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Should You Invest In Savings Or Payoff Your Debts?

I have faced this financial question 8 years ago and recently I have friends asked me this same question. I think I should write it up so that it may help some of you that having the same situation.

The decision whether to invest your monthly excess cash into savings account or paying off your debt is a tough one.

There are few factors you need to consider before you make the decision and I listed them down here to help you make an informed decision.

(1) Rolling or fix installment credit account

An example of your rolling credit is credit card. You may continue to add debt into the account while trying to pay off the debt. It is always recommended to pay off your rolling credit before putting into savings account. You should pay more than the minimum payment every month.

Other than paying more than the minimum amount, you should take the following recommended actions immediately to avoid deepen your debt:

(a) Putting your credit card away, keep it at home and don't carry whenever you go. I actually locked the credit card for months when my debt was reaching the un-tolerate level.

(b) Be frugal. Dont buy unnecessary. Be disciplined. I actually print out big words of 'Be Frugal' and stick them around the house. In the bath room, bed room, dining hall. I even carry a small 'Be Frugal' card in my wallet and I will see it when I take money out of my wallet.

(c) Get expert advice. If the debt is too deep and out of control. It is advisable to seek an expert advice

(d) Borrow money from your friends and relatives to payoff the high interest rate c^redit card debt

(e) Payoff the high interest debt with a lower interest personal loan

For the fix installment debt, in some cases you will be penalized if you pay off the loan faster. In this situation, you may want to invest your extra cash into savings

(2) Interest Rate

It is clear that you should pay off your higher interest rate debt than putting your money into savings with lower interest rate. This is not a fix rule, many experts recommended that you should save between 5-15% of your monthly income into savings. You should also save at least 3-6 months worth of monthly spending for emergency use. You have a decision to make between building your nest egg and paying off your debt faster for long term financial health.

(3) Debt Ranking

List and rank all your debts according to the interest rate. Always pay more than the minimum for the highest Interest debt and pay the minimum for lower interest Debts.

In summary, you should balance between building your cash reserve (for emergency use) and paying off your debts. There is no one fix formula for all. Make your own analysis and find out the mix that suit your situation considering the interest rates, debt ranking and whether it is a rolling or fix installment debt.

Securing Property Development and Refurbishment Finance in the UK

In the difficult financial climate which currently prevails in the UK many established Property Developers and Builders have experienced significant problems in obtaining the necessary support to continue doing business. Whilst there has been some relaxation of late, the major High Street Banks in the UK still have very limited appetites to support speculative multi - unit development projects ( i.e. those without significant pre-sales in place ).

Generally they are only keen to lend to the more established clients and further they will restrict the loan advance to a low loan to project cost ratio which will preclude many developers from taking on a project as they are unable to raise their own cash input.

The good news however is that away from the high street there is a significant and growing number of new lenders in the UK who will take a far more entrepreneurial approach to property development funding including Refurbishment projects and who will support a broad range of both Residential, Commercial and Mixed Use projects across England, Wales and Scotland.

Lending decisions in this sector of the market are made primarily against the quality and the perceived demand for the end product to be developed. Other key criteria include the experience and financial stability of the borrower and the credentials of any proposed main contractor to be used on the project. The real benefits for the borrower in getting access to such funds is the speed of decision making - decisions in principle generally within 24 hours and the amount of the overall advance - generally 50% of the site cost provided and up to 100% of development funding. Once the loan terms are agreed the speed to complete the process is again far quicker than normal with advances available in 2 to 4 weeks dependent on how quickly the legal aspects can be completed.

The general limit of funding provided on an Interest Only facility will be circa 65% to 70% of the Gross Developed Value (GDV). This limit would include any allowable fees to be added to the loan along with the interest cover which will 'roll up' and be added to the loan during the course of the development. If a client can demonstrate that the loan interest could be serviced then this will make a positive impact on the level of the loan achieved and in certain circumstances the loan can be increased if additional freehold property is made available as additional lender security. For most projects the normal loan term will be between 9 - 24 months including an agreed Marketing phase upon completion of the build.

As one might expect the fees and rates will not be at High Street levels but, depending on the key criteria applied, loans are currently offered from 7% above Bank base Rate with fees circa 2% to 4% of the loan amount. Loans are generally available from a minimum level of £50 K up to £25 Million for the larger developments.

The quick acid test to establish if your project is supportable for property development finance

• Is there a demonstrable demand for the end product in the proposed location?

• Have you got previous property experience or do you propose to use an established Main Contractor?

• Do you own the site or do you have 50% of the site purchase price available?

• Does the overall loan requirement sit within 65% to 70% of the Gross Developed Value when the project is fully complete?

• If Sales become delayed on completion would there be an opportunity to let the property and re-finance on to a longer term mortgage?

Real Estate Notes Provide A Safer and Secured Investment: Would You Rather Roll The Dice?

The Las Vegas strip was not built on winners. Millions of people gamble as a way to hit it big and attempt to achieve wealth. With the heart pumping and adrenaline running, the thrill of winning is incredible, but the agony of defeat is much more probable. The odds of winning in a casino are not in your favor- the house holds the cards and the money - most likely yours. You are playing their game, on their turf, by their rules. Only with true luck will you prosper.

A more safe and realistic way to be a winner is to invest your money in the secondary financing market, through buying and selling notes and other cash flows. A promissory note, a written promise to pay a specified amount through certain terms and conditions, is a flexible and easy way to earn high rates of return on your investments.

The note holds multiple possibilities as an investment. There are over 60 types of notes, also termed debt instruments, to be bought and sold. Examples of such notes include: real estate, airplane, business, car, lottery winnings, insurance settlements, and many more. With a real estate note as an example, the note has a higher rate of return because the risk is higher on a loan in the secondary financing market due to issues such as credit problems, bankruptcy and insufficient job number of years in the work force. A benefit to a real estate note is the note is secured with collateral, the actual property. With real estate notes you understand the investment and it is insurable and you can add value to your investment unlike stocks and bonds. In addition, you have options. If you invest in a note, and after holding the note decide to sell for cash, you may. You may sell a portion of the note or the entire note. Business professionals and investors are constantly seeking opportunities to purchase a note in exchange for cash.

The secondary financing market of note exchange is rising. Note holders in need of money will exchange an existing note for cash. The Mortgage Bankers Association noted from December of 2004 to 2005, commercial banks had an increase in commercial and multi-family mortgage debt of $151 billion. With more debt in society, there are going to be countless opportunities to purchase a note and take over the income stream in exchange for cash. Buying in on the income stream, will in turn be a profitable investment, because the note is an asset.

The note can be bought through different terms and condition, with the level of risk the investor prefers. Through such an investment, there is no uncertainty over the amount, interest and duration of the note. The note already exists with the interest rate determined. Depending on how you buy the note, you can also increase your yield from what is typically an already high interest investment. Why gamble with your money? Why increase your chances of losing your investment? You can invest in a note - an investment where you understand and know the rules of the game.

Save Thousands on Any New Car by Using the Internet

Failure to do your homework will prove costly when you purchase your next new vehicle. The internet makes all of the essential information accessible for free, so fire up your computer and get ready to save money.

If you are unlucky enough to be trading in your old vehicle, brace yourself because it is going to be ugly. The price dealers offer to pay is always painfully low. Don't be fooled by minimum trade promotions, they will just charge you more for the new car to cover their losses. The only way to get a fair price for your trade is to sell it yourself. Here are a few good web sites to sell your automobile for a small fee.

traderonline.com

dealsonwheels.com

autotrader.com

ebay.com

If you must trade in your old car, you can always find an independent appraisal online for free. I recommend looking up a few so that you can estimate a price range before you head out to make the trade. In addition to appraising your trade in, these sites provide estimates of how much you could expect to receive if you were to end up selling it yourself.

nadaguides.com

kbb.com

edmunds.com

A fairly new subject to address when preparing to purchase your next new automobile is the rebate, incentive, bonus cash, special offer or whatever they are calling the sale this week. The rebates are a popular tool used most frequently by American auto makers.

For the consumer, an advantage of the incentives can be that banks are willing to loan retail price and even a little more. The sale price often ends up thousands of dollars less than the retail price. So if you owe slightly more than your car is worth, you may be able to roll that negative equity over into a shiny new car. I have seen rebates as high as $7000 on GM trucks and $5500 on GM cars. Whether you are upside down in your current vehicle or not, the rebate can save you money.

Don't wait until you get to your local car dealer to ask about it. I found dealers reluctant to admit how big the rebate should have been on my last truck. The most accurate and up to date rebate information can be found on the manufacturer web sites.

GM.com

Chevy.com

Pontiac.com

Buick.com

Oldsmobile.com

Saturn.com

Cadillac.com

Hummer.com

Ford.com

Lincoln.com

Mercuryvehicles.com

automobiles.honda.com

Acura.com

international.chryslercorp.com

Mercedes-benz.com

Jeep.com

Jaguar.com

Volkswagen.com

Porsche.com

Audi.com

Toyota.com

Lexus.com

Nissanusa.com

Infinity.com

Volvocars.com

LandRover.com

Bmw.com

Ferrari.com

Lamborghini.com

Lotuscars.com

Suzuki.com

Kia.com

Hyundai.com

After researching available rebates, find the difference between the retail and invoice price. Unless you are trying to buy a limited production vehicle, you can usually negotiate a price of a few thousand dollars below the window sticker. The invoice price will give you an idea of how much the dealer paid for the car. I usually push for a price that is a couple hundred dollars over invoice, because I know the dealer will have expenses to cover. The difference between retail and invoice prices can be near $5000. You may have to visit a few different dealerships, but it is worth it. Information on invoice prices can be found at the following web sites.

nadaguides.com

kbb.com

consumerguide.com

edmunds.com

Now that you know how much to pay for your new vehicle, it is time to address financing. Most buyers need to obtain a loan and if you are not careful, the dealer will squeeze a few thousand dollars out of you here as well. With good credit, the best deal can probably be found at your local bank. Stop in and talk to a loan officer before you go to the car dealer. If you leave it up to the dealership, they will try to push you into the loan that works out best for them. That usually means a higher interest rate and payment for the consumer.

If you have less than perfect credit and a current auto loan in good standing call them first and ask to get pre-approved for a new car. By using the internet, you can find banks that are a little more forgiving than your average local bank. Here are a few that I found during a recent search.

Americredit.com

wfsfinancial.com

householdauto.com

It's easy to fight the price and win when you know where to look. Good luck and enjoy your new car!

Making the Right Choices for Financing Your Medical Equipment

Healthcare decision makers face continual challenges when it comes to allocating scant recourses. Patients demand the best that medical equipment technology has to offer. But the equipment is expensive. Capital budgets typically fall way short of requests for medical technology. It is therefore critical that all aspects of the equipment purchases and financing be carefully considered before a decision is made.

Equipment to purchase:

Deciding what type of equipment to acquire can be a daunting task in and of itself. Let's say you are considering the purchase of a CT scanner. The current and most widely-used model costs around $1 million new. You've also been approached by a supplier that sells refurnished equipment. His company will sell you a refurbished 16-slice machine for $400,000. You've also discovered that a new scanner is being rolled out in six months. Although this machine will be able to detect cancer and other diseases it its early stages, the cost is $1.5 million. What do you do? Will you be able to charge more per scan with the newest technology so that revenues match expenditures? Will you be able to "get by" with the 16-slice for a period of time? These are questions that are at the root of the decision.

Once the decision has been made as to the type of medical equipment to be acquired, the next challenge is to decide what will be the optimal way of financing it. There are many options available, but the most common are borrowing the funds from a lender or leasing the equipment.

Medical Equipment Leasing:

Equipment leases usually run from three to six years and have lower monthly payments than buying the equipment outright and financing it through a lender. That's because the lessee is paying for the use of the equipment during the term rather than owning it. In addition, leasing offers 100% financing, as there is no down payment required other than the first payment and a security deposit equal to a payment. Since the payments are lower, providers are able to improve their cash flow and are more likely to match revenues with expenses. From a tax standpoint, leasing also offers the advantage of writing off 100% of the lease payments.

Many medical professionals also opt for leasing because of its flexibility. A lease can be negotiated in such a way as to include maintenance, upgrades, and other services. At the end of the lease term, the provider has the option to purchase, renew, or simply return the equipment. This is an important advantage, as it guards against equipment obsolescence. At the inception of the lease, you should consider negotiating a fair market value cap or placing an early buyout option in the contract. These details are rarely in a standard lease, so you must ask the lessor for these items.

Since the payments are lower, providers are able to improve their cash flow and are more likely to match revenues with expenses. From a tax standpoint, leasing also offers the advantage of writing off 100% of the lease payments.

Medical Equipment Loans:

When equipment obsolescence or cash flow isn't an issue (which is rare in the medical industry), an might be a better alternative. At the end of the lease term, the provider has an asset that he can either continue using or dispose of it on the open market. Borrowers also receive tax benefits, such as the depreciation expense on the equipment and the interest expense incurred during the loan payout.

Using a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization) is a common method of valuing healthcare practices and hospitals. If a healthcare group is considering going public or selling the business, financing equipment through a lender may be advantageous because it would result in a higher valuation than if they had leased the equipment. Leasing would be an "above the line" expense.

Personal Guarantees:

With both medical equipment leases and loans, personal guarantees from the owners are usually required. This provides a comfort level for the lessor or lender. If there is a default, the lender/lessor can attach personal assets of the lessee for the balance of the loan or lease that isn't satisfied by the liquidation of equipment. Most providers do not want to sign a personal guarantee for obvious reasons. However, if the clinic or practice has a solid track record of profits for five years or more, the lender/lessor will oftentimes abandon the personal guarantee requirement. That is another point that must be negotiated at the inception of the lease.

Choosing a lender or lessee:

Competition is fierce in the equipment financing industry. Acquiring the services of an independent financing consultant is advisable. A properly trained medical equipment financing broker will analyze your particular needs and will know which lender or lessee will be a good fit for your organization. He or she can guide you through the intricate details concerning the contract, which will allow you achieve optimal capital financing.

Top Budget and Personal Finance Apps

Let's face it, there are some extreme couponers, thrifters, and smart consumers out there always trying to save money and get the best deals. With budgets that much more tight in these tough economic times, it's okay to get a little help from none other than our smartphone apps. I mean, why not, right? We have our smartphones with us nearly every minute of the day, so this kind of smart budgeting is accessible to anyone. Keep track of your monthly spending, set limits on each category of goodies you purchase, save money, and look up investment ideas and accounts has never been easier. Read on to see how you can always control and be on top of your personal finances. We'll reveal the top budgeting and smart spending apps for you thrifty shoppers out there!

For one, there are so many budget tracking apps out there, but a really useful one would come with a budget tracker tool that will allow you to view your yearly, monthly, weekly, and daily purchases. You can further categorize them and see visually and through charts and notifications how much you spend exactly in each category. There is also a rollover option for you to transfer leftover funds from previous months or weeks to roll over and won't mess up your budgeting. Of course, you can always opt out of this option and have a set number of expenses every month.

Another useful app gives you control to add new transactions over your allotted sum of money and spending finances. Pre-setting an overall budget for the entire month, and thereby deducing every time you make a purchase gives you instant updates on the money you have and the money you are losing. These transactions are totally customizable. Currency converters may also be useful if you plan on spending your money in a foreign country. We all get carried away when we travel, but this app makes it easy to stay focused on the budget, even when you're not familiar with the currency exchange.

Another great app gives you total control over importing your finances onto your phone from an external memory device - your laptop, desktop, or anything with wireless. You can also set a password to manage your personal finances with utmost privacy. Charts and graphs give you short and easy to read summaries of your account activity. You can share these things in the form of PDF, Excel spreadsheet, or import to Google Documents in order to share with your family, business collegiate, execs, or co-workers.

If you are comfortable, some apps may even connect directly to your bank account and give you automatic categorized notifications of your spending. It will constantly update your spending profile and read instant in depth overviews. Any suspicious activity will be announced. Budget tracking is that easy!

In fact, budget tracking has made it easier to keep track of your credit scores, and credit score reports. Why not try to improve your credit score while you are managing your personal finances? If you use the right app, your personal finances will be in a much better place.

Credit Killers - Is Your Credit Record Really As Good As You Think?

If you are applying for a mortgage or any kind of credit, it is extremely likely that your potential lender will need to carry out a credit search on you. You may think that your credit report is in good shape. Perhaps you have always paid your bills on time, perhaps you have never missed a payment on your Mortgage, rent, credit cards or loans. Perhaps you have done everything expected of you by your creditors. However, your credit report could still let you down. So if you're about to apply for a loan, a Mortgage or any other kind of borrowing, take a look at our list of little known credit killers...

Credit Facilities in your name. You may have nothing outstanding or very little outstanding with other lenders, but if you have high credit limits that you could dip into, it could result in your application being declined. For example, perhaps you have credit cards, which just sit in a draw and are never used. However, the very fact that you have them and they give you the potential to borrow more money may cause the lender some concern. Associated Credit You may have been very responsible in terms of your finances, but if someone who has lived in your property previously or who lives in your property right now has not been, it could affect your credit rating. The good news is you may be able to financially disassociate yourself from that person by contacting the credit reference agencies.

You should be able to find out more by visiting their website or speaking to one of their advisors The Electoral Roll If you are not on the electoral roll this could seriously affect your chances of getting credit. Lenders use the information on the Electoral Roll to help them identify you so if you are not on it chances are they will not lend you money So if you are about to apply for new borrowing make sure you know that you are in the best possible position by dealing with these credit killers before they put an end to your application.

Finances During and After Divorce

Once the decision to divorce has been finalized, most people pass through the stages of grief associated with the loss of a loved one. While no two people experience the same journey, we all experience the stages, with some people skipping a stage while others repeat some of the stages. Those stages are Denial, Anger and Resentment, Bargaining, Depression and Acceptance. You will likely experience most or all of these stages. Google the stages of grief. Understand them. Anticipate them. Make them yours, and then let them go.

Push through the pain to understand your financial condition. It's important for you to understand what that condition is, so you can be a helpful part of your legal team in looking after your best interests. No one knows better than you what is best for you, and to be a emotional wreck curled up in a fetal position won't help your future.

Like the coach on the sidelines, you are the one person responsible for guiding your team toward its goals. Your legal or accounting teams are your quarterbacks on the field, where they call plays and physically move the team. You call the shots, however. You send in the plays. You direct the Big Picture. Be involved and stay involved.

Make certain you don't put yourself into a position where you accept an unfair divorce settlement knowingly. Most partners who just want to walk away and avoid a fight usually do so at their own future peril. As tough an enormous emotional challenge as this is, see it through.

Take a financial snapshot of yourself and your situation soon after separating from your spouse. Inventory everything you own. If possible, make a video of as many possessions as you can.

Avoid mistakes. Trying to undo mistakes after the fact, especially after considerable time has passed, can be very difficult. If you give short shrift to any of the following, you run the risk of getting less than you deserve.

Create an interim budget based on what expenses you personally will need to maintain. Call this your separation budget. This budget will serve you (and any attorney) well when you begin discussing transferring assets with child support, alimony or any transfer of possessions.

Determine the fixed expenses you'll incur over the short term, which will contain housing, utilities, retirement, insurance payments or auto expenses. Make lists of expenses you'll retain, expenses your ex will retain, and expenses that may need to be negotiated.

Are there any assets that are at risk if the payments don't get paid? If so, identify them along with how long the creditor will remain open to payment. You may wish to hire a Certified Divorce Financial Analysts who can thoroughly sort out your marraital asset accumulations.

Understand the degree of liquidity of your assets, and how they relate to the current economic conditions in society. Some assets like real estate or automobile collections can be highly illiquid if market conditions are bad, or if you and your spouse disagree on a price for those assets. Know the liquidity difference between retirement accounts versus brokerage accounts.

Retirement accounts are somewhat illiquid, in that assets removed from them result in tax consequences, and if the withdrawal occurs before age 59 1/2, an IRS early withdrawal penalty.

Get a complete picture on how much cash is on hand. Make sure you include any accounts used for specific purposes (vacation, Christmas, etc).

Personal collections, which can include autos, guns and the like, can be somewhat illiquid, with valuations speculative.

When fashioning a wish list of what assets you want from the marriage, don't take on too much illiquid assets unless you're certain you can manage without being forced to sell those illiquid assets. If you get the house and he gets the cash, you could be at a disadvantage if you need to raise some cash in the future.

Assemble the marital assets according to cash flow from each. Here again, you may not want to assume assets that don't produce cash flow.

If a particular asset should be sold, is the market good or not so good? In light of depressed 2009 economic conditions, one asset may be preferable to sell over another.

Be certain to identify all assets- Leave no stone unturned. Spouses have been known to conceal assets prior to or right after a marital separation. You (or your team) will need to be sleuths to be certain all assets are included. Some are hesitant to disclose a piece of art or jewelry, but if you're forced to admit it exists and you lied to your attorney, it makes for messy relations. On occasion a forensic accountant is hired to locate missing or hidden assets, and the costs are borne by the overall aggregate in most cases.

Be certain you have copies of tax returns. They provide the basis to begin the discovery process (most people are afraid to lie to the IRS). You or your team will want to go back 5-7 on tax returns, looking for evidence of trusts, partnerships, private placements, real estate holdings, and the like.

For couple involved in a business, tax returns can expose a spouse trying to cook the books in his or her own best interest. A common ploy is to put a friend on the payroll and, for a fee, return the salary back to your spouse.

Get copies of checking and savings accounts, going back several years. Reviewing statements can reveal the transfer of money or the payment for a now hidden asset. Income and/or capital gains will also appear on one's past tax filings.

Brokerage accounts offer the same paper trail. Obtain copies of these statements going back at least 5 years.

Determine if there was ever an expense account connected with employment. Examine what was paid back and how it was categorized.

Companies often grant stock options to employees. These stock options are often listed with benefits statements from the employer. Make sure your side demands to know about any stock options and the potential value of them in the future.

Are there any children's accounts? UGMA, UTMA, 529 plans (College Savings Accounts) or other accounts? Stock dividend reinvestment plans (DRIPS)? It's wise to get copies of these account statements too, because assets can me moved around, or accounts can be liquidated and residual value returned to the parent. These accounts can be great places to park money until after the divorce.

If there were previous marriages between you two, and assets were owned before your marriage, they will likely be treated differently than marital assets. Your Financial Planner or Forensic Accountant can explain how each are treated.

Know your Insurance Policies. Home and vehicle insurance should be reviewed, and consider contacting your agent to request notice of any changes. Life insurance annuities or other insurance contracts, including business-related 2nd to Die insurance policies or Buy-Sell agreements, should be examined. If you and/or your spouse have owned a business, be sure to explore all insurance policies.

Debt and Credit Issues. Retrieve copies of your credit report from each of the three national credit-reporting agencies. Federal law allows us all to receive one free credit file per reporting agency per year. Determine your FICO score(s) and scan each file for any unrecognizable account listed on each. If it makes sense to do, consider placing locks or holds on credit files to prevent further credit being applied for. Speaking with a divorce lawyer on this one would make sense.

Close all joint accounts. Doing so early on in the separation and divorce process can get tricky. Closing them in most cases can be done just by yourself. If you close a joint bank account and remove cash, consider giving your spouse half, or less than half if you intend to reserve some cash for joint bills. As long as you retain, and spend the money fairly, you likely won't get into hot water with the court. Some might be tempted to leave more than half in the account, being considerate that your spouse will use some of it for your half of expenses. Don't assume this will happen. Many spouses will take the money, consider it all theirs, and then demand "your half".

Your marital status at year's end will determine how you file next year's taxes. Whether you file married filing jointly or married filing separately can be determined by you and your spouse, or your attorneys, but in no case should be left out of your final written agreement. Have a contingency in the final decree that should there be any penalties, interest or further taxes owed by either, that it be spelled out who pay, when they pay, and how they pay.

Retirement Accounts- Know the rules of the road. A Qualified Domestic Relations Order (QDRO) is a court order mandating that certain assets in a retirement account be transferred from one spouse's account to the other. You need to fully understand the many tax ramifications and penalties associated with not using a QDRO or distributing from a retirement account. IRA Accounts. Regular IRAs, Roth, rollovers etc. Know how these accounts are treated tax-wise. Removing assets often involves taxes and often penalties before age 59 ½ and 70 ½. 401(k)s and 403(b)s are most often the accounts that receive QDROs.

Taxes. If there are significant assets, consider an accountant to determine what tax obligations would be incurred selling any of your assets. Knowing one asset incurs a much larger capital gain tax if sold rather than another asset may cause a decision to choose one asset over the other. If either of you were married previously, and one of you moved into your spouses home, and that home is sold, a capital gain calculation will be different than if you two bought the home together. Speak with your team to determine which tax filing status is more advantageous to you, and negotiate toward that end. Insert language that spells out exactly how an asset is to be sold, how the taxes are claimed or distributed, and how any taxes must be paid.

If you sold a home prior to 1997 and rolled that capital gain over to an existing home, and then sold that home, the old rules apply to determine the cost basis for the current capital gain amount. This would increase your gain and possibly influence when and how much you might sell the property.

After the Divorce process is completed Credit, Debt and the New You. Begin by establishing your own credit file. Federal Law requires that each credit customer be allowed one free credit report from each of the three national credit-reporting agencies. You'll want to request the file individually, but the reports will likely result in joint information. Requesting the report individually actually establishes an individual file. If you have an inadequate amount of individual credit history, you'll want to establish several accounts as soon as possible. Keep in mind that you only want credit cards that you'll actually use, so don't go crazy trying to accumulate credit cards.

Retrieve the budget you created during the early part of your divorce, and revise it based on your new circumstances. Make sure fixed costs appear there (housing, utilities, car payments, contractual payments, etc.) and include any new spending pertaining to your single needs.

If you don't know where you're going, any road will get you there Be flexible. Your new life, especially if it includes raising children, will offer more surprises than expectations. Remember that while you personally endured the divorce, children suffered through an event too.

Attend to beneficiary concerns. You must name them as soon as possible, because if you don't, and you die, your state will impose a will on your heirs (in testate) that can result in your wishes not going fulfilled. Wills, Trusts, retirement accounts, bank accounts and insurance contracts will need to be revised. Don't put it off.

If you haven't already, create a personal blueprint that lays out goals, wishes and aspirations you've developed over the years. Be sure to include the dreams and desires you may have developed in a marriage that didn't allow them being fulfilled.

Instant Cash Loans For Bad Credit - Appropriate Finances For Urgency

At times, your bad credit may create a lot of obstacles, particularly when you are in desperate need of quick cash. However now you can obtain the much needed financial relief without facing too many hassles. Now you can avail instant cash loans for bad credit, designed especially for those individuals who are having bad credit problems and are looking for instant monetary relief. Despite having arrears, defaults, late payments, you can get hold of these loans without too much of a problem.

The advantage with these loans is that inspite of having the credit hassles; you get to obtain these loans in les than 24 hours. Moreover, the lenders approve the loans without any credit check. These are basically short term loans and can be accessed without pledging any collateral. With these loans, you can easily take care of needs like paying medical bills, store and grocery bills, electricity bills, credit card dues, car maintenance or house repair etc.

In order to qualify for the loans, you must be a citizen of USA and should have attained 18 years or more. You need to be employed for the past 6 months with a monthly income of not les than $1000. An active checking account is also required that must be in active use for the past 3 months.

Through these loans, you can obtain a small amount in the range of $100-$1500 for a period of 2- 4 weeks. You can repay the amount when your next payday arrives. If you are having any trouble, then you can roll over the loan for a few weeks, but for that you will have to pay a small fee to the lender.

While availing the loans, you should be prepared to pay a high interest on the loans. This is why it is advised to borrow an amount that can be easily repaid. Moreover, you should resort to these loans only in times of urgency.

Instant cash loans for bad credit as of now are also available online. Online lenders offer these loans at comparatively cheap interest rates. Further, by taking a proper research and comparison, you can easily spot lenders offering these loans at competitive rates. Besides, on repaying the borrowed amount on time, you will be able to improve the credit score, which is of course beneficial

Successful Real Estate Investing Will Become "Automatic" When You Have Goals

The first time you rode a bicycle successfully, you most likely really had to think about it. No doubt you have to concentrate totally on just exactly what you were doing. Maybe you had to do that again the second time, and the third, fourth, and fifth time, and maybe even for several weeks thereafter. One fine day, though, you got to the point where you could hop on the bike and pedal away without thinking about it at all. You may even still be able to do that now. They say, "Once you've learned how to ride a bicycle, you never forget." It becomes "automatic."

This is exactly what your, perhaps, most realistic goal should be when you've mastered the course "100% Financing When Buying Real Estate" and become a successful real estate investor. You want the lessons you have learned to be incorporated into your daily life almost automatically. At first, you will have to think very consciously about everything. Putting these suggestions into practice is going to take considerable effort on your part. But, as in the case of bike riding, you should take some comfort in the fact that it gets easier as you go along.

One theory suggests that "inertia" is the real culprit. According to this theory, bodies at rest tend to stay that way, and bodies in motion tend to stay that way too. In the case of learning real estate investing, when you start you're barely moving at all. Inertia sets in. It is much less difficult to keep sitting and not doing anything than it is to start picking up the telephone, answering classified ads, and traipsing around your neighborhood looking at "for sale" signs. It's a huge mountain to climb over, that's for sure. But once you get "up there," you'll be surprised how rapidly everything starts coming together. You'll really start rolling! Then the other half of inertia kicks in. Now you're moving and will stay moving. Making telephone calls becomes "automatic." You're in the habit of reading the newspaper advertisements. You can't imagine a day going by without rereading your written goals. You canvas not only your own but all your friends' neighborhoods too. You meet people and develop business relationships constantly. You hand out your business cards to everyone. And pretty soon not a month goes by without you making an offer to purchase property with amazing profit potential. This is what you want to have happen. This is "riding your bicycle" down the parhway to real estate investment riches. This is success in the making. You really want to do this. Don't you?

What you really want to do is make the lessons you have learned "automatic." Some scientific studies have shown that almost any act can move from consciious to unconscious activity in less than three weeks with constant repetition. So, if you begin by "forcing yourself" to read the real estate classified advertisements each and every single day for one-half hour, for example, the evidence suggests that this will be your daily habit in less than three weeks. You'll do it uncounsciously. You'll do it "automatically." But you will do it! And this is exactly what you want to do. isn't it?

This is what you want to have happen with your written goals, too. You want to reread them twice daily for the rest of your investing life. Or, certainly until you've attained them all. (And by then you will probably have "automatically" set more new ones!) If you do read then over faithfully like this, pretty soon they become "automatic." Then they're your habit. They are then a part of your subconscious mine, and you want this. Something becoming subconscious like this is tantamount to achieving it already. It's like as if it becomes a driving force. It becomes your "fourth basic need" (food, shelter, clothing and going after "those darned written goals"). When this happens, you will see how easy it becomes not only to go after them, but to achieve them.

Why not plan on keeping a weekly log, and recording all the time you spend going after your goals? That is, record everything you do, every day, each and every week, involving activities related to real estate investing. Jot down the periods of time you spend researching income properties, checking our neighborhoods, talking to people, and actually making offers to purchase. Record what happens afterward. Jot down your follow-up activities. Write all this down at first, and after a few months you may find you don't need it anymore.

It could become "automatic" that you do these things without having to write them down. Or, writing your log could become a habit, and that all by itself would be indicative of the conscious (and subconscious) effort you are making to become a real success as an investor in income producing real estate.

Advantages Of Using A Roll Up Stand In Your Presentation

If you want your project presentation to be unique and attractive, you can absolutely use several different methods to it. One way is using a tarp or banner to display relevant facts about your project. Mount the banner in a Roll up stand which is popularly used nowadays instead of hanging the banner on the wall. Using a stand will allow you to place your banner in a place where it is fitted.

Banners and tarpaulin use during advertising is popular these days because it attracts people easily. A banner display can easily call attention especially when it is visually stimulating such as using various colors and stylish design. Using stand to mount the attractive banner will require less work because there's no need to climb walls and post it.

Aside from the advantage above there are a lot more advantages when using banner stand. One is it can be arranged in various position. It can be placed facing right corner, left, back or facing front. The placement depends on the style of arrangement in a booth.

From its easy transfer or movability, banner stand display is also advantageous because it is portable. One can easily bring it anywhere without difficulty because it is lightweight. It will not take a big space inside or outside the display booth rental because it is made to fit in any corner or space.

Another benefit in using a stand is its availability in many colors and sizes. Many brands market various colors of stands so it can fit in any motif. It is also available in various sizes-tall, short, small, etc. If it is small, it can be placed on tabletop to attract more people. If it is a tall stand, it can be placed on the side of the booth.

One more advantage on the use of stand is its easy installation feature. One can set it up in a few minutes by just following the simple instructions provided on the manual. Anyone can set it up without any help because it's easy to assemble.

Now that you have seen the various advantages of using a stand and you're planning to buy one, take a few considerations to bear in mind when buying. First is to determine the size of the banner you will mount on the stand so that you will also know the size of stand you need. You may also want to remember the color of your presentation and buy the stand with the same color so it will blend.

Another consideration to take is to check on the sturdiness of the material of the stand. There are brands that use high-quality materials to make a durable stand and there are some that doesn't make good quality stands. If you want to get the value of the money you spent, better select the best quality stands.

One last thing to consider is the price of the roll up stand. For easier price canvassing, browse the internet and find the website of the brand of stand you want to buy. The prices will be indicated on the website and you can set aside a budget to buy it. Canvassing will help you get a stand with good quality and reasonable price.

Exciting Enhancement to Global Resorts Network Compensation Plan and Financing Program

Global Resorts Network implements enhancement to the compensation pay plan, where Affiliates will earn on their very first sale.

Effective October 9, 2008, Global resorts said that they will be implementing an important enhancement to the current pay plan structure.

Currently, a Gold or Platinum Affiliate is not paid a commission on their first sale which is their Qualifying sale.

The change in the pay plan will be as follows;

Gold and Platinum Affiliates will begin earning a commission on their very first (Qualifying) sale equal to ½ of the normal commission.

That means a $250 commission for a Gold Sale or a $500 commission for a Platinum Sale.

The other half of the commission ($250 for Gold and $500 for Platinum) would roll up to the first qualified up line Affiliate (qualified to receive the commission).

The second $500 or $1000 commission will be paid out as before to the second upline Affiliate qualified to receive a commission.

Of course, on all subsequent sales (sale 2 on) the commission earned will be the full $500 for a Gold and $1000 for a Platinum as usual.

Global Resorts Network said that they feel this change is an exciting enhancement to the compensation plan.

Global resorts network will be also introducing their new financing program, in which A Platinum Membership will be available for a $998 down payment and monthly payments of $198 for 12 months (with no interest).

The two $1000 commissions will be paid $300 at initial purchase (two commissions of $300 each out of the $998) and the balance in 12 equal monthly payments.

According to GRN these $300 immediate commissions can generate significant incomes up front plus give affiliates a handsome residual income over the following 12 months.

The new Customer or Affiliate will be a full Platinum Member with full travel privileges immediately.

Local Governments Under the Indian Constitution

1. Introduction:
Late Rajiv Gandhi came to the helm of affairs in the country he repeatedly stressed the importance of Panchayati Raj. He formed his views on the subject by under-taking whirlwind tours of rural India to familiarize himself with the realities of rural life, by holding frequent workshops of district magistrates all over the country, and thus assessing their views and understanding their difficulties. As a result of this interaction with the people and the administrators, his views on Panchayati Raj gradually evolved, his thoughts ware clarified and he could form his own plan of Panchayati Raj and place it before the parliament with perfect self-confidence and case. He also sought to give it constitutional sanction by proposing to add a fresh chapter to the Indian constitution in the form of the 64th amendment, through the Bill which he moved in the parliament on the 15th of May, 1989. As a result of his clarity of thought and powerful advocacy, the bill was passed with near unanimity, with only five M.P.'s voting against it. Late Rajiv Gandhi forcefully and clearly unfolded the concept of Panchayati Raj, the urgent need of constitutional sanction for it, and the salient features of his scheme for making it a reality. He told the members of the parliament that, "Democracy was the greatest gift of our freedom struggle to the people of India. Independence made the nation free. Democracy made our people free. A free people are a people who are governed by their will and ruled with their consent. A free people are a people who participate in decisions affecting their lives and their destinies". "Gandhiji believed that democratic freedoms have to be founded in institutions of self-government in every village of India. He drew his inspiration and his vision from the Panchayats, the traditional 'village republics' of India. Panditji established the institution of Panchayati Raj as the primary instrument for bringing development to the doorstep of rural India. Indiraji stressed the need for the people's participation in the processes of economic and social transformation.

In this era of globalization and rapid economic growth, it is even more essential to ensure that the voices of the Panchayats are heard, that Panchayati Raj leaders and workers have a say in shaping and influencing development policies. So that grassroots needs and aspirations are represented, and the benefits of our economic growth flow. The Panchayat system has been integral part of the Indian village system through ages. A village is self contained microcosm, a composite peasant society representing different communities and cultural hues. It does not have irritant elements but represent an integrated culture, free to a greater extent from the penetrations of urban cultural patterns into the village life.

2. Local self government:
In the context of a large, diverse nation like India where the public faces a myriad of problems large and small, a functioning system of local self-governance becomes even more critical. To speed up the development process and make it most effective, people at the grassroots level must have as much authority to tackle the issue facing them as possible. Their powers should not be limited only to casting a vote once in five years. They should be actively involved in day-to-day governance issues and should have a say in the matters that concern them. They should not have to run for every small task to their local bureaucrats and politicians. The efforts to eliminate poverty must synthesize the top down policies of the central and state governments with bottom up knowledge, problem solving abilities and the needs of the grassroots citizens.

Idea of Gram Sabha in Panchyats Raj system was created with the hope that it would provide a platform to the local people to collectively plan and implement programs for their own development. However, they are yet to become effective institutions of local self-governance. The local institutions, though exists formally now, have far too little power particularly over funds and local officials to accomplish the will of their constituents. In case of Municipalities, it is even worse because at the least Gram Sabha in Panchayat Raj provides a platform to the villagers to collectively deliberate and decide but no such platform in Municipalities, where people can collectively express their will and concerns.

3. Panchayati raj:
The panchayat raj is a South Asian political system mainly in India, Pakistan, and Nepal. The word "panchayat" is a traditional one and are an ancient form of local government based on the idea that when five (panch) respected elders chosen and accepted by the village community, God will be present. It literally means assembly of five people. Traditionally, these assemblies settled disputes between individuals and villages. The five elders in a village who mediated conflict and spoke on behalf of all the residents of a village in pre-modern times. In these traditional bodies, the lower castes and women had no representation. The question did not arise. Modern Indian government has decentralized several administrative functions to the village level, empowering elected gram panchayats. Panchayati Raj is a system of governance in which gram panchayats are the basic units of administration. It has 3 levels: village, block and district.

4. The Panchayat Raj system has a three-tier structure as:

1. The Village Panchayats
2. The Panchayat Samitis and
3. The Zilla Parishad

4.1. The Village Panchayat or Gram Panchayat:
The village panchayat or the gram Panchayat functions at the Village level. It is called a Panchayat at the village level. It is a local body working for the good of the village. The number of members usually ranges from 7 to 31; occasionally, groups are larger, but they never have fewer than 7 members.

4.2. Panchayat Samiti/ Intermediate level panchayat:
Panchayat samiti is a local government body at the tehsil or Taluka level in India. It works for the villages of the Tehsil or Taluka that together are called a Development Block. The Panchayat Samiti is the link between the Gram Panchayat and the district administration. There are a number of variations of this institution in various states. It is known as Mandal Praja Parishad in Andhra Pradesh, Taluka panchayat in Gujarat, Mandal Panchayat in Karnataka, etc. In general it's a kind of Panchayati raj at higher level.

4.2.1. Constitution:
It is composed of ex-officio members all sarpanchas of the panchayat samiti area, the MPs and MLAs of the area and the SDO of the subdivision, co-opted members representatives of SC/ST and women, associate members a farmer of the area, a representative of the cooperative societies and one of the marketing services and some elected members. The samiti is elected for 5 years and is headed by the chairman and the deputy chairman.

4.2.2. Departments:
The common departments in the Samiti are as follows:

- General administration
- Finance
- Public works
- Agriculture
- Health
- Education
- Social welfare
- Information Technology and others.

There is an officer for every department. A government appointed block development officer is the executive officer to the samiti and the chief of its administration the department in the samiti.

4.2.3. Functions:
- Implement schemes for the development of agriculture.
- Establishment of primary health centers and primary schools.
- Supply of drinking water, drainage, construction and repair of roads.
- Development of cottage and small-scale industries and opening of cooperative societies.
- Establishment of youth organizations.

4.2.4. Sources of income:
The main source of income in the panchayat samitis are grants-in-aid and loans from the State Government.

4.3. Zilla Parishad/ District level panchayat:
In the district level of the panchayati raj system you have the "Zillah parishad". It looks after the administration of the rural area of the district and its office is located at the district headquarters. It is headed by the "District Collector" or the "District Magistrate" or the "Deputy Commissioner". It is the link between the state government and the panchayat samiti.

4.3.1. Constitution:
Members of the Zilla Parishad are elected from the district on the basis of adult franchise for a term of five years. Zilla Parishad has minimum of 50 and maximum of 75 members. There are seats reserved for Scheduled Castes, Scheduled Tribes, backward classes and women. The Chairmen of all the Panchayat Samitis form the members of Zilla Parishad. The Parishad is headed by a President and a Vice-President.

4.3.2. Functions:

1. Provide essential services and facilities to the rural population and the planning and execution of the development programmes for the district.
2. Supply improved seeds to farmers. Inform them of new techniques of training. Undertake construction of small-scale irrigation projects and percolation tanks. Maintain pastures and grazing lands.
3. Set up and run schools in villages. Execute programmes for adult literacy. Run libraries.
4. Start Primary Health Centers and hospitals in villages. Start mobile hospitals for hamlets, vaccination drives against epidemics and family welfare campaigns.
5. Construct bridges and roads.
6. Execute plans for the development of the scheduled castes and tribes. Run ashramshalas for adivasi children. Set up free hostels for scheduled caste students.
7. Encourage entrepreneurs to start small-scale industries like cottage industries, handicraft, agriculture produce processing mills, dairy farms, etc. implement rural employment schemes.
8. They construct roads, schools, public properties and they take care of the public properties.
9. They even supply work for the poor people like tribes, scheduled caste, and lower caste.

4.3.3. Sources of Income:

1. Taxes on water, pilgrimage, markets, etc.
2. Fixed grant from the State Government in proportion with the land revenue and money for works and schemes assigned to the Parishad.

5. Gram swaraj (village self-government):
Gram swaraj was a goal of India's Freedom Movement, although it was not enshrined in India's 1951 constitution. Mahatma Gandhi advocated Panchayati Raj, a decentralized form of Government where each village is responsible for its own affairs, as the foundation of India's political system. His term for such a vision was "Gram Swaraj" Village Self-governance. The village Republic will be managed by a panchayat which will be living political force and entity.

6. Objectives-panchayats raj institutions-gram sabha:
The 73th Amendment envisages the Gram Sabha as the foundation of the Panchayats Raj System to perform functions and powers entrusted to it by the State Legislatures. The amendment provides for a three tier Panchayats Raj System at the village, intermediate and district levels. Articles 243A provides that the Gram Sabha may exercise such power perform such functions at the village level as the Legislature of a state may be law provide. "Gram Sabha" means a body consisting of persons registered in the electoral rolls comprised within the area of Panchayats at the village level. In the Panchayats Raj System Gram Sabha is the only permanent unit. Duration of Panchayats i.e. Mukhiyas and other members of Panchayats continue for 5 years only from the date appointed for the first meeting but the villagers do not change. Articles 243H empowers State Legislature to make by law provision for imposing taxes etc. by the panchayats. Drafting and implementation of development plans for the uplift of the villages would be vetted and monitored by the Gram Sabha. Panchayats Institutions are the vehicles of political empowerment of people at the grass root level for shaping their own destiny.

7. Constitutional Scheme:

7.1. Three-tier structure:
"India is poor because the villages of India are poor. India will be rich if the villages of India are rich. Panchayats should be given greater power; for we want the villagers to have a greater measure of real swaraj in their own villages." According to Mahatma Gandhi, "Indian Independence must be at the bottom and every village ought to be a Republic with Panchayat having powers."

7.2. Directive Principles:
The Constitution provided, in Part 4, The Directive Principles of State Policy, Article 40 for the setting up of village panchayats.

7.3. Gram sabha: Art. 234 A
To ensure that the panchayats stay accountable to all the people of their constituency, they are required to hold village assemblies means gram sabha with a quorum of citizens several times each year. In the Panchayati Raj set up, the Gram Sabha, the general assembly of villagers has a key role for effective functioning of Panchyats. In the Gram Sabha meeting, the rural poor, the women and the marginalised people would now get an opportunity to join in decision making on matters affecting their lives. Active functioning of the Gram Sabha would ensure a participatory democracy with transparency, accountability and achievement.

• Gram Sabha should meet a least in each quarter preferably on Republic Day, Labour Day, Independence Day and Gandhi Jayanti.
• Decide developmental work to be undertaken by Panchayats based on needs assessment.
• Suggest remedial measures for economy and efficiency in the functioning of the Panchayats.
• Discuss the Annual Financial Statement of Gram Panchayats.

7.3.1. Under the Act, Gram Sabha has been vested with powers for:

• Ownership of Minor Forest Produce
• Development plans approval
• Selection of beneficiaries under various programmes
• Consultation on land acquisition
• Manage minor water bodies
• Control mineral leases
• Regulate/Prohibit sale of intoxicants
• Prevent alienation of land and restore unlawfully alienated land of STs
• Manage village markets
• Control money lending to STs
• Control institutions and functionaries in all social sectors.
• Training and awareness generation programme

7.4. Constitution of Panchayats, Art.243 B:
There shall be constituted in every State, Panchayats at the village, intermediate and district levels in accordance with the provisions of this part. Panchayats at the intermediate level may not be constituted in a state having a population not exceeding twenty lakhs.

7.5. Reserved seats: Art. 243D
The 73rd amendment reserves seats for the most powerless members of society. One-third of all seats including one-third of all panchayats presidencies are reserved for women.

7.5.1. Reservations for Women:
73rd Amendment of the Constitution in the year 1992 reserved 33% seats for women in Panchayats. This provision is a major move towards strengthening the position of rural women. The introduction of women in sizable numbers into the new Panchayats could bring significant changes in the functioning of these grass-root level institutions. Involvement of women in the Panchayati Raj Institutions is expected to bring qualitative change in the matters relating to health nutrition, children welfare, family care, drinking water etc. The 73rd Amendment to the Constitution of India is a milestone in the history of women empowerment in India.

7.5.2. Reservations for SC/ST:
There is a mandatory provision for reservation of seats for SC/ST in every tier of Panchayati Raj System. The reservation for SC/ST is another significant aspect for development of disadvantaged groups in the rural areas.

• The State Legislature shall provide for the reservation of offices of the chairpersons in the Panchayats at the village or any other level for the SCs and the STs.
• The Act provides for the reservation of not less than one-third of the total number of seats for women including the number of seats reserved for women belonging to the SCs and the STs.

7.6. Disqualification for membership: ART.243F
1. A person shall be disqualified for being chosen as, and for being, a member of panchayats,
a. If he is so qualified by or under any law for the time being in force for the purposes of elections to the Legislature of the state concerned: Provided that no person shall be disqualified on the ground that he is less than twenty- five years of age, if he has attained the age of twenty- one years.
b. If he is so disqualified by or by under any law made by legislature of the state.

2. If any question arises as to whether a member of panchayats has become subject to any of the disqualifications mentioned in clause (1), the question shall be referred for the decision of such authority and in such manner as the state.

7.7. Powers, authority and responsibilities of Panchayats: Art.243G
According to the Constitution, Panchayats shall be given powers and authority to function as institutions of self-government. The following powers and responsibilities are to be delegated to Panchayats at the appropriate level:

a. Preparation of Plan for economic development and social justice.
b. Implementation of schemes for economic development and social justice in relation to 29 subjects given in Eleventh Schedule of the Constitution.
c. To levy, collect and appropriate taxes, duties, tolls and fees.

7.8. Constitution of Finance Commission: Art. 243-I.
Finance Commission has to be constituted in every state to review the financial position of the Panchayats and to make recommendation to the Governor regarding the allocation of fund to be Panchayats.

7.9. Constitutionalization of Municipalities:

• It emerged as the 74th Constitutional Amendment Act of 1992 and came into force on 1 st June 1993
• This Act contains Part-IX A of the Constitution of India.
• It is entitled as 'The Municipalities' and consists provisions of Article 243-P to 243-ZG.
• The Act also added the Twelth Schedule to the Constitution.
• It contains 18 functional items of the Municipalities and deals with Art 243.
• The Act gave Constitutional status to the Municipalities.
• It brought them under the purview of justifiable part of the Constitution.
• The Act provided for the constitution of the following three types of Municipalities in every State;
i. A Nagar Panchayat for a transitional area.
ii. A Municipal Council for a smaller urban area.
iii. A Municipal Corporation for a larger urban area.

- The following types of urban local bodies are created in India for the administration of urban areas: Municipal Corporation, Municipality, Notified Area Committee, Town Area Committee, Cantonment Board, Township, Port Trust, Special Purpose Agency.

8. The Panchayati Raj Elections:
Seats for the SCs and the STs should be reserved on the basis of their population.

8.1. Election of the Members and Chairpersons:
• All members of the Panchayats at the Village, the Intermediate and the District levels shall be elected directly by the people.
• The chairperson of the Panchayats at the Intermediate and District levels shall be elected indirectly by and from amongst the elected members.
• The chairperson of a Panchayats at the Village level shall be elected in such a manner as the State Legislature determines.

8.2. State Election Commission:
Powers of the state legislatures to make provisions with respect to elections to Panchayats under superintendence, direction and control of the Chief electoral officer of the state,
• The superintendence, direction and control of the preparation of electoral rolls and the conduct of all elections to the Panchayats shall be vested in the State Election Commission.
• It consists of a State Election Commissioner who is to be appointed by the Governor.
• His conditions of service and tenure of office shall be determined by the Governor.
• He shall not be removed from the office except in the manner and on the grounds prescribed for the removal of a Judge of the State High Court.
• His conditions of service shall not be varied to his disadvantage after his appointment.

8.3. Inclusion and Local Elected Governments:
The Panchayat Raj System in India policy interventions to improve inclusion and spread benefits more equitably among village populations. As decentralization is a relatively new process where theory and practice are both still evolving, moving ahead without recurrent analysis risks discrediting the process.

9. Finances:

9.1. The panchayats receive funds from three sources:
i. local body grants, as recommended by the Central Finance Commission,
ii. funds for implementation of centrally-sponsored schemes, and
iii. Funds released by the state governments on the recommendations of the State Finance Commissions.

9.2. State Finance Commission:
• The Governor of a State shall, after every five years, constitute a Finance Commission to review the financial position of the Panchayats.
• The Principles which should govern the distribution between the States and the
Panchayats of the net proceeds of taxes, duties, tolls and fees levied by the State.
• The Principles which should govern the determination of taxes, duties, tolls and fees which may be assigned to the Panchayats.
• The Principles which should govern the grants-in-aid to the Panchayats from the Consolidated Fund of State.
• The measures needed to improve the financial position of the Panchayats.
• Any other matter returned to the Finance Commission by the Governor in the interest of sound finance of the Panchayats.
• The State Legislature may provide for the composition of the commission, the required qualifications of its members and the manner of their selection.
• The Governor shall place the recommendations of the commission along with the action taken report before the State Legislature.
• The Central Finance Commissioner shall also suggest the measures needed to augment the Consolidated. Fund of State to supplement the resources of the Panchayats in the States on the basis of the recommendations made by the Finance Commission of the State.
• These areas include the Scheduled Areas and the Tribal Areas referred to in Article 244 of the Constitution, the hilly areas of Manipur for which a District council exists and Darjeeling District of West Bengal for which Darjeeling Gorkha Hill Council exists.

10. Participation in village level government:
Even though nearly all villagers participate in voting, far fewer between 20 and 40 percent are involved with the other activities that are associated with influencing decision making in PRIs.

11. Accountability:
The value of benefit and accountability are two key factors influencing people's use of PRI system. The State acts and the rules of the gram panchayat provide for certain mechanisms through which elected representatives can be held accountable for their actions. In Madhya Pradesh and Rajasthan there are three common mechanisms by which villagers can hold their gram panchayat representatives accountable: (i) the gram sabha; (ii) the right of recall; and (iii) recourse to higher authority. In Rajasthan there is also the additional mechanism of the vigilance committee at the level of the gram panchayat. The gram sabha is intended to be the main platform for widespread transparency and accountability. Its central function is to take stock of past developments, review expenditures, and to decide which new activities are possible within the sanctioned budget. The purpose of the gram sabha is to provide villagers with the opportunity to obtain clarification from their representatives on all aspects and activities of the gram panchayat. But gram sabha, with only an average of seven percent of members attending, is not yet an effective mechanism of governance. Madhya Pradesh became the first state in the country to empower the people of a gram panchayat to recall an elected representative. The right of recall can only be exercised once a panchayat member has completed half of his or her term and requires that 50 percent of the total electorate support the vote for the representative's removal. In addition to the gram sabha and the right of recall at the gram panchayat level there is also scope for recourse to higher authority. In both states, the District Magistrate has the authority to remove or suspend an elected representative assessed to be disqualified for the post. In Rajasthan, the vigilance committee is an additional mechanism of accountability. The purpose of the committee is to monitor and oversee the work of the gram panchayat, and its membership is comprised of nonelected representatives.

12. Political participation:
However, over the short span of five years since reservations have been implemented no directly visible impact has resulted either in terms of participation rates or distribution of benefits. Gender is a key factor in determining who's included in gram panchayat activities. Women participate significantly less than men, and the social factors which limit women's involvement in public affairs, are also reflected in the generally low levels of education and information that prevail among women. At the same time, however, education and information also suggest ways of reducing the gap between men and women that arise from social and traditional norms. Women who are educated and well informed are often able to bridge social differences associated with gender.

13. Recommendations:
Gram panchayats as instruments of democracy, development and service provision i.e. what gram panchayats do, and Increasing inclusion of women, tribal and the landless in gram panchayat activities i.e. who is involved. Gram panchayats as instruments of democracy, development and service provision the majority of rural people do not regard panchayats as particularly relevant to their lives. The reasons behind this low valuation suggest a need to examine current expectations of the roles that gram panchayats can play in the short and longer terms. Insofar as people participate in activities associated with electing representatives, the gram panchayat does work as a democratic entity. However, the tendency to regard elections as an opportunity to consolidate often inequitable social and economic relations implies that panchayats are not currently local bodies which can be used in the short If people are to begin to perceive these entities as instruments of change, actions that combine increased accountability to constituents with improved opportunities for gram panchayats to achieve results, need to be taken.

• Improving constituents' knowledge of accountability mechanisms through better distribution of information about panchayats purposes, responsibilities and control;
• Using district administrators to enforce the use of gram sabhas and establish of vigilance committees;
• Monitoring for a limited period the functioning of gram sabhas, vigilance committees, right to recall and use of recourse to higher authority.

13.1.1. Monitoring instruments could include:
a study of effective accountability mechanisms in local organizations is required to further understanding of how to improve the performance of local units of governance. The study would need to cover both local level organizations used for a variety of activities in India, and other country experiences with decentralized governance.

13.1.2. Improving results:
Achievement of good results is primarily dependent on the quality and quantity of resources financial, human and organizational available to the gram panchayat. Efforts are being made to increase the level of financial resources available to panchayats, particularly through decentralization of line department budgets and channelling central government funds directly to PRIs.

14. States governments conducted their own experiments with local self-government
This is the result of the shift in power from the traditional upper castes to the OBCs How this impacted on the SCs and STs that Ambedkar was concerned about is another question. Caste and class are not overlapping categories. Grabbing political power from the Brahmin and other upper castes does not mean that SC/STs will automatically be empowered and the same applies to women as well. An interesting point missed out in all debates on reservations is that there are women in all castes, class and religions.

14.1. West Bengal
West Bengal has gone through several cycles of elections since 1978, when this system was introduced. A major reason for success here was the commitment of the Left Front government to these bodies. It has been argued that their strength comes from the fact that the cadres of these parties have now entrenched themselves in the PRI institutions.

14.2. Andhra Pradesh
Andhra Pradesh is another state that took to PRIs in the 1980s, when N.T. Rama Rao was the Chief Minister. Here also the system started with hope. 9% of the seats were reserved for women but not the chairman positions.

14.3. Madhya Pradesh
Madhya Pradesh Chief Minister realised its potential and decided to gamble his political career on it. He had two advantages. None of the major parties in MP were looking at decentralised governance their attention was fixed firmly on urban areas and large contracts. Madhya Pradesh has made use of the panchayat system in an innovative way to meet social sector demands. Several of the Rajiv Gandhi Missions all implemented through the PRIs have done well, on an independent reckoning. Today it has the most progressive PRI system in the country.

14.4. Karnataka
Karnataka has been something of an exception when it comes to decentralisation and panchayati raj. For various extraneous reasons, the state legislature passed a law in 1983 setting up a system of panchayati raj. That system was a two tier one of the zilla parishad at the district level and the mandal panchayat for a cluster of villages at the local level.

Payday Loan Initiatives For Arizona and Ohio

With a presidential election that ended in a never-before seen way, it is almost impossible to focus on the underlying issues. However, the outcome of these issues represent state by state decisions that will ultimately affect thousands of Americans. Payday loan initiatives appear quite frequently on election ballots due to their strong controversial nature. Although debates and proposals have been given and displayed time and time again to help people understand the importance of the payday loan industry in America, it remains a negative part of our society.

What is the controversy? Simply put, payday loans are illegal in 15 states nationwide and it seems that many more states are following suit. While the majority of people say it is just another money hungry industry looking to trick consumers into paying unnecessary amounts of money, some people have come to understand the purpose of the lending business. Regrettably, the opposing side is composed of people who do not need and have never used the system and more unfortunately still, they are the vast majority of people who actually vote on these issues. Because most payday loan institutions are centered in low-income areas of the country, many view them as illegitimate businesses. The truth is they are there because they are needed. Most low-income consumers depend on payday loans to pay off their pending bills or simply to make ends meet on a day-to-day basis.

Arizona has become the most recent state to take charge against the payday loan industry. With annual percentage rates on loans reaching over 400%, many felt the need to step in. The truth is, the rate makes it profitable to the lender and affordable to the consumer. Problems arose only when the loans were used inappropriately. Many consumers misunderstood or did not follow the necessary steps to make an efficient and problem-free transaction. People who were opposed to the industry made the argument that their late-fees were unreasonable, when they are really the same as any other sort of loan, either from a bank or a credit union.

Since payday loans in Arizona face extermination in 2010, supporters of the industry took an opportunity to fight against this in the 2008 presidential election. Proposition 200, as it was called, offered a reasonable alternative. It included a substantial APR cut from $17.50 to $15 for every $100 borrowed. There would be repayment plans available and would eliminate roll-over charges if payments were not made on time. Lastly, it would only allow consumers to take out one loan at a time. While the plea was reasonable, the bill did not pass. 40.50% voted for it while 59.50% defeated it. Arizona's payday loan industry faces extermination in 2010.

Over the past few years, Ohio has seen a rise in the payday loan industry, with institutions appearing in every corner of the state capital. Earlier this year however, it became the most recent state to pass a law regarding payday loans. The law (or Issue 5) put a 28% cap on percentage rates which, up to that point, had reached about 391%. The law also limited the amount of loans to four per year and capped payday loan institutions in relativity to Cleveland's population. Although the initiative was said to be made with the intention to regulate the percentile rates, it has only made it impossible for the payday loan industry to exist. With a 28% limit, there is no room for profit and because of that payday loans have slowly diminished from the state of Ohio and over 6,000 people have been left without a job.

Ohioans for Financial Freedom, a payday loan representative group centered in Cleveland, Ohio, made it a priority to change the law. They spent over 16 million dollars and acquired 279,174 signatures to re-install Issue 5 on the 2008 presidential ballot. Their goal was to get enough voters against the proposition and therefore re-instate the 391% APR and unlimited access to payday loans every year. Alas, it did not pass. 64.55% of voters approved the issue, while only 35.45% defeated it. Without a doubt, the payday loan industry will not be around for much longer in the state of Ohio.

There is a general misunderstanding about the payday loan industry. Truthfully, the majority of state legislators prefer the regulation rather than the elimination of payday loans. Their argument is that if a profitable yet reasonable agreement can be made between the industry and the rest of the country, it can be a valuable part of our society.

6 Tips to Stop the Spending Spree

How many of these strike a chord?:

1. Are the words "You spent HOW MUCH!?!" a familiar part of your dinner conversation?

2. Do you call your credit card company each month and accuse them of sending you someone else's - much bigger - bill?

3. Does your closet look more like a department store than a storage space for a single person's wardrobe?

4. Did you stand in line to buy an iPhone, Wii, x-box or any other recently upgraded technology gadget even though you have the last 3 versions - plus all the add-ons - at home collecting dust?

5. Did you buy that "must-have" entire new outfit even though you only went into the store for a pair of socks?

If you chuckled, then blushed, then hung your head a bit at any of the above, odds are good you have a spending problem.

While a spending problem is not a good thing to have at any time, in these financial times it's even worse. If you can't control your spending it probably means that you're not in control of the other areas of your financial life including savings, retirement, paying off debt, etc. which can have drastic and far reaching consequences.

To add insult to injury, impulse spending can damage not only your finances but also your relationships. Being in a relationship with someone who is consistently irresponsible can be tiresome and the fact that money is a leading cause of divorce only proves the point that not being able to manage your money can have a negative impact on your romantic life.

Impulse spending is usually caused by a lack of something else in your life. You may be bored, or unhappy, or avoiding making a decision about something and buying yourself a treat can be a great diversion. Figuring out why you spend is as important as learning how not to spend because unless you solve the root problem, this will always be a challenge in your life. That said, this is a personal finance article, not a psychology article so while I can't help you get to the root of the problem, I can give you some tips on how to get it under control.

From the moment we wake up until the moment we go to bed we are hit with an endless barrage of advertising telling us that we need newer, bigger, better stuff in our life in order to be happy. Eventually you need to learn how to tune those messages out but until then, here are a few things you can do to cut the impulse off at the knees.

1 - Learn to separate a need from a want. Basically, a need is anything that, if you don't have it, you will die. These include: water, basic food, basic shelter and basic clothing. Dinner out at 4 star restaurants and new designer clothes do not fall under the needs category. They are wants. Wants are anything that, while you won't die if you don't have them, they may help make your life happier or more comfortable. Once you really start to be honest with yourself about what is a need vs. what is a want, making purchasing decisions will get easier.

2 - Set a budget. Figure out how much disposable income you have to spend each day and only carry that much. If what you want to buy costs more than what you're carrying with you, you can't buy it. This means leave your credit/debit cards at home. There is no reason for you to carry a card with you unless you are making a pre-planned purchase that you've saved up for. Instead, put them into a drawer and leave them there. If that's still too easy to access, put them into a bowl of water and throw it in the freezer. They'll have to defrost before you'll be able to use them for anything.

3 - Shop from a list and don't deviate from that list. It sounds simple but you'd be surprised at how many people don't use a list when they're shopping. This means that not only do they waste a ton of time wandering a store looking around they also waste a lot of money buying things they don't need. If, while you're shopping, you see something you want, write it down on the back of your list and add it to the list of things you want to buy next time. Typically, when next time rolls around that item no longer looks so interesting and you will end up passing.

4 - Set goals for yourself and save for them. Delayed gratification sounds boring but really it's much more satisfying. If you know that you've had to save for weeks/months for something you are much more likely to truly enjoy that purchase.

5 - If you're in a relationship, make a mutual rule that any unplanned purchase over $x has to be pre-approved by all members of the family. This will help to ensure that everyone is on the same page about spending and will help the financial communication that is necessary for a healthy relationship.

6 - Finally, if all those things don't help, keep this in mind any time you have the urge to spend money: If you take the money you're about to spend and instead invest it at an average of 10%/year for 30 years you would have 10 times more than you're spending. So, if you have the urge to buy a new $250 phone even though your current phone works just fine, ask yourself if that phone is worth $2500 because in reality that is what it's going to cost you. And actually, if you put it on a credit card and don't pay it off immediately it will cost you even more.