman exactly what and how to answer you. A seasoned salesman does not need as much advice from his desk and may negotiate a little more with you directly without going back and forth.

The process of negotiation begins the moment that you walk into the front door or step foot out of your car and begin to look at vehicles. Different stores display inventory in different ways. This is done for crowd control or more commonly known as "up control". Control is the first step in negotiating with a customer. Ever who asks the questions controls the situation. Let me give you an example: A salesman walks up to you and says "Welcome to ABC motors, my name is Joe, and what is yours?" The salesman has just asked the first question- you answer "My name is George." He then asks you what you are looking for today, or; the famous "Can I help You?" As you can see, step after step, question after question, he leads you down a path that he is trained to do.

Many times a well trained salesperson will not answer your questions directly. In some cases, they only respond to questions with other questions in order to avert the loss of control. An example of this could be something like you asking the salesman if he has this same car with an automatic rather than a stick shift. Two responses could come back to you. One would be yes or no, the other could very well be something along the lines of: 'don't you know how to drive a stick shift?" In the second response the salesman gained more information from you in order to close you. Closing means to overcome every objection and give your customer no way out other than where do I sign. The art of selling truly is a science of well scripted roll playing and rehearsal.

We have established that the negotiating process begins with a series of questions. These questions serve as two main elements of the sales process. First and foremost is to establish rapport and control. The more information that you are willing to share with you salesman in the first few minutes gives him a greater control of the sales process. He has gathered mental notes on our ability to purchase such as whether you have a trade in or not, if you have a down payment, how much can you afford, are you the only decision maker (is there a spouse?), how is your credit, or do you have a payoff on your trade in? These are one of many pieces of information that they collect immediately. Secondly, this information is used to begin a conversation with store management about who the salesman is with, what are they looking for, and what is their ability to purchase. Generally, a sales manager then directs the sales process from his seat in the "tower". A seat that generally overlooks the sales floor or the sales lot. He is kind of like a conductor of an orchestra, seeing all, and hearing all.

I cannot describe the entire sales process with you as this varies from dealer to dealer, however; the basic principals of the sale do not vary too much. Most dealerships get started after a demo or test drive. Usually a salesman gets a sheet of paper out that is called a four square. The four square is normally used to find the customer's "hot points". The four corners of the sheet have the following items addressed, not necessarily in this order. Number one is sales price, number two is trade value, number three is down payment, and number four is monthly payments. The idea here is to reduce three out of the four items and focus on YOUR hot button. Every person settles in on something different. The idea for the salesman is to get you to focus and commit to one or two of the hot buttons without even addressing the other two or three items. When you do settle in on one of the items on the four square, the process of closing you becomes much easier.

One thing to keep in mind is that all four items are usually negotiable and are usually submitted to you the first time in a manner as to maximize the profit that the dealer earns on the deal. Usually the MSRP is listed unless there is a sales price that is advertised (in may cases the vehicle is advertised, but; you are not aware). The trade value is usually first submitted to you as wholesale value. Most dealers request 25-33% down payment. Most monthly payments are inflated using maximum rate. What this all boils down to is that the price is usually always negotiable, the trade in is definitely negotiable, the down payment may be what you choose, and the monthly payment and interest rates are most certainly negotiable. If you do your homework prior to a dealership visit you can go into the negotiation process better armed. You still need to keep two things in mind through this process. The first item is that you are dealing with a sales TEAM that is usually highly skilled and money motivated. The more you pay the more they earn. The second item to remember is that you may have done your homework and think that you are getting a great deal and the dealer is still making a lot of money. The latter part of this statement goes back to the fact that it is essential for a dealer to make a "fair" profit in order to serve you better.

Once your negotiations are somewhat settled, you are then taken to the business or finance department to finalize your paperwork. Keep in mind that this too is another negotiating process. In fact, the finance manager is usually one of the top trained sales associates that definitely knows all the ins and outs of maximizing the dealerships profit. It is in the finance department that many dealers actually earn more than they earned by selling the car, boat, RV, or other large ticket item to you. We will break these profit centers down for you and enlighten you as to how the process usually works. Remember that finance people are more often than not a superior skilled negotiator that is still representing the dealership. It may seem that he or she has your best interests at heart, but; they are still profit centered.

The real problem with finance departments are that the average consumer has just put his or her guard down. They have just negotiated hard for what is assumed to be a good deal. They have taken this deal at full faced value and assume that all negotiations are done. The average consumer doesn't even have an understanding of finances or how the finance department functions. The average consumer nearly "lays down" for anything that the finance manager says. The interest rate is one of the largest profit centers in the finance department. For example, the dealership buys the interest rate from the bank the same way that he buys the car from the manufacturer. He may only have to pay 6% to the bank for a $25,000 loan. He can then charge you 8% for that same $25,000. The dealer is paid on the difference. If this is a five year loan that amount could very well be $2,000. So the dealer makes an additional $2,000 profit on the sale when the bank funds the loan. This is called a rate spread or "reserves". In mortgages, this is disclosed at time of closing on the HUD-1 statement as Yield Spread Premium. This may also be disclosed on the Good Faith Estimate or GFE. You can see why it becomes important to understand bank rates and financing.

Many finance managers use a menu to sell aftermarket products to you. This process is very similar to the four square process that I discussed in the beginning. There are usually items like gap insurance, extended service contracts, paint and fabric guard, as well as many other after market products available from this dealer. The menu again is usually stacked up to be presented to the consumer in a way that the dealer maximizes his profitability if you take the best plan available. The presentation is usually given in a manner in which the dealer wins no matter what options are chosen. With the additional items being pitched to you at closing, your mind becomes less entrenched on the rates and terms and your focus then turns to the after market products. Each aftermarket item can very well make the dealer up to 300-400% over what he pays for these items. Gap coverage for example may cost the dealer $195.00 and is sold to the consumer for $895.00. The $700.00 is pure profit to the dealer and is very rarely negotiated down during this process. The service contract may only cost a dealer $650.00 and is being sold for $2000.00. The difference in these items are pure profit to the dealer. You see, if you only paid $995.00 for the same contract, the dealer still earns $345.00 profit from you and you still have the same coverage that you would have had if you had paid the $2000.00. The same is true for the gap coverage. You are covered the same if you paid $395.00 or $895.00 if the dealers costs are only $195.00. The only difference is the amount of profit that you paid to the dealer. Another huge profit center is paint and fabric protector. In most cases the costs to apply the product are minimal (around $125.00 on average). In many cases the dealer charges you $1200-$1800 for this paint and fabric guard.

As you can see, these products sold in the finance department are huge profit centers and are negotiable. I also have to recommend the value of most all products sold in a finance department. It is in your best interest to get the best coverage possible at the best price possible. Always remember this: The dealer has to make a fair profit to stay in business. It just doesn't have to be all out of your pocket.

The V-8 is so ubiquitous an engine design that we sometimes don't fully appreciate its long history and tides of favour and obscurity. The '55-'57 Chevrolet crowd act as if the first V-8 emerged, fully formed, in the 1955 Chevrolet. That was and still is an excellent engine design, but it's by far not the first V-8, nor even the first overhead valve V-8.

Chevrolet itself first came out with an overhead-valve V-8 model in 1917, but it was not commercially successful in its price range and disappeared from the market after 1918.

Lincoln has used V-8s throughout its long history, right from 1920 and Henry Leland's high-precision, high quality, 60° bent eight. It's true that Lincoln dropped the V-8 from 1933 to 1948, but this was in favour of a series of V-12s!

Cadillac introduced the first commercially successful V-8 engine in 1913, in a one-two punch following the introduction of the first, modern, electric self-starter in 1912. These moves certainly boosted Cadillac's fortunes and prompted a raft of other V-8 powered American cars - some with proprietary units offered by engine makers, others designing their very own. In fact, every General Motors make except Buick tried out at least one V-8 model in the 1917-1918 period, in an effusive but brief embrace of this engine type.

Still, Cadillac was not the first to market with a V-8 engined model. Consider the pioneering French automaker DeDion Bouton, which brought out their first V-8 for 1910. So long wedded to the twin cylinder engine type, the factory had to move with the times to four-cylinder engines, then a sort of twin-four. The DeDion V-8 was less efficient than a four-cylinder engine of the same cubic displacement, so it was obvious that more engineering was required. This never happened, as DeDion Bouton was unable to finance this much-needed research. Therefore, the French company pulled its unsuccessful V-8 models from the market, and so passed the baton to Cadillac.

And yet, was DeDion Bouton the first auto manufacturer to sell a V-8 model? No indeed. We have to paddle further upstream in the river of automobile history.

In 1909-10 there was the Coyote Eight, built in Redondo Beach, California of all places. It was said to have a 50 hp eight - but was it a Vee or straight eight? Probably a Vee, but few would have been made.

It was 1906 when the British car maker Adams announced a V-8 model, to add to its line of twins and fours. These touring cars could be recognised by the radiator outline spelling out a big capital 'A' in polished brass.

The 35/40hp V-8 engine was based on the Antoinette aero engine, for which Adams were the British agents. This French unit was designed for service equally in automobiles and aeroplanes and could be found in fairly successful monoplanes of the same name. Antoinette monoplanes competed in the Rheims, France aero meeting in 1909 - the first such international event.

The Adams V-8 was raised to 60 bhp and was offered from 1906 through 1909. Crankshaft breakages plagued the model and it was withdrawn.

Henry Royce had come out with three-cylinder and four-cylinder models in his early experimental phase, but realised that the future lay in multiple cylinder engines. This was particularly after his teaming up with The Hon. C.S. Rolls, who knew what the wealthy English buyer wanted in cars, Rolls being an enthusiast and car dealer himself. Royce's next creation was the Rolls-Royce Legalimit V-8 of 1905, a low-slung roadster with its engine governed to the prevailing speed limit in Great Britain of 20 mph, hence the name. Then as now, no one wanted a car that was hobbled to miserable and arbitrary speed limits, and thus not more than three examples were built. None survive.

Another British car maker introduced a V-8 car in 1905 - Leader. This now obscure Nottingham-based company fielded a range of 4-cylinder models from 1 ½ to 7 ½ litres capacity. As if they wished to lead in all markets, Leader also made not one but two V-8 models - the 60hp with 9.428 Litres capacity and the 90hp with a giant 15.934 litres size. The 90hp may well have been the largest V-8 ever produced for a passenger car - and it may have been the earliest! Since in those days, you were lucky to get 10 actual horsepower from every litre of engine volume, 90 from 15 litres seems about right.

Leader re-organised itself and from 1906 all its cars were named New Leader. It continued a slew of 4-cylinder models over its final two years, adding a tiny 3-cylinder car for good measure. A last 8-cylinder car was produced for 1906 as the 70/90hp, with a similar 15.511 litre swept volume, but it is unclear whether this was in a Vee or a straight configuration.

Going back further in time, America's Marmon tried to market an air-cooled V-8 in 1904, though this may only have remained at one prototype. Marmon meanwhile continued selling V-4 engined cars, still air-cooled. Perhaps Howard Marmon felt confident enough to return to the V-8 in 1906, when a special 60 hp model was announced, priced at a cool $5,000. It was a lot of money for what must have looked like an experimental model, so sales were minuscule and it was withdrawn in 1908.

Without considering the Ader racing car of 1904, can we find any earlier road cars with V-8 engines? No - that's it. The crown goes to Howard Marmon and his 1904 prototype or limited production offering, which may have originated from two of his V-4s being adapted into a single engine unit.

Just out of interest, can we answer the question of whether anyone built any eight-cylinder road car before this? To coin a phrase, yes we can.

Charron, Girardot & Voight (C.G.V.) of France built a straight-8 prototype in 1902 or 1903! It was actually gearless and billed as such, having been assumed that there was so much torque at all speeds, there was no need for a gearbox. This in-line eight would probably have been built up of two four-cylinder engines. Many manufacturers at this time still assembled their engines from separately cast cylinders, so building up an engine in this way was not out of the question. The long, unbalanced crankshaft must have whipped around like a skipping rope, more even than the new six-cylinder Napier with its infamous 'power rattle'. It is not known if any copies of the C.G.V. eight were built. Considering the engineering problems to be overcome and the state of the automotive art at the time, a straight-eight in 1903 was well before its time.

So our journey back in time ends here, as so many ideas from the automotive world do, with the pioneering French at the very dawn of the motor car.

For over two decades, making a vehicle donation to a charity has been very popular for those trying to get rid of that old unwanted car.

Many charities across the country have become quite dependent on the funds raised through vehicle donations. So much that the rise of numerous vehicle donation processing companies have begun to fill the automotive landscape, giving way to many options for charities and donors alike. Unfortunately, many of these companies have become complacent in how they process your vehicle donation, resulting in low sales numbers, meaning minimal write-off potential.

VEHICLE DONATIONS - a quick glance back

In the early years of 2000, this landscape had been on rock solid foundation with nothing standing in its way. Then signs of economical instability turned into governmental concerns and eventually lead to governmental action.

Ultimately it was the findings of the Senate Finance Committee's investigation by the GAO (U.S. General Accounting Office), spearheaded by its chairman Iowa's Senator Grassley, who had uncovered a multitude of car donation abuses.

With part of their investigation focusing on the tax year 2000, results came in claiming approximately 6% of all noncash contributions over $500 reported on returns that year were for vehicle donations. Their analysis estimated vehicle donation deductions lowered taxpayers' income tax liability by $654 million that year alone.

The GAO study tracked a judgmental sample of 54 donated vehicles for that year to compare the amount of proceeds the charities received from vehicle sales and the amount claimed as deductions on donor's tax returns.

The findings raised eyebrows. From the sample of 54 donated vehicles, the charities only received 5% or less of the actual value the donor had claimed as a deduction on their tax returns.

They identified two factors that contributed to this difference.

1. Donated vehicles were often sold at wholesale prices rather than at the price the donor might expect if selling the vehicle to a private party.

2. Vehicle processing and fund-raising costs are subtracted from gross vehicle sales revenue; further reducing the proceeds charities receive from vehicle sales.

They also indicated that they were unable to determine whether individuals claiming deductions for donated vehicles accurately assessed the fair market value of their vehicle, because data as to the vehicles condition was not available. However they mentioned some charities they interviewed stated some of their donors' claims about vehicle value might have been inflated.

The GAO's 43 page findings and recommendations were very detail oriented and what Congress eventually approved was included in the American Jobs Creation Act of 2004. The final version of the changed law took effect for tax year 2005.

Charity Car Donation TAX LAW OVERVIEW

THE OLD DAYS (tax year 2004 and older)

A taxpayer could claim fair market value for any vehicle donated to charity up to $5,000 accompanied by a receipt from the charity, regardless of what the charity sold it for. No reporting requirement on behalf of the charity.

Anything over $5,000 still required a receipt from the charity, along with IRS tax form 8283 and a required third party appraisal. The charity was required to submit IRS form 8282 once the vehicle sold.

TODAYS STANDARDS (tax year 2005 to PRESENT)

A taxpayer could claim up to $500 for any vehicle donated to charity accompanied by a receipt from the charity, regardless of what the charity sold it for.

A taxpayer could claim whatever amount the donated vehicle sold for by the charity, accompanied by IRS form 1098C completed by the charity, indicating the amount sold and other pertinent info from the donor. If sold for more than $5,000 then IRS form 8283 will be required as well.

A taxpayer could claim fair market value (usually determined by an evaluation guide, like KBB.com) if the charity materially improves the vehicle or uses the vehicle significantly and accompanied by IRS form 1098C. If determined value is more than $5,000 then IRS tax form 8283 along with a third party appraisal will be required as well. Charity will be required to submit IRS form 8282 once the vehicle is sold.

WHY IS THIS IMPORTANT?

The abuses identified in the governmental study, pointed at several issues, but at the end of the day, it was determined to be a loophole in the law and lack of governmental resources to police it that would change the way the vehicle donation process would continue.

These new changes put the responsibility of how much the donor could claim on the shoulders of the charity or vehicle donation processing company. This is where the problem lies.

It's been over six years since the vehicle donation tax laws have changed and in that time we have seen many vehicle donation companies come and go. But the one thing we haven't seen much of, is how the existing vehicle donation processing companies or charities have changed to accommodate this new tax law. Most seem to work in that old mind-set, selling the vehicles it receives as quickly as possible. Their primary goal is to get your car donation, not maximize your deduction.

To them it's a numbers game. The more cars received, the more money in fees they collect. Selling most through wholesale auto auctions or wholesale outlets and to prove this point, just recently one of the larger vehicle donation companies with hundreds of charities on board was just bought out by a Nationwide Auto Auction Company who specializes in Wholesale.

With the responsibility falling on the vehicle donation company or the charity to maximize the donor's right off, selling donated cars in a wholesale environment is a careless business practice, where the donor is the one who loses. Lately we have heard from many car donors who had donated vehicles to other organizations and were dissatisfied with the end result, because the company processing their car donation sold it much cheaper than it was worth.

AT THE PROSTATE CANCER AWARENESS PROJECT, WE GET IT!

Our staff has years of experience in this field dating back to the late 90's and since every donated vehicle is different, it's crucial knowing which advertising medium will yield the highest selling price, maximizing our donors write-off potential. Retail classifieds, such as Craig's List, Ebay, Auto Trader, etc. are typical of where we advertise your donated car, truck, van, RV or Boat. In the event we use an auction to sell our donated property and prior to accepting the highest bid, we will thoroughly investigate vehicle values and confirm bid prices are in line with real world retail prices, again insuring the highest value possible for our donors write off potential.

Unlike most our competition, who's primary goal is to get you to hand over your vehicle to them, only so they can move it as quickly as possible, in a WHOLESALE environment. We on the other hand, spend a great deal of time making repairs, professionally detailing your donated vehicle and then researching the best RETAIL venue, showcasing it with detailed photos, making every effort possible to get the highest price possible.

So, please don't be tricked by other company's claims about receiving the highest value for your donation. If they are not selling your donated vehicle in a retail environment then they don't have your best interests in mind.

Taking care of your finances is not an easy task. No matter how smart you are, you are still prone to making money mistakes, some of which may be devastating.

Here are the five biggest money mistakes which American people make:

1. Failure to budget.

If you think that budgeting is a boring and unnecessary task, think again. If you have been living debt-free for years, then you probably don't need to budget, but if you are like most Americans and are in debt, make sure to create one.

It is very difficult to live within your means if you don't know how much money you have and where exactly it goes every month.

Creating a budget is not a difficult task and it should be done as your first step to controlling your finances and reducing your debt.

All you need is a notebook and a pen (or a spreadsheet) and some self-discipline.

2. Cashing out your 401 (k).

Another big money mistake which people make is cashing out their 401 (k). Almost half of the people who change their jobs cash out their 401(k) accounts.

This shouldn't be done due to three main reasons. First of all, you will have to pay income tax on your withdrawals and second of all in many cases there is a 10% penalty which you have to pay to the IRS. By cashing out your 401(k) you are also losing the tax-deferral which you could have kept by rolling your money into another retirement account, or IRA.

3. Maintaining an unhealthy lifestyle.

It is very expensive to be unhealthy in the United States. If you think you are saving money by eating cheap junk food, you are wrong. Eating junk food has many consequences for your health and while it may be cheaper to buy a $1 burger than a $4 salad, it will cost you much more later on.

If you have other bad habits such as smoking, excessive drinking or overeating, you need to get rid of them immediately. Not only you will save tons of money by not buying this stuff, but you will also protect your health and save money on doctors later on.

4. Underestimating small purchases.

Small purchases can be very destructive. A lunch with friends here, Starbucks coffee there, a candy bar at work, a mid-afternoon cappuccino and you didn't even notice how you just lost $25. If you spend roughly $25 a week on small unnecessary purchases, it will add up to $1300 a year.

Write down everything you buy. Nothing is too small to track and write down. While there is no need to say no to every small pleasure, you can reduce this money leak by simply paying attention at what you spend.

5. Not asking for help when you need it.

The biggest mistake that the smartest people make is not asking for debt help when they really need it. Many people are embarrassed to admit that they got themselves in financial trouble, so instead of admitting that they have a problem and asking for help they get depressed and get themselves even into deeper debt.

While with enough determination, the majority of people can get out of debt on their own, in some cases professional debt help is necessary and the sooner you get it, the better the chances that you will be able to pay your debt off without filing for bankruptcy.

Whenever we open up our own businesses and expect them to succeed, certain investments and purchases must be made. Depending on the industry you're in, it might be beneficial to invest in a roll up stand for your business. You'll find that it will be extremely useful in a variety of ways.

If your industry leads you to trade show displays, then it will certainly be of good use. And, if you've participated once before, you will undoubtedly be there again promoting your company. In order to stay in business and help it to grow, we all know that it is a competitive place. Because of that, we need the necessary tools to stay afloat.

One of the biggest benefits that comes with them is their portability. They're easy to put up and just as easy to take down. They can even be used on regular sales calls. The idea behind display banners is showing others how serious your company is.

Moreover, they don't require any electrical connections. Instead, they are completely manual, light weight, and can easily be carried in their own containers. So, they are the ideal solution for any salesperson in any setting. Display banner stands have become one of the most important tools in marketing and sales. That's because they easily allow representatives and employers alike to create a vendor stand no matter where one is.

By investing in a roll up stand, your business will have more visibility and have proven themselves to be attention grabbers in a cost effective way. Exhibits who promote their products in this manner have the opportunity to reach the public and pique their interest. Basically, it can help to lure consumers into your store or to learn more about your products.

The roll up stand is basically a portable sign. Usually, it is printed with high quality graphics and can be rolled out at any given moment, hence the name. Just as easily it can be retracted and stored away. There are lots of places that these can be used besides trade shows. For example, at exhibitions, promotional events, in front of stores, and so on. As for the materials, consumers have choices which include canvas or vinyl. There are also choices regarding the grade and the size.

If you are interested in investing in such a tool, it is imperative that you do some research. You want to ensure that you are getting the right size in the right material. Careful thought is essential so that you can save money without having to repeat the process in case of any errors in judgment that you may have made.

The bottom line is, no matter how you slice it, no matter what industry you're in, you can certainly benefit from a banner stand display to draw crowds, regardless of whether you are promoting a product or your business. The truth is, everyone can stand to benefit from every possible tool that is on the market to help them succeed and get the word out.

The discovery of metal has been one the most decisive changes in the human history. Since that time, man has had the power to create powerful tools, structures and machines that would forever change the face of the earth. The tools for forming and manipulating metal have also advanced over the ages.

The modern society now depends on metal for everyday life, be it in the form of automobiles or the kitchen knife, metal is everywhere. This has made metal so important that the work of metal forming is also becoming quite popular.

Of the various types of metal forming, Roll forming is one very useful method. Do note here that the single word 'rollform' has the same meaning as the two separate words 'roll form'. So these two words are used interchangeably. Here's some more info:

o Roll forming is a common and useful method for forming objects from sheet metal.

o Roll forming is a very precise process and a special type of machine is used to roll form metal.

o These roll forming machines have several rolls that are placed one after another and they are divided into sets called 'stands'.

o Each stand bends the metal only a little. So the metal can be passed multiple stands to reach the desired curvature.

o Roll forming is ideal for making parts, which are very long.

o Roll forming machines bend the metal into predetermined shapes. The shape would be a desired cross-section profile, meaning it will look like it was cut out from a complete shape like a cylinder for example. The cross-section profile is simply what the required end result of the bending is.

o Every shape needs its own unique set of rollers. That means that one roll forming machine can only make one shape.

Even though it might sound like it is not a very useful machine, you have to keep in mind that these machines are meant for industrial use. And factories need to make the same thing over and over again, in huge numbers. Like an automobile factory or aluminum can making facility.

So these places would not need to change the type of bend once the machine is installed. Each roller is carefully crafted for helping to form a specific shape and industries get their rollers customized before the machine is installed.

The CNC Roll forming machine has the advantage of automating the entire process, giving you a smooth bending process without breaking the metal.

Avoiding breakage is a major concern for many factories and the CNC roll forming machine delivers stellar results in this regard. So it is a necessary piece of equipment but it often costs quite high. But life can be made easier by availing CNC roll forming machine financing. It is for those businesses, which require the machine urgently but are unable to make such a large investment in one go. Of course, it is easy to understand because most start ups would be running short of capital.

You can avoid the hefty down payments and take some time to pay the full amount. Contact a company that is experienced in manufacturing equipment leasing for CNC roll forming machine financing.

The evolution of industries contains four basic stages: introduction, growth, mature and decline. There has been considerable research done on the subject, but rarely do we see written material specifically addressing the stages as they apply to a specific industry. I would like to briefly look at the web hosting industry, trying to identify the value drivers and how they change, the signs of change from one stage to another, and each stakeholder's interest and how their value changes from stage to stage. In addition, I will make several comparisons to industries in the telecommunications world, because of the similarities in the business model, value drivers and stages of evolution. Most telecommunications industries and the web hosting industry grow under the recurring revenue business model: "Sell it once and collect until it churns". The evolution of industries occurs at different rates for different reasons. Attempting to quantify the future change in each of the value drivers is the science. Why should we be concerned with the evolution of the industry we work in? The answer depends on which stakeholder group you are in: employees; equity owners (passive or active); debt holders (bank, bond or preferred); senior or middle management (different implications for each); family; communities; equipment supplier, service supplier, customers, or a government agency. The value to each of these stakeholders changes over time through the evolution. It is important to note some industries evolve from the creation of a new technology such as paging, cellular, PCS, Internet access and web hosting, while others evolve from deregulation such as long distance, power suppliers and the CLEC (competitive local exchange carrier).

There are fascinating aspects of the web hosting industry which will dictate its future. First is the up-sell potential. Web hosting is experiencing an incredible phenomenon, which is the recurring revenue per client per month is still increasing after the introductory stage for the higher end managed hosting. No one knows how many services and applications we can attach to a corporation's web site. So, we can alter the aforementioned quote to read, "Sell it once, up-sell it and collect until it churns". Sure, other industries up-sell their customers, but nothing like this. This is a major difference from other recurring revenue businesses, such as cellular and long distance where prices started high then immediately started their linear journey downward. As far as the effect of the up-selling aspect of managed web hosting services, if the average monthly price continues much longer, much more supply will come to the market and possibly increase the magnitude of the commodity effect later on.

The second fascinating aspect is the portable nature of a web hosting business. As we all know, the (rookie) end user has no idea where the web site is hosted, neither should he care as far as geographic location. He should, however, care what country the host's servers reside in for obvious reasons. The portable nature of the web hosting business will be a key force in the mergers and acquisition phase of the evolution. For example, let's look at the post acquisition integration aspects of the ISP, paging and cellular industries. The customers, systems equipment, and the sales staff have to remain in the market (MSA), but customer service calls and the accounting and management teams can be moved to the corporate office. Note, there will still be considerable investment in the selling company's market. This has been the case with many industry roll-up scenarios. One of the major criterions in a company's acquisition strategy is the geographic location it wishes to be in. For the most part, web hosting doesn't experience nearly as much of the geographic restriction.

Value Drivers:
First a quick note, due to the lack of time in this article, I will refrain from distinguishing between the hierarchies in the web hosting world: managed and shared. It should also be noted that both are viable strategies. A value driver is a measure used to track financial and operational variables in a business or an industry. The strength by which each value driver steers an industry varies from industry to industry.

1. Churn and Net Gains- Churn is simply the number of accounts that leave a company each month. It is a function of price elasticity, the level of customer service, the quality of the targeted customer base, the company's credit and collection policies, the number of competitors and their strengths, and the service/application offering. This number increases for all companies as an industry evolves through to the mature stage as the growth of the total market itself slows down. Net gains are achieved when the number of new accounts added for the month is greater than churn. This number turns negative in the decline stage (the paging industry). You can imagine the immense pressure that increasing churn and falling prices can have on increasing sales.

2. Average revenue per account per billing- This is a fascinating number, one that Wall Street is following quite closely because it speaks of the up-selling ability of the industry. Since this is a new industry, no one really knows how far this can go. Applications and services are being developed every day that will be added to web sites. The more advanced and specialized a managed hosting account, the less new capacity should affect prices and churn.

3. Revenue/EBITDA per sq. ft. of data center space- This addresses the efficiency of asset utilization. Presently, the data center build out mode in underway.

4. Market Size and Market Share- Market size is widely followed and certainly marks the different stages of the evolutionary cycle. When a telecommunications or technology industry slows to below 15-20 percent, most of the big returns have already been realized. It is usually past the maximum valuation of a private company. Regarding market share, the fight for this number can be the death of companies in the mature stage. How long will some companies sell services below cost to get it? In the paging industry, companies drove prices down below cost for so long, it left most of the public companies free cash flow negative for the entire life of the industry.

5. Expense Contributions- These numbers, measured in dollar amounts or as a percent, usually shrink as economies of scale are realized. These are great numbers to follow, especially as they pass the point of inflection.

6. Point of inflection- This is the point at which a revenue measure number is still increasing but at a decreasing rate or the converse, an expense contribution number is decreasing but at a decreasing rate. Depending upon the variable being charted, the point of inflection can occur at any stage of evolution.

7. WACC- The weighted average cost of capital is important to track over time once you back out the effect of the change in interest rates in the general environment of the market. It can illustrate the riskiness of an industry.

8. Capital Expenditures- All systems based telecommunications and technology companies have capital expenditures, heavy in the introduction and growth stages. This is an important number because it is usually the largest number below EBITDA to get to free cash flow. Sometimes in the late mature stage this number will rise again as companies invest in the next growth area. It is important to note that if free cash flow was not attained before the company invest in the new area, the company actually did not make any money in the first area of investment, regardless what the EPS figures show.

9. EBITDA Amount and Margin- These two numbers are very important for tracking the progress of telecommunications and technology companies because of the tremendous amount of capital expenditures and mergers and acquisitions (purchase method) that can distort the EPS figure. One of the greatest milestones in a business is reaching breakeven EBITDA (before adjustments). EBITDA margin tracks the efficiency of an operation as it realizes economies of scale. It usually increases as companies moves from introduction to growth. A major change in the evolution of an industry occurs when, after years of increasing the EBITDA margin, it starts to fall due to both pricing pressure and the lack of expense contributions, which at this stage are far past the point of inflection!

10. Free Cash Flow- At the end of the day this is the most important number to equity investors. It is the real amount of cash generated after all outflows of cash are accounted for. The end of the "beloved" pro-forma should include free cash flow.

Stages of Evolution

1. Introductory:

Signs:

- Consumers are being educated

- There are many engineering and systems standards with frequent changes

- Few sales channels

- Best period to increase market share

- Few competitors

- High prices and margins

- Price elasticity is low

- Venture capitalist, angel investors and Wall Street get involved; banks are too scared at this point

Comments:

The introductory stage is where venture capitalists come in and Wall Street focuses its attention. Venture capital groups play a crucial and necessary part in the evolutionary process. At this stage both the risks and the rewards are high, and capital for these projects is hard to find. At the end of the introduction stage, public companies start to make their appearance. During this stage, different engineering, sales, operational and financial strategies are attempted; some will prove to be viable others detrimental. Also, new products, services and applications will be developed. A big risk to the early players is that a superior technology can come to market after a company is already too heavily invested in the old technology to back out.

2. Growth: The Web Hosting industry is presently in this stage.
Signs:

- Increased industry capacity

- Wall Street is heavily involved selling equity and raising debt; IPO's are common.

- The number of sales channels increases

- The greatest number of competitors

- Merger and acquisition activity is at its highest

- Larger risks are taken because plentiful capital and tremendous growth negates some risk

- Profits and sales growth are at their highest point

- Prices come down for comparable services

- Innovation is still present-

- The size of the total market is still growing

- In late growth, mergers and acquisitions in the vertical integration arena start to pop up as companies attempt to gain advantages in either cost/control over supply, or through distribution, (web hosting companies buying backbone providers or the other way around)

Comments:

While it may seem counter-intuitive, the mid to later half growth stage is the best time for a private company to sell. While there is still considerable venture capital activity directed toward the higher end technologies, the basic service companies have probably attained maximum value. Private market values are at the highest and there is plenty of Wall Street capital for public and private roll-up companies to do deals. The risk to the private company owner wishing to sell is that when the party is over, it ends quickly. Mergers and acquisitions can come to a screeching halt after the public companies stock prices get cut in half. When innovation slows down and supply is abundant, the industry will evolve into the mature stage.

3. Mature:

Signs:

- Mass market saturation (Dell, Intel, Micron and IBM become household names in the web hosting arena (ISP's)

- Little product differentiation (ISP's, long distance, paging)

- Few changes in technology standards

- Customer churn increases

- Price elasticity is high (long distance, a gallon of gas, ISP)

- Lower profits and margins, EBITDA margins turn back down, terrible sign

- Number of merger and acquisitions decreases, a few larger deals (ISP's)

- Public companies start to miss wall street numbers

Comments:

The commodity effect is the most feared of all signs in an industry. The mature stage is where there is little, if any, difference between service provider's offerings, and customers demand most or all of the services and applications included in the basic rate. The service offering is extremely price elastic. The relentless fight for market share at any cost by the large players in conjunction with a slow down in the growth of the total market is a sure sign of the end to the mature stage.

4. Decline:

Signs:

- Oversupply

- Unsustainable prices

- Churn overtakes customer adds

- Bankruptcies are common

- Wall Street has left the industry

- Mergers and acquisitions have come to a slow crawl

Comments:

Usually the only stakeholders that benefit during the decline stage are the employees and management that remain after the restructuring. The biggest losers are the debt holders (we assume the stock has already tanked). The ratings on debt usually start to fall. It is a fascinating phenomenon to watch as a recurring revenue company faces bankruptcy. When a furniture store goes bankrupt, they have a going out of business sale, sell all of the furniture, fire the employees and the owner of the building leases it to someone else, then the process starts all over. However, in the recurring revenue business, there is a recurring stream of revenue coming in every month. It benefits no one to turn the power off and cancel all of the cash coming in. So what usually happens is the debt is restructured and swapped for equity to take debt service payment pressure off the company.

Two final notes:

The following two present day scenarios show that the mature stage of an industry can last for decades. In addition industries can move back to a previous stage due to technological innovation.

Long Distance:

Several groups are predicting the demise of the consumer long distance business, which AT&T, Sprint, and World Comm dominate. The other side of the argument is that even if technology allows phone calls to be made over the Internet (after latency issues are worked out), the traffic will still be carried over someone's fiber network. The owners of the fiber network, many of the long distance carriers, will in turn bill for it. So the recent trend from circuit-based traffic to packet-based traffic will have a somewhat negating effect.

Cable:Just when we think we have figured out that an industry is in a mature stage, we get hit with what happened to the cable industry. Technological advances reversed the industry back to mid growth. The technology was originally intended for home television use. Now cable has become the mega-bandwidth pipe capable of delivering home telephone service, always-on Internet access, data transfer, long distance, hundreds of video channels and whatever else can be sent through the pipe. Now cable system owners are looking at receiving several times the original $30 per month for basic cable. Sure, there is additional capital required for upgrading each end of the pipe, but the basic infrastructure and the all important "right of way" (ask the long haul fiber optic people) are already in place.

Conclusion:

There are winners and losers throughout the entire evolution of an industry. It is important to know how it effects you, whether you are a corporate manager trying to guess the future stability of an industry, an entrepreneur wanting to know the best time to sell your business, or a product or service supplier trying to quantify future demand of its products. There are not many sure things, every path has its risk and return characteristics, all we have is history to guide us throughout our business world.

Let's all sing a new version to the tune of the 60's sitcom "Gilligan's Island" ...

"Just sit right back and you'll hear a tale, a tale of mishandled use; that started with our nation's past to form a fiscal noose. The tax was a mighty hurtin' vice, our wallets paid the price; working hard to pay our share, it's not always fair, it's not always fair. The economy started heating up, so the Fed put on the breaks; if not for the courage of the consumer's purse, things could've been 'lot worse. The yields hit bottom as we turned our focus to the source of political fate; with deficits, the Speaker too, the President and his wife, those movie stars, the terrorists and Al Greenspan; here and in every state."

(The opening credits fade and the scene is one we have all experienced) ...

The relationship between the tax payer and our government is a source of constant and sometimes entertaining debate. Like Gilligan, the tax payer may feel "slapped around" and unappreciated by a larger, yet necessary, entity. In this analogy, the Skipper represents our government. The decisions made by our elected officials and others of higher political rank may contradict our own opinions. What is the consequence of slapstick government spending and how does it affect you?

When it comes to the nation's monetary policy, the Federal Reserve Bank (a.k.a. the Fed) manipulates the supply of money. It adopts a tight monetary policy when the goal is to restrict the supply of money and an easy monetary policy when the goal is to circulate more money. A tight policy may occur during times of inflationary concerns whereas an easy policy may occur to encourage business expansion.

Here's where the laughter dies and we conclude there is no escape from the island.

The government has several methods to increase money supply and many reasons to do so. Keep in mind, the reasons are generally non-partisan and no one political party is to blame. One such reason, however, is to patch problems caused by government overspending.

When the government is unwilling to act prudently with its expenditures, their bills must still be paid. And when raising taxes is an unpopular alternative (as if anyone is ever happy to accept higher tax rates), printing money may become the default action. Now, if you, a simple citizen of the United States, cannot pay your bills, printing money is not an option. Such acts will land you on a metal bed in a shared cage we all call incarceration. Polite conversations with your spouse and friends will be substituted with arguments from your cellmate named "T-Bone" regarding the use of one shared toilet. But, the government will print money to compensate for its overspending. It then spends the new money and supply increases.

The joke is now on the hard working citizens of the United States and its set-up is familiar: "The government and a U.S. citizen walk into a tavern. The government points to the citizen and proclaims to all the patrons 'the drinks are on this guy!' Afterwards, the government finds a new citizen or tax payer and continues the trend."

In reality, the joke is on us all in the form of inflation. Simply described, with a greater supply of money, the dollar will be worth less than before. Once the purchasing power of the dollar declines, fewer goods and services can be purchased. Inevitably, consumers experience higher prices. The economy seemingly has more dollars but loses its purchasing power. A new character named "Inflation" finds its way onto our island. And when this occurs, we hope it will only be around for a couple of episodes.

It is important to note, not all prices and wages correlate with periods of inflation. Inflation may result in higher or lower levels of output and employment depending on the sector and type of goods or services. Some may benefit from higher inflation. The effects of inflation often include redistribution of wealth and income, changes in relative prices, and some saving restrictions for important goals such as retirement.

The inflation rate is measured by the Bureau of Labor Statistics (BLS) using the Consumer Price Index (CPI). Today, the inflation rate is about 3.5%. So how long should we expect to live on this low inflation island? This is a difficult question to answer considering it is impossible to calculate inflation going out several years from today. During the past decade, however, we have experienced low to moderate inflation. Still, according to the BLS inflation calculator, $1000 in 1995 has the same buying power as $1258.53 in 2005. Remember early 1979 through late 1981 when inflation rates hovered around 10 percent to almost 15 percent. According to the same BLS inflation calculator, $1000 in 1979 now has the same buying power as $2641.87 in 2005.

It is arguably the uncertainty of inflation that causes the most damage. Preparing for increases in the cost of living is an important aspect to financial planning. Your financial planner can assist you in reviewing inflation trends, introducing inflation adjusted estimates for future income needs, managing tax efficient portfolios, and keeping an eye on government actions. While you cannot control the weather of our economy, preparing your S.S. Minnow for potential rough sailing is important.

(As this episode ends and the closing credits roll, we rejoin the final verse of our amended Gilligan's Island tune) ...

"So this is the tale of our inflation rates, they're here for a long, long time. You'll have to make the best of things, it's an uphill climb. Our law makers and bureaucrats will try their very best, to make the nation comfortable, with a fiscal mess. No rights, no wrongs, no benefits, not a single guaranty, like generations before yours now, it's challenging as can be. So join us here each year my friend, you're sure to pay your share; with every worker and our government, we make a solid pair."

Rapidly growing credit cards balances can very negatively affect all aspects of your life, as the stress caused by them can affect your personal relationships, your health, your job and even your sex life. It's easy to feel completely overwhelmed and despair over your situation, but there's always a way out. It just takes a concerted effort, and that initial push to get the ball rolling.

While the typical view of someone in credit debt is of the overzealous shopper, there can be many reasons why your credit cards got tapped. Having to force your cash resources into unexpected areas may have forced you to use your card more often than you otherwise would have. This could be caused by the loss of a job, an illness in the family, trying to pay off a school debt, a failed business venture, or any other number of circumstances. What may appear to be a short term solution often turns into a long term problem though, with interest rates piling on top of themselves to point where it seems your bills multiply each month. Even making decent sized payments may barely make a dent in the overall debt, which can be distressing.

Your first step may be to hire a financial advisor. They can take into account all of your finances and how to best utilize them to make your life easier. It's nice to have a knowledgeable person on your side, and one unaffected by emotions. People in debt often resort to drastic things to try and get themselves above water, which often only makes things worse.

Your friends or family may also be a source of advice and counsel. In fact if you can manage to get a loan from a friend, or even a lower interest loan to help pay off a high interest debt, that's a great place to start on the road to recovery.

Debt consolidation is both extremely useful, and also practical, putting all your debt into one easy to monitor and manage place. This alone can reduce the stress over debt, even if the actual amount owed is the same. Owing money to just one person or source is a lot less stressful and confusing than owing it to multiple sources. If you have a financial advisor, having them help you through this process would be beneficial. Some debt consolidation may require collateral, which may not be prudent if you're at a high risk of defaulting on the loan. This could ultimately put you in a much worse position than you're currently in, so knowing all the ins and outs of this process is very wise.

You can also look into debt settlement. A debt settlement company is one that works on your behalf for a small fee to lower the amount of your debt owing to companies. They can often reduce your net amount owed by as much as 25-50%. This settlement will negatively impact your credit score for some time, but if means avoiding bankruptcy, stress and other associated ailments, it's probably well worth it.

You can of course also declare bankruptcy, though recent changes to the law have made it more difficult for individuals to do so. This will basically give you a fresh start, protecting you from anyone you owe money to, though it will impact your credit rating for as long as a decade.

How you go about eliminating debt is up to you. You can go the slow and steady route by trying to use low interest consolidation, or take out a personal loan from a family member, or you can get much of it wiped out in a quick, clean jerk, at the expense of your credit score for some time to come. The good news is that you have options, they're just difficult to sort through.

Handling finances is a crucial matter that requires the checking of minutest details and that too with extra caution. You must be aware of the fact that a slightest mistake can force you to take a u-turn and cover the entire distance all over again. It really becomes tedious if you have to go through all the details again and tally the accounts. The daily expenses, outside expenses, payments, bills, invoices and many things have to be checked out when you are handling the finance accounting department. And during the tax paying season, the work increases to such an extent that you will require the help of outsourcing services.

The idea of outsourcing has been developed to ease the work of all those accounting firms that are covered with work up to their neck. Tax calculating is serious matter that needs to be handled in a proper way to avoid unnecessary hassles. No one wants to have tax raids and push their business in difficulty. It is because of this reason that paying the taxes on time is given prior importance to any other task. With the advent of tax season, accounting firms runs in tension due to the increasing workload. It is this time that outsourcing comes as a rescue.

Finance accounting outsourcing has become an integral part of the business. There are lots of things and finance documents that have to be tallied before you are required to pay the taxes. Balance sheet, profit and loss account, pay roll processes, invoice, financial statements and trial balance are some of the documents that need to be considered. It is quite obvious that you would like to know the amount of tax that you have to pay. If the finance accounting documents are not in a proper order, then you will not be able to know the tax amount.

Being a business owner, you would like that the accounting firms should do the work properly and within the given time frame. Now, you might think that lots of money is going to be wasted in getting the work done. There is lots of finance accounting firms that outsource the work, whenever it is beyond them. In this case, you can be rest assured that your accounting work will be done within the budget amount. You will not have to worry about keeping a specially trained staff for this purpose and paying them whooping salaries, house rent allowances, bonus and likewise add-ons.

Another advantage of finance accounting outsourcing is that you will be able to get your work done in much less time that would have been taken by an in-house staff. Generally, it happens that your own staff might have to handle the other departments that are profit generating and this case it would be difficult for them to pay attention to this aspect. The accounting firms take the help of outsourcing companies so that can deliver the client's work in time. In fact, this will help you to pay your taxes on time and save yourself from the wrath of income tax department.

Today, in most two-parent families, mothers work outside of the home. Yet, there are more children living in poverty in America. It is believed that families need two incomes to maintain a marginal middle-class lifestyle. Two-parent families have financial difficulties, but this is nothing compared to the abject poverty suffered in single-parent families. Families are making more money today than fifty years ago, yet the average median income for the family has fallen. Inflation, family assistance, and the disparity between high and low-wage earners may explain the major decline in the national median income. America's middle class is rapidly disappearing.

Money can be a source of power over single parents. Traditionally, men earn twice as much as women. In a divorce, many women keep the kids while the men keep the money. Divorce courts across the nation have responded with adequate child support mandates, but have had trouble getting payments to the custodial parent. Nonpayment of child support is a major reason that millions of children live in deep poverty.

Delinquent parents in New York have been threatened with driver's license revocation for not paying their child support. In 1995, almost a half-million children in New York were owed child support. Additionally, the state of New York posted "Wanted" posters with pictures of parents that owed the most back child support. When delinquent parents do not support their children, taxpayers pick up the tab through bloated welfare rolls, exploding Medicaid bills, housing assistance, Aid for Dependent Children, food stamps, and food charities. Almost one-half of America's families receive some sort of assistance. That means they are not paying taxes, either.

America sends a mixed message to career mothers when they are stereotyped as not having enough time for the kids. Yet, society expects mothers on subsistence to work. All parents single, divorced or married simply must have rock-solid child care plans. These plans should cover normal, everyday supervision as well as sick-kid child care. Divorce courts must put the needs and interests of the children first when separating property and custody.

Teens can learn valuable lessons from financial hardship of the single parent family. Teenagers that have everything handed to them grow up to the rude awakening that everything they want is not going to magically appear when they are adults. Teens of single parent families know all about abject poverty. Their help at home is enlisted from the beginning and together they and their single parent can work for a future in a comfortable middle-class lifestyle.

In this example, you trade exposure on 100 shares of stock for exposure on 300 shares, but you avoid or delay exercise as well. At the same time, you net out additional cash profits, which reduces your overall basis in the stock. This makes exercise more acceptable later on. Of course, you can continue to use rolling techniques to avoid exercise. Another important point worth evaluating is the potential tax advantage or consequence. Options are taxed in the year that positions are closed; so when you roll forward, you recognize a loss in the original call transaction, which can be deducted on your current year's federal income tax return. At the same time, by rolling forward you receive a net payment while deferring profits, perhaps to the following year. However, because the roll forward may involve in-the-money positions, the stock profit may revert to a short-term gain instead of the more favorable long-term gain.

The roll forward maintains the same striking price and buys you time, which makes sense when the stock's value has gone up. However, the plan does not always suit the circumstances. Another rolling method is called the roll down.

Example: Repetitive Profits: You originally bought 100 shares of stock at $31 per share, and later sold a call with a striking price of 35, for a premium of 3. The stock has fallen in value and your call now is worth 1. You cancel (buy) the call and realize a profit of $200, and immediately sell a call with a striking price of 30, receiving a premium of 4.

If the option is exercised at its striking price of 30, the net loss in the stock will be $100; but your net profit in option premium would be $600, so your overall profit would be $500:

Striking price of shares $3,000

Less original price of shares -3,100

Loss on stock -100

Profit on first call sold 200

Profit on second call sold 400

Net profit $500

The roll down is an effective way to offset losses in stock positions in a declining market, as long as the price decline is not severe. Profits in the call premium offset losses to a degree, reducing your basis in the stock. This works as long as the point drop in stock does not exceed the offset level in call premium. You face a different problem in a rising market, where the likelihood of exercise motivates you to take steps to move from in-the-money to out-of-the-money status, or to reduce the degree of in-the-money. In that situation, you may use the roll up.

Example: Trading Losses for Profits: You originally paid $31 per share for 100 shares of stock, and later sold a call with a striking price of 35. The stock's current market value has risen to $39 per share. You cancel (buy) the call and accept a loss, offsetting that loss by selling another call with a striking price of 40 and more time to go until expiration.

With this technique, the loss in the original call can be replaced by the premium in the new call. With more time to go until expiration, the net cash difference is in your favor. This technique depends on time value to make it profitable. In some cases, the net difference will be minimal or may even cost money. However, considering you will be picking up an extra five points in the striking price by avoiding exercise, you can afford a loss in the roll up as long as it does not exceed that five-point difference.

Tip: Rolling techniques can help you to maximize option returns without going through exercise, most of the time. But the wise seller is always prepared to give up shares. That is the nature of selling options.

Huge billion dollar bailout plans in the works, a credit crisis, a looming credit card debt crisis, state budgetary issues and an imminent government policy of bailout and spend means a recession is looming. It is only a matter of time until the current credit and financial crisis leads to a full blown recession, below we will outline the steps to help recession proof your personal finances.

Inflation and Recession is Imminent. I am no longer on the fence on the matter, the economic statistics are beginning to roll in and earnings season on wall street has just begun. Consumer spending trends oft follow corporate spending trends and right now the strategy of the moment is defensive. With the inevitable recession and inflation in our near future, if not here now, here is the top 10 list of ways to survive the coming recession.

1. Downsize: There is no way around this one folks, I know we hate to hear it, but to recession proof your personal finances it is time to spend less and attempt to earn more.

2. Create an emergency fund: Do what you can to increase your liquidity. Set up an emergency savings fund of cash that can be drawn upon in tough times if you have not already done so.

3. Hedge your portfolio with Gold: Consider moving a portion of your assets into gold. Not gold stocks mind you, but actual gold as a hedge against inflationary government bailout policies.

4. Pay down your high interest debt: Take a lesson from the failing financial institutions and pay off your high burden high interest credit cards or personal loans, or at least stop adding to them immediately to recession proof your finances.

5. Balance transfer to ease interest burden: Consider a balance transfer on your outstanding credit card debt and take advantage of 0% for a period promotional offers to ease the interest burden and get ahead.

6. Get Emergency Credit Now: If you are lucky enough to have equity in your home or real assets, consider getting a line of credit against the asset now, and leave it untouched and available for hard times. Credit will be tougher to get with new future regulations and policy.

All is not lost, and there is much that is bright on the horizon. The US is a resilient nation, with a generous hardworking and industrious people. Preparedness is the name of the day to survive the coming recession. Spend the time to recession proof your personal finances now, your balance sheet will thank you for it.