daily blog

Many times, we see others as well as ourselves getting into the debt trap very easily. A deadly debt trap never allows the savings to remain with you. However hard you try to save money, you ultimately spend them on paying huge interests on your accumulated debts. So what all, does it take to save money and lead a care-free life without debts? To crack this puzzle, you need not think hard.

While we can see various reasons trigger one deep down into the word of debts, we can broadly classify these so-called reasons as personal, economic and social. Personal situations may include reasons like loss of job, cut in the pay, accumulation of existing debts, treatment of illness, family crisis and so on. Personal situations are never predictable and so one should always be prepared for any such crisis contingencies, which can cause a major blow to the income. It is always advisable to set aside some portion of your income in a different bank account, so that it can be effectively used during such contingencies.

Coming to the economic triggers, one can get blown away with a sudden loss in business, tumbling sales, bad debts, inflation, economy slowdown etc. Currently, we are indeed witnessing the recession in the economy with the cost of living doubled and the means of income reduced.

While personal and economic reasons may be unpredictable, social triggers definitely are self- sponsored and can be truly avoided by adopting certain means. Don’t you think you will be in a posh car showroom tomorrow, if today you see your junior colleague getting that swanky car to the office? Yes, I am talking about status anxiety. As you put a step ahead each time in your career and status, you always tend to get anxious about maintaining the same. As a result, you do not even hesitate for a single moment and delve deep down in the debt-pool.

When we go out for shopping with our friends, we do tend to splurge more than what we actually should. Many things are purchased just because “My friend also bought it”. And to make things simpler, we always carry the very famous “plastic money” with us. Credit cards had come as a convenience, but now we use it to satiate our status hunger. Although, it may sound a little strange, but it’s always wise to ask yourself a small question “Do I need to buy this?” before you actually swipe your card for the purchase.

And what happens next is the rather unending sequence of debt repayments. If you have bought an exotic product on debt, just check out the interest rate you are paying on the actual or principal amount and then you would come to know the real worth and utility of the product.

You get into debts largely because of two reasons – Improper planning and tendency to spend more. Always remember that debts should be availed ONLY if necessary and ONLY to the extent of what you can repay without much encumbrances. Budgeting, planning and control are three simple, yet magical keys to have a debt free life.

Andy Eaton is £21,040.57 in debt, read his personal blog and discover his step-by-step plan for why and how he is eliminating his debt. His journey to debt free is going to happen quickly for him as he is using a plan. Follow his amazing story at http://www.sick2debt.com

Did you know there is a ratio by which the default of banks can be predicted? This ratio is being pointed to as the predictor to the collapse of Indy Mac Bank because of its Texas ratio.

This system was developed by Gerard Cassidy and some co-workers at RBC Capital Markets, they conceived that by dividing the value of the lender’s non-performing loans by the sum of its tangible equity capital and loan loss reserves gives a measurable ratio.

While analyzing Texas banks during the early 1980s recession, Cassidy found that banks tended to fail when this ratio reached 100% or higher. There was a similar pattern among New England banks during the recession of the early 1990s.

The Texas ratio for Indy Mac bank was reported as 140% and pointed to as the reason for the failure, yet the same people making these claims fail to mention the banks that have ratios in the 200 to 300% range yet still in business.

Was Indy Mac in trouble? Maybe yes, maybe no, did it help that a New York Senator leaked a letter to the press about his concerns that Indy Mac was in trouble. Why would a New York Senator be concerned about an California bank? In an election year it should not be hard to factor. That letter caused a run on the bank and the attempts of Indy Mac to gain a loan to make themselves more solvent was thwarted by the good senator’s actions.

So do we trust the Texas ratio or is it another Canadian bankers numbers game that really doesn’t take into account the actual banks business and tries to over simplify a way to make predictions in matters that really can’t be measured by a simple ratio.

Bank failures are on the rise and many people feel they can not trust their money with the banks. Remember banking laws are such that your bank does not have to keep but 10% of its assets in reserve. If you run down and withdrawal your savings, CDs, and other investments because of rumors and innuendo of some power hungry politician you’ll be playing right into their arm.

The fact is most banks will not be able to pay you that day if your asking for a significant amount of money, the days of thousands of dollars in bank vaults is a thing of the past. If the withdrawals are greater then 10% of the banks assets because the word leaks out and hundreds of bank customers like you go running down to the bank for their money, the bank will have to borrow the funds to pay you back (if they are able), this will cause their Texas ratio to climb and the sky is falling crowd will feel vindicated their system works. Banks can not liquidate their investments like you can by heading to where they placed their money and ask for it back right now to pay you.

Our banking system is built on trust, we trust the bank will have our money when we go and ask for it back. We trust the bank will pay us interest on the money we invest with it. But banks are a business like any other, run by people. Some smarter some not, do they make mistakes? Of course they do. All that means is you as a consumer must do your due diligence. It is your responsibility to make sure you know where you are parking your money, you are the first line of defense for your money.

Here is what I would recommend. The basic rule for individual accounts is that FDIC insurance covers up to a maximum $100,000 per depositor per bank. One way to guard larger sums is to hold accounts under $100,000 at a few separate banks, remembering that accumulating interest could push an account over the limit jeopardizing the amount above the 100,000.

There are other products, so diversify your money, take a serious look at guaranteed investment vehicles like indexed UL’s or believe it or not real estate. Remember buy low sell high. Now it’s a buyers market and finding great deals is very easy. Return on investment can be significantly higher and much more secure now that prices have fallen. Finding homes in locations where rents are steady and there is an abundance of renters since most have lost their homes, they need to rent. Finding ways that make sense in times like this is tricky but with right guidance and without panicking it should not be a problem for you.

An accomplished business owner, entrepreneur, radio talk show host, developer of super green sustainable homes and a mortgage and real estate expert. Having worked through thousands of financial transactions has given me the expertise to couch people with most types of financial matters. From securing a loan to retirement planning and asset protection. For more information please email me at dean@premiercitizensfinancial.com or visit my website http://www.premiercitizensfinancial.com/home.html

Anyone that uses Google, (the qualifier for this is the fact you are human) will have noticed that beneath that iconic search bar is a new link, directing you to Google Chrome, a Google web browser that as with all things Google, comes with a hype that could perhaps be hugely unmerited.

Before we get to the ins and outs of its functionality, appearance etc, let’s just take a look at the history of the web browser, and why Google would take this route.

The web browser was really born in the late 1980′s, when a variety of technologies, most famous of course the WorldWideWeb, laid the foundation for the first web browser, which brought together a variety of existing and new software and hardware technologies. Web browsers communicate with Web servers primarily using HTTP (hypertext transfer protocol) to fetch webpages, which are located by means of a URL (Uniform Resource Locator). In simple terms, they interpret the information that webmasters want you to see, and present it to you in the form of a webpage.

Historically, Microsofts’ Internet Explorer has dominated the market, and currently still holds approximately 75% market share, Mozillas’ Firefox pulls an impressive 20%, and the rest divided between the likes of Safari, K-Meleon, Flock, Konqueror, and Opera.

The market is packed with perfectly capable alternatives…ok, perhaps perfect capable is stretching their achievements, but there are many variations out there that offer you slightly different takes on the idea, and personally Firefox is my browser of choice, but thats largely due to the fact it is not IE.

So why a browser? Well, Google have a suite of Applications, Programs and Indentures (API’s), most notably Google Maps, Android, Google Earth, and Gears, in addition of course to their search services. Could Google be aiming to unify their API’s with Chrome? This is an opinion I’ve seen and heard touted about the internet, but I feel there is a far bigger picture here.

Google Chrome may appear to have its teeth cut for a battle with Internet Explorer, but the Microsoft product that Google is ultimately setting its itself up to destroy is the Windows operating system. In reality, the search titan hopes that its browser, in the short term, will simply make it easier for businesses to deploy their online applications.

Anyway, that’s one for the future, right now we have the issue of where Google Chrome fits in to the current landscape, and my suggestion is that we tuck it discreetly behind a bush and forget about it for the foreseeable future. With it being Google, that may prove to be more difficult than it should be, but in the core elements of its functionality it offers nothing new, nothing exciting, and certainly nothing to challenge Firefox for my attention.

Google’s first major publicity of Chrome came in the form of a 38-page comic that resembled the in-flight instructions of a plane more than it did the release of a major weapon in Google’s considerable armoury. Suffice to say Marvel will sleep easy. The sedate nature of its release suggests Google really aren’t all that bothered about the success of this project, at least not in the near future, and were really just hoping for a little bit of the limelight following Yahoo’s protracted kissing and cuddling with Microsoft before their acrimonious fall-out and subsequent fisticuffs and chest-pumping. Google love a headline, if they were a film star they’d surely become Scientologists and marry some failed actress from Dawsons Creek, but where they normally maneuver that attention well, here I feel they fail on the basic principle of the product letting them down.

They have introduced something called an Omnibox, which is just the search bar wearing a tutu, and fails miserably as a nonpartisan addition to the browser. People have the option with most other browsers of selecting home page etc, but this bar doubles as a search engine on … you’ve guessed it, Google. The merging of the address bar and search bar gives Google too much control over navigation. It separates companies and website operators from their website addresses and brands. Companies spend heavily to establish and maintain brands. Google has just imposed itself between consumers and businesses. Direct navigation has now become proprietary search, whereby Google uses its discretion to filter out web addresses and domains that it deems less relevant. I object heavily to this and see it as no less than bullying, so for this alone I have boycotted the browser, but more poignantly, they have thus far failed to release a Beta version for the Mac. As a Mac user i find this rather insulting, and as an opponent of Microsoft and every filthy moral they stand for I am infuriated.

I shall leave it at this: as a writer/consumer this story is fun, it sometimes even shakes hands with endearment, but as an employee of a web development company, and having test-driven it on a PC, I am more excited by the recession thats’ somewhat fallaciously drowning the spirit of a perpetually melancholic UK. Chrome will not affect things for my employers within the next 3 years at least, and I predict that it probably never will.

http://www.steveusher.co.uk
http://www.google.com

Would you like to know the oldest insider secret to insulate yourself from negative outside forces and become not only financially independent BUT learn to how to really recession proof yourself from any economy? Ask yourself a question, what do all successful people in have in common? If you guessed money – you’re wrong. If you thought education – wrong again. However if you said establishing “win- win” relationships you get a gold star!

The ability to create and maintain rewarding relationships is the very foundation for becoming successful in anything. Andrew Carnegie – the 2nd richest man, according to “the Wealthy Historical Figures Report” is indirectly is responsible for producing one of the most popular partnership on the subject “Think and Grow Rich.”

Now, if you think Bill Gates is rich he chimes in at the # 20 spot, while Warren Buffett shows up at # 37. As a matter of fact, Carnegie’s wealth of $298 Billion dwarfs the combination of Gates’s $101 & Buffets $62 billion so you should listen to what Carnegie had to say about the subject.

He revealed his secret to success to Napoleon Hill the power of networking and developing Master Mind groups. Carnegie even employed Napoleon’s research to study the subject. There are numerous examples of Master mind groups in Hill’s classic “Think & Grow Rich” which has sold over 60 million copies to date and has helped to create thousands of millionaires.

There have been countless books, programs & courses for people to take to learn how to implement Carnegie’s secret to success.

Regardless of which author you read, the point is this – you can’t do it alone and you need to leverage your ability to develop contacts. Networking is an essential skill for most business people, but especially for entrepreneurs. Do the same fundamental principles apply in today’s busy world as they partnership in Carnegie’s day? Absolutely, it’s about developing and maintaining relationships. You need to surround yourself with like minded people and create your own master mind group.

The times may change and the technologies certainly change, so what can you do to “recession proof” yourself? The number one thing you can do is continually grow your network. Look at different methods and opportunities to increase your contacts.

Here are some tips and resources to help you improve your networking skills and extend your reach.

Do you have a 30 second elevator speech? Are you maximizing the space on your business cards by printing on both sides with a definite message? How often do you follow up with the people you actually exchange cards with?

Do you have a personal blog or website that has your name in it? Everyone uses email, do you have a signature file with various ways people can to contact you, — maybe even the address of your LinkedIn profile. This leads to another question.

Are you using social networking websites and resources like LinkedIn, FaceBook, Twitter, Plaxo and others to help build your online contacts? If you do use social networking mediums, how active are you and do you have a strategy?

Remember, it’s still about Relationships! Your net worth = your net work! How big is your Rolodex? What did you do this week to make it grow? Do you have a system or a plan for leveraging your relationships?

Not sure where to get started? Well, your in luck can grab a FREE copy of Napoleon Hill’s “Think and Grow Rich” to get acquainted with how mastermind groups and networking works by visiting http://www.ChrisSwainRecommends.com/Networking right now. You can find other great ideas, practical tips and easy ways to get tax using social networking resources and the internet to expand your network at http://the-netrepreneur.com/blog today.

Chris Swain – Wealth Coach

America is going through tough financial times; it is no secret that many Americans have fallen victim to unscrupulous lending practices and that the most important terms and conditions were not disclosed during the negotiation of a home loan. We are going through a financial bubble and because of reforms to lending practices home owners are desperate because they no longer qualify for readjustments with their current lender.

As the saying goes, desperate times call for desperate measures but, that measures that most people are taking are definitely not the best ones. A few years ago property owners counted with their home equity to bail them out of any financial problem but because of the current situation properties have partially lost value and there might not be enough equity to refinance a loan; unfortunately for home and property owners, credit card companies know that the average American no longer counts with equity in their properties so they are constantly bombarding people with ephemeral offers which later on turn into enormous headaches.

But the solution to a tight financial situation is not to turn to credit cards because their interest rate can go as high as 30% (compounded daily) and they will just add to the problem. Hard money loans on the other hand, are better financial instruments which provide affordable interest rates and terms that will help any property owner sail through this economic recession.

Hard money loans can go as high as 70% LTV (loan-to-value) but, the best case scenario would be to keep the LTV below 65% in non-owner occupied homes, hard money loans can also be issued on an owner occupied property to relieve financial stress. These types of loans can be amortized over a period of 30 years according to the borrower needs

Stopping Foreclosures with Hard Money Loans

Because of the banking crisis more and more home owners are losing their properties to foreclosure, the sad part is that many of those foreclosures can be stopped or avoided only if the note holder deals with a knowledgeable hard money lender. In California alone foreclosures have been up 260%, this figure is based on market analysis performed on July, 2008 by housing authorities.

Hard money loans can be used in order to salvage a property and avoid foreclosure. However, a property owner needs to act as fast as possible in order to avoid interest and penalties from accruing and worsening the situation.

LoansForCaliforniahomes provides more information about hard Money lenders as well as hard money instruments to help California property owners through tough financial times, visit our website to learn more.

It’s a shame that the American people have to endure all the campaign rhetoric and listen to the two presidential candidates and soon to be their vice presidential picks who will only add more to the criticizing and stage craft that focuses more on the weaknesses of the other candidates. It would be pleasing to hear what each candidate has to offer in terms of how he proposes to fix our country. It’s amazing to me that Joe Biden and John McCain have been friends for so many years and now that Senator Biden is a vice presidential candidate he started his first day on television criticizing Senator McCain. By the way, I’m a veteran of the Vietnam war and clearly heard Senator Bidens comment that Senator McCain was only a war hero and what we need is a leader.

I think any war hero is a leader and should be commended. I’m sure I wasn’t the only American veteran listening. The American people need to know what each candidate plans to do about the following which is only a few of the problems we face.

1. How do you propose to pull our country out of the recession we’re in which is hurting everyone?

2. How do you propose to fix the energy crisis which needs immediate attention?

3. How do you plan to correct the health care problems facing the entire nation?

4. How do you propose to handle the foreclosure disaster which is destroying our country?

5. Do you plan to do anything about the poverty within the United States?

6. How do you plan to get job creation going again before everyone in our country faces poverty?

7. The Christian values which you both proclaim to have can be shown much clearer by your actions than by your words.

8. What is your stand on abortion and stem cell research which are two other big concerns in our country?

9. Where do you stand on foreign issues and how do you plan to show strength as well as compassion in dealing with other nations?

These are just a few of the issues facing our nation today but they are very important ones and need to be addressed honestly. Again, the American people deserve honest answers and not political ploy. While Obama is trying to blame John McCain for everything that George Bush has done over the past eight years he needs to remember that Senator McCain has stood against Bush many times but he cannot control him any better than Obama could control his preacher Jerimiah or the other preachers condemning America. This is probably one of the most important elections this country has ever had and whoever wins has his work cut out for him. Please Americans, listen to what the candidates are proposing, not just their ridicule.

About The Author

Garrett Golden is very knowledgeable in the political arena. Having served sixteen years in local county government and having won more elections than anyone in county history, I am constantly observing local, state, and national elections and giving my opinions at every opportunity. Anybody can watch the candidates and listen to what they are saying and determine what is real and what is just political talk to get them elected. Please pay close attention in this presidential election not only to the candidates promises but also look at their past actions. This will help you make the right choice and last but not least, be sure to VOTE.

I haven’t written a book on politics yet but I am gathering a lot of facts and information in preparation for writing a hard cover book in the very near future.

Resources: The best resources to count on now comes from the vast news coverage on CNN, FOX, and all the major news channels. They tend to show what the candidates are actually saying whereas the books, the internet, and the magazines have a better opportunity to tweak what is being said. Also, there seems to be a lot of coverage heading into the conventions and the fall debates. Listen closely!

Many parts of the world are in recession or at least facing a downturn in the economy. At these times, redundancies and cutbacks are announced on almost a daily basis. Like all events, the current economic challenges present the opportunity for learning for current and aspiring business leaders. So what are 5 key lessons from the current recession?

Lesson 1: Take a long term view

Businesses exist or are established with a view to growing and existing for a long time. With so much information so freely available about opportunities to make gains now or the constant focus in the media about how bad things are, it is easy to lose sight of the bigger picture. By keeping a focus on the bigger picture and recognising that the economy generally goes in cycles, you can avoid taking short term decisions which are not in the best long term.

Lesson 2: Don’t put all your eggs in one basket

In business it is important not to put all of your eggs in one basket. It is important to have a portfolio of products and/or services so that you can spread risk and reduce the impact of downturns in the economy. This is exactly what we do when it comes to investing or saving. We have a range of options to spread the risk.

Lesson 3: Continually innovate

Successful businesses don’t stand still. They are continually looking for new products or services they can offer or new and innovative ways of offering what they currently have. In large organisations it is easy to become complacent, to stop looking out for ways to address an unmet need or to believe that the good times will stay for ever. Having different products and services at different stages of the life cycle is important and this requires constant innovation.

Lesson 4: Focus on the way forward

Pick up any newspaper, listen to radio or watch TV and chances you will come across lots of negativity about how difficult things are. While without doubt things are challenging at the moment, there is little point in investing time and energy focusing on what has happened. Time and energy focusing on the way forward is much more productive and beneficial than focusing on what has happened. Make a commitment to focus on how you move forward and achieve even more success.

Lesson 5: Expect uncertainty

Uncertainty is part of parcel of being in a leadership role and it is essential to your success that you expect, accept and prepare the best you can for uncertainty. Regularly look at trends in the area which you operate. Consider what might create uncertainty. Develop your ideas on how you will address the uncertainties if they arise.

Bottom line- The economy will always go through periods when it is strong and periods when it is weak. As a leader you need to prepare yourself the best you can to prosper in both good and bad times. I invite you to take the first step by signing up for my free e-course and monthly newsletter at

http://www.goalsandachievements.co.uk

Duncan Brodie- Goals and Achievements