Finance Roll

Sometimes small trivial matters can cause a lot of problems. Now, in the middle of the month, when your financial resource is almost depleted, arranging the cash in a short span of time is quite an uphill task. To combat the financial crisis, you have to rely on loans. For situation like these, you can avail quick cash loans. These loans are approved instantly and that too in a matter of hours. The amount approved is then electronically transferred in to your bank account.

Under the provision of the loans, you can obtain a small amount in the range of £100-£1500. This amount is approved for a short term period of 14- 31 days. Usually, you are required to payback the loans when your next paycheck arrives. if for any reason, you are not able to repay the loans within the stipulated time period, it can be rolled over to the next month. But that means you will have to inform the lender and pay a small fee.

While availing the loans, there are certain requirements which you must comply with. To be eligible for the loans, you should be employed in any company or organization with a fixed monthly income. Your age should be more than 18 years. A valid checking account at least 3 months old is also required. Once you have fulfilled the criteria, the loan amount is transferred in to your bank account in less than 24 hours.

Those with credit problems such as CCJs, IVA, arrears, defaults, late payments etc too can source the loans. this is primarily possible as lenders approve the loans without any credit check. Moreover, on ensuring timely repayment of the loans, you will be able to improve the credit score.

As quick cash loans are approved for a short term period, the interest rates levied are comparatively higher. This means for an average salaried employee, these loans can be very expensive. But owing to the presence of large number of lenders, these loans are now available at comparatively low rates. Moreover, by taking a proper research of the market over the internet, you will be able to locate lenders offering the loans at reasonable rates.

Bad credit loan mortgages or non-status mortgages are purposely intended to serve people with a bad credit history. According to a recent survey, one fifth of all adults are not able to qualify for a standard mortgage as a result of a previous or current bad financial situation.

Credit history is based on information retrieved from sources including Public records such as electoral roll information, court judgments and bankruptcies; and Information provided by financial institutions and other lenders such as banks that provide credit accounts and lending facilities.

In order to calculate the potential risk in providing loans to the person, most lenders use independent credit reference agencies to gather and assemble this information since they are permitted by law to review a mortgagee's credit report before granting approval.

Bad credit rating usually results from failure to pay off outstanding debts or other credit payments on time, due to factors such as outstanding rent or mortgage arrears, county court judgments (CCJ) or bankruptcy. There are also other reasons that can result in a bad credit record which include:

1. Foreclosure

2. Heavy medical bills

3. Settlements arising due to Judgments /divorce

4. Multiple credit cards

5. IRS debt

Bad credit mortgage is designed for people who are unable to take out a mortgage from high-end mortgage providers. However, there are several providers who are willing to take a risk and provide loans for individuals with bad credit ratings, but at a higher rate or lower maximum amount.

Normally, a bad credit mortgage loan has an introductory interest rate that is fixed for 2-3 years, which is substantially higher that the rate pertaining to a conventional 30 year fixed rate loan. This is due to the extra risk the lender has to take, because with a bad credit, the borrower's probability of default on the home load is higher than someone with good credit. However, after the initial period, the interest rate on a bad credit mortgage will adjust periodically.

There are also a few factors that most lenders of bad credit loan mortgages will look into, before granting the loan mortgage to people with bad credit history. This includes:

1. Employment history and income stability

2. Current monthly debt

3. Value of the property and

4. Down payment

Since loan requests from people with bad credit do not fit under the standard underwriting guidelines, fees charged by lenders on bad credit mortgage loans are also significantly higher than those charged in a conventional or standard home loan. This can range from 1% to 6% of the total loan amount.

Since individuals who get a bad credit mortgage usually do so mainly because they want to put their credit back into good standing, or as an opportunity to clean up credit history, the higher interest rate need not necessarily lasts for 30 years. Additionally, if the monthly loan payments are in time for two consecutive years, the bad credit mortgage can be refinanced with a conventional loan at a much lower interest rate.

Getting a handle of managing your basic personal finance administration can return many financial rewards as well as provide you with more free time to pursue your interests and freed up money to invest. When we talk about the basic elements of anyone's personal finances we are including a personal budget, savings and investment planning, managing your income as well as applying for loans and finance and various insurance policies you may need over your lifespan.

There are 4 key elements of good financial management to follow:

· Budgeting

When creating a budget, you need to consider both your income and your expenses and set your spending habits up to spend less than you earn. Build a realistic budget that will facilitate you to meet your financial goals, and stick yourself to the budget.

Working without a budget usually leaves you mystified as your paycheck seems to disappear; leaving you empty-handed by the time the end of the month rolls around and it's time to pay the bills or put food on the table. In addition, when you create a budget, you begin to see a clear picture of how much money you have, what you spend it on, and how much, if any is left over.

· Investing

To be more efficient in dealing with personal finance basics, it is important to choose wisely when and how to invest your savings. Put your money to work earning interest in a savings account or returns in a retirement fund or a mutual or index fund or build equity in your home by paying down your mortgage. Better yet, increase your assets by investing in a few of these options, while keeping a liquid savings account for emergencies. Failing to take advantage of free money is a common personal finance mistake amounting in money lost to inflation and missed opportunity. Be cautious also of investments that promise a high return with little or no risk.

· Debt Management

After creating a sound budget and cutting unnecessary expenses, you may still find yourself with remaining debt to get rid of. Managing your debt through overspending, failing to budget or high interest rates can quickly send you in a downward spiral. The best way to handle debt is to stay out of it in the first place. Remember to stay away from temptation to "buy now, pay later" and only take loans for the essentials in life: education, transportation and habitation. As a general rule, do not finance anything for longer than its useful life. Keep your credit score high by keeping tabs on your credit report and paying your bills on time.

· Insurance

You've definitely come a long way; there is one more important aspect of your finances that you need to consider. You've worked hard to build a firm financial footing for you and your family, so it needs to be protected. Accidents and disasters can and do happen and if you aren't effectively secured it could leave you in financial ruin. Everyone needs insurance to protect your life, your ability to earn income, and to keep a roof over your head.

Personal finance basics relates to analyzing your present financial status, setting financial short-term and long-term goals, setting up the execution for these goals, executing the goals and monitoring the growth, and assessing the achievements and making compulsory adjustments for a rewarding result.

Master the 4 essentials of personal finance basics because your dream of a successful life depends on it.

There are plenty of simple tips to save money when dealing with personal finance basics. Some are slightly more time consuming than others but despite that fact it is completely worth what time it might take. If you only follow one or two of the following tips you could save hundreds of dollars each year.

REQUEST FREE SAMPLES:

There are plenty of websites that offer free samples for every day products. Even the huge stores such as K-Mart or Petsmart have great opportunities for everyday people to get free items. These items range from skin moisturizers and shampoos to frozen food or bathroom products. Another option is to visit a manufacturer's website to find those free samples on brand new items. If you need something, type 'free sample' into Google before you go to the store to purchase it. This is the beginning of mastering personal finance basics.

CHANGE CREDIT CARD SPENDING AND HABITS:

Credit cards can be wonderful but can be dangerous. With high interest rates and monthly fees, credit cards may wind up costing you a lot more in the future than you expected.

My rules of thumb:

- always use cash unless its for a major purchase

- be certain you are able to pay for the item before you use a credit card

- be sure you can pay the balance of your credit card

AVOID IMPULSE BUYS:

Everyone has had to push a shopping cart through the aisles of the grocery store and the moment we get to the check out we have double the amount we planned to get. Always, always, always create a shopping list, follow it and never purchase anything that's not on that list. This should include any type of shopping like wardrobe, food or entertainment. Retail outlets are mapped out specifically for impulse buys with candy racks and gum within easy reach. Make your list, check it twice, and follow it.

SHOP THE SALE RACK:

This is another personal finance basics rule but don't confuse this with an impulse buy. You have your list and know what you need, so check the sale display before you shop. Chances are you will locate that said item on sale and pay half the usual price. Food stores operate the same way. They usually over order products and are forced to run unadvertised specials on overstock items. Just make sure the item is on your list.

SAVE YOUR HARD EARNED MONEY:

This may be the hardest thing you have to do when money is tight, but it just might be the most critical step to take. According to the book 'The Wealthy Barber' you should save ten per cent of your paycheck every month. That may not sound like much but it will add up rather quickly and if wisely invested it will assist your retirement down the road.

SAVE YOUR CHANGE:

This may sound a little silly but this little tip is a great one. How? Because in some way's it's like found cash. After you come home from the store put any loose change into a jar. Each month or every couple of months count up the change, roll it up and deposit it into your bank account or reward yourself to a well deserved evening out. These are the personal finance basics you learned when you were very young.

BUY IN BULK:

We've already touched on shopping but I have another shopping tip that mostly applies to buying grocery's. Buy in bulk. If you drink a lot of fruit juice and you see that it is on sale at half price, buy four rather than two or purchase the 24 pack of water instead of the smaller 12 pack. This may seem easy but plenty of people do not make bulk buys on every day products.

CLIP COUPONS:

I know this might make you feel like your grand parent but this is another great way to save plenty of cash. It only takes a few minutes every week and you can end up saving hundreds of dollars each year on items you were already going to buy. Go through your local newspaper or check online for some amazing coupons.

RECYCLE PLASTIC BAGS:

This is a wonderful way to 'Go Green' and it will save you money too! Lots of stores are now making you pay as much as 10 cents for plastic bags. Chances are you have about 1,000 hidden away in your closest already. Couldn't you just bring them to the store and use them again? Another way to recycle and save money is to use those plastic bags from the store in your garbage under your kitchen sink or in the bathroom. You don't have to spend $5 each month on a box of kitchen garbage bags when you already have them at home.

These easy tips will save you lots of money and they are simple and might even be fun. It's always rewarding to know that you have started to take the first steps to becoming free from debt. By carefully following these tips to save money you are one your way to understanding the personal finance basics all of us should know.

New rules for banks and building societies in the UK will mean savers receive at least two months notice before their savings rates are cut. The changes follow a trend among banks to make banking and saving more efficient and simple for the customer (increased information about savings products are also being rolled out, as well as faster means for inter-account transfers) - but are the moves positive for everybody eager to save their money?

Independent money regulator, the Financial Services Authority (FSA), seem to think so. Dan Waters, as quoted at creditchoices.co.uk, stated: "New regulation will put banking customers in the driving seat by setting down clear standards that people can expect."

Further changes will give customers better protection against fraud, and will also make the process of obtaining refunds for unauthorised transactions easier than in the past. Yet, it also seems that these changes, which took place at the start of November, may have caused many banks and building societies to make some last minute quick cuts in order to make the most of an easier system before the new rules came in.

This notion is backed up by research from finance specialists, moneyfacts.co.uk. In data published recently, one in ten savings accounts were seen to have their rates cut even though the Bank of England base rate have remained at 0.5 percent since March. Additionally, during October alone, almost 4 percent of all accounts have had their rates cut.

Yet, despite this last burst of cuts, it will now seem that the future is looking fairly bright for savers - especially in terms of knowing how much return they are getting, and they will no longer be stung by out-of-the-blue changes. Consequently though, now is the best time for existing savers to review their current rates and to change accounts if necessary.

And for those who are not yet saving (recent research from Abbey have revealed that 28 percent of UK parents aren't doing so), now is a great time to make the most of an increasingly efficient and transparent savings market.

People looking to improve their credit rating should first of all familiarise themselves with their credit file. Credit reference agencies such as Experian, Equifax and CallCredit hold information about every financially active person in the UK, including their financial and credit history. Most industry codes encourage companies to disclose the reasons for turning down requests for credit. Therefore, by reading your file you will understand which part of your credit history is letting you down and how you can remedy it.

The first step to improving your credit score is to ensure that your name is on the electoral roll. Maintaining a presence on the electoral roll is essential as banks and building societies need to know all the information about you is up to date before you can open an account. Additionally, credit reference agencies keep their information updated by checking the electoral roll every month so adding your name to the list will instantly help your credit rating.

Perhaps the most important factor in improving your credit score is proving to lenders that you can manage credit responsibly. Too much credit on your file will put lenders off the idea of giving you anymore whereas having too little credit will result in companies seeing you as unprofitable. Regular repayments on a loan or clearing the monthly balance on a credit card are excellent ways of demonstrating to lenders that you can cope with credit and are not a liability.

It is also essential to keep the credit agencies updated of any changes to your financial circumstances. If you apply for a joint bank account, loan or mortgage with a partner of friend, you are tagged to that person, meaning their credit rating can also affect yours. This tag remains even if the joint account no longer exists so if you spot an ex-partner's name while reviewing your credit report, have it removed immediately otherwise you could find yourself in further trouble when trying to secure a mortgage, car credit, personal loan or mobile phone contract.

It is also advantageous to avoid being repeatedly refused credit by companies. A "footprint" is left on your credit file every time it's viewed by a company and, while this means that you know who's checking your file it also means that the bank has an idea of how often you are applying for credit. Depending on how many "footprints" have been left, this can cause alarm bells to start ringing.

After being denied a credit card or loan, contact the lender who turned you down and try to find out the specific reason why. If there is a particular part of your credit file that deterred the lender, it's worthwhile spending time trying to repair that part of your file rather than instantly applying to a different company for credit. If you desperately need credit, try a lender who specialises in loans for people with less than perfect credit histories.

Having the patience, discipline and know-how to improve your credit rating could not only result in lenders offering you better interest rates but also help you achieve financial peace of mind and help you live more comfortably in the future.

Due to the recent economic downturn, many people have begun taking their financial matters into their own hands. With long term job security becoming a thing of the past, many people are turning toward small business ownership to declare their financial independence. Buying into a franchise is one way that people are setting their plans into motion. The risks and rewards are great in any new business venture, but first thing, how are these people getting started? The first thing you need to get squared away is financing, but how? There are actually many options to secure financing for a new franchise and it will be up to you to decide which fits your situation.

Once you have researched franchises that you are interested in and made a decision on which you would like to invest in, you need to decide how you will pay your start-up costs. The Small Business Administration, a branch of the US government, can help you find grants and venture capital but they do not offer loans to cover all costs. You can present your business plan to your personal bank, but recent events have caused banks to tighten lending restrictions, especially with things like small businesses. In fact, it's likely that to secure a business loan through your personal bank you would need nearly one-hundred percent collateralization. You may also talk with your franchisor about a start-up loan, or liquidate your own personal assets. In recent years, the most popular ways to acquire funding for buying into a franchise is to either borrow from your existing 401(k) plan, or to take advantage of a government "loop-hole" called ROBS, or Rollovers as Business start-ups, which involves transferring your current 401(k) or IRA into your new business to be used as start-up cash.

Borrowing money from your 401(k) plan is a great way to finance your new business plans. You can borrow up to $50,000 or 50% of your total savings, whichever is less. If that doesn't seem like enough capital, this idea can be combined with government grants, personal assets, or venture capital loans. Keep in mind that you will have to make regular re-payments to your plan, along with reasonable interest, until the loan is fully repaid. You would need to contact your 401(k) plan administrator to find out if you qualify for this route.

Hiring an experienced and knowledgeable franchise attorney is always a great idea, but if you plan to roll your current 401(k) or IRA saving plans into money to start your business it is absolutely essential. Basically, you can access all of your retirement money and invest it into your business, tax and penalty free. How does this work? Basically, your franchise attorney will set up a shell corporation in your name, establish a qualified retirement account in the name of your new corporation, move the money in your old 401(k) or IRA into the new one and you will invest the money from the retirement account in the stock of your franchise business, giving you the cash to start your business. Because you are transferring funds from one retirement account to another, you will not have to pay any taxes or penalties for cashing in your plan before the age of 59 ½. Using this method you are free to begin drawing a salary immediately, and you are also free to take any left over money in the new retirement account and invest in any variety of things, such as other businesses and real estate. You have much more control about how your future is being invested.

The ROBS method is a controversial topic in business financing these days. I cannot stress enough how important it is to have an experienced franchise attorney with you every step of the way. Because the ROBS method creates a tax shelter, these transactions come under heavy scrutiny by the IRS. You will need professional assistance to ensure that your new corporation and retirement account follow all federal guidelines to the exact letter. Borrowing from your 401(k) is less legally complex, but you may be subject to penalties and large fees if you fall behind on your re-payments. Going through the Small Business Association, or through personal lenders may not net you enough cash for the full start-up. In any case, it's vitally important to understand the risks and potential rewards involved with these options. Your future business success depends on how carefully you weigh your options.

A lot of people exclaim, "refinance my car" but very few are willing to what it takes to get a good car refinance loan when they have poor credit. The reality is that you essentially have two options when you have poor credit and need to refinance your car loan. You can either try to improve your credit so that you can get approved at some of the more reputable and conventional lenders, or you can roll the dice and apply to one of the many lenders that exist within the poor credit car finance space.

If you choose the latter option then you must be aware that it may not be worthwhile to refinance your current car loan when you are limited to such lenders because the interest rate and other finance charges they are going to charge you will often be higher than what you are paying for your current auto loan. Most people want to refinance their car loans to save money, and if you have poor credit and apply to a bad credit lender then you are going to have difficulty securing a rate that will save you money although you can still get approved.

The better option if you have poor credit would be to take the steps to improve your credit as many times it is not that difficult to raise your credit score back up to a respectable level without too much effort. The best things you can do that can produce the most effective results include repairing any errors that may be on your report, making any default accounts current, and paying down any high balances you have on your revolving credit accounts.

If you can do these things then your credit score can easily jump by a significant amount almost overnight, and you will then be able to apply to some of the more reputable and well-established lenders instead of having to resort to a bad credit lender. A bad credit lender can still provide you with a car refinance loan, and it is up to you to decide if it still may be advantageous for you to apply to such lenders. If you simply want a new car loan for whatever reason then this could be your best option, but always keep in mind that getting your credit back up to a respectable level is not that difficult and the reward can be extraordinary.

You can spend significant amounts of money to increase your car's gas mileage, but here are several suggestions for doing that at no extra cost.

1. Reconsider Roof Racks

First, whenever possible you can save money by carrying items inside your vehicle rather than on roof-mounted racks. Carrying bulky items on roof racks adds drag to your vehicle, reducing your car efficiency and gas mileage.

2. Reduce Your Speed

Next, avoid high speed driving whenever possible. The simple act of reducing your speed from 65 to 55 miles an hour can save as much as 15 percent on your fuel costs...which is a significant savings, and no cost to you.

3. Rest the Air

A third free technique simply involves rolling down your windows and turning off your air conditioner whenever practical to do so. If it's not overly hot outside, just rolling down the window and letting in fresh air can reduce the temperature inside your car.

However, faster speeds also create drag with the windows down. The best way to determine this is to check your gas mileage with your windows down and again at the same speed with the windows up and the air-conditioning on. Many new cars have computers which tell you your miles per gallon.

4. Read Your Manual

Another wonderful (and free) way to save gas is by shifting into overdrive (which is usually fourth speed in an automatic transmission) when you are going to be driving at a higher speed for any length of time. Check your owner's manual for information of all your vehicle particulars.

5. Review Tire Pressure

Finally, just keeping your tires inflated to the correct pressure can significantly improve your mileage. It does not cost anything and air is usually free. So, checking your tire pressure is one of the most efficient ways to save money on your fuel costs. Again, check your vehicle owner's manual for the ideal pressure, rather than going by the psi listed on the sidewall of your tires. Besides saving money for excess fuel, you'll also save money on replacing tires too soon.

You do not have to spend money to save money on fuel economy. In fact, you can increase your vehicle's gas mileage without spending any money at all. Take care of your car, your finances, and you will also feel good about doing your part in reducing our dependency on oil.

Thank you for being kind to our environment.

There are alternatives to conventional bank financing for land development deals.

OPM, Others People's Money

But I know you've heard all that before, but there are little known secrets that Major Land Developers have been using for years which I want to share with you.

My clients are absolutely amazed when I share these secrets with them, they always respond "so that's how they do it."

So why would a commercial financial broker want to share these secrets with you?

The reason is very simple, at the opening page of this site I told you I wanted to educate you, and so I am.

Also if you're able to implement some of these strategies, you're eventually going to need capital to build out your project.

And we'll be here to help you.
There are three ways in which you can secure your land development deal without closing a conventional loan. The last way you must seek professional accounting and legal assistance, and will not be discussed here.

Work Directly with the Seller

Use Options to Control The Property

Arrange a 1031 Exchange

The above are three methods or ways to get a commitment to sell the property with little or no cash at time of opening an escrow.

Working directly with the Seller

By working directly with the seller you can help the seller solve many of their problems, and in return he becomes your partner in the land development transaction.

Sellers often believe that they can get a better price for their real estate if they carry the paper that evidences the debt themselves. Here are some of the reasons

Buyers may have qualification issues, and if that's the case you as a buyer may not be as concerned about the interest rate, price and terms and therefore the seller as the one assuming the risk will get a higher price and you get the deal that you were not bank qualified for.

The Seller will get greater after-tax profits.

By the seller carrying paper they will not be taxed on the amount of the sale, but their tax will be based on the installments paid over the years.

In other words a large capital gain may "push" them into a higher tax bracket, but if the sale is spread out over a period of years, the seller may not be pushed into a higher tax bracket.

Use Options to Control the Property

An option is an agreement specifying some future performance in exchange for a benefit.

Simply stated, give some money control the property!

You offer the owner a price for the option to buy the land. That price (the option premium) buys you the right to buy the land at an agreed upon price at a certain time in the future.

You can exercise the option by closing the sale at any time before the expiration date of the option. The seller must sell, when you are ready to buy, no matter how much the market value may have escalated during the holding period.

A more sophisticated approach is to acquire a rolling option for large land development transactions.

This is much more complex then a simple option agreement. Rolling option is utilized when there is a great deal of property that an individual needs to control. We usually see the use of rolling options in large master planned communities, where developers are planning to phase the development project into numerous phases with an absorption of the homes exceeding five years typically.

In a Rolling option the buyer controls the entire tract but only puts up the option for the first portion of the land, after each execution of the options, the buyer is able to take down more land, until the developer controls all the property of the original contract.

If you do not exercise your rolling options ass they come due, the entire contract is cancelled as to future property that is secured through the initial option agreement...and of course the seller retains the entire premium, and he can immediately offer the property to another buyer.

Benefit to the Buyer is that they can now plan an orderly development of the entire acreage, as well as knowing exactly what the land costs for the entire project are for the proforma and any Return on Investment calculations.

Benefit to the Seller is that the seller can get the price he wants for the property, and he knows that at the least he received a sizable option premium, and at the best he receives the price he wants for his land.

Anybody who has ever arranged bridging finance for a residential property purchase will know how complicated the entire process of application can be, the situation is significantly more complex when it comes to arranging commercial bridging finance. Personal finance lenders consider bridging finance to be one of the most risky forms of lending; this statement is doubly true for commercial lenders.

There are however, some great opportunities for a knowledgeable commercial finance broker to arrange bridging finance that is not only cost effective, but will cover 100% of the actual property cost, making the capital investment for the short term an incredible 0%. Intrigued? Let's take a look at how this is achieved.

Firstly we need to consider valuation, by choosing a lender that will allow the borrow to work from the open market value of the property, rather than the actual purchase price, the loan to value amount increases, which means that the actual loan is for an amount close to what you are actually paying for the new property. Many high street lenders will refuse to work from the purchase price and refuse to recognise such things as a good deal and any possible built-in equity in the new building.

Some lenders will also allow the borrower to roll the interest into the bridging finance, which means that no repayments will be due, as they have already been added to the loan value. This is a great way to secure a property which is going to take some time to secure, as your business will not need to find hefty load repayments each month.

It should be noted that this form of borrowing is primarily aimed at those needing to secure bridging finance in the form of a closed bridge, which, means that contacts have already been signed for the property deal, those who are seeking an open bridge will find matters far less flexible and may only be able to acquire 70% of the cost of purchase through bridging finance.

Whichever form of bridging finance you are seeking, either open or closed bridge, it is highly recommended that you seek out the advice and guidance of a qualified, professional commercial finance broker, they will be able to help you with preparing the mountain of supporting documentation that will need to accompany your application, including a well thought out business plan and fully audited accounts. A good broker will also have access to a far wider range of lender, and be able to source the most effective product for your needs, they will also act as the front line of communication between your company and the lenders themselves, this alone is worth the brokers fee, as dealing with commercial lenders is renowned as being complicated and drawn out. If you wish to secure your bridging finance in the shortest possible time, you are going to need a commercial finance broker to assist you with your bridging finance application at every stage.

At some point in the future, you will no longer be working where you are. Whether it's because you retire, get laid off or change employers, it's your responsibility to be prepared. It's a necessity -- your retirement depends on it.

That's because when it comes to your pension funds, you have several options open to you when you leave your job. And if you don't know what those options are, and choose the wrong one, you will have the IRS smack dab in the middle of your IRA. This means your chances of having the opportunity for long-term tax deferred wealth building become very slim.

Option 1: Taking a lump-sum distribution (cash out)

Off the top, you will lose 20% of your accumulated money because your employer is required to withhold this amount for federal taxes. Cashing out your retirement plan is counted as receiving ordinary income, and depending on your tax bracket (ordinary rates now reach 35%) you may end up owing even more than that 20%, and that doesn't include the state taxes that may apply as well.

Furthermore, if you are younger than 59½ (age 55 in some limited cases) you will be penalized for an additional 10% off the top. So, our old pal Uncle Sam just slashed your retirement savings you have accumulated for your Golden Years by a third or more!

Avoid this entirely. (In fact, it's difficult to even think of it as an "option.")

For example, Dan, age 50, left his job. He had $100,000 in his employer's 401(k) plan. Dan decided to take the money from the plan and open a self-directed IRA account. As a result Dan's former employer sent him a distribution check for $80,000 -- Dan's $100,000 account balance, less 20% withholding. To avoid all income taxes and penalties, Dan must not only deposit the $80,000 check within 60 days of the distribution, he also must deposit $20,000 (the amount withheld by his employer) by that same date. The $20,000 must come from sources outside of the distribution. If Dan does not have $20,000 from other sources, that amount will be treated as a distribution and will be subject to income taxes and penalties.

Sure, Dan will get this $20,000 back in the form of taxes withheld when he files his tax return, but that could take a number of months. Why go through this hassle when using the correct transfer method will avoid the 20% withholding and will not make you scramble to find funds to cover the withholding amount?

Build Your Wealth and Retire Financially Secure With Your 3 Other Options

Your other options include (1) leaving your money with your former employer's plan; (2) rolling it over to your new employer; or (3) rolling it over to an IRA.

Each of these options will help keep the IRS out of your IRA, if you choose wisely and follow all the rules, which can be complex. However, there's more to consider than merely the tax implications. What about growth? Safety? The next Enron?

Retire Financially Sound or Retire With Debt - It's Your Responsibility To Make The Right Choice

So, in conclusion, taking a lump-sum distribution (cash out) from your 401K means that all the money you withdraw will be subject to income tax at ordinary income rates that now reach 35%. And don't forget that additional penalty of 10 percent on top of the ordinary income tax if you leave your job before age 55. This will leave you with no tax deferred wealth building for you and your family, which means there is a good chance you will not retire financially secure. Is that what you want for you and your family?

Avoiding all the pitfalls and dangers can be accomplished by choosing the right kind of rollover for your IRA, based on your specific, individual and unique situation.

Remember, this is your retirement nest egg. The better you can protect it and invest it, the farther along the road to a glorious retirement you will find yourself.

It's unfortunate that personal finance hasn't yet turned out to be a compulsory subject in schools or colleges. So a lot of people out there are fairly naive about managing their money.

But this doesn't actually mean that personal finance will always be way above your head! Frankly speaking, it doesn't take too much to roll back on the right path. Just read this article to know how to craft your own strategy. Fortunately, you don't have to be good at math to grasp the ideas!

Use self control

May be you were taught by your parents about this when you've in your childhood. Just in case you haven't mastered it, it's not too late. Almost everybody found success in life through delaying gratification. If you can do it, it'll be easy for you to have your finances nourishing.

True, you can easily buy something on credit the moment you want, it's a better idea to wait till you've saved up that much. Do you love paying interest on your new pair of shoes or jeans or a bottle of milk? Avoid putting each and every purchase on your credit card.

Take full control of your financial future

Unless you learn to smartly manage your money, others will figure out ways to easily (mis)manage it. Unfortunately, some of them are ill-intentioned (e.g. crooked commission-based, so called financial planners).

At the same time, others might be pretty well-meaning, but might be totally ignorant about what the consequences of their actions are (e.g. Grandma wants that you buy a new house despite the fact that you can at best afford one of those double-crossing adjustable-rate mortgages). So do not rely on other people's advice. You should rather take charge of your finances and research on some basics on management of personal finance.

Know where all your money goes

When you've read a few books on personal finance, you'll know the importance of keeping your expenses below your income. The finest way of doing this is - budgeting. Once you've realized how the seemingly negligible things are adding up at the end of the month, you'll know how to control that.

Same goes for recurring expenses. If you avoid wasting money on the luxury apartment now, chances are high that you'll be capable of affording a great condo or a new home even before you know it.

Forex better known as Forex Exchange otherwise Forex Currency Exchange is indeed the most liquid market in the whole world. With everyday volume that ranges over 70 billion dollars, it ranks as one of the most profitable venture in the finance arena. Because there are a lot of people being interested to venture into this field, a lot of systems were also created to help them out. One among those is the Forex Killer.

So what is Forex Killer exactly all about? In its simplest form, this is renowned as the automated Forex trading platform which is essentially a computer program that does the trading for you. It's completely effortless since you are not required to store any input aside from the 10 minutes time you spend in setting it up. Thus, someone won't have to worry in case they are inexperienced in the field of trading because somehow will do the job, someone that is as good as an experienced trader.

Forex Killer is patterned to work with very small and low risk trades. And although these small trades actually do not generate a lot of money, still you will be able to get as much money like a trained Forex trader is trading it for you. Seeing the fact that the program is not a person who would need to sleep at night, you are guaranteed to see money rolling over your pocket for 24 hours a day and 7 days per week. Seeing all the money that you can get, you will sense that you will actually obtain much than seeking the help of an experienced trader.

The major benefit of having Forex Killer is that even novice can operate the program with ease and they can make use of it right away. No need for any nights spent reading books and Forex lectures! You don't even have to sweat even one small drop because this is completely effortless!

Should you buy it? Seeing the fact that Forex trading is a more lucrative way than saving money on the bank, I must say that it is a great product for novices to begin with, specially those one that do not possess even the slightest idea about trading. Yes, the return are small but it will continue to grow thus in the end, you still get to enjoy your dollars! And in case you are after the fact that you can make money online even if you are at Hawaii enjoying the lustrous heat of the sun, then Yes, Forex Killer is the thing for you!

On the other hand, if you are in search for a possible product that will basically teach you all about the terminologies and processes of Forex trading then I must say that you have to look for other product other than Forex Killer given that this is actually an autopilot. If you are searching for more information then you can go straight to the product's site so you could learn more about its features.

So the time has come to purchase a car. A big decision in anybody's life and one we have to make sometimes far too often. That being said it is also a great time of excitement for the prospective new car owner regardless of whether you're buying a brand new Rolls Royce or something a little less ostentatious.

Of course the key to purchasing your new pride and joy is having the required funds necessary to make that new dream machine a reality in the drive way. But don't forget the extras that always go with any new car, those being insurance and road fund licence as well as the obligatory air freshener, key ring and new mats to complement your new ride. So remember when you're budgeting for your new wheels not to forget the essential extras.

So what is the right car loan or finance for you, well that's a question that requires any prospective purchaser to do there homework and see what is out there. Don't just take the offer of finance put on the table by the dealer trying to sell you the car. Remember these guys are trying to get the maximum profit from their sale to you so you may find the repayments are not in your favor. More often than not the APR offered by dealer finance is highly uncompetitive when compared to your average 'High Street' lender. The main thing you gain from dealer finance is not having to go elsewhere to arrange a loan. You should still get a warranty if it's included with the car and any other perks the dealer is offering.

So where do I go for a better APR rate than the dealer? Well the first place is the high street as said before. Banks & Building society's have loan rates for any purpose that are usually much more competitive and if you get one with our own Bank or Building society they will know you and may offer you great repayment deals.

But the real goldmine for car buyers anywhere is of course the internet, with a global marketplace lenders can loan anyone anywhere any product they like. This makes for a highly competitive market where all the lenders can complete for your business and are quite literally falling over each other to offer you the best deal and gain your custom. Sites such as creditmonster.co.uk have searched out the most competitive loan and finance deals and put them all in one easy place. Sites such as this offer you the choices and easy to follow sign up procedures all from the comfort of your living room, no need to traipse the high street any more.

Remember when you take out any form of finance or loan that you are responsible for any contract you sign up for and so you must always read the small print and make sure you understand any contract you enter into fully.

Take your time find out the deal with the APR and repayments to suit you. But most of all get the financial side right first off and then leave yourself free to enjoy your new purchase. Happy motoring.

Ignore the current headlines stating that the credit crunch is abating; the truth of the matter is that banks are still as cagey as ever. Although mortgages are getting back to normal for those with huge amounts of equity, the difficulties are trundling on for the rest of us. This state of affairs was reflected in a recent survey by GE Money which showed that 5% of people have been rejected for a mortgage or loan since January 2007 (this figure would be even higher if Credit card applications were included). 13% of people have made four applications before being accepted! The banks have created an uneven playing field. Perfect clients are being fast tracked whilst everyone else is having their applications scrutinised more than ever. You will be in the "everyone else" group if any of these facts apply to your situation:

* You are under 25.
* You are over 60.
* You have been in your current job for less than 18 months.
* You are not on the electoral roll.
* You are not British.
* You don't have a passport.
* You have had more than one address in the last few years.
* Your wages comprise a larger than average amount of commission or overtime.
* Your job is temporary or you work for through an agency.
* You have recently got married and changed your name.
* You have a small deposit (or no deposit).
* You have been shredding your bank statements.
* You are buying a property of non-standard construction.
* You are in a low paying job.
* You have not had credit in the past.

You'll notice in the list above that I don't even mention your credit report and credit score. That is a whole new kettle of fish!

In order to make sure you will be able to obtain credit when you need it, you have to start thinking like a bank. Would you give a loan to a workmate who is always late paying their bills, flits from job to job and house to house, hasn't bothered to get himself a passport, doesn't know how much he has in the bank, and scrimps along on minimum wage? No? Well why expect the bank too? They are a business after all - not a charity.

How Can I Benefit from a Recession?

The standard description of a recession is when a nation suffers two significant, uninterrupted quarters of waning gross domestic product. However, non-economists feel that a recession is a combination of lower interest rates, higher unemployment statistics and overall hard times - such as we are experiencing now.

Polls show that the majority of Americans believe we're currently in a recession, even if we have yet to put the official title on it.

How Does A Recession Affect Buying Habits?

Generally speaking, there are many reasons why people don't purchase discretionary products and services during a recession. Perceived job security is one major fear. People are afraid that they won't have jobs at the end of the month - so they hoard the money they do have in case of an emergency.

The current mortgage crisis and credit crunch are two other factors influencing consumer buying habits. Many people are finding themselves in over their heads due to rising interest rates, which effectively eliminate any kind of extra money for impulse purchases.

Consumers are going further and further into credit card debt - and they're scared. People are starting to second guess purchases they would have originally made without a second thought.

How Long Will The Recession Last?

Unfortunately, we aren't able to accurately predict how long the recession will last. It could take a few months for the economy to turn around or it could take years. Or - worst case scenario - the current recession could develop into a world-wide depression, devaluing currency around the world and possibly leading to a global power shift.

While the doomsday scenario seems unlikely to me, I do believe we're in for a bit of a wild ride. Even if America manages to clean up its mortgage and credit crises, there's more trouble on the horizon. A recent study showed that Medicare and Social Security will both become financially insolvent within the next 30 years. Coupled with the beginning of the baby boom generation's retirement - and their subsequent massive withdrawals from the stock market - I think we've got a ways to go.

So What Does That Mean For Me? How Can I Profit?

Yes, the current economic outlook is a little scary, but that doesn't mean you should pack up shop and hunker down until it clears up. Businesses can exist - and even thrive - in a recession by taking advantage of the unique opportunities such a market creates.

However, I believe that a tougher market means that we need to change the way we do things. In many cases, we've gotten lazy. After all, it's been easy enough to set up something during the good times and watch the money come rolling in. These

Study and understand the consumer buying process and classic sales techniques in order to build stronger businesses. In an economic recession, you've got to be on the top of your marketing game - and you can't do that if you don't understand who your target customer is and how he or she thinks and responds to sales messages.

The New Book, Recession Advantage, gives You All The Information You Need to Know to Profit form the Recession!

Franchise financing can help franchisees to give their franchises the much-needed push to get them to roll smoothly. With the right type of the franchise finance in hand, franchisees can pay back loans before time, avail of flexibility in payment schedules and find an access to cash when needed. Franchises might seem as a short-cut to finding success in business; however, unless the financing is right, ensuring a profitable business might become a hard task.

Franchise financing is advantageous because in buying a franchise, the wannabe franchisee is actually buying an established business that is successful. This considerably lowers the risks of failures as opposed to those who start fresh ventures from the rock bottom. Moreover, when you buy a franchise you are also privy to the infrastructure and the training needed to start a business that gives you a leg-up to stay ahead of the tough competition. In addition, by owning a franchise you also stand to benefit from the marketing campaigns that the parent company runs which can help you to save much on advertising costs.

Since you have a start-up where infrastructure and supplies of the franchise is concerned, buying a franchise can help you to save much on these factors. Additionally, you also stand to benefit through the buying power of the parent company thus further cutting your initial costs. In addition to saving considerably on starting expenses, you also have the added advantage of brand-name recognition- a star-power that guarantees you with a constant customer in-flow. Considering that buying a franchise can help you save on starting costs and guarantees you profitable and constant sales, franchise financing is definitely profitable.

Some good ways of franchise financing include obtaining the finances from reliable sources such as banks and finance brokers. However, in these cases the finances taken will need to be paid back within due time and with interests. Otherwise, if the wannabe franchisee can afford it, he/she can even finance it through his/her savings or take the help of a family member in which case repayment is interest-free. In either case, it is better to take expert advice regarding whether the franchise would bring profits or not before venturing to purchase a franchise.

Thus, franchise financing and buying a franchise is a good choice because they lower your risk of failing in a business enterprise provided you find financial sources that are reliable and within your means. Bernard Linney and his staff of factoring experts are ready to talk with you today about growing your business.

With this fresh new decade, two things are true. It is cold this time of year and people will make new years resolutions. The problem is that most will not see their resolutions through. One of the biggest ones people make is to get their finances in order. With the economy the way it is and people struggling to keep or find jobs, financial stability is more important now than it has been in most of our lives.

A key step towards financial stability is having a workable budget. I would argue that having one is the key foundation towards righting your monetary sanity. Many times people will get ahead of themselves and try to hit a home run investing. I know I have tried that. it is a part of our modern culture to get what we want when we want it. And we want it now. The problem with that, when it comes to personal finance, is that if we have spent years being irresponsible it will take some time to fix those past mistakes. It won't happen over night. But it can happen. And starting a budget will get that ball rolling.

When starting a budget, you can get overwhelmed. There are tons of tricks out there. There are tons of formulas. The truth is, it is quite simple. So here I will lay out some general tips. If you follow these tips, you can build a budget that works.

First, you need to identify your bills. Just sit down and go over your bills. Every recurring cost. While doing this, you may be able to identify areas where you can make a cut or two. But don't get too caught up in that. Just worry about finding what you have.

Next, and this can be a little harder, figure out your weekly living expenses. This is your groceries, lunches, gas, and those types of things. Don't worry about being exact when starting out. Just get an idea. Then identify your extra expenses. This will be entertainment type stuff. Think of it more as wants instead of needs.

Once you have all of these laid out you can start a simple budget. Start with your monthly take home pay. Then go down in level of importance. Start with savings. I know I didn't mention it earlier because I am assuming you don't have one and haven't made it a priority. Most haven't. But you should. Just start small, like ten dollars a month. Then take out your bills. Then your living expenses. And finally your entertainment.

Once you have these laid out, you have a budget. Try sticking with it as best you can. Don't worry about knocking out all your debt right away. You want to get comfortable with working with a budget before your start tweaking it too much. When you do, always do so in small amounts. Setting small stepping goals will help keep you motivated to keep progressing.

The new decade brings the promise of new possibilities. You may have dreams of the future, but most of those dream will require you to take the first steps toward financial stability. If you follow these easy budgeting tips, you will be well on your way.

If you've been swooning over the iconic curves of a Rolls-Royce car for as long as you can remember, you'll know that the price of luxury is understandably somewhat high, and perhaps a little bit more than you've been able to afford. If all that has at long last changed then read on, but if not then please don't torture yourself, that day will come sooner than you think.

Owning a luxury car is not the same as having a vehicle in which you can pop out to the shops on a whim. It needs love and attention, in fact think of it as being a loyal pet and you'll come close to the devotion required by an elite model! Whilst you won't need to feed it in the conventional sense, using a prestigious car just to ramble about to the shops is a sad waste of a vehicle that strives to perform in the most perfect manner possible!
 
However if you have spare money burning a hole in your pocket then by all means use a Rolls for whatever you please, just don't be surprised when people give you disparaging looks for letting such a glamorous car go to waste!
 
If you know how to treat your car right and have been itching for the chance to get your hands on an exclusive and exceptional Rolls-Royce model, a used Rolls Royce is the key to getting a premium car at a rather more preferable price! Whether you've saved carefully whilst rising through the ranks or come into a fortunate amount of finance, you'll find that no car compares to the Rolls-Royce pedigree. If a Roller is on the cars then there's no doubt that you're already prepared for the rather high price, so give yourself a bit of breathing room by choosing a used model.

In our world of dizzying change, nothing is more true than the time honored statement that circumstances always change.

No where is this more true than with financial issues.

Have you ever borrowed money, or charged up the VISA card at Christmas, all the while telling yourself that you would pay everything off with a coming tax refund or bonus?

Sound familiar. And then what happens when the bonus money arrives?

Let me guess....circumstances changed, the car needed brakes (or the kids needed braces, etc), and the VISA debt and interest charges keeps piling up.

Unless you have a plan, you will always be caught in the unpredictable grip of "changing circumstances."

This is a slippery slope that can very quickly become serious financial stress. Consider the fact that Americans are declaring bankruptcy at record rates. One in every 100 families is affected by a bankruptcy.

I was on this slope 10 years ago. Declaring personal bankruptcy and filing for divorce went hand in hand.

One of the most insightful moments of the process was preparing a written log for the trustee of all of our spending for the 5 years leading up to bankruptcy.

While all of the individual decisions made sense in the moments that they were made, they looked totally foolish in the context of the "bigger picture"

In other words, constantly changing circumstances drove us off our financial roadmap.

Consider this five step plan for getting on, and staying with, your financial roadmap.

Step No. 1: Make a list of what you owe & prioritize: Put all your bills in a pile. Then list your debts in order, starting with the largest balance first. Then prioritize your repayments (ie paying down the highest interest rate first).

Step No. 2: Eliminate credit cards and don't roll over balances. Once paid off, notify the company that you want to close the account.

Step No. 3: Make a spending plan. Change your free-spending ways. Track the money that's coming in and going out. Use a debit card instead of your credit card. Download your bank transactions into a computer program for easy categorizing.

Step No. 4: Be careful about the equity in your home. Billions of dollars worth of equity has been withdrawn from millions of homes in the last few years. But many people pay down credit cards only to charge them up again - and then you don't have the safety net of the equity in your home.

Step No. 5: Get help. For some people, the problem of overspending is a psychological one. Spending can become a habit that's as difficult to kick as alcohol, drugs or gambling. Sometimes, it's due to circumstances they truly could not avoid: medical bills or divorce or loss of a job.

You can talk with a credit counselor on a private basis. It only appears on your credit report if you enter their debt repayment program.

During this holiday season, as you consider your finances, remember that Americans are now carrying $683 billion in revolving credit card debt. 47% of the people who paid less than the full amount on their credit card bills in a recent month, made only the minimum payment due.

The good news is that planning and professional help will definitely help you turn things around.

Case in point: I went from bankrupt with zero assets living in a boarding house, to gainfully employed, running my own home based business, with 2 houses and excellent re-established credit.

In other words, it can be done.

If you want to buy a house but don't think you can for any of the following reasons, this article is intended to give you correct information so that you can make smarter choices and open yourself up to a world of wealth, possibilities and realistic expectations.

The truth is you are being unrealistic when you believe the following reasons to be true:

I can't buy property now because...

• I don't have 20% for a down payment, let alone 5%, let alone even 1%.
• I don't have any money for closing costs.
• I won't qualify for a loan (I have poor credit, don't make enough money, can't prove my income, haven't been at the same job long enough, etc.)
• The market prices are too high now.
• I don't want to live in a bad neighborhood and that's the only place I can afford one right now.
• I can't afford the mortgage payments with my current income.
• Fill-in-the-blank.

I am here to tell you that you CAN buy property, regardless of any of the above.

In this day and age, there is absolutely NO reason why anyone can't own their own home. The strict days of the 20%-down-excellent-credit-and-stable-well-paying-job loans are over, replaced by no-down-payment-prior-bankruptcy-and-stated-income loan programs.

With the wide array of today's diverse lifestyles comes an abundance of opportunities and programs created for each and every possible situation. Businesses need to make money, and the best way to open themselves up to a larger range of customers is to offer services for the vast and varied circumstances of each individual.

Many lenders today offer little to no down payment programs, poor credit leniencies and even no proof of employment or salary requirements (in lender speak, it's called "stated-income programs" where you simply state your income to the lender without having to prove it with pay stubs, W2's, etc. This is widely used by freelancers and consultants).

In addition to the countless programs offered by lenders, there are now government grants and (often free) services available for the low-income, low reserve home buyer as well as plenty of programs for first time home buyers. Government programs and many private loan programs also offer assistance for closing costs (the costs required up front to pay for lender fees, escrow & title charges, etc.), with some programs requiring the seller to pay for most of them.

For a list of government grants, go to http://www.cfda.gov (The Catalog of Federal Domestic Assistance) or http://www.firstgov.gov (The US Government's Official Web Portal). Click on "Benefits & Grants" to get to their grants page.

"Ok, that's great," you're thinking, "but the real estate market is so inflated now, even if I could qualify for a loan, how am I going to afford a house in the neighborhood I want?"

Welcome to the wonderful world of foreclosures, tax auctions and rehabs (otherwise known as fixer-uppers)! It is a myth that all foreclosures and tax-defaulted properties are in poor, run-down neighborhoods. One good thing about foreclosures and tax-defaulted properties is their indiscrimination. They occur in gang-ridden crack neighborhoods, middle class neighborhoods and elite million dollar communities alike.

Another benefit is that they are generally much cheaper than the lowest priced house in the same neighborhood. We all know the difference between retail and wholesale. You could go to the mall and buy a shirt for retail at $20 or you could go to the garment district in the city and buy the same shirt for wholesale at $10, or better yet, with the advent of the internet, you could do all your wholesale shopping online in the comfort of your pajamas.

The same is true for real estate. If you wouldn't spend that extra $10 dollars to buy a shirt at retail, why would you spend an extra $10,000 (or usually more) to buy a house at retail?

In the industry, houses that are listed on the market are considered retail. Houses you find through foreclosures and tax auctions are considered wholesale. These are discounted houses, available at a low price for a quick sale, usually because the Bank or County is seeking to simply make back the money they've spent on it before (and after) the buyer defaulted. This equals to huge savings for the educated buyer.

Rehabbing is buying houses that are a little less than perfect and fixing them up, either to sell for a profit or to keep as a residence. Some people enjoy the challenge of buying a property that needs a complete overhaul (new roof, extensive remodeling, structural fixes, etc.) while others prefer a "cosmetic fixer," a house which needs a little touch up paint here and there, some flowers planted in the yard, maybe even a new kitchen countertop, etc.

Cosmetic fixers are a fun and easy way to make money. You get to do a little artistic handiwork (even if you've never done it before) and make money at the same time. The quick profits you yield can be rolled over into a bigger and better house, you can repeat the process over and over again, working your way up from a $50,000 house to a $500,000 house within a few years - and the best part, it's all tax-free!

Called a "1031 Exchange," the gains you receive from selling the house can be tax-deferred as long as you continue to buy an equal or higher priced house with the proceeds you make from the sale. Unlike a straight sale of a residence, there are no occupancy requirements or live-in time restrictions for a 1031 Exchange. For a residence, federal law states that you must live in the home for 2 out of 5 years of ownership in order to avoid capital gains tax. You may choose to live in it for 2 years and bank the proceeds - yes, tax free! - or you may choose to flip it and do a 1031 Exchange - yes, tax deferred!

If you're sitting there scratching your head, thinking all this sounds like too much work when all you want is simply a house to call your own, chances are good you can still find a great deal in the retail market as well.

If you are convinced, or even slightly convinced that you just might be able to buy a home after all, here are some steps for the average, traditional home buyer.

• The first step is to figure out how much you are willing to spend. Get your finances in order by evaluating your current total monthly income against your current total monthly outgo. If you are paying $800 in rent now, how much more can you afford per month? If you don't want to pay any more than $800 a month, but really can, I urge you to look at the bigger picture. Is it worth it to spend a little more per month now to ensure you have an investment that could reap significant returns for you a few years later? Is it worth it to invest that $800 a month (and a little more if necessary) into YOUR future prosperity and not your landlord's? Is it worth it to live without Direct TV or 100 cable channels or 3,000 cell phone minutes in the short term to invest in your financial freedom in the long term? Be careful not to overstretch, however. You still want to enjoy your home without cursing it for breaking your bank. Depending on your financial situation, it may not be necessary to cut costs or stretch to purchase a home, but if so, what is owning your own home worth to you?
• The second step is to find the right lender or broker. You need to find a lender/broker so that you will know how much house you can afford. They will tell you how big of a loan you qualify for, based on your income vs. your debt (debt-to-income ratio), how much the monthly payments will be approximately, and how much your upfront costs will be, if any.
• Once you find the right lender, the third step is to find an agent. As a buyer, you do not pay an agent. The agent makes a commission from the seller's final price. The commission (usually 6%) is split between the buyer's agent and the seller's agent (and their broker). If you can, be your own agent. If you find a house you like on your own, you can often offer the seller a lower price since they won't have to pay part of that to the agents and can afford to lower the price for you. Sellers usually factor in the agents' commissions when setting their asking price.
• The fourth step is to get to know the market. Knowing what to buy, when to buy and where to buy is key to making money in real estate. Watch the market, talk to agents, sellers, buyers, investors, anyone who might know the neighborhoods you're interested in. Be open to neighborhoods you haven't thought of or heard of. Your agent can help you with this too. If you have found a good agent, they will share with you their knowledge of the market based on their experiences being in it every day.
• Know what you want and why. There are numerous ways to make money in real estate. They range anywhere from simply buying low and selling high, to rental income property, to purchasing notes and certificates, to the aforementioned ways and more. Do you want to make a quick, instant million? Or do you want a modest but steady stream of income to be comfortable? Or do you just want to buy a house to live in, a house your children can grow up in? Study your options and go with the one that appeals to you regardless of whether you know anything about it and whether you think you can do it or not. Find your niche in the market and follow it.
• Learn from others who have done it. If your knowledge is insufficient due to lack of experience, let someone else's experiences guide you. Take courses, read books, talk to others who have led the way and have achieved success in what you want to do. Don't listen to anyone who hasn't done it themselves, especially ones who tell you that you can't. "Borrow" someone else's knowledge until you gain your own through experience. There are a lot of materials out there to get you started.

Above all, the BEST thing you can do for your success is believe in yourself, believe it CAN be done and go out and do it! Stop wasting your time making up excuses why it CAN'T be done and start spending your time more effectively by finding ways it CAN.

It's absolutely no secret that the economy is in the pits. CNN reports America has suffered the worst job loss rate since 1945, post WWII. Fast forward to 2009 and the facts read as follows; over 6 million jobs lost, and the unemployment rate is 7.2%. So much for a "booming" economy... the bubble has absolutely burst!

We know how the downturn of the economy is impacting our savings accounts and 401k plans but how is this drowning economy affecting relationships across the board? STRESS is the strong emotion that surfaces when most people share the words economy and relationship in the same sentence. I'll share with you what I know the economies impact on relationships in addition to sharing some "economical" tips to help your relationship through the recession.

The Married Life-

How's the economy impacting marriages?

An economy in a recession can put extreme amounts of stress on a couple. If there is loss of one income in a two income household, the pressures of survival are magnified. If salaries are cut by employers, lifestyles are altered in addition to the "love connection" between two people. When the bills keep pouring in, love and love alone isn't going to get them paid.

So how is the economy really impacting the world of relationships? Although, stress levels may be peaked in relationships across the country, divorce rates are actually decreasing. Due to a lackluster economy and unstable job security, couples are deciding to "work it out" in their marriages and stay together for "financial" support purposes. In other words, divorces cost money, and right now isn't the time to take on the expense and added stress of dividing assets, time off work for court appearances, and of course you can't forget attorney fees as well. The bottom line is that couples are realizing that their "bottom line" i.e., 401ks, shared money market accounts, shared real estate have been severely impacted by the downturn of the economy. It's cheaper, smarter and less stressful to stay together and higher a Relationship coach to improve your relationship. The following are a few tips to weather the economic and marital storm you may be dealing with during a recession:

1. Re-connect and Re-invest in one another- At this point you may not be in the best position financially but, the situation may offer a silver lining for your marriage. It could be because you've been so disconnected from each other that you've forgotten how to meet ones mental, physical and emotional needs. Staying together for financial purposes could also offer you the chance to re-discover each other and start re-investing in the relationship you once had that brought you together in the first place.

2. Seriously...higher a coach! The situation you're in is already stressful and now do to financial strains you're forced to stay under the same roof. Perhaps getting support from a professional third party could be a great way to turn things around in your marriage. Coaching is a powerful practice and is solely used to move people forward in life in a positive, progressive manner through support, validation, acknowledgment of feelings and asking empowering questions. The answers are within you and a coach will help you pull them out.

3. You already know what you can't do; now focus on what you can do during these tough times. The stock markets and the economy and the layoffs are all things you absolutely can not control. Stop stressing over it! Step back and look at the positives in your situation and focus on those. This will help you both relieve stress and anxiety over matter you can't control and, gain confidence and appreciation for the successes (no matter how big or small) you have. Before you know it, the both of you could be smiling and again and on the upside of a 2nd chance at happiness with each other.

The Dating Scene-

How's the economy affecting the dating scene?

It's interesting to say the least. One might immediately believe that since the economy is deteriorating that dating would falter as well. I suppose it depends on the type of person you like to date or what you're used to when you take someone for a date. For example, if you're a person worked for Merrill Lynch and your standard date involves pricy cocktails, appetizers, a four star entrée, topped off with an evening of dancing and a carriage ride in central park but, now you're in a two bedroom apartment with three roommates looking for work, dating may be a challenge for you at this time. If you're a woman and you're used to similar expectants, well, dating may a bit challenging for you too.

However, all things considered just because the economy is bad it doesn't mean dating has to go out of the window. In fact, some sources report (marketplace.com) that typically when the economy is struggling, most people search even harder for a mate to connect with, someone who cares about them and their needs. According to eHarmony, Match.com and other popular online dating sites, business is booming. Some are seeing double digit growth in their business because of the recession. It makes sense, when the economy is flourishing everybody is working, so there's no time to date. When people are being laid off on any given day, there's plenty of time to date. In addition, online dating sites allow people to connect through various vehicles of communication i.e., chat, email, or via phone. There's opportunity to make a true connection before you ever meet the person face to face. This cuts out all of the expenses of a typical date. Two people can match up online, make a connection, meet for the first time and rent a movie from Blockbuster. Sounds like a pretty good deal! Allow me to share with you a few simple and economical tips on dating during a recession:

1. Meet someone you like and just be yourself (not much explanation needed there)

2. Think outside of the box! Dating doesn't have to be about fancy restaurants and bright lights. When you meet someone and the two of you have a nice connection, plan for a picnic somewhere the two you have never gone before. It'll be a great way for your connection to get stronger.

3. Have fun! Don't let reduced income or economic instability prevent you from living your life. It's best to control what you can control and work with the finances and other resources that are available to you. Show your new friend a good time and include yourself as well.

Life has a funny way of working things out. The economy at one point was shaking and moving, rocking and rolling, and because there were many things that were mismanaged, poorly handled, overlooked, and ignored it ultimately collapsed. Now, with hopes and efforts of rebuilding the economy to be better and stronger than before, most of the attention is being focused on it. The fact is, the economy will readjust and bounce back. Relationships are very similar. Often, people become consumed will all of the rocking and rolling so much that many things in our social lives and marriages get mismanaged, poorly handled, overlooked, and ignored until ultimately they collapse. Make your relationships "recession proof". Take the time and readjust your life so you may enjoy it with the one you love for a lifetime.

Be Strong. Be Empowered.

Shelby M. Hill
Relationship and Empowerment Coach

Situation: A Land Developer, Mr. Tierra, has located a large parcel of land that he would like to develop into smaller tracts (5 acres each) for which there is a great demand.The land totaling 640 acres is owned by Mr. Grande who has had the land on the market for some time with no success in finding a qualified buyer. Mr. Grande does not want to finance the land for a buyer. It is difficult to find a lender who will lend on raw land. Mr. Grande's firm price on the land is $1,000 per acre.

Mr. Tierra can raise the cash to buy 40 acres of the land and put in the improvements; roads, water, septic tanks, electricity, etc.

Possible Solution:

1. Mr. Tierra will buy 40 acres for $1,100 per acre, cash payment.

2. Mr. Tierra negotiates and buys an Option from Mr. Grande to purchase the remaining 600 acres in 40 acre or larger parcels over the next 5 years at a price of $1,100 per acre.

3. Mr. Tierra pays $4,000 for the Option which will be credited toward the purchase of the last 40 acre parcel.

Let's look at some of the benefits for both parties.

Mr. Tierra:

1. Is able to start the development of the first 40 acre parcel which he can afford to do, wherein, if he had to purchase the entire 640 acres he could not do it.

2. By developing the first 40 acres, Mr. Tierra will increase the value of the remaining land because he has now built the popularity of 5 acre parcels being available.

3. Developing and selling the first 40 acres in 5 acre tracts will provide additional funds to buy and develop the next parcel of 40 acres or more.

Mr. Grande:

1. Receives a cash price of $1,100 per acre. He could eventually receive an additional 64,000 cash for the land.

2. Receives $4,000 as Option Consideration which he will not have to pay tax on until the final parcel is purchased or the Option is not exercised.

3. Each sale will be on individual parcels and not the entire 640 acres; therefore, Mr. Grande does not have an installment sale and will only have to pay taxes on each parcel as it is sold.

4. The development of the first parcel by Mr. Tierra will increase the value of the remaining land. If Mr. Tierra does not exercise any portion of the Option, the remaining land will be more valuable. Plus, Mr. Grande gets to keep the $4,000 Option Consideration.

Now let's look at another example of how this concept could be used on a smaller scale.Let's say that Mr. Charles, an experienced Home Builder, wants to build some Spec houses and needs lots on which to build them. He has funds to build the first house, but can't buy several lots at the same time. Mr. Charles, through a realtor, locates a Mr. Apple who owns 20 lots in a Residential Subdivision. As in our other example, Mr. Apple wants to cash out of the lots, but is in no great hurry to do so. He also doesn't want to finance the lots to a builder who is building Spec houses. The builder could go broke and leave the lots tied up in legal actions.

The Realtor, who had been to an Option Seminar, proposed the following solution: 1. Mr. Charles will purchase an Option To Buy the 20 lots. The Option terms allows him to take down lots one or more at a time by paying cash for the ones taken down. 2. Mr. Charles will pay cash for the first lot. This allows him to do all the things necessary (permits, site work, etc.) and build his first house. With the return of his funds plus profits from the sale of the first house, he can buy the next one or more lots. 3. This allows Mr. Charles to "Roll" through all 20 lots over a period of time which he can afford to do. 4. Mr. Apple gets cashed out of his lots and does not have to worry about the builder being successful. 5. In the event the builder does not complete the purchase, the remaining lots should be more valuable. 6. Mr. Apple will only have to pay income taxes on the funds as he receives them and not on the entire proceeds from all 20 lots at one time.

These posts are the opinion of the author who is not engaged in rendering legal, accounting, or investment advice. If such advice is required or desired, the services of competent professional persons should be sought.

Using what we call "OPM" or Others People's Money the best and really the only way to finance any of your developments, and in saying that, any of your real estate investments!
This may not be new to you, but many people are amazed and the response that is heard often goes something like this "ahh, so that is how they do it".

Depending on where you live in the world, there are several methods that can be used to obtain financing. In the USA there are generally 3 ways.

1. Direct working relationship with the seller
2. Use options to control the property
3. 1031 exchange

The 3 method here needs sophisticated explanations and requires the services of an accountant and legal advice, therefore it will not be discussed in this article.

Working directly with the seller allows you to provide him/her with what it is that they require, you satisfy their needs! This is critical to your success when using this approach. If you satisfy their needs first in this transaction, you will get your needs satisfied. You also need to work on your personal skills and become a very good listener if you are not already. Remember, it is THEIR land you want! You must communicate very well.

So they become your partner in this deal, in the land development transaction. So if you have finance qualification issues, (which some do at the present moment I might add) the seller helps you by taking on the debt themselves and in return you the unqualified buyer is able to get the deal you were not able to get initially. In return for this "help", the seller demands a better slice and therefore a more attractive sale price.

Concomitantly, the seller also benefits by receiving a greater after-tax profits. This occurs due to the fact that the seller is 'carrying' the paper, the sale amount will not be taxed instead it will be based on the instalment payments made over the years. So instead of having a hefty capital gain tax bill due to being pushed into a higher tax bracket, they may be able to stay within a lower bracket due to instalment payment being made over a period of years therefore enabling them to stay in a lower tax bracket then if they obtained the complete sale amount in one lump sum.

Controlling the Property By Using Options For Financing Land Development.
What is an Option? It is a specified agreement detailing future performance in exchange for a benefit.

In laymans terms, it means that you cough up some funds, and you get to control the property!
So what you are effectively doing is obtaining control of the land by buying this control. In other word, you agree upon a price for the option to buy the land that you are to pay at an agreed upon date in the future.

This is all done legally and is very simple to have in a contract. At any period of time in the future before the expiration date of the option, you can exercise your right to close the sale and take control of the land. Legally the seller must sell when you have the funds and commit to the purchase. If you know your markets, you can also do very well from this transaction itself. By buying land a fair market value at the time of the contract, and as the market rises you are still able to obtain the agreed upon price for the land that you made at the earlier date. The seller still must sell at this agreed price even if the land value has tripled in the time period you agreed upon! This is why it is so important to be up to date with your 'patch' and what is happening in the market where ever you are.

A more detailed and sophisticated approach to options is the rolling option. This is generally used for large parcel land development transactions. This is quite a detailed and complex agreement, and therefore should require more knowledge and experience. Utilization of the rolling option occurs when a large amount of property it being purchased to develop master planned communities. Such as when developers are creating 'phases' in the development project with an absorption of dwellings usually exceeding 5 years.

What the buyer typically does in utilising the rolling option, is that they control the entire tract by being able to 'put up' one option at a time, and after each execution of the options the buyer is able to take control of more land until they control the entire parcel of properties that was contained in the original contract.

Execution of the options must take place when they are due or the entire contract in null and void and therefore cancelled. The seller then has the right to put the property on the market again at the same time keeping the initial premium.

The buyer benefits by having a contract that if adhered to, allows them to be able plan their development for the entire property package with the knowledge of what they are to pay for the land, and this therefore allows them to create the most important pre development work, the development ROI (return on investment) calculations.

The primary benefit to the seller is that they obtain their desired and agreed upon price, and if the deal does not come to fruition, they receive the sizable option premium and the land can be sold again. If all goes well, they receive the entire agreed upon price.

One of the most common terms found in a new home loan is a prepayment penalty. This type of penalty says that if the borrower pays off the loan early, commonly during the first five years of the loan, then the borrower will be responsible for paying an additional amount of money, typically about six months interest on 80% of the mortgage balance. Sub-prime market loans will typically carry prepayment penalties more than standard mortgage loans.

You may plan on keeping the house for the entire duration of the prepayment penalty, and be tempted not to worry about it much. But sometimes life circumstances change, so it's wise to avoid any type of prepayment penalty if you can. A typical prepayment penalty might equal five months worth of monthly loan payments, so it's worth checking on. Of course, you should always ask (before you sign) if a new loan has a prepayment penalty. In fact, ask the lending officer to point out to you in the document where a prepayment penalty is discussed.

Most items in a loan are subject to negotiation. If you haven't signed loan papers yet, and you find that your loan has a prepayment penalty, you might offer to pay an additional closing point or so to see if it can be removed. The key at this stage is that if you agree to the prepayment penalty, you should try to find ways to reduce either the amount, the term, or both as much as possible.

If you already have a loan, you are bound by the terms of the document, unless you can negotiate them. There are perfectly legitimate reasons why you may want to pay off a note early - most often, due either to refinancing or selling the house. You may be able to contact your lender to see if they will waive the prepayment penalty if they are able to provide refinancing. If interest rates have dropped a lot, and you can't get out of the prepayment penalty, it may be worth rolling that amount into a new loan. And of course, try to get the new loan without a prepayment penalty.

John McCain and his love for the government nanny state has struck once again. Now because Mr. McCain and many other politicians are not capable of exhibiting self control your bumper sticker might land you a letter of admonishment or worse from Big Daddy government. Why are you laughing? Oh ye of little faith in our power hungry bureaucrats! Do you not know the lengths to which our politicians will go to shred the Constitution and our basic rights as Americans?

Kirk Shelmerdine, formerly one of NASCAR's greatest crew chiefs and since turned struggling driver, has already been attacked by government bureaucrats empowered by Mr. McCain. You see, Mr. Shelmerdine is not exactly a driver who has sponsors falling over themselves to plaster their brand name on his racecar. He is perpetually at the back of the pack in any race he manages to qualify for and about the only time the cameras or the crowd even look at him is when he is getting lapped by the race leader.

Overall he is not what we would call a "good investment" if you know what I mean.

So during the 2004 race season and during the last Presidential election he decided to slap a Bush/Cheney 2004 bumper sticker on his race car to fill up some of the empty space. Well that was simply too much for one Sydnor Thompson! Comrade Thompson, as he shall now be known, simply could not deal with someone else practicing their free speech. So he filed a complaint which basically boiled down to how dare Mr. Shelmerdine be allowed to do use the first amendment.

The FEC graciously spared Mr. Shelmerdine a fine. But they did admonish him. How nice. Maybe our government masters can be even more gracious and let him have an extra log for the fire too?

Where do we go from here? Companies pay thousands of dollars for billboards and other outdoor advertising after all. So your back bumper must have some value and it just might exceed an arbitrary limit and trigger a violation of campaign finance laws.

The answer is as obvious as ugly is on Helen Thomas. We need a new government bureaucracy! We'll call it the Bureau for the Establishment of Noticing Deficiency with Obedience to Vehicle Election Regulations or BEND OVER for short.

BEND OVER will set up government stations where you will be required to report to each month during a presidential campaign. To keep costs down however we will only have one per state. You'll just have to deal with driving several hours to get to your state's facility.

Once there and after inching your way up through the line a government bureaucrat not even capable of asking "would like fries with that" and holding down a real job will inspect your vehicle. He or she (or possibly it?) will take a mandatory two hours to check every inch of your vehicle with a high powered magnifying glass for political advertisements and endorsements. Luckily these only cost the taxpayers $500,000 each due to a bulk discount.

If your car is deemed not have such things you will be free to go; after paying a $500 inspection fee of course. However if you do have a bumper sticker or other form of political endorsement anywhere on your vehicle it will be duly noted in triplicate. At this point its exact size will be measured by three other government bureaucrats.

They will then retire into committee to discuss the exact size of said political advertisement while consulting thousands of pages of guidelines. Some of the regulations will obviously contradict each other so only those regulations that will maximize your potential violations will be used while all others are discarded.

If these bureaucrats are unable to agree upon the actual size, your vehicle will be impounded for up to six months while lesser qualified but higher ranking bureaucrats are consulted. Where do you think you are going? You will not be allowed to leave the facility. Instead you will be placed under arrest for the potential violation of campaign finance laws. At the end of those six months if there is still no agreement your car may be impounded for another six months repeating this cycle until consensus is achieved.

However, once the exact size of your political advertisement has been agreed upon, another bureaucrat highly trained in reading numerals will record your odometer reading. This will be done ten separate times over the course of a day just to verify that the readings are accurate and then sent to the newly formed Department of Odometer Standards and Measures for approval (a procedure that can take several weeks).

At this point you will be allowed to leave but only after posting $200,000 bond (in cash) to cover any potential fines. If you cannot post the bond you will be held in a special detention center while your case is under review. Don't worry, your family will be allowed to visit you once every six months and a government approved illegal alien will fill in for you at work.

If you are capable of posting the bond you will have a special tracking bracelet clamped to your ankle just in case you have any ideas about not showing up for your court ordered re-inspection next month. You may also notice black helicopters and vans filled with federal agents following you. Have no fear. They are just there to make sure you do not try to flee the country.

After month of "freedom" you will return and your odometer reading will be rerecorded and your vehicle checked for any new political advertisements which you might have dared to add to your vehicle. Then the Department of Odometer Standards and Measures Oversight Committee will be consulted to approve the difference between the new reading and the old reading.

Now the real fun begins!

The previously agreed to size of your political advertisement and your odometer readings will be fed into a state of the art computer (with no paper trail of course) along with the total number of people which have seen your advertisement and which you will be required, under oath of course, to keep records of and attest to. Remember, there have been federal agents on your tail for that month so you had better be honest!

You will also turn over the records for things such as hourly wind speed and direction, cloud cover, precipitation, and assorted other meteorological data. Don't roll your eyes at me young ward of the state! This information is important to determining the value of your advertisement.

As the computer spits out the final value, it will be written down by yet another bureaucrat on special paper and sealed without you being allowed to look at it. This package will then be sent to the offices of the FEC where they will review the information for the next two years. During those two years you however will be free to go. However your car will not be allowed to leave the inspection station.

Once the FEC has reviewed your case the packet will be sent back to the inspection station via armed courier along with either an "admonishment" (if you are lucky) for daring to show support for the candidate of your choice in public or (if you are unlucky) a fine to be paid plus interested accrued since the date your political advertisement was first noted by the government bureaucrats. If you posted the $200,000 cash bond and your fine happens to be less than that amount sorry, but you will not receive any refund. The federal government has already spent the money. There are tons of people out there with their hands out after all!

If your fine is determined to be in excess of your initial bond and you cannot pay the difference you will be thrown in jail for not less than 50 years for daring to practice your free speech. But if you can pay all applicable fines your vehicle and your keys will be returned to you.

You might however notice that the vehicle is in decidedly worse shape than when you first got it and that your "political advertisement" has been forcibly removed by scraping the paint off the vehicle down to the bare steel. This is because for the two years while your vehicle was impounded the government was using it for a variety of purposes to better serve the "common good" and being generally run into the ground. Hey, just be thankful that you got it back!

Please also be aware that in order to be "fair" to "poor" families who obviously do not have the means to post the $200,000 bond when they place political endorsements on their vehicles, you may be asked to post the bond for them. If you are not able to post the bond for them then you will be treated just as if you were not able to pay your own bond. Hey, you're "rich" so stop your damn gripping!

So have you learned your lesson about expressing your political beliefs in public yet?