Posts Tagged ‘amount of money’

How Do Savings Bonds Work? Is My Money Safe if I Purchase Them?

Saturday, August 22nd, 2009

B is for Bond.

These are questions most people ask when they consider buying savings bonds. Yes, your investment in savings bonds is one of the most safe investments you can make. You’re purchasing the bond and giving the government cash, which they pay you interest back on at a later date. It’s rather like the government borrowing a small amount of money from you, and paying interest on the loan.

Savings bonds are issued by the United States government.

They’re non-transferable, which simply means they must be sold by the government. You can buy savings bonds in a variety of denominations, with $50 and $100 savings bonds being quite popular amounts. You pay less than face value for the bond, and it begins earning interest so that when it matures, usually in several years, the bond is worth the face value. Most bonds will continue to earn interest for years after maturity, so by the time you cash in a bond it can be worth much more than its face value. Some bonds will continue to accumulate interesting for up to 30 years, so if you wish you can leave your investment long-term and still continue to earn profits.

Because savings bonds are registered securities, they’re replaceable.

If they’re damaged, stolen or lost, there is a record of your ownership of the bond so you don’t lose your money. And the amount of a savings bond can never go down, so the money you invest in a bond cannot be lost. Savings bonds are also fairly fluid—the money isn’t locked away so that you can’t get to it in the case of an emergency. But if you cash in a bond early, you won’t see the full return as it won’t be worth its face value yet. And bonds cashed before 5 years are also subject to an interest penalty. But for some, that risk is worth knowing that they can withdraw cash from their investment at any time.

When you purchase savings bonds, you do have to pay Federal Income Tax on the interest they earn.

But you can ease this burden on yourself—a wise choice if you have multiple high-value bonds—by paying the tax on this interest yearly. Or you can opt to wait until the bond is cashed in and pay this tax in one lump sum. You’ll only pay federal tax on bonds, not state or local tax, and if you use the bonds toward education, taxes are sometimes waived.

The two types of bonds you can purchase today are Series EE bonds or Series I bonds.

For Series EE bonds (also called Patriot Bonds) you’ll pay half the face value and it will draw interest every month for 30 years. Series I bonds also accrue monthly interest for 30 years, but you pay full face value for the bond and the interest rate varies with the current inflation indexes.

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Originally posted 2020-12-23 05:49:16. Republished by Old Post Promoter

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  • savingsbondA Little About US Savings Bonds When considering various investments and savings options for making your money grow, it’s a good idea to know a little about each type of investment. The US Savings Bond is one of the most risk-free investments available, because the US government is repaying you. You can count on receiving……
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Stocks are a Great Investment

Sunday, August 16th, 2009

Know your facts.

Most people recognize that stocks are an excellent investment, but purchasing stocks can be a confusing process. This is especially true if you have little experience in investing, or no experience at all. You can turn the stock buying process into a good investment even as a beginner, and all that it takes to make this happen is to take your time and find the perfect combination of stocks to improve your portfolio and greatly improve your profits in the process.

* Read the History!

Choosing the right stocks means sitting down and exploring your options long before you make an actual investment. Read the history of each company and their stock, and also get to know the bare basics of the stock market before you make an investment. Most people mistakenly are led to believe that the stock market is purely a short term investment market offering high yields. This is not the reality however, as stocks actually perform better on a longer term basis than on a shorter one. When you are planning on making an investment in the stock market, you should plan to leave that investment alone for at least a year, or as many as five years if not longer.

* Know how much to invest!

The amount that you decide to invest into a particular stock is a decision that needs to be made carefully. Stocks are not a completely safe investment, so the amount that you choose to invest should be disposable income, or income that you do not depend on for important purchases like bill paying or groceries. Making stocks into a good investment is done by choosing a healthy amount of money to invest, that will not impact your ability to pay bills but that also will be large enough to earn you a good profit. An excellent initial investment amount for the stock market is generally around a thousand dollars.

* Know who to work with!

It is important that you understand the pros and the cons associated with hiring a stock broker when investing in the stock market. You are going to want to do some basic research before you commit to a particular broker, because there are fraudulent brokers out there that need to be avoided. Conduct a search online or in your local area to find a broker that you trust and feel comfortable working with. It is usually preferable to choose someone on a local level so that you can visit them for face to face advice, speak over the phone and speak online as well when necessary.

* Know how to make your investment work!

Making stocks into a good investment means that you need to avoid panicking if they should happen to fall below a certain amount of money per share. The stock market naturally fluctuates, but you need to retain your stock for as long as you possibly can before you decide to sell it. More often than not the market will go back up, so if you cash out too early you may end up losing money.

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Originally posted 2020-12-17 05:22:51. Republished by Old Post Promoter

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4 Tips for College Students Budgets

Friday, August 14th, 2009

Study and Save Money

If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting enough consideration into is how you are handling your money. Even more unfortunately is the fact that failing to manage your finances now can put you in a pretty deep financial hole by the time you are graduating from college. For this reason above all else it is absolutely vital that you take control of your finances now so that you can have a bright financial future when you are through with your education. Here are some tips for college student budgets and how you can avoid college financial disasters.

1 – Only use credit cards in absolute emergencies.

Once you obtain a credit card, it can seem all too easy to begin racking up some debt, but this is a terrible way to start out, and may completely destroy your credit long before you graduate. Remember that the money that you spend on credit cards will eventually need to be repaid, and if you are not financially stable enough for this, you can put yourself into some serious debt with little effort. It is better to have a credit card that is intended only for emergencies rather than using it to purchase a new pair of shoes or to buy groceries if you can help it.

2 – Pay your credit card balance off every single month.

If you have a credit card, it has an interest rate, and if you want to avoid this interest, you absolutely have to pay your credit card balance off before each month is through. If you pay your balance off every single month, then you will avoid credit card debt and save a substantial amount of money that would normally have to go to interest rates and finance charges.

3 – Pay your bills off on time, every time.

Now is the most ideal time for you to begin building your credit history, and one of the best ways to do this is to always pay your bills off on time. If you are not able to pay your bills off on time, it can become quite expensive to deal with late fees and cut off charges. Many companies are more than willing to overwhelm you with late fees, shut off charges, renewal charges and deposits if you do not pay on time, and interest rates may also rise if you are late, costing you even more money in the long run.

4 – Start putting money away now.

Many college students never really grasp how important it is to save money. If you start saving money now, while you are still in school, you can reap a large number of benefits when you are older. Get into the habit of saving now, and you will begin to earn money from the money that you put away. When emergencies come up in the future, you will be better prepared which will save you time, money and hassle in the process.

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Originally posted 2020-12-15 05:36:10. Republished by Old Post Promoter

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Tips for College Student Budgets

Monday, August 10th, 2009

College students going for financial success.

Trying to make ends meet when you are in college is not an easy task. Your income is usually pretty limited and expenses can be high, even if you have a scholarship. If you’re trying to save money or just get by, there are some great tips for college student budgets that you can put into use right away. These tips will help make it easier to get through the month and will help you get on the right track for building a strong foundation for your financial future.

Easiest Tips for College Student Budgets –

The best tip is to reduce the amount of money that you spend on non-essentials and fast food. Cafeteria food may not be the best, but if it’s free, then it’s worth it. You may also want to consider purchasing your own food to prepare at your dorm or apartment. This can easily save you more than $50 a month, depending on how often you eat out. Part of the college experience is figuring out how to budget, and preparing your own food is the best answer. You can still eat healthily and you’ll be learning great skills for the future.

Smartest Tips for College Student Budgets –

Getting a part time job may be a little time consuming, but it can free up quite a lot of money every week. Try to find a job on campus, like at the library, where you can combine your study time with work time. This will allow you to make a little extra money without having your school work suffer. Working a lousy job is yet another important part of the college experience and will provide you with the skills and experience you need for the future. You may also want to try to find a paid intern position where you can work on contacts for after graduation.

Entertaining Tips for College Student Budgets –

Entertainment can take a huge chunk of your money, whether it’s movies, the bar, or just spending money wildly. Learn to find free things to do with your friends and try staying in at least one extra night a week. Your school work will benefit from that extra day and you’ll be saving money at the same time. If you don’t want to cut back on entertainment, find other areas where you can scrimp, or work a little extra so that you have the money to spend.

Wealthy Tips for College Student Budgets –

Every year, college students take their ideas and put them into action. Facebook.com is a great example of a simple idea that turned into a billion dollar company.  Use Loanio to obtain a loan for seed money. If you have a great idea, don’t be afraid to try to implement it. You never know if you don’t start– you may just be the next big success story.

Money is usually tight for college students, but if you utilize these tips for college student budgets, you should be able to notice a big difference in how much money you have left at the end of the month.

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Originally posted 2020-12-11 05:03:47. Republished by Old Post Promoter

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The Best Small Investments

Saturday, August 1st, 2009

Investing even $20 makes a big difference.

Wall Street’s recent cataclysmic events are still unfolding and the entire planet is feeling their aftershocks. For this reason, interest in what is going on in the stock market is rising quickly, even for those who do not normally understand what the stock market is all about, or what Wall Street even has to do with it. Whether you are completely new to this, or at least have a small idea of how the money markets and stock markets function, the purpose of this article is to explain how to get the most out of the best small investments on the stock market, and how a small, single initial investment can easily grow to benefit you on a long term basis, even when right now all you have to invest is some insignificant amount of money like $20 for example.

$20 dollars may not initially sound like a lot, but you can easily put it toward shares in one of many large companies like Harley-Davidson, Intel and even Johnson & Johnson. There are thousands of different options available offering shares below $20. If you invest $100 instead, even more options will open up to you. So now let us take a brief look into investing small, medium and large amounts of money into the stock market.

Let us begin with the initial small investment of $20 dollars.

Are you afraid that it is really not worthwhile to invest such a small amount? One way to invest this money for a grand return is to invest through DRPs, or Dividend Reinvestment Plans. These are also known as Drips. Drips or DRPs and Direct Stock Purchase Plans or DSPs allow you to completely bypass the broker, avoiding the need to pay a commission, by buying directly from the company that you are looking to invest in, or buying from the company’s own unique agents instead. There are more than 1,000 unique major corporations that offer these types of stock plans, and many do not charge a penny in fees. Those that do charge fees usually offer fees that are low enough that it is still quite worthwhile to invest a small mount like $20 or $30 each time that you make investment.

These investments are some of the best small investments that you can make because they are ideal for anyone who is just starting out and is looking to invest only small amounts at a time. Drips will allow you to purchase as often or as infrequently as you like. Once you are in the plan, you can set up automatic payment plans so you can make contributions whenever you like without actually even needing to buy a full share each time. So if you can only invest small amounts each month, invest what you can and every time you accrue enough to buy a share, you can. This is why this is one of the best small investments that you can make – Because every dollar that you invest counts and you can accrue a lot of money slowly to invest in good stocks, even if you cannot always buy a share with each investment.

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Originally posted 2020-12-02 05:02:23. Republished by Old Post Promoter

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Finding a Legitimate High Yield Investment

Friday, July 24th, 2009

Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out there who want to take advantage of green investors, bilking them out of their hard earned money by misleading them into high yield investment programs that are far from legitimate.

Look for High Yielding Investments.

Because of these factors, along with numerous others, High Yield Investment programs have gained a notoriety that other types of investments can really only be envious of. This reputation has unfortunately dissuaded many serious investors from considering them, instead encouraging shadier elements of the financial marketplace to set up shop using them for profit. This is quite a pity, however, because High Yield Investments, when legitimate, can actually prove to be an extremely valuable tool when it comes to the generation of personal wealth. If you are an investor who is smart and discerning, you will actually find plenty of wonderful opportunities to increase your investment by a sizable amount of money.

Not all HYIP opportunities are scams, and there are plenty of opportunities for high yield investment that are plenty legitimate. Many of them have been utilized for years, and in this time have been able to create success stories out of ordinary, regular people. Everyday people have been able to take on these high risk, high reward investments, turning their investment portfolios into true success stories. There are two different types of High Yield Investment Programs, those that are legitimate and those that are not. The non-legitimate ones tend to have to do with investing in offshore trading companies with technicalities and rules that are shady at best. Avoid these at all costs. The other option is the transparent kind that involves investing in local, understandable and verifiable trades in shares, futures and gold for example.

Finding a successful, profitable High Yield Investment Program that is going to lead to your success, you should always look for the programs that put serious emphasis on transparency. You are going to want to know how the program is developing, and what you can expect to receive in returns. You are also going to want a tangible contact that you can connect with as needed, meaning that you will have a person that you can talk to whenever you need one, either over the phone or through e-mail.

If you find an HYIP that is promising too much, you absolutely must be wary. HYIPs do give higher returns than the normal rate, but if the ROI that you are being offered makes your eyes fall out of your skull, you’re probably looking at something bogus. There’s a big difference, after all, in providing good rates, or to good to be true rates.

Photo Credits: 1

Originally posted 2020-11-24 05:01:03. Republished by Old Post Promoter

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Personal Budget Planning is Crucial!

Monday, July 13th, 2009

Create a budget.

Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word “Budget” is one that worries a lot of people because it often seems more like a hassle and a chore than anything else, but there are a lot of easy things that you can do in order to create a personal budget planning process that is beneficial to you and your entire family and household. Here are a set of basic steps that will help you build a personal budget that is going to work well for you and your household as a whole

– Begin the personal budget planning process by collecting at least three months worth of bills, expense statements and receipts.

Look at your bank statements, cash transactions and any receipts that you have saved. Look through your credit card statements as well. What did you purchase? What bills did you pay? Were there any fees that you paid? Are there any habits in your monthly bank statements that are worth noting? Are you spending basically the same amount of money every month? Are there expenses that are the same or similar every month? Answering these questions will give you a good foundation for your personal budget planning.

– Now that you have a firm handle on your expenses, the next step is to gather documents relating to your income.

If you are on salary, put together your paychecks and make sure that you are getting the same amount every month. Otherwise you should gather between three and six months of income statements to get an average amount that you earn in a single month.

– Now that you have a good idea of both your expenses and your incomes, the next thing to do is to compare them to see how much money is left.

This may seem like a frightening step, but it is important if you want to know how much discretionary income you have every single month.

– Now that you know how much money exists at the end of the month on average, you can start looking at what expenses can be eliminated or reduced.

Review your expenses carefully to find out how you can leverage additional income on a monthly basis, because this extra money can be used to reduce debts and begin to save money for the future.

Now that your basic budget is outlined, you can begin to work on prioritizing your debts by reviewing interest rates and listing your debts beginning with the highest interest rate and working down. Once your budget and discretionary income have been outlined you can begin to plan for your financial future by outlining both short term and long term goals in your personal financial life. The last step is simply to exercise patience and to stay the course for as long as you can. Personal budget planning is not going to become a habit as quickly as over night, but it will eventually become a habit if you practice it regularly.

Photo Credits: 1

Originally posted 2020-11-13 05:58:04. Republished by Old Post Promoter

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What Are the Best Small Investments?

Saturday, July 11th, 2009

D.R.I.P.s

In times of uncertain economic future, it is important to look at your investment strategy and tweak it as needed. One of the ways that you can improve your portfolio is to take on small investments with lower risks associated with them. Taking in smaller rewards and returns may seem like a waste, but these smaller ROIs can actually add up fast in the right investment vehicles. Fixed income investments are some of the best small investments that are available to you, like savings accounts and CDs. Another excellent investment vehicle for someone looking for small investments with great rewards is an investment called DRIPs.

DRIPs are a truly cost effective way to raise equity for a company, and they are beneficial for investors as well. The reason why they are beneficial for investors is because they allow for the investment return drawn from dividends to be invested immediately back into the investment for price appreciation and compounding, but without incurring any brokerage fees. Additionally, there is no waiting for the investor to accumulate enough cash for a full share of the stock, which is another excellent advantage making these some of the best small investments that you can make.

DRIPs have numerous advantages associated with them, but they’re not perfect. They do allow investors to take advantage of dollar cost averaging for cost effectively investing the dividend income that is being paid out by the company. Not only will the investor receive a guarantee for the return on the dividend yield, but they will also earn whatever has been appreciated by the stock during the time that they own it. Another advantage is the fact that you do not need an exorbitant amount of money to begin. You can participate in such a program without more than a single share of stock, but it would be wise to consult your broker or the company’s investor section of their website to get more details on this.

DRIPs also allow you to grow your investment capital in a cost effective way by purchasing more company shares rather than simply spending money or having it sit idly in another account. Most company-offered DRIP investment programs have no fees for transactions, brokerage fees or account-keeping fees so 100% of your returns are being invested back in.

Some of the disadvantages of DRIPs include the administrative hassle associated with the cost basis of all the different small stock purchases, maintaining records of these purchases, and the fact that you do not get to choose the timing for when the stock is purchased. Most DRIPs have specific schedules that they are meant to follow, so there’s a little bit of uncertainty built in to this particular investment vehicle.

Still, if you are looking for one of the best small investments that you can make, these DRIPs are a good way to go if you can find a suitable program to buy into. They are worth checking out if you are trying to build your investment portfolio and are looking for something new, and profitable for that matter.

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Originally posted 2020-11-11 05:57:21. Republished by Old Post Promoter

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8 Tips for College Student Budgets

Monday, July 6th, 2009

#4 Pace Yourself

Below are eight tips for college students about money and finances.

1. Track your Expenses

If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount of money on Starbucks? You may want to cut back. Most college students do not realize where their money is going until they really take the time to pay attention to their receipts at the end of the week.

2. Formulate a Plan

The best way to manage your finances over the course of a semester is simply to sit down and really take the time to map out a budget. List all of your sources of income, tracking potential income and actual income earned. Then list all of your expenses, including tuition, books, groceries, and so on. When you have a plan formulated, you can better track money coming in and going out.

3. Make Room for Good Time Money

You need to make plans to have a little bit of personal spending money for entertainment purposes, eating out or other special purchases, otherwise you can easily throw your entire budget plan out of whack. Make some room for entertainment money and just vow to stay within your budget from month to month.

4. Pace Yourself

If you spend too much money at the beginning of the semester you will run out of money before the end. Give yourself a weekly spending limit based on how much income you have, and stick to it so you don’t end up tapped out by the end of the semester.

5. Go Easy on Credit

Credit cards are nice, and useful, but only for some purchases and not all. One quick way to spend way beyond your means is to use credit in the wrong ways. Use your credit cards sparingly if you have them, otherwise you may end up hooked on charging things, which is a great way to rack up unavoidable, unnecessary debt.

6. Set a Personal Credit Line

Just because your credit card has a limit of $2,000, that does not mean you have to spend that much. Only spend what you can actually pay back. If you only have $500 to attribute to paying back a credit card, only spend that much on the card and you will be fine.

7. Be Realistic

You can do what you want to do, but you cannot necessarily do everything that you want to do. Make some choices and be prepared to make some sacrifices because doing things and buying things is going to make a dent in your wallet, but some expenses can be easier on the wallet than others and provide just as much return on investment.

8. Plan Ahead for Emergencies

If you bust your entire budget this week on something you want to do, make sure to make up for it next week. If you constantly spend your entire budget frivolously, you can end up unprepared for emergencies like auto maintenance costs, course materials, health costs and so on.

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Originally posted 2020-11-06 05:11:31. Republished by Old Post Promoter

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