I have been experimenting with some simple ways of saving money and they have made a considerable difference in my accumulated savings. Savings are very important because they take care of your sudden expenses, such as a medical emergency or replacement of a necessary household appliance like your refrigerator. [Read more…]
Government’s Next Step to Pull U.S Out of the Recession
When Lehman Brothers announced bankruptcy and the economy went into a recession, the Fed did its best to avoid a 1930s like scenario. It pumped a lot of money into the economy to maintain liquidity and help businesses survive.
Now that the economy is recovering, the Fed will have to act in the opposite direction in order to control the surplus money in the system or we’ll have to face a period of high inflation. Several economists have emphasized the need for the Fed to act before it is too late. [Read more…]
How to Create a Budget for Effective Cost Cutting
If you have dreams of saving enough money to take a world tour or enjoy the perfect, anxiety free retirement, it is essential to have a well thought out budget in place right now.
A budget can help you regulate the amount of money you spend and what you spend it on. Many people find it difficult to stick to a budget because they do not have a clear goal. If you don’t know what you are saving for, there is a good chance that you’ll end up being undisciplined with your money. On the other hand, sometimes the budget can be too austere and you might find it too hard to stick to it. [Read more…]
Hedge Fund Managers Make Billions
Hedge find managers seem to have benefit from the strong recovery in the financial sector and the government coming to the aid of large banks on the brink of collapsing. According to industry reports, managers of leading hedge funds raked in billions as fees and capital gains last year. [Read more…]
It May be Time to Change Your Investment Strategy
The old wisdom about investing your money included avoiding touts, looking for low cost investments, being consistent, and keeping a diversified portfolio. However, there are certain changes that you should bring in your investment strategy to adapt to the changes in the economic situation. [Read more…]
Lack of Money May Bring Reprieve for Prisoners in California
Due to a severe financial crisis, the California government is struggling to even provide for the basic needs of the prisoners.
Currently more than 10% of the state budget goes to its penal system, which amounts to about $8 billion. This is much more that what the state spends on higher education. In spite of this, many prisoners have been sleeping in a gym. A jail near Los Angeles houses double the number of prisoners it was created to hold. To deal with the situation, Governor Arnold Schwarzenegger has initiated serious plans to reduce the burden of prisoners on the jails so that the state can improve its financial situation. [Read more…]
Dollar Gains Upper Hand Against Euro
As skepticism continues about how effective Greece’s actions will be in dealing with its debt problems, the dollar rallied to gain an upper hand over the Euro after a long gap of 2 years. Not only that, it has recorded the highest gain per quarter as compared to the Euro in this period.
Euro countries are still threshing out the final plan which will help pull Greece back on its feet but no positive conclusion is imminent yet. Given the uncertainty in the situation, the general confidence in dollar is growing by leaps and bounds. Traditionally, the dollar has always grown stronger in face of uncertain Euro performance and vice versa. [Read more…]
How to Invest Your Money Overseas
Is there anything like the right time to invest? How much should your investments be and where should you invest? These and many other such questions are often faced by a new investor. Investing can be risky business when you are putting your hard earned money into volatile assets, and it is important to be careful about these decisions. [Read more…]
Geithner Says US Can’t Force China Move on Currency
Timothy Geithner, the US Treasury Secretary, has said that the government cannot force China to change its currency policies. He was responding to the recent criticism that the government was not doing enough to stop China from maintaining its currency at a depressed level. [Read more…]
Plan Early for Your Retirement
Retirement can bring a lot of changes to your lifestyle. Whether these are pleasant or not largely depends on how much planning has been put in during your years of employment.
Financial stability and independence play a huge role in laying the foundation for peaceful and stress free retired years. Post retirement, you cannot fall back on a regular monthly paycheck to meet expenses, and that is why having a reliable stream of funds coming in from your investments is important. With proper management of your finances during employment, this can be achieved quite effectively. [Read more…]
How to Save on Your Food Costs
Economy is bad, and you would be looking to save as much as possible, especially if you have credit card debts or a mortgage. But there is one expense where people often tend to be extravagant – food.
It is estimated that an average American family spends as much as 10% of its income on food. Here are some tips that will help you save money on your food bills, so that you can make higher payments on your debts and get rid of them quickly. [Read more…]
Balance Your Portfolio with Treasury Inflation Protected Securities
Usually most investment portfolios have a large percentage of stocks. In times of a financial boom, this worked great but if you planned for retirement in 2009, these same stocks would have led to huge declines in the value of your portfolio.
On the other hand, if you had put all your money in bonds or CDs (certificates of deposit), then you would have to live with dismal returns, especially when you consider the impact that 3% long term inflation will have on your savings. [Read more…]
How to Increase Your Net Worth
Keeping track of your finances can help you make sound decisions in financial matters. A fair assessment of your position is critical to achieve savings or repayment goals because it will tell you how much extra funds you can afford to put into these areas. [Read more…]
Keep Your Money Liquid by Using a Savings or Money Market Account
Are you looking for an easy way to build liquid savings? If your answer is yes, you have two really simple solutions – open a savings account or a money market account. [Read more…]
Diversify Your Investments Before It’s too Late
Don’t put all eggs in one basket. This adage holds true even in the highly sophisticated world of finance. Investors have always been advised to spread their investments among different baskets of assets that do not depreciate in value at the same time. This diversification is believed to make investments less risky, as even if one asset starts falling in value, your profits from other assets can offset that loss. [Read more…]
New Bubbles in the Economy Could Be Forming with Cheap Money
With interest rates close to their historical lows, some economists believe that new bubbles might be forming in some areas of the economy. If this is true, the Fed could be solving the current crisis but giving rise to a similar problem in future. [Read more…]
Four Tips to Help Startups Businesses Manage Money Better
Money is not easy to come for startups, and managing what you have becomes very important. Going for investor money may be the easier route to feeling cushioned, but it has its own disadvantages. Seeking investment early on will make you lose significant equity and control. It may not be a desirable situation considering the business is your brain child in the first place.
So if you are on tight budget, running a tight ship is the best way forward. Let’s have a look at a few things that will help you manage money better and give you the cushion to stride ahead with confidence. [Read more…]
