Finance Roll

What happens when you are sued for more than your basic homeowners or auto insurance policy covers and are found liable? Well, for most people, it would mean liquidating unprotected assets in order to satisfy the judgment. This may mean garnished wages, selling property, and possibly losing some of your investments. This is certainly a situation that could ruin your life, but there are ways to protect yourself.

A personal umbrella policy is additional coverage that goes above and beyond what your homeowners and auto insurance policies cover. Think of it as a protective umbrella that will pick up the damages once you have exhausted your coverage of those policies.

Your home is likely your most valuable asset-make sure it is properly protected. While insurance agents will help determine the kind of coverage you can buy, it is ultimately your responsibility to know what the policy covers. And remember, insurance agents are salesmen and typically work on commission. This isn't a bad thing, but be aware of what type of coverage you actually need so that you can spot it when you're being sold something you don't truly need.

This is one of the most important things to remember when planning for the "Golden Years" Protect your assets. Also, start thinking of ways to supplement your retirement income.

Lately, I've been looking at sources of passive income in order to bolster (and hopefully eventually replace) my current income. It is a fond dream that at some point in the future, I could largely step back from doing active day-to-day work and instead use these sources as my primary income stream. In that eventuality, I could devote my time to volunteer causes and charities I'm passionate about (and maybe have time to sit back and read a book for pleasure on a lazy afternoon every once in a while).

The mere act of owning many investments can be considered a source of passive income. You merely hold the investment and regular dividends are paid out to you. Many people tend to focus on investments in terms of the increase in resale value, but many others quietly hold stocks and bonds that pay large dividends, lining their pockets with capital gains. Look for individual stocks and bonds or index funds that pay good dividends, then sit back and watch the money roll in.

The internet, magazines, and books on personal finance are chock full of calculators and projections to help you figure out "your number" - the usually astronomical sum of money that it is allegedly going to take for you to live off your portfolio of securities, not work, and still maintain some semblance of the same lifestyle you had while you were working.

The exercise seems reasonable - necessary even - but the problem is that the results are almost entirely arbitrary, especially if you are more than 10 years away from retirement.

Any shift in any one of the variables can drastically alter the final figure that pops up, telling you how much you need to have saved in order to retire at X age or how much each year you need to be putting away.

If you have a portfolio you might want to rebalance it every so often. Rebalancing is the act of sitting down once per year and adjusting your portfolio toward your target asset allocation. Let's say you hold two funds because you want a 50% US stock exposure and 50% International stock exposure. During the last year, it is unlikely the funds have gained and lost exactly the same. So you end the year and US stocks have been up more than International stocks. Your current portfolio weight is 53% US and 47% International.

Doesn't sound like a big deal, right? Just 3%. Well, over time that gap can get larger and larger until one day you find yourself with a 75/25 allocation-way out of whack.

Bad credit can be financially crippling when trying to apply for a credit card or a loan or even more of a problem when applying for a mortgage. Bad credit can cause many sleepless nights and family stress, while trying to acquire a mortgage for your new home.

It is very easy indeed to lose your good credit status, a few late payments, or one missed payment can seriously damage your credit rating. A couple of weeks off work, sick, or some unforeseen large payment can easily damage your credit. Making it difficult to get a mortgage for your dream home.

Many people will turn to companies that specialise in helping people repair their credit status. These people may not realise that having bad credit does not necessarily bar you from getting a mortgage. It may, make it more difficult, and a little more inconvenient, but it certainly does not mean that mortgage is beyond your reach.

A bad credit mortgage may in fact be the best way of repairing your damage credit and regaining the confidence of lenders of all kinds. One of the main purposes of the bad credit mortgage is to repair the damaged credit score, and also get individuals back on the road to financial security.

Bad credit mortgages will give you the opportunity to show lenders and credit reporting agencies that your credit status was caused by situations outside of your control and you are in fact, well capable of making regular payments. Making these regular payments can quickly show to lenders that you are a responsible borrower who wishes to resolve their credit history problems.

The first thing you need to do to obtain a bad credit mortgage is to find a company to lend you the money. It is not advisable to do this on your own unless you have considerable knowledge of the mortgage market. It is quick and simple to secure the services of a mortgage broker, who has the knowledge and the skill to bring you together with a quality mortgage lender who will suit your needs.

When you find a broker, you need to make him aware from the beginning that your credit is less than perfect. That way, he can save time by knowing which lenders may be suitable for your needs. Not only can a bad credit mortgage help you to resolve your credit score problems. It can also be used to fix some of your financial credit problems as well.

By credit mortgage can be used to fund paying off some of your existing debts, such as credit cards and car loans. Lowering your monthly payments by rolling all his debts into one payment, which will be far more affordable for you.

Some companies now specialise in these kind of mortgages, and are sympathetic to people who have found themselves in difficult financial and credit situations. They understand that circumstances beyond your control may have forced you to miss a couple of payments on a credit card. But that does not necessarily make you a bad risk of paying your mortgage in a timely fashion.

There are many mortgage brokers, some of them online, who can point you in the right direction and give you lots of useful advice about how to locate the best mortgage provider for your bad credit mortgage situation.

Ever since the credit crisis of 2008 the financial landscape has changed for us all irrevocably. One of the most obvious examples of this has been the difficulties experienced by both businesses and by individuals in securing credit, whether in the form of a business loan or, for the ordinary working man or woman, a credit card or mortgage.

Much has been written about the difficulties in particular facing many people - especially young people - in securing a mortgage to take their first, faltering steps on to the property ladder. But the problem of getting a mortgage is not restricted to first time buyers only. Even people who have a mortgage at present are finding it extremely hard to extend their borrowings to help them make the move to a bigger property as their needs change. As a result, the property market is in a state of stagnation.

While there is an understandable tendency to be pessimistic about the future confronted with such circumstances, there are, happily, a number of simple, straightforward tips which can help you secure a mortgage to buy the home of your dreams. Note we said these tips were simple, but that is not to say they are necessarily easy to implement. To get on the housing ladder these days will take planning and a degree of self-sacrifice, but if you are willing to commit to them, the following tips will undoubtedly help

The first tip could not be simpler. Make sure your details are recorded on the voters roll. Credit agencies always check this and it could not be simpler to ensure you name is down.

As lenders have become much more choosy about the people they are willing to grant mortgages to, it has become increasingly more important to be able to demonstrate that you can put down a significant deposit towards the purchase price of your new home. The days of one hundred per cent loans are gone and are unlikely to return in the foreseeable future, if at all. The most competitive mortgage deals are reserved for those who are able to fund a substantial deposit. This is where self-discipline and sacrifice come into play. If you are able to commit to save as much of your free cash as you reasonably can for a period of time, to build up a sizeable deposit, you not only stand a much better chance of getting a mortgage in the first place, but also of securing a better interest rate as well. It's worth bearing in mind though that the very best rates available tend to be for borrowers who are able to put down a deposit of more than twenty five percent of the property value.

When assessing any mortgage application banks, building societies and other lending institutions will pay close attention to the applicant's credit report. It is important to be aware that these reports are not always foolproof and very often may contain errors which could adversely affect your application. As a result, it is essential that you check your credit score yourself in advance of any mortgage application and address any errors which are contained in the paperwork. By paying a small fee to the relevant credit agency you can get hold of a copy of your report and once you have identified any discrepancies it is usually pretty straightforward to have them rectified by contacting the relevant company direct. A small amount of work here can save a great deal of pain and distress at a later date.

Another thing that lenders are looking for when considering any mortgage or credit application is that the applicant appears to have a stable, solid background. That is, they favour applicants who have held down a job for a decent amount of time and who can demonstrate that they have lived at the same address for some time too.

Applicants who have a chequered employment history or who appear to have moved from address to address in a short space of time are likely to alert the interest of the underwriters, leading to their application failing.

Commercial mortgages aren't usually full term loans. By this, I mean that it is pretty rare for a loan to be paid off over its term. Instead, most commercial financing is refinanced for one reason or another well before the loan matures. In this article, we take a look at how the refinancing process works in the commercial arena.

The average commercial mortgage is very different from residential personal loans in many ways. One is the purpose. Whereas a person might expect to own a home for such a long time that they could pay it off, the same is not true with a commercial mortgage. Not even close. Whereas you might voluntarily choose to refinance your home to pull out money to add a new room, commercial loans do it more as a requirement.

Every commercial mortgage is different. That being said, the most common approach is what is known as the balloon/amortization model. In this model, we find a loan set with a relatively short term followed by a balloon payment. The loan payments, however, are amortized over a longer period of 25 to 30 years. So, does anyone expect the balloon payment to be made by the borrower out of their profit? No.

The goal with these loans is much like the national debt - to roll it. The number of commercial mortgages that are paid off over the course of their full term with borrower money can probably be counted on a single hand. The better and accepted approach is to refinance the mortgage when it is advantageous based on rates and circumstances. If an opportune time doesn't occur during the term of the loan, bridge loans or other temporary financing is often used to bridge time until better rates come on line.

While refinancing is expected in the commercial loan market, that doesn't mean it is just a matter of snapping one's fingers to get a new loan. No, it takes just as much work and just as much preparation as when the original loan process was undertaken.

The concept of what you want versus what you really need can be critically important in your efforts to conserve and save money, and consequently help the status of your family and household budget. This is just one of a number of financial strategies that I'll be rolling out for you that should help you learn how to budget just a little better and help improve your personal finance picture. Good goals for us all!

I'm not sure who helped me learn this difference, between wants versus needs, but it has been important in my efforts to make budgeting work more effectively. For most of my life I've considered things to purchase, whether for my personal use or for the family and household, based on what we've wanted. We want a new barbeque, we want a new car, we want a new television, and so on. This has most often been the criteria we've used to determine where we're putting our financial resources.

Purchases like these end up being "impulse" purchases and really suck up and absorb a lot of the cash we've had available after basic necessities have been handled. When we finally grasped the concept of considering whether we really NEED these items, we've found that we often don't spend that money.

By holding off making purchases of items like these for a few days, or even a few weeks, we would often realize that we didn't really need that barbeque or new car. Very often what we'd been using up until then would continue serving our needs just fine.

You might find if you look around your house and garage you'll see items that you bought when you felt that you needed them, when in reality you really just wanted those things. I know we have a lot of things that we spent precious funds on that we've never used because we didn't really need them. We just liked the idea of owning those items and we fooled ourselves into confusing wants and needs.

We use this idea a lot when we go grocery shopping. We try to shop only using a list that we've prepared at home before we go out. When we're at the supermarket and see or think of something we want (that's the critical word, "want") if it's not on the list we'll jot it down at the bottom and NOT buy it on that trip. Later, at home, we'll have a chance to think about whether we really need that item, and if we do then it goes on the list for next time. If we really don't need it, we just saved a few bucks.

Make sure the item or experience you want to spend your money on is a "need" and not a "want." Sometimes this can seem like a thin and indistinct line, with no substantial definition, but if you stick to the need list, you will spend less. You really DO know whether you need something, or if you just want it. Don't let yourself be fooled, by your fast-talking mind, into buying stuff that you really just want.

I hope these ideas have put you on the right track to considering small things that you can do, which can add up to big amounts, to improve your personal finances and help to protect your precious family financial resources!

Business owners that are looking for viable commercial mortgage loans should look hard at SBA financing. These loans continue to close and relative to other sources of capital, like conventional bank loans, SBA financing is much healthier. In addition, SBA loans have many advantages over conventional financing, which we discuss below.

But first, let me address a few common concerns with SBA financing. The SBA has a bad reputation with many, as being overly cumbersome. And granted, if you work with the wrong bank, you will likely double the processing time to get the loan done. Many banks that are not fully focused on SBA loans, will have to have their loans underwritten twice, once by the bank, than by the SBA... If you go with the right source, your loan will only have to be underwritten once.

The other common concern is that people have a misperception that if one bank declines the file that the loan request must not fit the SBA guidelines and is not eligible. People need to keep in mind that banks finance deals, the SBA only guarantees the debt for the bank... And banks guidelines are almost always more restrictive than the SBA's. If you have been declined, keep looking and find out why.

Commercial Mortgage Loans Vs SBA Loans

Highest loan to value in the business. SBA loans go up to 85% financing on refinances and 90% on purchases. In addition, it is common to roll all cost of a project into a loan. For example, if you where purchasing an office building for $800,000 and needed an additional $200,000 for renovations and equipment for $200,000, you would be able to get 90% financing on the $1,000,000...

Most conventional financing would require you to put 30 - 40% down on the $800,000 purchase price and the renovation/equipment financing would be up for grabs. You would likely having to pay for those items in cash. On refinances, conventional commercial mortgage loans now rarely exceeds 60% loan to value. Again 85% with SBA vs. 60% conventional; this is the decision maker for many businesses.

25 year amortization with fixed periods ranging from 3, 5, 7, years is still available with the SBA. Conventional commercial financing is now capped at 3 -5 year fixed rates with amortization schedules rarely exceeding 15 - 20 years. These shorter amortization schedules increase monthly payments significantly and can be a serious drain on cash flow.

No balloon clauses with the SBA. SBA loans are fully-amortizing, meaning that they pay off by the end the amortization period. Most conventional loans will have a structure such as a "3 year fixed period, with a 10 year term, on 20 year amortization schedule." At the end of the 10 year term, the borrower faces a balloon. With SBA financing there's never any pending balloon that could very well put the borrower in a bad position.

Relatively low prepayment penalties with the SBA loans. On a SBA 7a loan, the pre pay is 5% in year one, 3% in year two and 1% in year three, gone thereafter. The borrower is allowed to pay down the principle by up to 25% of the balance without incurring the prepayment penalty. Compared to the typical conventional prepay at 5% for 5 years or a 5% step down, the SBA pre pay is cheap and more flexible.

None of the above really discussed the most important point of all - that SBA loan are the most viable and reliable sources of commercial mortgage loans in the business today. The credit crisis will likely to continue for another year or more. These loans are still closing while many conventional loans die while the loan is in underwriting, costing the borrower thousands of dollars and two to three months of wasted time and effort.

Development finance certainly saw some significant changes in the last three years when the number of development lenders dropped and funding became more difficult to obtain.

However, there are still deals to be done and still a number of lenders who are genuinely willing to lend. It's imperative to find lenders with enthusiasm. Brokers need to identify the right lender for the loan and ensure their client can meet the lender's criteria.

The development finance market is an area with growing demand for funding because the big banks still have no appetite for this type of lending at the moment. The lack of competition has led to relatively high pricing, which means there must be decent profit levels in each and every deal.

In speaking with a few of our developers, they shared that they are still very sensitive toward current pricing, whereas others have accepted that low-cost funding in this area doesn't really exist anymore. The deal can get done but at a higher cost.

Another aspect to consider is the type of development being financed. Commercial development funding for speculative builds is very difficult (if not impossible) at the moment due to limited exit routes for the lender. However, for the right deals, at sensible loan to values and where the underlying security property is good quality with good rental demand, they can still be funded at LTVs around the 65% mark, somewhat higher in tier one territories.

While some lenders are mainly biased towards the east coast or other tier one areas, the main objective is to build and sell, so it is important to build where the market is most active.

With this in mind, it's imperative that Brokers assemble a comprehensive package of information before approaching lenders. Presenting the full package to potential lenders in the right way is crucial in order to secure development finance for a client. Your package should contain the developers resume, an itemized accounting of how the loan proceeds will be utilized, financials on the business and the developer for the past 3 years, a summary of the project, rent rolls and projections.

All of our lenders emphasized that funding is very much dependent on the individual borrower's experience and circumstances. Most lenders will not consider a proposal where the client does not have good experience, and that must be of buying, developing and selling, not just of project management or building experience.

The best advice for brokers is to have relationships lined up and ready so that when they find a borrower, the deal can move forward quickly.

We're often told that it's rude to talk about money with other people, and so, we refrain from asking things like how much a person earns every month, how much their cars and houses are, and how much they gave as down payment for their new home, although asking for the prices of consumer items are perfectly fine. We're also not supposed to talk about how much money we already have or don't have, and are expected to be able to handle our own finances.

But things have changed, and it's no longer easy for many of us to just keep track of our spending and earnings just like that, especially since there are a lot of investment vehicles and expenses that should be factored in. People have gone beyond simply putting their money in the bank to putting their money to work by investing in stocks, mutual funds, foreign exchange. That's why enlisting the help of a financial planner is a good idea, especially if you have quite a portfolio to work with or are interested in building one.

Engaging Concord wealth management services to help you map out a solid financial strategy as well as assist you in diversifying your investment portfolio is a good first step to take, particularly if you're unsure as to how to begin and what the smartest methods are for your available funds. A professional will examine your assets and figure out the best way for you to maximize your earnings from the market, and even help you with estate planning.

Some people are under the impression that hiring a financial planner is something only the wealthy can do. The truth is, anybody can work with one to help them determine how to save more money and grow their investments. You don't have to keep one on retainer, but opt instead to work with a planner anytime you need one and pay an hourly fee.

Another service a financial planner could provide for you is Concord tax preparation. Tax season causes quite a lot of headache when it rolls around, and you will need help in figuring out exemptions, deductions and other details.

Getting financial advice is a good move nowadays and could help you save a lot of money, and maybe even make more. The key is to work with a professional who truly understands your situation and will be able to provide sound advice that is suited to your assets and investment goals.

100% financing is still available in the mortgage market. I know, you listen to all the financial doom and gloom from the media and you would think every lender just locked their doors and went home. It's not a good situation but it is not as bad as the media wants you to think.

Remember, it is also an election year and every election year, both political parties talk about how bad the economy is until we believe them. Then one is elected and they save the day, ... and the economy. Don't ya just love it!!

Here is a news flash. People are still buying homes. Yes, mortgages are available and everyone should realize that this is the best time to invest, or purchase a home. (When the price is low.) Have you ever heard the term "A Buyers Market"? That is what we have here.

History shows that Real Estate sales and our economy run in cycles. Back in the late 70's and 80's it was a 4-5 year cycle. You could graph it. Then, when the sub-prime loans were forced on lenders (mid to late 90's) by government regulation the cycle changed. They became longer and were more intense until it all caught up with us and here we are, like it or not.

I don't like it either but more than that I am tired of the finger pointing and blaming, and dreading, and media hype. I don't believe a "bail out" is the answer but obviously, it is not my choice or yours, or we the people's choice. Our elected officials will make the decision and base it on "no stronger ground" than what you and I would base our own opinion on.

All right all ready! So do it, what ever it is, ... so We The People can get over it and move on. We have been through worse times and we will survive and prosper. I think it is in the DNA of the USA. (sorry, that was really bad) We survive in spite of the people we have elected to office.

If you must have 100 Percent financing it is available, ... just not in the form of previous no-doc, no-verification sub-prime loans. You have several options. FHA, VA, Rural Development, or special products based on perfect credit and stability. The USDA Rural Development product is one that few remember or know about.

USDA Rural Development has two mortgage programs: Direct and Guarantee. The Direct program is a mortgage provided directly though the rural development office and your income can only be 80% of the median income for that area.

The Guarantee program on the other hand is provided by USDA approved lenders and Broker originators. It is a guarantee program, there is no subsidy or recapture, and the income restrictions allow up to 115% of the median income after special adjustments.

This is a 100% LTV mortgage based on the APPRAISED value, not the purchase price. The credit guidelines are very flexible and the guidelines have no minimum buyer commitment and no maximum for seller concessions. Note: some lender policies may be stricter in this area. USDA will always respect the lenders prerogative.

OK, so let all of us get over the failure of our market, roll up our sleeves and move on to a brighter future. Remember, NOW is the best time to purchase, during a buyers market!

Going to college is like a never ending adventure. Of course that dealing with professors, difficult exams and sleepless study nights is not always pleasant, but is indeed very rewarding. I remember when I was a student years ago, my parents used to tell me those were the best years of a person's life. I would roll my eyes at their stupidity and move on with my extremely busy life. Now that I look back, I cannot help thinking that they were completely accurate.

Spring break is actually one of the greatest ways to enjoy college years. You can travel and get as far away as you can from your student responsibilities. But what if you really cannot afford to go away this year? Do not fret, there are some ways to obtain money for this trip without affecting your finances!

Golden Rule: Do Not Touch Your Loan Money

As tempting as it may seem, it will be a terrible idea to use money from your student loan to pay for this spring break trip. Not only will you regret it later on (probably the minute you return to your normal college life), but you will also be paying interest on that sum of money in the upcoming years. Fight temptation as hard as you can and continue reading, there are ways to finance this trip which do not include money from your student loan.

Save During The Year

You wish it were as easy as it sounds, do you not? Well, it is not too difficult either. As a starving student, your parents and grandparents must send you money regularly. I am not talking about exorbitant amounts, just the necessary amount for you to buy your own stuff. Why not try to save some of that money for your spring break holiday? No matter how low will be the sum you will end up with, it is always welcome. You can also put aside your tax returns or your birthday earnings, be creative!

Get A Part-Time Job

I know it sounds awful, but why do you not give it a shot? You might end up enjoying the experience. It does not even have to be an extremely well paid or time consuming job, you are not looking to finance your education with this money, just part of your trip.

Find Discounts

You can use your parents frequent flyer miles to obtain a cheap, if not free, plane ticket. Search online for hotel discounts or food discounts, grab anything you can find, I promise it will definitely come in handy. Student ID cards usually offer price cuts on bus trip passes and airfares, check them out. Contact your local student travel agencies for more information.

If All Else Fails

Sometimes no matter how hard you try, traveling far away will not be possible. If that is the case, why not organize a road trip? All you need is a car, some noisy friends and available food. Arranging a trip home can also be a good idea, meeting your family is always comforting and it will probably give you some time to get back in touch with your roots, get together with old friends and reconnect with your relatives.

Money is on most everyone's mind. A couple of years ago, a man cashed in on a large load of options and became a millionaire in one day. He explained how he never realized how much he thought about money every day until he had enough that he would never have to worry about it again. Now he says he gets all kinds of work done and has had a burden lifted that he had never known how much he suffered under!

This story illustrates a common theme for many people because many people are under the yoke of money. Maybe even you worry about it, think about it, ponder over it, avoid it by ignoring the last three month's of checking account statements and not bringing your balance up to date, or simply hope the problem (overdrawn statements, credit card balances) just go away. And even though you know it's not the best way to handle finances, you may still do it anyway.

Fortunately, feng shui has ideas and remedies that can help create more energy (read: money) to get your finances flowing again. Try these ideas to see if you can't stimulate more prosperity!

o What's in your wallet?

Old scraps of paper, credit cards for accounts you closed two year ago or for accounts you never use? Toss them. And if your wallet is shot, invest in a new one. If you can, select a red wallet to really energize your finances. These are the most auspicious and excellent for generating more money.

Next, be sure your wallet is clean, neat, and organized. If it is close to the start the New Year consider buying a new wallet. Maybe you could request one as a gift every year when the holidays roll around. Make it a part of your standard gift list for holidays or birthdays.

o Clean out old financial files.

Old energy keeps new energy from coming into your life. Do you have old financial information hanging around? If you are hanging on to credit card statements from five years ago, you are probably holding on to too much old financial energy. Usually, items older than 5 years are considered safe to toss. Of course, you shouldn't get rid of old IRS statements! Use discretion when cleaning out your files and consult your accountant if you have questions.

o Be neat and orderly.

Organize your bills and put them in one place. Make it easy and efficient to pay your bills. It's just common sense and good feng shui. And don't just wad money up in your wallet. Treat it with respect and put the bills in there nicely.

o Declutter.

One of the most important things you can do for your finances is simply to clean up. Throwing out junk and getting rid of things like excess paper, empty boxes, and broken items can go a long way toward energizing your home for prosperity. In particular, declutter your SE corner of your home, of your living room, and of your bedroom. This is the wealth sector and if it has piles of junk, then financial chi can't circulate.

o Enhance your prospects.

What direction is best for inviting more opportunity (read: get a better position and earn more money)? See below.

Kua NumberCareer Direction

1North

2Southwest

3East

4Southeast

5 MenNortheast

5 Women Southwest

6Northwest

7West

8South

Not sure about your Kua number? Go to The Red Lotus Letter Kua Calculator to find out what your KUA number is. Make sure you look at the directions above. If possible, make it so your desk faces the SW, is that's your direction. Don't put your back to it, look in this direction.

o Water, water, everywhere.

Well, not everywhere...only in certain places, really. Water equals money. No water, no money. Consider an aquarium in the North sector of your house, provided it isn't a bathroom or bedroom. Don't want an aquarium? Fine, put a painting or print of water, a waterfall, an ocean scene, a picture of turtles or fish....

These are all fine representations of water. Or, if the North is out your front door, paint it black. This is incredible feng shui and one of the few western-style feng shui tips that works especially well. If you paint the door black, consider painting the shutters black too!

Another good water option is to display sailing ships. Display the ships, either in paintings, prints, or figures as sailing into the front door. Those that are not in rough seas are best. Sailing ships represented commerce and were often laden with all manner of precious cargo. In the US, you can often find ship figures at craft stores such as Hobby Lobby or décor stores such as Tuesday Morning and Kirklands.

Why go to this trouble in your North sector? The north represents opportunities and career. If your career advances, most of the time, your earning power does, too. This is why you want to make sure your North sector is well cared for. Gold objects (such as brass items) in this area are also extremely auspicious. Even if your kua number says your success direction is Southwest, I would not miss an opportunity to bolster my North sector. Be sure to enhance both sectors.

o Get more green.

In the Southeast (SE) wealth sector, that is. Put a grouping of 4 plants of varying heights together in the SE corner of your home. If this is a bedroom or bathroom, put them in the SE corner of your living room. Try to select a jade plant as one of your grouping.

These plants are excellent feng shui, provided the plants are attractive, healthy, and well-cared for. If not, these are very bad luck, indeed. If you want, you can use silk plants, but real ones are best. Don't forget to energize the SE corner of your living room with a beautiful plant. Put this plant in a basket or brass planter.

Don't forget Dragon Power! Display a green dragon in the East and Southeast for improved income. You can usually find these online or in Chinese or Asian emporiums or markets. Wall hangings or figures of dragons are equally good.

Avoid having metal in the SE sector of your home or living room because the SE represents small wood (growing chi) and metal cuts wood. If the SE has a toilet there, put a large rock in the bathroom and tie it with a red ribbon. This will "press" down the negative energy of the toilet.

o Get financial backing.

Just like putting a mountain at your back in the form of a picture on the wall will help you get more management support from bosses or superiors, a picture of a financial institution can give you good "financial backing."

Get a picture, poster, or painting of a bank, Wall Street, or other financial institution, and hang it so that it is at your back. Even bars of gold or sheets of money would be good here. This is especially good feng shui if you own a business! Put this artwork behind your register or your desk.

o Check your financial thinking.

That's right, how you think about money is important. There are lots of books that can help here. Some of the best for addressing the mental side of money are Suze Orman's. Did you know couples fight more about money than they do sex or children? Money is extremely personal and people get very uncomfortable talking about it.

Do you have "poor" thinking?

Do you believe that there is never enough to go around or that you don't deserve success and financial security? You should really take a close look at your financial mindset. Consider investing in some books that address your "money mind" -- because your attitude is often the source of financial difficulty.

Maybe you just need more

Many times people think that to gain more money they have to continue to find ways to cut expenses, rather than find new sources of income. Sometimes that means finding a new job, asking for a raise, getting a rental property, or taking a small part time job to bring in more money. Consider if there is something you can do to earn more rather than cut out more from your budget.

A barrel of crude oil now stands at around $71, and many believe that petrol in the UK will hit £1.20 a liter later this year. This being the case, motorists need to be looking for ways they can cut down on costs of petrol and diesel when running their cars. Drive at an appropriate speed and anticipate traffic flow. There is no point in speeding up to a set of red traffic lights, only to have to come to a halt. Better to slow down in plenty of time, and this will reduce petrol consumption. Rather than rushing places, leave in plenty of time if at all possible, and your slower journey should save some fuel.

Modern cars do not require that they be started up and the engine warmed for several minutes prior to a journey. The best way to warm up your vehicle is to drive it. When accelerating do not leave it too late before changing up through the gears. Those extra revs cost money. If you are traveling somewhere you don`t know too well, use your satnav, or good map. Backtracking after losing your way costs petrol, and wasted time. Using air conditioning reduces fuel efficiency, so if you don`t really need it on, then do without. At slow speeds it is better to have a car window open a little to let air in. Talking about aerodynamics, if you aren`t using your roof rack then remove it. Drag means your car uses more energy which equals more fuel.

Keep your car in good condition. Have it regularly serviced. A poorly tuned vehicle uses more petrol. Under-inflated tyres create more rolling resistance and use up to 3% more fuel. When buying your petrol look around for which station is the cheapest. Calling in to/from work means not having to go out specially to fill up, and the difference in a tank of petrol can be as much as £6/£7 between the cheapest and dearest petrol stations. And, don`t assume the most expensive premium fuel is best for your car. Normal performance cars do just as well on standard fuels.

Think about whether you really need to use your car for those short journeys. Cold engines use more fuel. You could be fitter by doing more walking, and help save the environment. Share your car if at all possible. Traveling with someone else takes at least one vehicle off the road for the same journey, which has to make sense. And finally, if you live in a town or city you may be able to do without having to own your own car at all. Car clubs are springing up which allows drivers to book a car for the odd journey without having to pay all the extras which you do when you own your own car.

Money... If you have a lot of money then you probably don't need to read this article...or, do you? If you only have a little money or you are broke, this information probably won't help you...or, will it?

Whether you have money or not, the chances are that you have some kind of credit debt like a home loan, car loan, credit cards and the like. But do you have a savings account? Are you able to save any money from your income? If not, here's a tip you should keep in mind: Pay yourself 10% of your income to a savings account before you pay anything else and here's why; you are your most important utility. It is you that gets up and goes to work everyday, it is you that manages the household, the bills and other responsibilities in life. Without you nobody gets paid...not the mortgage, not the car loan, not the bills and other debts.

You are your most important "service provider". Saying that you don't have enough money to save 10% every week is not a good argument... the world is a vampire...the more money you make, the more the world takes one way or the other. You have to draw the line and understand that generating an income for yourself and your household is just as important a service/utility as having lights. Try to pay yourself first because without you, nobody gets paid. You owe it to yourself to save 10% of your income because that is your reward for working and generating that income.

Do you realize how important savings can be to your decision making and economic power? Here's a helpful example of the power of saving called CD financing. By having a savings account with $2,500.00 to $5000.00 or so (at least) in savings, you can put that money into a CD (certificate of deposit) and use that CD as collateral at your local bank to borrow a secured loan with an interest rate 2-3% over the CD rate. I'll explain... A CD is a cash-based investment instrument where you give the bank say, $5,000,00 and they give you a "certificate" of deposit (CD). The CD pays a better rate of interest than a traditional savings account during the term of the CD which may be 90 days, 6-months, one- year, two-year and so forth. Let's say you have a $5,000.00 CD and you pledge that CD as collateral for a $2,500.00 loan from the bank.

Remember; rate is a function of risk and by borrowing money against your CD in this way you are providing the bank 100% cash collateralized no risk loan. Let's say you have a two-year CD is paying 3% interest...there is virtually no reason why you can't get a two-year loan where you are paying 5-6% interest because it is secured by the CD for the term of the loan. Now, in this example you have $5,000.00 CD earning 3% interest per year and a loan for $2,500.00 at 6% interest per year...which is a very low interest rate loan (and) the interest earned by the CD basically cancels out the interest paid on the loan! Other benefits of using a CD to collateralize a loan are as follows: First, if you took your savings and bought something, the money is gone (.) By using the CD financing concept, you get the money you need and you still have the CD asset, which is earning interest. When the loan is paid and your CD matures you still have your original money!

Other benefits include the fact that you can structure the loan so that you are not obligated to make a monthly payment under this arrangement. You can set up the loan with your banker...if you make some payments or no payments during the loan/CD term, you simply cash out the loan from the proceeds of the CD when it matures. OR you can roll the CD and the loan over for another year or two. This is an intelligent way to borrow or rebuild credit ratings even after a bankruptcy. This is one example of how you can benefit from saving money. It gives you power to make decisions...to be your own bank. So the next time you hurry to dish out all your income to pay bills, stop and think about saving 10%.

Copyright © 2006 James W. Hart, IV All Rights reserved

Meet the Logans. They have 2 young boys and their financial profile is very similar to that of our couple in the best personal finance book (Joe and Jill Smith)... husband is a salesman, wife is a nurse, been together about 7 years. When the Logans first got together, they rented a lovely 2-bdrm apartment in an older building at the city limits on the water for.... wait for it... Drum roll please....$400/month. $4,800 per year! Isn't that just crazy? I know people that spend more money on haircuts. But they don't take this into consideration. No one has set up a personal budget, nor do either of them know how to budget or keep personal finance books for Logan-CO.

Anyway, upon getting married, they didn't want to rent anymore. They wanted to be "home owners". So they scraped together $15K (with the help of their parents), took the best personal financial advice they got from the bank and put it towards a 3-bdrm townhome just west of the city which they purchased for $245K. Now they're home owners, right?

Let's talk about this statement. Really, what do the Logan's own? What is $15K of $245K - something like 6%? So the Logan's own 6% of their townhouse... what is that, a toilet? A closet? Maybe a sink? They're not home owners, they hold a mortgage contract... that's it. The bank is really the landlord and not a very good one. When you take the best personal finance advice from your landlord, you are in for it. You can call up a good landlord when your toilet is clogged and he'll co-ordinate and pay for a plumber, but not the bank, they're not in the plumbing business. You can call up a good landlord when raccoons have moved into your attic and he'll call the vermin hunters to chase them out, but not the bank, they're not into pest removal. If your basement's been flooded a good landlord will help you bale it out, help you deal with insurance, replace the carpeting. But not the bank, they don't do flooring.

Even though the bank owns 94% of your dwelling, they will only be there to collect their rent... I mean mortgage. But wait, the Logan's aren't "renters" they're homeowners. The Logans are "building equity", right? Oh brother. Stay tuned, Ill talk about all the equity they managed to build during the 2 years they lived in their townhome. Are you renting your home from the bank in the hopes of building equity?

We have all experienced amazing shifts in the economy most of us never thought we would see. Couple that with the stress of the holidays and it can seem a little bit overwhelming to everyone, especially small business owners.

As I promised two weeks ago I will be giving you all 12 concepts that I learned at a recent business seminar put on by BBI Financial. There were some real eye opening concepts that every person can use. Even though it has taken longer than I had expected this is the first of those 12 concepts.

The first couple of sets of concepts will be focused on Dealing with the Recession we are currently experiencing. There are several things that each of us need to be doing to make sure that we take advantage of the situations we are currently facing. This list is not meant to be a comprehensive list, however the concepts we will be discussing are vitally important to the success of your company. They can also be applied to your own personal life.

1) Understand what you do- It is vital that you understand how your company generates revenue. Too often we make the mistake of forgetting how we make money. A couple of weeks ago I was visiting with a professional sales educator and he shared the following story with me. He was helping a software company try to correct the decline in their sales. As he got into the company and started evaluating what they where doing he found that they kept saying things like:

"We are developing the best software for __________ system"

"We have the greatest idea to solve _____________ problem"

"Our software is far superior to anything on the market"

Not once did they ever mention that they were selling anything. They had become so wrapped up in the idea of being software developers that they forgot the simple fact that they were a sales company. And regardless of what your product is you do not make any money unless you sell that product.

So the first thing you need to do is sit down and realize how you generate revenue. Everything has to be secondary to making revenue. After all if you are not making revenue you will find your self in the unemployment line next to all of your old employees.

2) Keep an eye on the cash leaches- We all have those little things that gradually suck money out of our companies. It's like Benjamin Franklin once said, "if you take care of the pennies the dollars will take care of themselves". It is vital for the success of your business that you make sure you are watching all of those pennies. Each company is unique but we all have a couple basic Cash Leaches:

a) Reduce Inventories- Don't fall in love with your inventories! You should only have inventory for the sales on hand. An individual shared the story with me of a tire company that kept an inventory 3X greater than any one year's sales "just in case". That is the craziest thing you can ever do. Try to figure out how you can follow JIT or Just In Time principles, having the inventory just as the client needs it or better yet have it drop shipped from your whole seller.

b) Keep an eye on A/R- One of my close friends shared with me that he had over 350k in A/R but was not able to make pay roll last month. He is literally going broke while making money. Do what ever you can do to shorten your A/R time. In some situations it may be worth it to offer a discount to make sure you have your money collected.

c) Extend your Payables- See what you can do to extend your payables out. Your goal should be to collect as fast as you can and pay as late as you can (make sure you are not incurring F/C (finance charges) or other penalties. You need to make sure your company is as liquid as possible at all times.

d) Cash is King- Finally remember that cash is king. You need to treat cash like your most valuable tool, because it is! It does not matter what opportunities come your way, if you do not have the cash on hand you will not be able to capitalize on them.

Remember that we are currently experiencing the greatest transfer of wealth America is likely to ever see. You can either be the one paying it or the one getting it. And frankly this is the one time that it is much better to Get then Give!

Classic cars give their owners a feeling that is hard to get from a car that just rolled off of the production line last week. The interior finish, the lines, the exterior paint colors, even the smell - makes classic car ownership something that is sought after by collectors and investors alike. What's more, for many men and women of a certain age, classic cars remind them of earlier days in their lives when life was a bit simpler.

The Dream Of Classic Car Ownership

For many people, the dream of owning a classic car does not set in right away. Rather, for them the desire to buy one starts bubbling to the surface around the age of 30, 40 or older. It is during this time of life when many start getting nostalgic for the "good old days." The irony is that thinking of the "old days" actually reminds them of feeling young.

Why Buy A Classic Car?

Some who invest in a classic car want to choose the same or similar model to the one they had when they were a teenager, "back in the day." Others are looking for a model that they always wished they could own but never could afford or had the opportunity to buy. Still others are in the market for an older car for the purposes of investing for profit down the road.

Aside from professional investors or people who have put away tens of thousands of dollars in the bank over time, most people interested in buying a classic car know that they will need to finance their purchase through a loan. Getting a loan can be a straightforward process if you have a good credit score. But, the story is sometimes different for people with bad credit.

What If You Have Bad Credit?

For people who have a fair or poor credit score, classic car financing may not be such a breeze. Even if they can get approved for a loan, the interest rate is usually not what they were hoping for. And, an increase in just a few points of interest can result in thousands of additional dollars in interest payments over the course of the loan.

Classic Car Financing With Bad Credit

If you have bad credit, do not let that get in the way of your dream of getting the car you have been hoping for. Here are 3 tips that can help:

1. Consider putting up additional assets as collateral: It is important to keep in mind that having a bad credit score makes a lender think that you will may not be responsible in paying back any money they may lend you. One solution: put up some collateral on another valuable asset that you have. This can calm the lender's fears and increase your chances of getting a loan.

2. Demonstrate that you are a responsible investor: You will need to show your lender that you know what you are doing. You need to prove that you are investing in a car that is really worth the asking price (since the car itself will serve as partial collateral for the loan) and that you understand the car you are investing in.

3. Compare multiple offers: In order to get the very best possible interest rate on your new loan, it is important for you to get offers from multiple lenders. That way, you can compare loan terms (such as interest rate) and get the very best deal for you.

Buying a vintage car can be a lot of fun - and can be a wise investment, too. If you have bad credit, follow these tips to increase your chances of getting the finance you need.

US Department of Agriculture (USDA) Mortgage Loans? I thought they approved my beef?

Yes, it is the same USDA that grades and approves our meat and many other components of our agriculture industry. But in fact, USDA also offers mortgages via guarantees made to lenders both large and small. One of the key departments within USDA is Rural Development, whose mission is to bring housing, modern telecommunications, safe drinking water and a bumper crop of benefits to our country's rural communities.

Although our government and economy have been ravaged from the mortgages originated over the last many years, government agencies are in fact trying to stabilize our housing market by providing support for capital markets, guarantees for lenders, and through government subsidized programs such as these. One of the most popular programs is the USDA Guaranteed Rural Housing Mortgage.

So what is a USDA 502 Guaranteed Rural Housing (GRH) Mortgage like anyway? It happens to be one of the only true 100% No money down purchase products on the market today. The other 100% mortgage product is the VA mortgage. Some basic qualifying guidelines are, the borrower must occupy the property, is a citizen of the country or admitted for permanent residency, does not have non-occupying co-borrowers, and will sell their existing home, if one is owned.

Some program highlights are the property must be located in eligible rural area. These are normally any town with a population of 25,000 or less - and it cannot be adjacent to a large metropolitan area. There are no loan limits and sales price limits...Yep I said it, no limits. There is a one-time USDA Guaranteed fee - and yes, you guessed it that fee can be financed. You can even roll in all closing costs if the appraisal comes in higher than the sales price.

The USDA 502 program does not require monthly mortgage insurance. This is a significant advantage over FHA financing in that respect. This savings can be as much as.55% per year and most likely more if FHA raises their monthly mortgage insurance requirement. These purchase transactions can even include new construction.

USDA even allows refinance of an existing USDA GRH loan provided there is a financial benefit via rate reduction or payment reduction. This program ONLY allows 30 year fixed rate mortgages that are fully amortized. The program allows for condominiums and PUD's along with the standard Single Family Residence.

If you have credit issues, this program may still be for you. Although 620 credit scores and higher are preferred, 580-619 are considered with compensating such as reserves, job stability and more. Less than 580 credit scores are regarded as a much higher risk and require more due diligence then most lenders are willing to commit to in today's market.

So is this a great program, in a word yes. Clearly 100% I hard to find and without Mortgage Insurance, makes the USDA Guaranteed Rural Housing program represents the highest amount of leverage available for a primary residence purchase on the market today.

So where do you start? Find a lender that offers USDA financing. Mortgage Lenders, Banks and even mortgage brokers have access to this program. Finding an educated Loan Officer however may pose a challenge. Since the USDA Rural program is fairly small in the mortgage landscape, your typical mortgage call center loan officer is just not going to be familiar with this loan. So make sure to do your research and feel comfortable with the person originating your loan and always check references.

Mississippi is one of the economically growing states in the United States. With the recent business start-ups and business relocations to Mississippi and a lot of financing schemes, the state offers a great economic potential for the future.

Loan schemes: The following key loan programs are available in Mississippi:

Agribusiness enterprise loan program (ABE)

1) The loan is extended to the agribusinesses involved in producing, manufacturing and processing the agribusiness or related offerings.

2) The Mississippi Development Authority (MDA) administers the loan processing.

3) The loan is interest free.

4) The lender must provide full guarantees to the MDA.

5) Processing fees of one percent of the loan amount is charged by the MDA.

Eligibility: The following agribusinesses are eligible for the loan

1) Aquaculture.

2) Horticulture.

3) Agricluture.

Loan use: The loan can be used to:

1) Purchase building and equipment.

2) Leverage processing costs associated with land purchase.

Prohibited loan use: The loan cannot be used to fund:

1) Land purchase

2) Working capital

3) Pay off existing debts.

Airport loan program: Features

1) The loan is extended to the airport authorities for the construction or renovation of the airports.

2) The MDA administers the loan.

Incubator loan program: Features

The loan is granted to the local government bodies for the establishment of the business incubators in the state.

Eligibility: Only the local governments such as counties, incorporated cities and towns are eligible to apply.

Development infrastructure program: Features

The loan is extended to local counties or municipalities for small infrastructure development projects.

The MDA administers the loan processing.

Mississippi capital access loan program (MS CAP): Features

1) The loan is granted to the borrowers who are unable to get the conventional loans sanctioned.

2) The MDA administers the loan.

Research and development loan program:
The loan is extended to the private organizations aiming to conduct new research and development programs or expand the already existing research and development programs.

Eligibility: The following are available to apply for the loan:

1) Private companies involved in the research and development programs of their products and services only.

2) Technology based businesses.

Loan use: The loan can be used to purchase:

1) Property

2) Depreciable fixed assets.

Prohibited loan use: The loan cannot be used to leverage:

1) Working capital

2) Refinancing

3) Rolling stock

Rural impact fund loan program: Features

1) The loan is granted to rural communities.

2) Rural businesses are also eligible.

3) The MDA administers the loan processing.

Loan Use: The loan can be used to:

1) Construct or renovate a building.

2) Construct or renovate the sewer facilities and transportation affecting the project directly.

3) Acquire, develop and improve a property.

4) Fund a project approved by the MDA.

Mississippi is all set on the path of economic growth. Just the encouraging business trends need to continue.

Moving forward, if a seller is setting on a mountain of debt and just happened to have an ARM mortgage with negative amortization building up to 115% of the original mortgage this could be a bad thing. Then simultaneously the property values have dipped then the owners may find themselves upside down in the property where the mortgage is larger than the value. Some areas have had employment downturns as well to further complicate the affected family's financial stability. This is all with a backdrop of a rising economy that gives hope in the long-term scope of things. Historically, real estate, much like other investments rolls out in cycles. Right now, there is some question whether the bottom is in sight. Lower priced properties will spur some activity along with seller concessions. Buyers are now enjoying the comfortable shoes and benefits of seller's past. Interest rates are still at a reasonable level compared with say 20 to 30 years ago. Thus a good price with terms and concessions will garner interest from buyers. Enter the lender-stage right.

The phone was ringing night and day with bill collectors. The power had been shut off recently, now back on. The latest notice of payment increase from the lender had been received and the payments were going to go up $300/month on their Adjustable Rate Mortgage (that has a negative amortization feature) starting in two weeks. Terry and Lynne were up against it. With three children the family budget was in the process of blowing up. Three years ago, while competing against five other buyers, Terry and Lynne bid $15,000.00 above the list price to get an accepted offer. Now the prices in the neighborhood have fallen back. If they were to sell using a Realtor plus other costs there would not be enough to cover the mortgage, they would have to bring money to the closing table in order to close the deal. This was not a good prospect. With savings tapped out there just wasn't any cash available. Terry and Lynne quickly recognized that they had to do something immediately or their home would be falling into foreclosure. In the short term, they got rid of their cars along with the big payments and bought some high mile but reliable automobiles for transportation. That was still not enough. To keep things going, all the credit cards had been maxed out and there just wasn't one extra dollar to pay the minimum payments. Macaroni and cheese was getting pretty old.

Terry and Lynne decided to sell the house and move into something smaller and less expensive. Recently the taxes and insurance had gone up as well on the property. Hits were coming from all sides. Terry and Lynne contacted the Realtor who had sold them the house. They had been getting her monthly newsletters since they had bought the home. In a recent newsletter, there was an article regarding a Short Sale. Terry called Nancy, the Realtor, to find out if that might work for them. Nancy explained with a bona fide contract on the table and a financing approval letter for the buyer, the lender MIGHT consider a Short Sale. Comparables were pulled at it looked like the value was about $30,000 less than what was owed. Terry and Lynne gave Nancy a Signed Authorization to discuss the mortgage status and the possibility of lender assistance. Nancy made the contact to the lender and discussed the fact that Terry and Lynne had to move as they were out of cash. It turns out that even at the lower payment before adjustment, Terry and Lynne had been 30 days or more late every month called in the mortgage trade a rolling thirty. The lender was aware of their struggles at least as far as their mortgage pay history was concerned. This was one of the top lenders of the country and this was not unusual with their current portfolio to hear the same recurring story. Times were tough. If a foreclosure was to take place over a six-month period, the losses could be in the $50,000 to $60,000 range or more per trade numbers. Nancy explained that the lender had the right to go after a Deficiency Judgement against Terry and Lynne for any monies not satisfied at closing and that they should consult an attorney for legal advice. There likewise could be taxable income to Terry and Lynne for the shortfall amount. An accountant needed to be consulted. The attorney shared that they could do a Deed In Lieu Of Foreclosure, but it would be on their credit. The Short Sale may save the lender some money over going to a full foreclosure. Terry and Lynne decided to give the sale aspect a shot. At the same time, the attorney explained the benefits of seeking some protection through a Chapter 13 Wage Earner Bankruptcy Plan. A plan would be submitted to the Bankruptcy court and if the creditors agreed their overall payments could be reduced by at least a $1,000/month. This was the kind of relief Terry and Lynne were looking for.

It took three months to get an offer where the seller was being asked to pay $9,000.00 of the closing costs and prepaids. The offer was subject to lender approval on the Short Sale. The offer, pre-approval letter on the buyer together with the seller concessions and all addendum together with the facts that Terry and Lynne had filed a Chapter 13 and had excluded and exempted the mortgage from the petition was all shared with the mortgage holder. It was unclear whether the Bankruptcy Trustee was required to approve the sale. Their attorney was to follow up. Bottom line, the lender was being asked to take a $43,000.00 hit at closing. The lender took a week to answer. The contract was structured to allow for time on a lender answer. The phone rang and Terry picked up the phone. It was Nancy, the lender had accepted the terms on the condition that they received zero money at closing. They would take their furniture and turn over the keys and that was it.

Terry and Lynne felt like a boxcar had been lifted off their shoulders. After closing, they vowed to did out of this hole and take some family budget course and set on a strong savings regimen. With the monthly housing savings, Terry and Lynne were able to put a first and last months rent down on a large three-bedroom townhouse rental in the kids same school district and were now considerably below their former housing payment by $900/month. With the savings from the Chapter 13 Wage Earner Repayment Plan Terry and Lynne were now able to breathe and maintain a family budget with savings. With on time payments of the Chapter 13 Repayment Plan, over time, their credit should improve. The once per year free credit reports from the three bureaus will help track their progress. They planned now to accelerate the payback plan by $400/month and reduce the pay out term to 36 months. Terry and Lynne could see the light at the end of the tunnel and it was not an oncoming train.

In this case, the Short Sale was the answer for this couple. It's not for everyone. Some lenders will not even consider it. It is a tool that can be used to solve an otherwise impossible situation.
Many lenders do not pursue the Deficiency Judgement, some do. It would be prudent to determine the lender's intentions. An attorney at the ready is a good idea to work out a plan.

Dale Rogers

www.BrokenCredit.com
www.sellerhelpsbuyer.com

All rights reserved. Article may be reprinted as long as the content remains intact, unchanged, and all links remain active.

The final part of this guide to business loans and finance raising covers 'property development finance' through to 'yield'.

Property development finance - Finance to cover site purchase and building costs designed to fund property development.

Prospectus - A package of information prepared for provision to potentially interested investors in a flotation.

Prudence - The accounting concept of recognising losses as soon as they can be identified, but profits only once they have been earned.

Public limited company (PLC) - A company that meets statutory requirements about the level of its issued share capital and which may therefore be entitled to sell shares to the public (although not all PLCs are listed on a stock exchange).

Quick ratio - See the definition of acid ratio in part 1 of this series.

Ratchet - Arrangement for increasing management's shareholding if business hits targets.

Receivable - The US equivalent to the UK term debtor.

Recourse - Arrangement where a factor or invoice discounter can recover any advance made to you in respect of any debt that is subsequently not recovered. A non-recourse arrangement provides you with protection against this.

Regulated loan - A loan where a first charge is given on a domestic property or on a commercial property where over 40% of the area is used as your residence.

Reserves (1) - A business's retained earnings.

Reserves (2) - Reduction of your availability applied by a factor or invoice discounter to cover any potential exposure (for example to supplier contras).

Rolling bridges - The use of a series of bridging loans typically to fund a phased property development project.

Sale and leaseback - A way of raising cash by selling an asset and then renting it back.

Second round funding - Further equity investment into a business which has already had external equity investment (for example where a venture capitalist invests into a business which has had start up or seed money from a business angel, to enable it to take its products to market).

Secondary buy out - Purchase of a VC's stake by another VC.

Section 320 - Provision in the Companies Act that prevents a director purchasing substantial assets (broadly anything worth more than £100,000 or 10% of the net assets of the company) without first obtaining the consent of the shareholders.

Security (1) - A source from which a debt can be repaid if the borrower does not make repayments in the normal way, such as a charge over property or other assets.

Security (2) - A document acknowledging that the holder has certain rights (such as repayment of a debt from the issuer).

In the US can be extended to cover a share certificate.

Self certification - The process whereby a borrower confirms that they are able to make repayments on a loan rather than proving it by providing accounts.

Share capital - The capital contributed to a company by its shareholders.

Shareholders funds - The total book value of a company (the net assets on its balance sheet) which is owned by shareholders.

Small Firms Loan Guarantee - A scheme where the Government provides a partial guarantee to lenders for loans made to small businesses.

Sole trader - An individual in business in their own name.

Stapled finance - A package of potential borrowings pre-arranged for the buyer by the seller of a business.

Statement of source and application of funds (SSAF) - Statement showing how profits generated by the business combine with investment in or realisation of assets, together with credit received or repaid, result in a movement in the businesses cash.

Stock (1) - A company's trading stock comprising raw materials, work in progress, and finished goods stock.

Stock (2) - A company's shares.

Stock days - A measure of the time taken in converting goods purchased into sales.

Stock exchange - A market in which shares and other securities can be traded.

Structured loans - Loans from an asset based lender across more than one type of asset (eg factoring and a property loan).

Sub prime - Borrowers with significant levels of adverse making them unattractive to mainstream lenders.

Swing - Movement in a bank current account.

Syndication - Situation where a number of funders join together to each fund a share of a project.

Term loan - A loan repayable by an agreed level of installments over a period of years.

Top up funding - Additional mezzanine or equity finance to cover the difference between total costs of a property development project and the sums available under normal property development finance.

Trade finance - Specialist funding of trading transactions such as importing goods for resale.

Transaction at an undervalue - Selling an asset at less than its fair value. In the event of an insolvency, a liquidator will review significant transactions preceding the insolvency and can act to set aside transactions at undervalue.

VC - Venture Capital or Venture Capitalist.

Veil of incorporation - The protection offered to shareholders by a company's limited liability.

Vendor finance - See deferred consideration.

Venture capitalists (VC) - A firm set up to hold investors' money and to invest it in high growth opportunities. Generally look to achieve a return of 30% per annum and hold investments for three to five years before selling. Generally tend not to be interested in deals below say, £0.5m investment.

Whitewash report or agreement - Accountant's report used to enable a business's assets to be used as security on which to raise money to buy it.

Work in progress - Goods which are in the process of manufacture but which are not yet finished, or work on a contract which is not yet complete.

Working capital - A business's current assets less its current liabilities.

Working capital cycle - The concept that a business's working capital turns over as it goes through its cycle of trade; suppliers providing goods which become stock and then debtors once sold, with the cash received from debtors then being used to pay suppliers.

Yield - The amount of return received (E for earnings) for the price (P) paid. Usually shown as a percentage.

We hope this short series has helped to de-mystify some of the jargon used in finance.

The lure of making money online is a path that many new online entrepreneurs venture into everyday. Most of the the advertisements online promote the lifestyle of going from being broke to making tons of cash overnight. What they do not advertise however, is the expense it will take to run an online business.

Success online is almost never overnight, furthermore there many tools needed to run your online business. These tools include a web host, an autoresponder, a website, online courses and various softwares to make your marketing easier. Unfortunately, all this tools cost money. Since you do not want to spend your life savings on a dream that may not payoff right away, you have to find ways to earn money today; Not six months from now.

Fortunately, there are few legitimate ways to make money online that won't make you rich right away, but can put some money in your pocket. You can then utilize this extra income to help pay for some of your home based business expenses. These earn money today programs include taking online surveys, outsourcers, and guest posting on blogs.

Online surveys is a good way to earn money today to help finance your home based business. The process is rather simple. You simple agree to take a few surveys and get paid a certain amount for each survey. The rate of pay varies from 5 dollars per survey to $75 dollars. This will not make you rich, but it can cover the cost of some of your internet expense.

Outsourcing companies online provide a service for entrepreneurs looking to lessen their load or people looking to make an extra income. Some of the duties available through outsourcing companies include data entry, proofreading, and simple computer tasks. If you are proficient in any of these fields, you can earn money as soon as the task is finished.

Another simple way to earn money online really fast is writing. If you have the ability to write 300 to 500 hundred word articles in certain subjects, you can get paid up to $50 per article. There are several companies online that pay people to generate content for their websites. The better your writing skills, the more the companies are willing to pay.

Starting an online business definitely is a big jump no matter how simple and easy anyone makes it sound. Anyone contemplating about starting an online business or already has a home based business, must realize that will be a learning curve before the cash starts rolling in. The best ways to avoid the pitfalls is to find ways to earn money today. The ability to find ways to make the business pay for itself will play a big role in rather you succeed or fail miserably.

Here's how becoming a health affiliate can help you bolster your finances to the heavens!

The health and wellness industry is currently a billion-dollar market, and analysts expect the industry to quadruple its profits in the next ten years. With this rosy picture, it's no wonder why more and more people today are turning to marketing health and wellness products, for them to be able to bolster their finances, while promoting the good life at the same time.

Affiliate Marketing - How It's Done

Affiliate marketing is an online revenue-sharing setup, between the web site owner, who is referred to a an affiliate, and the online merchant.

In an affiliate setup, the website owner agrees to place advertisements on their web site, to help promote merchant's products, or deliver potential customers to the merchant's official web site, in exchange for a share of the profits, which are often paid out in commissions or certain agreed-upon percentages.

In an affiliate marketing setup, the website owner, can actually earn added incomes. The process simply involves placing a merchant's ad on the affiliate's web site, and all the affiliate does, is sit back and wait for the profits to roll in. An affiliate can earn three ways on this program, either through pay-per-click, pay-per-lead or pay-per-sale.

In a pay-per-click scheme, an affiliate is paid a commission or percentage each time the customer clicks the link leading to the merchant web site. The amount can range form a few pennies, to a few dollars, and will also depend on the product or the commission.

In a pay-per-lead setup, an affiliate is paid a commission each time a potential customer registers or signs up at the merchant's web site, as a direct result of the advertisement posted on the affiliate's web site or blog.

In a pay-per-sale setup, an affiliate is paid each time a purchase is made as a direct result of the advertisement on the affiliate's web site.

The Perks Of Health Affiliate Marketing

Because the health and wellness sector is viewed by many as the next booming frontier in business, many web marketing experts stress that marketing health and wellness products and solutions should be part of any web marketer's offerings.

A health affiliate program offers a wide array of lucrative perks. A number of health affiliate programs like SellHealth for example, are popular because they provide their affiliates with a solid array of premium-quality health and wellness products, and pays affiliates with the highest commission payout schemes in the health and wellness sector.

The best thing is that the SellHealth affiliate program won't cost you anything. It's absolutely free to join, and the program in fact pays affiliates each time they send a customer to the merchant's web site, to sign up as a lead or purchase the products. Affiliates earn as much as 30 to 50 percent for every qualifying sales made, and they also get an extra five percent commission each time their referrals make a sale.

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By not shopping around for everyday household items, Britons could be losing out on thousands of pounds each year, new figures indicate.

According to findings by Alliance & Leicester, 16 million consumers (more than a third of the population) are paying too much for basic groceries such as bread and milk. Meanwhile, 62 per cent of Britons do not shop around for everyday items, in contrast to the three per cent who claim they do not bother to search for competitive deals on flights or electrical products. However, the financial services provider asserted that by searching for low prices on day-to-day goods, people could be able to make "decent savings" - which in turn may well help them to meet home loans repayments and service other demands on their spending.

In addition, research from the firm also revealed that shoppers are willing to pay more than twice the typical price for an assortment of everyday goods. For the cost of a pint of milk, six eggs, a loaf of bread and a pack of four toilet rolls, the nation's shoppers are willing to splash out 16 million pounds more than necessary. Overall, 78 per cent of adults are prepared to pay more than they have to for a loaf of wholemeal bread, with 47 per cent ready to do the same for a pint of milk.

Ross Dalzell, manager for savings at Alliance & Leicester, claimed that shopping around for the competitively-priced everyday items could help relieve financial pressures on consumers in the long-term. This, in turn, may help them to pay off loans and other forms of borrowing with greater ease or save towards major purchases in the future. He said: "When it came to bigger ticket items like a new car, digital camera or holiday flights, the resounding response was in favour of shopping around, with just a few per cent saying that they wouldn't do so. There's clearly still a mismatch for people when it comes to thinking about spending large amounts of cash in one go and making smaller purchases on a regular basis.

"It's a common misconception that some people can't save anything - anyone and everyone can make some savings, even if it's simply by making sure you pay a reasonable price for the basics in your weekly shop. Saving even a small amount is an achievement and well worth it. The savings you make could even be put towards your next holiday, or a long-awaited day out for the family."

And as a study reveals consumers have seen a rise in grocery costs over the last year, such overspending on everyday items may be placing further strain on their money management. In research carried out by the Royal Bank of Scotland in April, Britons are paying 5.6 per cent more on food shopping then they were a year ago, while those on the continent have witnessed a rise of 1.9 per cent during this period. However, for those who are concerned about their ability to manage their finances taking out a low-rate loan could be one way of relieving such anxieties.

If you're like most parents, saving for your children's college education is a priority and a big challenge. Tuition and related costs at both public and private universities have been rising at 5% per year or more, far exceeding the rate of inflation. To put that into perspective, a child born in 2006 should plan on $110,000 in total expenses for four years at the average in-state public college; $300,000 for four years at a private university.

Financing these costs for one or more children is going to take planning and, most importantly, disciplined savings. Tax-advantaged "529" College Savings plans are the savings vehicle of choice and offer important advantages over other options. A $3,000 annual contribution, beginning at birth, to a growth-oriented 529 plan should pay for one child's in-state public education, and a $7,500 annual contribution for a four-year private education. A later start means higher annual contribution amounts.

529 Plan Advantages

- Large Tax-Free Contributions: Parents, grandparents, other relatives and even friends can contribute up to $12,000 per year per child, tax-free, to a 529 plan.

- Tax-Free Earnings and Distributions: All earnings in a 529 plan are tax-free. Distributions are free from all federal income and most state income taxes when used for tuition or other qualified college expenses. This makes 529 plans as powerful as Roth IRAs for long-term savings.

- Donors (parents, grandparents, etc.) "own" the 529 assets: Unlike a custodial account that typically becomes the minor's property at age 18, 529 plan assets are always under the control of the donor.

- 529 plan assets are more advantageous for financial aid considerations: Plan assets are counted at a 5.5% rate by college financial aid offices, compared to the 35% rate used for custodial account assets.

- Unused funds in a 529 can be rolled over to another child's benefit.

Have I caught your attention? Now the question is which 529 Plan is best for you and your children?

Choosing a 529 Plan

All plans are sponsored by individual states, but are typically available to residents of other states. Some states offer residents a state income tax deduction for contributions to their own plan. So, for residents of these states, that is the way to go. For those without that tax incentive or residents of states without an income tax, you can choose from just about any of the available plans.

Be aware that many 529 plans are heavily promoted by brokerages and other financial institutions and can carry large and completely unnecessary sales charges. Go with a plan with no sales or other load charges. Typical annual fees for asset and account management combined should be 1% or less.

Recommended 529 Plans

There are at least a dozen excellent options to choose from. Among these, we like the TIAA CREF-managed plans (California and others) and the Vanguard-managed plans in Iowa, Nevada, New York and Utah. The Vanguard plans, with their index investment strategies, have operating costs of less than 0.75%. A new entry is the Alaska plan managed by T Rowe Price. It offers a choice of first-rate actively-managed funds and at relatively low cost.

No matter which plan you choose, we strongly recommend an "age-based" investment strategy. These strategies range from Conservative to Aggressive. Age-based programs are dynamic asset allocation programs, similar to Target Retirement date funds. They are heavily invested in stocks when your child is young, gradually converting to more fixed-income and cash as college age approaches. This approach protects against the risk of a major stock market downturn just as the funds are needed.

Without a steady cash flow, your business dies. This means that you need to be focused on your cash flow situation at all times: you need to know how much cash you have and how much is coming in. If you can see that you're likely to have problems, the time to take action is --- NOW.

This constant awareness of your finances is especially vital for creatives. Writers, artists and designers are in a unique situation. Not only are we creators, we're also marketers and salespeople. Combining these two functions is so difficult that at times it feels as if it's impossible. However, it can be done.

Whether you're starting your own business, or have been in business for a while, here are some ways to keep the cash flowing when business is slow ---

=> Start your business with six months' worth of expenses

If you're going fulltime in your own business, you need a cushion. It's best to have at least six months' worth of expense money to keep you going. Then, when you've been in business for a year, always keep at least three months' worth of expense money in your account. Do whatever it takes to get that three months' cushion.

=> No cash? Moonlight until things improve

Business works in cycles. It's always either feast or famine. You either have more work than you can handle, or not enough. If you're going through a famine cycle --- and these can last for several months --- moonlight. There's a reason actors and actresses work as bartenders and taxi drivers. :-)

=> Consider working part-time for someone else

Just because business is slow at the moment, it doesn't mean that your business idea is terrible. To ease the situation, take a part-time job. Although you'll be busier than you'd like to be, the fact that you have money coming in regularly lets you relax, so that you can enjoy working in your business again.

=> Get an anchor client or product

You need an anchor client. This is a client who brings in a quarter of your earnings --- you may need three or four clients to achieve this. These are regular clients, the bedrock on which your business is based. They pay your expenses, and keep you in business.

If you're a writer or designer, you may also have an anchor product. This may be a book which brings in royalties every six months, or artwork you've sold under license for which you receive royalties.

It's worth working sixteen-hour days for a few months to create an anchor product. Once you've created it, the anchor product works for you.

=> Follow up on slow/ no payers

You can't afford to let people owe you money indefinitely. This means that you're providing interest-free loans. Worse, if someone owes you substantial money, you're an unsecured creditor. If they go down, they'll take you with them.

Chase up slow payers. Send a friendly reminder email or fax once a week --- every week, until they pay.

=> Don't pile up debt

Try not to go into debt. It's not worth it. It's better to work part-time for someone else, or to cut back on expenses, rather than go into debt. You don't know how long the slow period will last, and saddling yourself with debt is a dead-end solution.

It IS possible to run your own business, and be relaxed about it, knowing that you can survive the bad times. If you need to go and work part-time, don't look on this as failure --- it's a win. You're doing what you need to do, to keep your business viable until the sun shines and the good times roll. You can do it.

One of the biggest challenges facing black RELATIONSHIPS today are finances. Many people mistakenly feel that money does NOT matter. In fact, money matters the MOST! Why? Most people do not have a clue about their own financial destiny.

You know you want to own a home and save some money toward retirement but have you PLANNED what it is you are saving each month and how that money will assist you in the future. Do you have a PLAN to empower yourself financially by NOT depending on your JOB to pay your salary and that's your only source of income. Times have CHANGED. Jobs come and go(and so do SPOUSES). To protect yourself financially you need to be proactive and not depend on anyone else to solve your financial issues.

You can improve your finances RIGHT NOW if they are not in order. There are low costs alternatives to improve your credit score and increase your buying power. Power not to be wasted on designer shoes, clothes, and automobiles, but to be invested in REAL estate. An interesting term to be sure. REAL because it is the foundation of all REAL wealth in this country. Estate, because that is what you can leave your children and family if you handle your business correctly - RIGHT NOW. Money matters because in a relationship YOU should have your OWN MONEY! That is right- I said it! You should not count what someone ELSE brings to the table when all your money is tied up in petty and senseless bills. Talking about petty and senseless- let us discuss CARS! What would possess a person to lease an automobile? Other than as a BUSINESS expense (which also means TAX WRITE OFF) someone PLEASE Tell me WHY? I have heard of folks paying $500.00-$900.00 monthly on car payments. WHY? My car is paid for and I am proud of it. Yes, it is ten years old - BUT I don't work because I DON'T have to support my vehicle. If you are serious about getting more money in this lifetime, you will need to STOP SPENDING money RIGHT NOW on things that DEPRECIATE in VALUE such as CARS! Nuff said!

We all need just ONE major credit card and an American Express card. The other credit cards need to be in the trash. The reality is- if you CANNOT pay for something you purchased within 30 days, you CANNOT afford it! Brutal I know but I have been there and done that. When you have to spend real $$$ on what you purchase, it truly does slow your roll.

Contact me if you need to be pointed in the right direction. I will be happy to assist!

In a personal relationship many of your disagreements WILL stem from money issues.
Not just who makes what, but how it is spent and how it is saved. It seems like such a small thing but when you are commingling finance and love you need to establish boundaries up front. PLEASE DO NOT IGNORE THIS ADVICE! You should decide in
advance if you want to keep your finances separate and have a joint household account.

The household account should be open to both parties (online access is great for this) and not used for personal spending in any way. The check card will let you market, pay bills
etc. A joint savings account would also make saving for special purposes much easier. No matter how much you trust each other, the savings accounts should REQUIRE both parties to sign off on withdrawals. Just to keep everything clean and above board. The traditional (old fashioned) way is to have just one account for checking and one for saving. Even though our parents did this, most mothers (and fathers) always had personal money SOMEWHERE that was just theirs. So why not be upfront about your own personal money issues so they do not come back to haunt you down the road.