Between Expectation And Reality (UPDATE)

Hershey's PayDay

Pay day must be the most exciting and depressing day because it's the day I realize that how much I make and how much I take are two totally different things. The king size pay check becomes a mini bite size. Like it or not, finding out our net income is a necessity.

The first thing we need to do in step 7 is determine gross income. It's simply the sum of your monthly take-home pay before deductions. Real simple right? Financial Literacy Month makes things simpler by providing a great online spreadsheet to calculate net monthly income.

Net monthly income is important when we start the process of budgeting or creating a spending plan. It is the exact amount that we have available to budget but that won't come until step 21.

Watch this space again next week for an update, and also Al-Amwali for step 8.

UPDATE: You can download an Excel file or a Libre ods of the income worksheet.

Reasons that Justify Your Decision of Refinancing Your Mortgage Efficiently

Refinancing a mortgage involves disbursing off the current loan and replacing the same by taking another one. This new loan can be brought through different means such as from bank or authorized institutions such as Network Capital Funding Corp. However, the cost of refinancing can range from 3% to 6% of the principal amount, and that it calls for appraisal, application fees, and other formalities demanded by the original mortgage. Therefore, it becomes vital for a homeowner to justify her or his decision of refinancing for reaping its benefits. There are several reasons why refinancing is found to be useful, and that each of them has a unique set of pros and cons. So, let’s check them out now!

For Reducing the Term of the Loan
The homeowners often find it useful to refinance an existing loan when there is a chance of getting a shorter loan term. For example, refinancing 25-year mortgage on a $200,000 property at a fixed rate from 8% to 5% can bring down the term to 12 years. Herein, the monthly payment may or may not change.

For Obtaining a Lower Interest Rate
One of the ideal justifications for refinancing mortgage is to enjoy a lower interest rate on the current loan. Reduced interest rate is certainly the most desired benefit because it not only aids in saving money but also helps in boosting the rate at which one can create equity in home as well as reducing the pay that is given on a monthly basis. In the past, the common rule was that it was beneficial to refinance if one would obtain a lower interest rate by a minimum of 2%. However, the current experts are of the opinion that 1% savings is a good motivator to opt for refinancing. For instance, a 25-year mortgage with an interest rate of 8% on a $200,000 property can be refinanced at 5% interest rate, which also reduces your monthly payment.

For Shifting between Fixed-Rate and Adjustable-Rate Mortgages

It is true that adjustable rate mortgages begin by providing you lower rates than the fixed-rate ones. However, intervallic adjustments typically lead to an increase in rate that is higher than the fixed-rate mortgage’s rate. In this case, it is better to convert the adjustable rate mortgage into to a fixed-rate one for reaping the benefits of lower interest rate and prevention of interest rate hike in future. However, even the converse can be a beneficial decision, especially when the interest rate is falling. When the interest rates tend to fall, the intervallic rate adjustments on an adjustable rate mortgage lead to reducing rates as well as smaller payments per month. As a result, the need to refinance consistently is eliminated gradually.

Moving to an adjustable rate mortgage is a sound decision particularly for those who do not wish to stay in their house for more than some years. When the interest rates fall, these people can bring down the rate as well as monthly payment without worrying about the interest rate hikes in the future.

For Dealing with Debts

There are several homeowners who refinance for consolidating debts. It is ideal to change high-interest debt with a low-interest mortgage at face value. Sadly, refinancing does not come with an automatic spell of financial cautiousness. As a fact, a considerable number of people who have high-interest debt simply end up raising the debt after mortgage refinancing liberates them to do so. As a result, an immediate loss is experienced in terms of wasted refinancing fees, equity in the house, and extra interest payments on the new loan. So, one should not take this undue advantage of mortgage refinancing for it to be successful.

About the Author: Mary Carnegie is a senior broker who is working at a famous American mortgage company. Currently, she is working hard to be a part of a recognized finance company such as Network Capital Funding Corp. She is available on twitter @maryjcarnegieor or https://twitter.com/maryjcarnegie.

5 Ways to Avoid a Bad Credit Record

Having a bad credit record can severely impact on your life in a range of ways. You can experience difficulty finding a place to rent, as well as having applications for credit cards, loans and even phone contracts constantly knocked back. Preserving your credit record is particularly important if you are considering a home loan in the next few years. Here are 5 simple ways to avoid a bad credit record.

Create a Budget

Making sure that you have an accurate and detailed budget will help you to stay on track with all of your payments and expenses. You may need to spend several hours assessing your income and expenses in order to have a clear idea of what you have available for savings and bill payments. Try and allocate a saving account for emergency situations, and aim to have 3 months of your expenses saved at all times. This will cover you in case you temporarily aren’t able to earn your normal income.

Keep Your Details Up-to-Date

Ensuring that you stay up-to-date with any change of address and contact details will allow creditors to contact you directly. You can inadvertently damage your credit record by forgetting to update your change of address, and as a result miss any bills and outstanding payment notices that are being sent to your old residence. It also allows any creditors to contact you promptly in the event of a problem, which can save your credit record from receiving any unnecessarily damaging records.

Don’t Max out Your Cards

Try and stick to the minimum spending on your credit cards, and always pay it back as punctually as possible. Try not to max out your cards, as it increases the risk that you may not be able to make a repayment if your circumstances change.

Contact Your Creditors

If you’re experiencing issues making a payment, make sure you contact your creditors directly. You’d be surprised just how understanding they can be when given plenty of notice. Quite often they will make special allowances for cases of financial hardship, especially if you can present them with a structured plan of when you will be meeting your payment obligations.

Don’t Ignore the Problem

The worst thing you can possibly do is to ignore any credit issues. Being late on payment or worse, not paying at all, will do almost irreparable damage to your credit record. As soon as you are struggling to make your payments, you should contact your creditors to organise an alternative arrangement. If you aren’t comfortable doing this, an experienced debt solutions provider such as Fox Symes can negotiate with your creditors on your behalf. They will also assist in all kinds of debt help, from consolidation to personalised budgeting advice.

Preserving your good credit record should always be a financial priority. With the devastating impacts that a bad credit rating can have, your quality of life can be seriously reduced from even the smallest indiscretion. If you think you might have trouble meeting your repayment obligations, consider enlisting the help of professional debt solutions specialists.

How to Avoid Sliding into Debt after an Expensive Honeymoon

Going on your honeymoon should be about spending quality time relaxing with your partner as you start your married life together. Nothing spoils the romance faster than a mountain of debt awaiting your arrival back home! It can be hard, but here are the best ways to avoid sliding into debt after an expensive and luxurious honeymoon.

Stick to Your Budget

This is one of the toughest yet most vital ways that you can ensure your honeymoon doesn’t turn into a financial horror story. Coming home to increasing debts is no way to remember your special time together, so draw up an accurate budget and stick to it! Allocate your funds clearly between accommodation, meals, activities and shopping so that you always know how much you have to spend. Don’t let yourselves get carried away, as the guilt of overspending is guaranteed to follow you home, and can put disastrous pressure on your relationship.

Organise Your Bills Before You Leave

Some service providers and lenders will allow you to pay in advance when you are leaving on a holiday. Take advantage of this option for ultimate peace of mind on your honeymoon, where you can relax in the knowledge that everything is up to date. If pre-payment isn’t an option with the provider, many financial institutions will allow you to set up an advance payment to a specified biller? Talk to your bank to find out the full range of options available to you.

Consider Consolidation

Trying to keep track of your debt can be exhausting, with many couples having several credit cards, personal loans and a home loan on top of their normal bills and expenses to try and budget for. If you’re feeling like your debt could become out of control after your honeymoon, consider a debt consolidation loan. The way it works is that a debt consolidation company will give you a loan that covers all of your current unsecured debt.

This allows you to focus on paying off your debt with one monthly payment, often saving you hundreds of dollars when compared to your current repayments. In addition, the interest rate tends to be significantly lower than your existing loans and cards. With a consolidation loan, you will notice that it’s much easier to not only keep up with repayments, but make additional ones as well, which greatly increases your chances of becoming debt free sooner.

Save a Little Extra

It always helps to have that little bit extra in the bank just in case. There are a range of scenarios which could see your already expensive honeymoon become exorbitant, so being prepared for emergencies is essential. Having some spare savings will give you a buffer zone for the worst case scenario.

Don’t let your beautiful honeymoon drag you into insurmountable debt. Once you have strengthened your financial position and created a great budget, you can feel free to relax and enjoy your very special holiday with your partner. With these simple tips, you can ensure that expensive doesn’t become excessive, and that your honeymoon is one to remember for all of the right reasons.

About the Author: Emma Jane is a freelance finance writer and a frugal mom of two kids.

5 Creative Ways to Be Frugal, Save Money and Live an Abundant Life

The current economic environment has contributed much to a feeling of unease among many Americans. Savings are near an all-time low among the nation's citizens, and many people have excessive amounts of debt. Credit repair companies can be helpful for these people. Are there any ways to beat the system and have a great life? Living frugally and saving money is still possible for many. Here are five creative ways to save money.

Start a Savings Account

This might not be the most creative way to save money, but saving a bit of money out of a paycheck on a weekly or monthly basis is a great way to get started in having a good amount of savings.

Make Household Items at Home

Cleaners and detergents can cost quite a bit at the store. The name brands and store brands will both have significant markups. It is possible to make some of these cleansers with items that are probably already in most households. In many instances this can save a substantial sum over the course of a year.

Take Lunch to Work

Just about anyone with a job has to eat lunch at some point during the day. Those who eat out daily will usually spend between $5 and $10 each day if they are reasonably frugal. Taking lunch from home can frequently cost $2 or less. This could conceivable save around $20 to $40 per week. Added up over the course of a year, this can be a large amount of money.

Sell Items that Are Not in Use

Just about everyone has some items lying around the house or apartment that have not been used in months or years. Yard sales or internet sites are great opportunities to get rid of these items and make some money in the process. The profits can then go to savings or into buying more cheap items for sale. Both of these ideas will add to the bank account over time.

Find Online Work

Most people waste many minutes or even hours during the day doing frivolous things. Why not get paid? There are several online sites that offer work. Of course, it is important to be careful when doing work for online sites. Sites that do not have a strong and lengthy reputation should be avoided because there are many scams on the web. Over time, these small tasks can add up to fairly sizable sums of money.

Using just one or two of these options can improve the financial situation of just about any home.

The Present Is Future History

Image from Last.fm

And among the People of the Scripture is he who, if you entrust him with a great amount [of wealth], he will return it to you. And among them is he who, if you entrust him with a [single] silver coin, he will not return it to you unless you are constantly standing over him [demanding it]. That is because they say, "There is no blame upon us concerning the unlearned." And they speak untruth about Allah while they know [it]. | But yes, whoever fulfills his commitment and fears Allah - then indeed, Allah loves those who fear Him. 

3. Surat Ali `Imran (Family of Imran; 75-76)

Sometimes history can be an indicator of the future but, sometimes history is just that, what happened in the past. When it comes to credit history however, it can go either way. Looking into a person's credit can be an indicator of the future because relationship with money is behavioral. We have so many things that requires attention yet money is often left at the mercy of our habits and urges (clearly Islamic personal finance should be on the forefront of all Muslims). Since behavior plays a big part, often, history repeats itself and can be an indicator of the future. So, those with great history in repayment of debt, will most likely continue the habit.

Step 5 and 6 requires looking into our history (requesting a credit report) and cleaning up mistakes. Important information from step 5 and 6:

The FACT Act gives every consumer the right to a free credit report every year from each of the three major credit bureaus: Equifax, Experian and TransUnion. To get your free report, simply fill out the request form. You can also visit www.annualcreditreport.com or call 877-322-8228.

If you find an error on your credit reports, you’ll need to know your rights. Your most effective weapon in dealing with the credit bureaus is the Fair Credit Reporting Act (FCRA). Legally, the FCRA protects you by requiring credit bureaus to furnish correct and complete information to companies requesting credit histories for evaluation. If you find an error on your report, simply follow these steps:

• Write to the credit reporting agency disputing the item and include any supporting documents. Keep a copy of all documents for your files.
• When the credit reporting agency receives your letter disputing the item, they must investigate the item in dispute (usually within 30 days) by presenting the information you submit to the creditor.
• By law, the creditor must review your evidence and report its findings to the credit bureau.
• The credit bureau must then give you a written report of its investigation and a copy of your report if the report results in a change.

You can also fill out an online dispute form provided by the credit bureaus. The websites for the three major credit bureaus are:

• Equifax www.equifax.com
• Experian www.experian.com
• TransUnion www.transunion.com

Credit history is a part of us that greatly influence our present and future. If we have a tarnished past, we may be judged based on it for as long as we let it be. Would you seriously lend money to someone who you know for sure would never repay you? Imagine having a tarnished past and trying to borrow for bigger purchases such as a home. Fear not, all is not lost. Credit history can be fixed by acting on the present so that we move toward a prosperous destiny.

Image credit http://thingsweforget.blogspot.com

Positive Thinking VS Power Thinking

Challenges and struggles are constant. Let's face it. And every time we got into a hot plate, we need to act accordingly and decide on the best course of action. Dilemma? Oh yes, it's between the devil and the deep blue sea.

A situation where the options are all worse. It's not really considered options! It makes us think, "Is there a better option?"
But one thing in common when we are caught into this circumstance is the encouragement we often hear, "Think positive! Think positive!" Empowering. Yes. But is this REALLY helping us all the time? Not really.

In some cases, yes. These words may soothe our feelings. It comforts us. But this doesn't apply all the time.

Think about this. Sorry for the example but I have to emphasize the differences. It is only in extremities that we can compare two things.

May I have your permission to bear with me. Your friend has a stage 4 lung cancer. At any time, he will die. There's no time left for him. The doctor said about acceptance of his state. No medications could treat him. No major operations could heal the disease.

Here comes your other friend telling you to think positively! How would you react? Are you kidding me? You're telling me to think positively when certainly a negative outcome is likely to happen?

Positive thinking

It is when you only think of good outcome. Yes. No matter what happens, only the best takes place after any trials. After any challenges. Hurdles. Struggles.But my question is, is this sensible? Power thinking on the other hand is the flexibility to accept things that may happen - good or bad.

If an event is likely to be favorable on your part, you still think of the worst case that may happen. Conversely, if you're struggling on something and you know that you're going to fail, you still consider the odds of making it thru luck. Or maybe divine intervention! Yes, miracles! 

Pros and Cons of Positive Thinking

Positive Thinking Pros

The advantages of positive thinking are: (1) It pushes your full potential. When you are in a dilemma, positive thinking enables you to find the ultimate way to achieve that purpose. Whether it costs your whole ability or your life!

There's no stopping back. You divulge your full energy and ability to gain that something that you long for, (2) It gives you power. 

As an optimist, you simply don't allow nor accept negative outcomes. You want the best. Meaning, you make your own outcome. You have the power to create your destiny. There's no one in control but you. You don't believe when someone tells you "You can't make it, kiddo!" You know what will happen! And that is positive! In favor of YOU!

Positive Thinking Cons

In positive thinking, you ignore the negative outcomes. Which is rationally insensible. What if it's really the unexpected that will take place? Are you gonna collapse? Heart attack? Nervous breakdown? Oh my gosh! Or are you gonna live life in regret and desperation.

Pros and Cons of Power Thinking

Power Thinking Pros

(1) Flexibility. You control your emotions. Your feelings. You don't know what will happen - true! You're no Nostradamus. No one knows! But if the effect is on your part, rejoice! You believe you deserve it! It's truly for you.

You're meant to achieve or acquire that something that you long for. But if not, fine! All is well whether good or bad! If the outcome is not going on your part, then move on. Maybe you don't have it this time but maybe next.

(2) Rationality. Come on, no one is capable of only thinking the positive outcome. Whether minor or major issues, we can't help ourselves but think of the negative and positive outcomes. And that's normal.

We are humans. We worry, weep, laugh, etc. (3) Recuperation. Since power thinkers are open to any events, there is a good chance to recover what is lost through executing alternatives and options. In power thinking, you tend to plan for contingencies. If this result occurs, execute Plan A. Otherwise, do Plan B. Now, isn't that good?

Power Thinking Cons

(1) Luck abidance. No matter how good power thinking may sound, this could not escape on the improper use of the person involved. Thinking about the two sides of the coin, one may never push for his full abilities and efforts considering that he would fail, no matter what.

Thus, this paralyses his winning reflexes and relying only on luck. He accepts no matter what happens so he will never exert more effort on something uncertain.

(2) Less fear, less focus. When someone takes results easily (whether positive or negative), he doesn't put all his efforts in one thing only. Why? Diversification! That is why businessmen diversify. Nobody knows which venture is profitable or not, so why focus on one thing? It is the protection of fear. Protection of ignorance.

So what is best then, positive thinking or power thinking? You might ask. My answer? Case to case basis. Some instances call you think positively! Trust your guts, your intuitions. But some cases want power thinking for you. You need to!

Instant Cash Loans - The Preferable Solution for Sudden Cash Funding Needs

If you are short of time and need funds to pay your bills, then there are numerous options that you could choose from. You could borrow from your close friends and family members. However, the best thing to do is go with Payday loans. Although they charge you little high interest, at least you know for sure that you have cash that you need, and not spoil the relationship with your friends or family in case there is a delay in repayment.

Types of Loans To Manage Emergency Situation

• Urgent Loans
• Payday Loans
• Bad Credit Loans
• Instant cash loans
• Same day loans

Instant cash loans mean you will get fast cash within hours of dropping your loan application. To qualify for the loan amount, you must be a permanent resident of the country and above 18 years of age. You must have a job, which is permanent and pays a fixed salary every month and a valid bank account number to transfer the money.

If you fulfill the above conditions then you will quickly qualify for the instant cash loans. In such loans the lender does not verify your earlier credit records or ask for any documents. Once you have mailed your application form they quickly process, it so that you can get the amount in next few hours. However, once you have taken the loan you must repay it within the next 14 to 30 days time. Since these are short term loans, they hardly ask for any security deposit. The only condition is that you must repay it in a short time after you get your cheque on the next payday.

If you are in a rush and have little time to visit their office then you can just browse through their website and fill up the online application form at your convenience. Once you complete this procedure, you will get a call from the representative of the company and the money is transferred in next few hours time.

Avail Quick Cash at Low Interest Rate

You may never know when you will face uncertain expenses and if your credit history is bad, then you are in a fix. It is a known fact that you will be identified as a defaulter with such bad credit record. So, you are at your wits end. However, with instant cash loans, which have special facilities that are tailor made to suit individual needs, you need not worry. You can apply for loans in spite of having bad credit history and also get financial assistance to repay the loan at low interest rate.

Emergency Cash Loans

There are many lenders who offer instant cash loans. They do not identify people with bad credit as defaulters, instead help them to overcome such issues and avail loans under any circumstances. However, to qualify for bad credit loans low interest,

• You must be a citizen of the country or own a house
• You must be 18 years of age or above
• You should be working, and the nature of job must be permanent
• You must have a legitimate bank account number

If you fulfill the above mentioned points, you can easily apply for loans and get short term financial assistance. They do not check your credit records and also do not ask for any documents or collateral from your side. All they need is your bank account number, so that the money can be quickly transferred. Once you apply for the loan, you will get it within a day. Instant cash loans are easy financial solution to all your emergency needs.

Underlining the Importance of Getting Insurance

In today’s elaborate financial world, insurance has established its place as one of the most important financial products you can find. The process of safeguarding the interests of different groups of people from financial uncertainties has inspired the blossoming of the insurance industry. Having an insurance policy is not only considered useful in these modern times, but also necessary for individuals as well as businesses. But why is insurance given such gravity?

The Benefits of Having an Insurance Policy

Even without giving regard to any specific kind of insurance, there are benefits that stand to be gained by buying into a policy.

Security - It is the one characteristic that is consistent with all insurance policies. They all grant a sense of security that any unprecedented events in the future such as theft and damage, loss of income, or even loss of life, will not bring any kind of financial hardship. In the context of mortgages and loans, insurance, such as payment protection insurance, safeguards against default payments, should the borrower become unable to fulfill his repayment obligations.

Peace of Mind - It is a benefit accrued from the sense of security that insurance affords a policy holder. Without the need to worry about any uncertainties in the future, a person is able to shift their focus towards productivity in either work, or their personal lives. You cannot really put a price on being able to rest easier at night, which is why insurance receives such favor amongst the financial elite.

Self-Dependency - In many ways, insurance helps you become more independent. With insurance, you service the premiums when you are in good financial health. And when that takes a turn for the worse, the policy takes up whatever responsibilities you had, and as such, you are able to continue with life without looking up to anyone. In the context of payment protection insurance, when you buy a loan protection policy for your car or your mortgage, you are able to keep them, should you lose your source of income. This way, you can focus on re-entering the employment world, as all of your repayments will still be made timely.

Removes the need for Readjustment - With insurance, you don’t have to make do with a lower standard of life, should you encounter an eventuality that reduces your income potential. This holds true for extent payment protection insurance, as an accepted PPI claim will help you maintain your kind of lifestyle.

Credit Protection - Maintaining a good credit is essential in today’s world. Without a good credit history, you are locked away from good financial opportunities. With payment protection insurance, you are able to maintain your high credit as all your repayments will still be made on time. Your credibility will therefore not be affected, and your financial health will stay in check.

Financial Discipline - Insurance premiums have to be repaid in a timely fashion, with only a few days of grace being allowed. This forceful compulsion means you have to exercise some financial responsibility so that all your payments are made in time. In the beginning it might be hard to balance your financial math to accommodate these payments, but eventually, the habit catches on. Beneath all this, there is a sense of discipline that you are forced to develop, especially if you are able to stay up to date with the payments.  It is a quality that can pour over into your larger financial life, if you let it.

Insurance is an integral part of our financial universe today. Not all insurance products boast the same level of importance, but each of them serves a useful purpose, and that needs to be appreciated.

Samuel Jones writes regularly on insurances and finance related topics. He has also written many articles on PPI Claim.

Top 3 Reasons to Live Every Day

Sad. Depressed. Frustrated. Humans as we are, our emotions are in a roller coaster. Sometimes we are felicitated about a situation or sad about a thing that happened. But we can avoid the loneliness trap. Here are the top 3 reasons why we should live each day.

Every day is a blessing

Indeed! The fact that we are able to open our eyes and wake up is a great blessing! There is still hope. There’s still a chance to make up what we had lost and what we have failed to do. Stand in front of the mirror and smile. I am alive! I am still alive! If others survive with less in life, why couldn’t I?

I may not have the best in life, but I am not the worst of the kind. I am special. I am unique! And because of my uniqueness no words could ever deflate my ego. No one can ever stomp me. I am proud of who I am! There is no other person like me! I am the best of who I am!

Every day is an opportunity

We are given a chance to live life more. To experience the things that we haven’t tried, or to engage in something that we ought to do but we simply had no courage to start doing. I have the courage now. I am stronger than before! 

Opportunity is a vital ingredient of luck. There is no such thing as pure luck. Luck is the readiness to grab whenever opportunity comes.

We should make ourselves ready. We must be ready. Opportunity is just lurking everywhere. We may not know it. But it randomly visits to someone anytime. So we must be ready. Stand and say, “Opportunity, I am ready! Just visit me today and I’ll be glad to accept you!”

Every day is a new world

It is time to make new friends, new discoveries, new habit, new hobby, new career and new life. We may be living in ages. But when we live life like we are a new-born babies every day, it’s different.

We get more excited. There’s so much to explore. There’s so much to learn. And it’s like every day is a resurrection. We never died.

But being new every single day brings enthusiasm. Life is not meant to be pondered on. We are meant to live! To live is to experience the beauty of the sunrise, to smell the scent of rosemary, to sip fresh coconut juice, to savor the succulent apple and to nibble on the rich taste of back ribs.

Being anxious is to be being human. We have emotions. And our emotion is the enormous part of being human. Feel the emotion. Savor it. Weep on it. Laugh on it.

For we will never know how it feels like when we don’t give in to our emotions. But don’t let emotion influence you. Emotions are made to be short. Ephemeral. Temporary.

To emote is natural. But to become emotional is immature. Worry less. Look forward. There’s so much out there. You just don’t see it yet. You might miss the diamonds while you are busy collecting stones. We are walking not by sight, but with faith. God bless you my friend! 

Top 3 Reasons to Invest in Oil

There are several companies to choose in stock investing – from banks to consumer goods, conglomerates, financials, mining, etc. So this leaves you puzzled where to put your money in a vehicle that is “safe” and promising.

Personal observation. Oil is a vital mover in the global economy. Everyone needs oil. We need oil in our households (LPG tanks), cars, industries (generators, compressors) and logistics (airplanes, ships). Without oil the world economy will stop! Agree?


Oil directly affects everyone. Did you notice that a slight change of oil affects the prices of primary commodities like rice, corn, sugar, crops, etc? This is because of logistics. The higher is the oil’s price, the more expensive it is to transport and distribute to consumers!

Not only that. Here are top 3 reasons to invest in oil:

1. Easy to understand. Understanding oil is easier than any other stock options. The Law of supply and demand suffices – the greater the supply, the lesser the demand. Question is, will the demand decreases considering the growing economy?

2. Substantial returns. A change of the price of oil affects everything. Yes, everything! Ever wonder why there’s always inflation? Hence, investing in oil is likely to be a safe haven considering the price hike from time to time.

3. Ultimate Influencer. Oil is the price dictator. Once it rises, all the other sectors will follow. And with the increasing demand of oil all over the world, what would be the effect? And not only that, only few countries are exporting oil!

Middle East countries are the biggest oil suppliers. The rest of the countries are just relying on these suppliers for consumption. Now, does this sound convincing to you?

Though oil companies are my first priority in stock investing, I am not placing all my eggs on this. Yes, the rewards are big when you invest in oil. But this is not an exception to the rule of Risk and Reward – the more rewards you receive, the riskier it is. So the question is, is it worth the risk?

Delayed Gratification VS Instant Gratification

Lately I went to a telecom company in a mall and bought a post-paid plan. A lot of people were there falling in line, waiting their number to be called and with faces excited to own smartphones and gadgets.

I was planning to buy Smart’s Pocket Wi-Fi through Plan 599. Yes, a Wi-Fi gadget. Not a smartphone. And I still have my old Nokia phone with me while others have their latest gadgets.

While we were talking with the agent, I was offered with other plans. And guess what, iPhone 5!

I was mind-computing. Good debt or bad debt? Cost Benefit Analysis. My hands were sweating. I was excited! Not to brag but modestly, I could afford that plan. However, I changed my mind. I chose the pocket Wi-Fi. Thanks, my sanity was functioning.

Sometimes I feel a tinge of envy when I see someone holding a touch-screen phone, playing apps and having a luxury in typing a message instead of the conventional keypad that is hard to press.

Instant gratification

Some people are impulsive by nature. And I don’t blame them. Whenever they want something, they must acquire it immediately. As in now! They have this high momentum to get that something they want. It’s good if that something they want is not a biggie. But it actually is!

And that’s the downside. Everything that we want is often a luxury, not a necessity! And you know what, luxurious objects are damn expensive! Right?

Think about it – iPhone, BMW, Louis Vuitton, Tag Heuer. These are all luxury items. And the cost is the price to pay for the luxury! This would cost me a fortune to buy all of these! So why do I talk about this? 

Because some of us are investing on these luxurious yet DEPRECIATING items! These maybe expensive. Very expensive. But guess what after 1 week, the price depreciates its value! Now, is that considered an investment? Not at all!

Delayed Gratification

Most of you know of this but I’m pretty sure this is the principle of business magnates. Instead of investing on luxury items, a wise investor spends his money in Assets. No, not gadgets. Not bags. Not cars. Not watches. Jewelry, maybe.

Why? Jewelries are appreciating assets. A wise investor invests in assets that can provide a substantial income. A steady cash flow that can make them afford all the things that they want – maybe a luxury item!

So the ultimate goal therefore is to invest in ASSETS. When these assets are providing cash flow, you can afford all the luxury items the world can offer!

You know now why I chose the pocket Wi-Fi.  I want to be a serious internet marketer. And to be such I need to invest for internet connection. And as soon as I can earn on this venture, only then that I will buy a luxury item.

Now what? Instant or delayed gratification? :)

You Don’t Need to be Warren Buffett to Invest in Stock Market

Not long ago when I opened my online trading account, my officemate cringed at me saying, “What? You have a trading account? Are you an expert on that?” I didn’t answer to end the conversation.

You know, the more you talk, the worse it gets. The thing is, skeptics and hypocrites are the ones who always comment on everything.
Worse, they don’t empower you at all. They tend to infect others through their crippling comments that paralysis you to move on something you seem is the best thing to do.

So that’s what I did. I did not say a word. I only smiled and thought, perhaps he’s right and maybe he’s wrong. He’s right in a way that I am not an expert in stock trading. I admit that. Gosh, who is? And maybe he’s wrong.

Why? Because even though I’m not an expert, that WON’T STOP me at all. And I tell you, COLFinancial’s trading interface is easy.

I never tried their demo account. I never researched anything about their trading platform. What prompted me to make a move is, it was recommended by Bro. Bo Sanchez. He trade stocks through COLFinancial. And even his maids and drivers invest on it too! So why shouldn’t I?

Now my account is good and I earn a bit. But my earnings are higher than investing it in banks. Savings account? You will earn roughly 1% per annum. Stock market? An astounding 10 – 20%!

You don’t really need the knowledge of Warren Buffett to start. You don’t have to be a stockbroker either. COLFinancial will provide a Daily Investment Guide that you can refer what stocks to buy on a certain day. And you don’t need a huge amount to start investing. Why? Because at Php5,000 you can already open an account. Easy, eh? Read my other post on opening an account.

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

Therefore, it is extremely vital to know how to ensure responsible usage of these loans. There are many online providers such as Midwest title loans who are offering instant cash for car. But before you approach them, it is essential for you to know how these loans work and why risks crop up so that you can make a safe deal.

How Title Loans Function?

A title loan is a secured lending featuring the amount as per your car value. In most cases, you will be able to take up to 50% of your car's worth. But for this to happen, you need to obviously have a car whose price is totally paid off. The chosen lender then tends to assess your car’s value before presenting you an offer. Here, you need to remember that there is no need to borrow all that is on offer. It is wise to borrow less because doing so can save significant money and can also make repayment burden-free. Although these loans are repaid within a month right from the day you take the money, the duration of repayment can change from one lender to another.

Why Risks Crop Up to Take a Toll?

Just imagine a scenario when a person needs only $1,000 but is provided an offer of $3,000! What you think will happen in this case? Well, the person is sure to take that $2,000 extra instead of taking what is required. This is the main reason why several people tend to face problems with car title loans. If you compare title loans to payday loans, the former is much larger in terms of amount than your income. But because you accept the big loan, you allow the lenders to take the advantage of lending you more and then enjoying the extra interest and penalty fees on default. Not only that, but in worst cases, the lenders can even take away your car. Therefore, to keep risks at bay, it is better not to borrow a single penny above your needed amount.

What Proactive Steps Can be Taken for a Wise Deal?
 
Prior to applying for a title loan, ensure that you find out the precise dollar amount in need so that you can borrow only that much. If you fail to do so, then you will be only responsible for the aftermath as you struggle to repay it. So, find out the exact amount you need by taking into account your possible sources of income and expenses. Further, ensure that the lender is not giving you any other options. A title loan with many options can be troublesome. Do some online research to get an affordable interest rate that is actually always high.

In case you accept a big loan, be ready to repay it by seeking new ways of earning money. You may have to work overtime, sell your old stuff online, cut down your current expenses, and pick up some weekend jobs. Taking these steps will relieve you from the tension of repaying the loan.

Ramy Gobel is a financial geek who is a freelance writer by profession. He is recently an in-depth research on car title loans by focusing more on online lenders and the possible pros and cons. Ramy recommends Midwest title loans for Americans.

We're Not So Different, Corporations And I

Image from realizedworth.com

I got a big wake-up call while going through my education in finance. Individuals are, in many ways, companies. Companies have financial statements and individuals have personal financial statements. Since I've learned how to analyze financial statements, it's frightening to know that I'm worth very little and I'm not an attractive "company". Damn you finance degree! I know now that I have not been managing myself very well. I've not been investing in myself and increasing the value of Me LLC/Inc.

There are two personal financial statements:

1. Balance sheet is your assets and liability. What you own and owe, showing what you're worth.
2. Statement of cash flow is your inflow of cash minus outflow

Companies have income statements, but since companies revenues are from sales of product/service and most individuals revenues are wages, a personal cash flow statement and personal income statement would look very similar. Basically, it is the realization of how we carried out our spending plan/budget.

Step 4 in moving toward financial wellness is making the decision that YOU are the Chief Financial Officer of YOU LLC/Inc.

The responsibilities of a family CFO are:

1. Planning and creating goals to prepare the family for future conditions. 
2. Presenting, and reporting of accurate financial statements.

If you are married, a board (family) meeting should be conducted and simply explained (to spouse and children) on what actions are necessary to meet financial goals. Empower your children by asking their help on making a snazzy powerpoint presentation and even opinions on what the family can do to meet goals. Of course, transparency is very important, you can't hide your spending from your kids!

What we can take from step 4 is that, in the end, we are responsible for our wealth. Our actions today affects our financial future. Believe in tomorrow and the future.

Whoever disbelieves - upon him is [the consequence of] his disbelief. And whoever does righteousness - they are for themselves preparing,

30. Surat Ar-Rūm (The Romans; 44)

Keeping Things Clean And Simple

Steve Jobs

When I look at a picture of the late Steve Jobs with his black shirt, blue jeans and sneakers, I think of freedom. Let me explain. During hajj, when having only ihram to wear, there's no questioning the appropriate clothes to wear for the day or need to mix-and-match colors. We might not think much of it, but sometimes, picking out clothes can really consume our time. Even if it's only ten minutes, 360 days would make it 3,600 minutes or 60 hours spent. So, Steve Jobs was able to spend three days of his year to focus on more important matters by eliminating clutter.

Keeping things clean and simple is the third step to financial wellness by eliminating the clutter and managing paperwork that comes from our transactions; bills, receipts, stubs, statements, and more. Suze Orman and financialliteracymonth.com's provides a guide on how to manage the paperwork.

Some of the things that manage to fatten and stay in my wallet forever are:

• Sales Receipts
• ATM Printouts
• Grocery Receipts

Pretty straight forward for step 3 and InshaAllah step 4 will follow soon.

Financial Market analysis on plant-based foods

Research shows that eating vegetarian food reduces obesity and various diseases. The majority of the people are aware of the fact that how non-vegetarian food supports cruelty to the animals and harm the environment. From restaurant’s to fast food joints, vegetarian options are becoming commonplace and have expanded from natural food store to club stores and mainstream grocers. Study also shows that the trend driving interests in vegetarian eating people will continue. The business people however, cannot make profit by only catering to this requirement and thus intend to offer delicious and affordable plant based foods.

It has been observed that consumer who seeks for vegetarian foods prefer fruits, grains, vegetables and dairy products. Market analysis shows that the demand narrows down to dairy alternative products as well as meat. The analysis also shows that around 60%of the vegetarians feel stronger about food being an important part of their lives than the non-vegetarian groups.  The survey also shows that 5.2% of the population was ready to follow a vegetarian-based diet in the future. Around 7% of the population was even willing to give up non-vegetarian foods completely.

Approximately, 1.8 million people are vegans who all do not prefer egg, animal ingredients and even dairy products. Vegans are heavy users of products that only meet their requirements. Research shows that vegans have positive influence in the automotive field.  They do not mind to pay extra for clothes, automobiles and food if they are made in such a manner that does not harm the planet. Basically, the population of vegans is moving from marginal level to the mainstream globally.

The main question that arises is who eats plant –based foods? The study reveals that low income household are more likely to prefer vegetarian foods .Even older people falls into this category and it has also been found that around 70% of the female are semi-vegetarian aged between 45 and older.

The range of vegetarian foods is increasing and the growing market has been successful in attracting major competition. There are several market research companies conducting research work for vegetarian foods. If you want to read more about research on vegetarian food, you can check with Redshift market research Company’s website to get the details.

How To Open An Account with COLFinancial

So you’ve made up your mind already? Ready to get started? Else, check out my post on Top 3 Things to Consider When Investingin the Stock Market or the Stock Market Introduction before you proceed. You must have the conviction and be committed before doing this. I warn you. You might regret if you dive directly without testing the waters.

In this post I will show you how to get started in online stock trading thru the multi-awarded and most acclaimed stock market broker COLFinancial.

No, I am not connected with COLFinancial nor an affiliate of this website. I am just recommending something that I personally use so that I can provide valuable information based on experience, not from anyone else.

So here’s the step-by-step guide on opening your COLFinancial account:

      1. Choose your investment plan. You can have the Easy Investment Program (EIP) which has a minimum initial deposit of P5,000. Or you can have a Trading Account with a minimum initial deposit of P25,000.

     2. Download the Guidelines and the Application Form. (You must have an Adobe Reader to read the pdf files. Else, download the Adobe Reader here.

      3. Fill-up the application forms: (a) Customer Account Information Form [CAIF], (b) Specimen Signature Card and (c) Online Trading Securities Agreement. Use the Guidelines as your reference.

     4. After filling up, mail the Application form to COLFinancial together with the Additional Requirements: (a) Photocopy of 1 valid Philippine’s Gov’t-issued ID and (b) Billing Statement. (For foreign citizens, call 6-515-888 for further instructions). You can opt to mail thru LBC, Air21 etc. 

     Here’s the address:

2403-B , East Tower, Philippine Stock Exchange Center, Exchange Road, Pasig City 1605 Philippines

        5. A sales officer will contact you thru call or email confirming your application and for your COL account number.

        6. Fund your account. You may choose the following options:

(a)     Online Bills Payment thru

          BPI (www.bpiexpressonline.com)

          BDO (www.mybdo.com.ph)

          MetroBank (www.metrobank.com.ph)

(b)     Over-the-counter Bills Payment thru BPI, BDO or 

          MetroBank

(c)     Business Center Cashier

As soon as you can fund your account, your COL username and password will be emailed to you after 24 hours! You can start investing in the stock market!

If you want to have a test drive first, you can open a 7-day DEMO account or download the PSE Primer at www.colfinancial.com Here’s the contact information of COLFinancial:

Hotline – 6-515-888

Fax – 636-3512

Email – helpdesk@colfinancial.com

Ready? Aim! Fire! Earn!

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