Money Advice

Borrowing money is really a bad idea unless the borrowed money is for investment.

Best Money Advice Ever

The best way to handle your finances is to live within your means.
In other words, do everything within your power to spend less than you earn.
This is the most basic step towards financial freedom, wealth and riches.

Do not borrow money to pursue a lifestyle you cannot afford.

Africa Cup of Nations Thrills

Ghana 2008 has been full of thrills. A lot of goals have been scored, most of them brilliant. The fans have been colourful and enthusiastic.
All the games played so far have been of high quality. I think that there are many good African teams and that they can excel in the next World Cup if they continue to improve.

Budgeting Essentials

Budgeting has become an essential skill in this day and age as things have become more expensive over time and it always seems like our salaries never go up to compensate. This creates a gap that is sometimes hard to overcome and so many take end up with unnecessary payday loans. The best way to solve this problem is to budget and stick to it! If we can formulate a reasonable budget and stick with it, we will be able to save money for the things that we need and we will also be able to pay for unexpected expenses as they come about.

The best way to budget is to be as reasonable as possible as the more realistic the budget is, the higher the chance we will actually stick to it, as if it is too restraining, we will most likely give up at some point early in the process. Some people use payday loans and cash advances to supplement their savings, but this is not the best case as you will lose money overall with the payday loan as there are fees and interest involved. The payday loan is a service for those who need money quickly for emergency expenses and do not have any money saved for such occurrences. There are ways to budget and save and use payday loans at the same time, it is just a matter of recognizing each action and its place in your financial outlook.

Save Money on Phone Calls

In news ,
Have you wondered how to save money on that outrageous cell phone bill? I got great news a new trend from Africa could save some headaches and phone bills. Its not that hard either.They have this thing where you call the person you want to talk to then hang up. It saves to the other person phone as a missed call. Then your friend just calls back on there on time. "Its roots are as a strategy to save money," said Jonathan Donner, an India-based researcher for Microsoft who is due to publish a paper on "The Rules of Beeping" in the high-brow online Journal of Computer Mediated Communication in October." It is not the most innovative but it could be the future to saving minutes. Also at the same time letting your special someone to give you a call when minutes are free. "Jonathan Donner first came across beeping in Rwanda, then tracked it across the continent and beyond, to south and southeast Asia." Thats what I call cell phone reach. You should read the full article. I thought that was interesting.Just when I was about to say I bleep cell phones. Now it has turned to beeping. The cell phone craze has hit us all even kids have phones these days. If this thing evolves all kinds of secondary phone languages are possible. If I call and hang up twice "come get me" and if I hang up once "do not call me" cool huh?

Tips for Saving Money

Don't get tricked by Irregular Pay Periods - If one spouse is paid "every other Weds" and one is paid on the 1st and the 15th, pick one schedule to go with. For example, take the every other Weds paycheck and deposit it into a separate account and "pay yourself" on the 1st and the 15th.
Be aware of Irregular Bills - Have an interest bearing account where you pay a "simulated monthly bill" (much like a mortgage escrow account behaves) that builds up until the yearly/biyearly payment comes out.
Turn off everything in the house (as if you were on a trip) - When you go out for a long trip you likely prepare the house by turning things off. Why not do this all the time and work out a system where minimal things are on while you're at work? LCD or not, your computer monitor is a big light bulb. Forget screen savers, just turn it off.
Save for Property Taxes Monthly - In Oregon, Yearly Property Taxes tend to sneak up on folks. Save for those taxes, and everything irregular, in a regular way like your paycheck. Money in, money out, same every month, makes for a predictable lifestyle.
Call the Electric Company – Some electric companies give out Coupons for High Efficiency Lighting (fluorescent). Call yours.
Library Book/Videos Box near the Front Door - Don't pay late fees. Leave a shoebox near the door you leave from. Make it a habit to put things like library books and rental videos in that box and take them with you as you walk out.
Minimize Cell Phone Time - Somehow you survived the 80s and 90s without a cell phone. Save $75 a month or more by getting the plan that is the cheapest and hang up while driving.
Check Tire Pressure Weekly - Get a tire pressure gauge, or better yet, check your pressure everytime you fill up. Good tire pressure can get you another 5 MPG or more.
Know not just your Car's Mileage but your Dollars Per Mile - How much does it cost you to drive a mile? Is it 80 cents to the video store to rent a two dollar video? Maybe you should walk, or ride a bike.
Fill up, write down ODO. Drive. Fill up, write down ODO. Take Miles Driven and divide by Gallons. That is your Miles Per Gallon. Then take the price of a gallon of gas and divide by your Miles Per Gallon. That’s how much it costs to drive one mile.
Consolidate Trips - If you're out, get all your errands done in one trip. Avoid the "hub and spoke" model of returning home and heading out.
Cancel the local paper delivery - You pay for Internet, use it.
Cut Coupons and avoid waste - Bread lasts longest tightly bound in its bag, in the dark. Put Fruit in a paper sack in your fridge. Close lids.
Consolidate Insurance - Is your home and car insurance with different companies? You might get a discount if you consolidate.
Store Credit Cards are Satan - Cut up and close Store Cards. Call your existing Credit Cards and ask them if they can lower your rate. If they want your business, they will. Otherwise, leave them.
Know how your Cash Flows monthly - Monthly is usually the way to go if you're paid monthly or on the 1st and 15th. If not, find a boundary that works for you and get your life's inputs and outputs into a simple CASHIN-CASHOUT=SOMELEFTOVERCASH equation. Then, take the left over cash and save it. Take your checkbook down to some agreed upon number. We always "level off" to $300. Then next month you'll get a paycheck(s) and pay bills. Take the SOMELEFTOVERCASH-$300 and save it. Rinse, Repeat.

Credit Score Basics

Credit scores are calculated using all of the available information about a person’s credit history. They take into account the person’s level of debt, level of available credit, employment status, homeowner status, and more. Many members of the finance industry use these to determine the efficacy of extending additional credit by way of loans and credit cards to an individual.
Typically, most people have a credit score that falls somewhere between 350 and 800. The higher the credit score happens to be, the better it is. It is difficult to get a high score over 700 unless you pay your bills on time all of the time, pay your loans off completely, and avoid defaulting ever.
Almost anything a person does that relates to credit cards and debt can affect a person’s credit score. If he acquires too many cards all at once, his credit score can drop. If he uses all of his credit cards to their full limit, his credit score can fall lower. If he cancels too many cards all at once, it could negatively affect his credit score and cause it to fall.
If a person has trouble keeping a job, this can negatively impact not only their credit score, but it can prevent them from acquiring a mortgage or car loan. If a person can’t keep a job, then he won’t be able to pay their bills. If he can’t pay his bills, his credit score drops even further.
It becomes a vicious cycle that becomes difficult to get out of. Once a bill is left unpaid, a loan goes into default, or employment becomes intermittent, these things remain on a credit report for quite a while. Some things can remain on a credit report for as long as seven years. It takes a long time to repair any damage to your credit score, so a person should be careful how he handles his debt obligations.
Credit bureaus keep track of a person’s credit score. The numbers vary because they use different formulas to find them. Although the credit scores vary slightly from one credit bureau to another, the numbers will not be that different. It is important to get a copy of your credit report several times a year to check on your credit score and how it was calculated.
If any false information is on your credit report, you can request that it be investigated and removed when it can’t be verified. Unfortunately, negative information such as several late payments, unpaid loans, and similar things can’t be removed from your credit report as long as they are true. A person should take the time to monitor his credit and maintain good credit behavior to achieve a good credit score.

Investing in Foreign Stocks at Home

Looking for a way to invest in specific foreign companies without learning all the intricacies of other countries’ stock markets? You may want to consider American Depositary Receipts (ADRs).
ADRs are the form in which foreign stocks trade on U.S. stock exchanges. An ADR is a negotiable certificate issued by a U.S. bank (the depositary), representing shares of a foreign stock. The original foreign stock certificates are owned by the bank and held in the issuer’s country. Each ADR can represent a multiple or fraction of the original foreign stock, which is a ratio set by the depositary so the ADR’s price falls within a range considered typical for U.S. stocks.
For an investor, ADRs can offer advantages over purchasing individual stocks on foreign stock exchanges. Some of the advantages are:
ADRs are traded on U.S. stock exchanges. Thus, you don’t need to become familiar with foreign stock markets or deal with the delays that can occur in foreign markets.
All stock transactions are executed in U.S. dollars, including purchases, sales, and dividend receipts. Prices are quoted in U.S. dollars and include both changes in the local stock price and currency fluctuations.
Financial reporting tends to be more complete. If the ADR is sponsored, reports will be prepared in English. However, the financial reports are prepared using the accounting rules in effect in the company’s home country, which can differ substantially from U.S. accounting principles.
Keep in mind, that you are still investing in a foreign equity. In addition to the risks associated with domestic investing, international investing has unique risks such as: currency fluctuations, political and social changes, and greater share price volatility.
Before investing in ADRs, consider the following:
Research the ADR carefully before investing. You are investing in a company in a foreign country, so you should become familiar with the economics of that country.
Only consider ADRs if you are investing for the long term. If you are trying to take advantage of short-term exchange rate movements, there are other investment vehicles more suited for that purpose.

10 Tips From a Millionaire Dad

My dad has always given me great advice about money: Save, Stay organized, Plan for tomorrow. I could write a great book based on the advice from my parents. But someone else has written a-My-Dad-and-Money book.
Here is a news release that I received, featuring 10 financial tips."When it comes to finance, father really does know best, according to Charles W. Buffington, Jr. and Charles W. Buffington III,Buffington's son, who said: "My dad became a millionaire following simple principles. I listened to his advice, and I did what he said. And it worked. Today, my wife and I are financially secure because my dad said it, and I did.
"Together they have written: He Said It, I Did It Lessons From My Father on Mastering Personal Finance.The Buffingtons offer the following tips for minimizing debt and maximizing wealth:
1. Have a clear vision and strategy for your financial future: remember that hope is not a strategy
2. Give generously and wisely: practice educated giving
3. Keep score know your true net worth, play aggressive offense by investing and aggressive defense by eliminating or reducing debt
4. Live below your means
5. Create a realistic budget: Budget = Income Planned Spending + Savings
6. Start investing now and make it a habit invest every month
7. Figure out a way to buy a home
8. Avoid debt at all costs... if you have debt, realize that it is costing you money, and causing unnecessary worry. When paying off debt, prioritize your payments reduce the highest-interest debt first
9. Keep good credit know your credit score and take decisive action to improve it
10. Find multiple streams of income find investment vehicles such as 401(K)s, mutual funds, and bonds, or turn your passion or hobby into a business. Opportunities are all around you. Open your eyes for your own streams of income.The sad reality is that millions of Americans lack basic financial knowledge. Consider these statistics:Eighty-five percent of Americans have a true net worth of less than $250
The average savings of a retired couple amounts to only $7,000
Paying off debt accounts for 92 percent of family disposable income.
For the senior Mr. Buffington, these statistics are all too real. Like many, living on the paycheck-to-paycheck treadmill was a part of life for Mr. Buffington. Buffington recalls that he even thought he was doing pretty well until he lost his job and realized that his choices were limited because he had no savings and lots of debt. At that point, Buffington saw that he had one of two choices he could be a victim, or he could be a victor. Buffington chose the latter and sought help from the best resource he had available: his Father. And Buffington did far more than break the confines of debt; he became a millionaire and achieved financial freedom.Charles Buffington, Jr., founded a management consulting firm and is a graduate of Harvard Business School. He runs the Buffington Foundation, which works with charities that help women and children. Charles Buffington III is a graduate of West Point and holds an MBA from Emory University. "

5 Tips for Saving Money While Unemployed

There's no magic pill for generating cash when a steady paycheck disappears. But there are strategies for saving cash. I recently received a list of cost-cutting tips from Take Charge America:"Surviving Between Jobs:
5 tips on Cutting Costs During Unemployment
The key to survival is to focus on necessary costs and cut out frivolous expenditures.
1. Revisit your Personal Budget – While employed, your personal budget may have focused on short-and long-term goals such as planning a summer vacation or saving for a child’s college tuition, but now your budget should focus on only short term goals regarding your daily living necessities. Rework your budget to only include essential expenses such as food, clothing, housing, transportation and health care. To help you get started, write down every payment you absolutely must make to survive --- that is, rent or mortgage payment, food, car payment and health insurance. It is also important to protect your credit during this difficult time. Since you don't know how long you might be without a job, you may want to be proactive and contact any creditors who might allow deferral of payment until you can secure regular employment. For instance, school loan providers often will extend a grace period in case of emergency.
2. Get Out the Cookbook – By preparing meals at home, you can dramatically cut costs. In a survey conducted by the National Restaurant Association, the average household expenditure for food away from home in 2005 was $1,054 per person. Take advantage of coupons and specials, and try to ignore brands and fancy labels when shopping at the supermarket. There are a number of websites offering easy at-home meal planning and ideas for creating low-budget, healthy home-cooked meals.
3. Cut Out Credit Card Spending – Using credit cards can often lead to poor spending habits – something you can’t afford, especially when you have no income coming in. Remove the temptation by removing your credit cards from your wallet and placing them in a safe place like a desk drawer. By avoiding credit card spending, you can more easily track where your money is going and where you can eliminate unnecessary spending.
4. Create a Cushion – It is important to set aside money for emergencies. You should put away as much as possible, but at least enough to cover an emergency like having an unexpected car expense. The important thing to remember is to make sure you can cover all of your necessary expenses and have a reserve for an emergency. A fun hands-on way for kids to participate and learn good money saving skills is to have them hunt for loose change around the house and in the car and collect it in a bottle or jar. By including the entire family, everyone can learn from and feel good about making good money management choices. For more kid-friendly money saving tips visit www.familyeducation.com.
5. Drive Less – With gas prices continuing to rise, carpooling or use of public transportation can help you cut your expenses. Since you will be searching for a job, you may need to drive to interviews, so save your gas money for these critically important trips. If you must drive, save gas and time by planning trips in advance and combine your trips whenever possible. Plan your meals for an entire week and make one trip to the grocery store instead of sporadically throughout the week. Also, if you need to make multiple stops, plan the best route so you are not driving all over town. Visit www.fueleconomy.gov for more tips on saving gas, time and money.Mike Sullivan, director of education for Take Charge America, says that cutting out needless expenses is a lot easier than you might think. “If you saved all of the money spent on coffee runs, vending machines, movies and late fees, you would probably have a small fortune,” he said. “By being creative and committing to trimming down costs, surviving between jobs is possible.”By keeping these tips in mind, you can greatly reduce your monthly costs and easily manage your budget between jobs. Sullivan says, “The key is to be creative in the ways you cut back and to analyze all aspects of your spending trends to see where you can save money while maintaining basic needs and protecting your credit as much as possible.”

The Top 25 Money Tips of All Time

Adapted from an article by Julie Cazzin and Ian McGugan, MoneySense magazine
When we asked a cross-section of Canada's leading experts on personal finance what they considered the greatest money tips of all time, we figured we would get a half-dozen or so points that would emphasize worthy but boring topics like compound interest or spousal RRSPs.
We were wrong.
Our experts surprised us by telling us in many different ways that money is a deep and emotional topic. One expert put at the top of his list some advice on choosing the right spouse. Another stressed the importance of selectively ignoring your portfolio. Yet another pointed out that your most important investment is your own carcass.
We stand corrected. After sifting through the scores of points that our experts nominated for consideration, we've gained a much broader appreciation of how our finances and our lives intersect. And after much discussion, we managed to winnow the collective wisdom of our panel down to 25 points, which we've arranged in five major groups — Starting Points, Family Values, Saving & Spending, Investing, and Finding Advice. At the risk of sounding immodest, we think that these 25 points are the best primer we've seen on the essentials of personal finance.
1. Money is a tool, not a solution
Bruce Cohen, author of The Money Adviser and co-author of The Pension Puzzle, observes that many people have things backward when it comes to their financial planning. They organize their lives to earn money, rather than using money to live the life they want. "The point of the exercise is not to amass a huge mountain of money, but rather to be able to buy the goods and services you find meaningful," he says. And that leads him to observe that…
2. How you spend it is more important than how you invest it
Most people equate brilliant money management with great investing and spectacular stock tips. But that's misleading. Not only is it next to impossible for the average person to outwit the professionals on Bay Street, but all the brilliant investments in the world won't build your wealth by a cent if you keep spending more money than you make.
The only way — we repeat, the only way — to amass money is to live on less than you generate. We're not talking deliberate poverty, mind you — just smart spending. You should live within your means and, ideally, a bit below what you could really afford. Incidentally, this strategy has some wonderful side effects when it comes to your peace of mind. "Knowing you can afford to tell your boss to buzz off creates a certain sense of serenity," says Cohen. And he goes on to note that "financial independence occurs when your savings enable you to meet expenses without having to rely on a regular paycheque. The less you need to live on, the easier — and quicker — it is to become financially independent."
3. Love your job — or leave it
Like Cohen, Jim Otar, a certified financial planner and author, stresses the need for balance in your life. Few things are more conducive to your happiness, he says, than working at a job you truly enjoy. "If you don't love your job, start searching right now," he says. "Don't stop until you find it — be it halfway around the world or in the basement of your own home."
As New Agey as it may sound, Otar's advice reflects some cold, hard number crunching. The numbers show that you would need to build a massive investment portfolio simply to match the income you could receive from even a modestly paid job that you love. Say you can earn $35,000 a year following your bliss—making stained glass, for instance, or working as a fishing guide. That's equivalent to the annual income you could expect to generate from a $700,000 portfolio of stocks and bonds. So if you're working hard at something you hate simply to build a huge retirement portfolio, you may want to consider a simpler option — finding something you love to do and working at it until you drop.
4. Put first things first
Malcolm Hamilton, an actuary with Mercer Human Resource Consulting Ltd. and one of Canada's keenest personal-finance observers, urges people to recognize that smart investments don't consist of just stocks and bonds.
Your health, for instance, is your most important asset, yet few of us treat our carcasses with as much respect as we do our portfolios. When you think about it, that's a massively misplaced set of priorities. "Take care of your health," Hamilton advises. "If you don't, money won't matter."
5. Know your spouse
Okay, all the political correctness detectors are going off even as we broach this subject, but one of the things we at MoneySense have noticed over the years is how many of our Family Profiles revolve around couples that are torn apart because they have very different approaches to money — he's a spendthrift, she's a saver, or vice versa. If that sounds familiar, we suggest you schedule a time at least once a month to sit down and discuss money matters with your spouse before minor irritations turn into a major crisis. Better yet, if you're not already married, take money attitudes into account when choosing your partner. "Your spouse can make a big difference in your success or failure," says financial planner Otar. "When selecting a spouse, let your brain work more than your heart."
6. Invest in your kids
Hamilton, who in addition to being an actuary is the father of two children, believes that one of the best investments you can make is in your kids. "The rewards — emotional and financial — are huge," he says. "Few retirement plans will cope successfully with dependent adult children." If you have school-age children and you're not already contributing to RESPs for them, maybe it's time to reconsider. These programs are easy to set up (just go to any chartered bank) and the federal government kicks in free money to bulk up the size of your annual contribution. What's not to like?
7. Give now
If you're a senior who is planning to leave money to your kids in your will, Hamilton suggests you think about handing over the cash right now. "Often seniors are earning 3% after tax on GICs while their children are paying 6% after tax on a mortgage. An interest-free loan from parent to child will help the kids more than it hurts the parent."
8. Talk it over
Several of our experts stressed the need for communication, especially within families and especially when it comes to estate planning. Rather than investing in sophisticated tax-avoidance strategies or spelling out your wishes in elaborate wills, the best and simplest way to avoid problems after your death is to talk things over with all of your kids and other heirs well ahead of time. Ensure that everyone knows how you plan to divvy up your money and why. Answer questions and settle disputes now, rather than leaving them to tear your family apart after you're gone.
9. Look at all-in costs
Most people don't consider the real cost of what they buy. They focus on the number that's on the price tag, but not on how much they have to earn to afford that amount.
The difference can be startling. Say someone offers to paint your house for $1,000. By the time you include various levels of sales taxes, you're probably paying close to $1,150. Then you have to factor in how much income you need to pay that sum. Assuming you're in the top tax bracket, you will need to earn an additional $2,100 or so to generate the money required after tax to pay the $1,150 painter's bill.
Amazing, isn't it? The real cost of the paint job in terms of your pre-tax income is twice its apparent cost. To put things another way, you could bulk up your income by the equivalent of $2,100 if you grab a brush and do the job yourself. No wonder that the U.S. researchers who wrote The Millionaire Next Door discovered that selfmade millionaires tend to be diehard do-it-yourselfers.
10. Set goals
Building wealth isn't a sprint. It's a marathon and one of your biggest challenges is staying motivated and on track. That means establishing mileposts and monitoring your progress. Patricia Lovett-Reid, senior vice-president of TD Waterhouse Canada, is a marathon runner herself and knows how important it is to keep your eye on concrete goals that will motivate you. "You are only going to get excited about saving your money if it's for something of importance to you," she says. "I recommend that you set short, medium- and long-term goals, then tweak the plan as required."
11. Emphasize rewards
Financial author Bruce Cohen observes that budgets often fail because people approach them as negative exercises — all the emphasis is on self-deprivation, what you're not willing to spend money on and what you will do without. A better approach, says Cohen, is to think of a budget as pre-spending and emphasize the objects or experiences that you want to spend money on. "A good budget doesn't tell you that you cannot have what you want," he says. "A good budget says, 'Yes, you can have what you really want'" whether that be a new car or early retirement.
12. Use debt intelligently
Our experts agree that you should never carry debt on a credit card — it's just too expensive. But after that their opinions on debt diverge. Hamilton, for instance, cautions people to be extremely conservative: "Don't borrow to contribute to an RRSP unless you can pay the money back in one year or preferably sooner."
Other experts disagree. "Many people's attitude and behavior toward borrowing is backwards and it costs them financially," says author and financial educator Talbot Stevens. He notes, for instance, that most Canadians borrow at expensive, non-deductible interest rates for personal consumption — cars, appliances, vacations, homes, and so on — but pay cash for their investments. He argues that it's far better from a tax viewpoint to pay cash for consumption items and borrow to invest. The interest on the amount you've borrowed to invest will generally be tax deductible. And by paying cash for consumption items you'll avoid the trap of paying outlandish credit-card rates to purchase things such as electronics or vacations that immediately fall in value.
13. Take the long view
"The power of time and compounding is truly the eighth wonder of the world," says Lovett-Reid. Most smart financial plans consist of nothing more than a regular practice of putting aside money (ideally through payroll deduction so as to remove temptation), then investing this money in a low-cost, well-diversified portfolio.
The results can be impressive, especially as you add more time to the mix. If you have 20 years to go before retirement and can put aside $200 a month into a portfolio that averages a 7% annual return, you will wind up with $100,000 at retirement. If you have 30 years to go, you will have $226,000.
14. Diversify, diversify, diversify
This is the most important rule of investing, according to actuary Hamilton: "No one really knows what the future will bring. Putting all your eggs in one basket, even a safe-looking basket, is taking a risk you don't need to take." Your portfolio should span both stocks and bonds and ideally should include foreign as well as domestic investments. Which brings us to our next point…
15. Plan your portfolio, then stick to your plan
Eric Kirzner, the John H. Watson Chair in Value Investing at the University of Toronto's Rotman School of Management, says investors should develop a strategy for allocating their money among different types of assets. A common mix, for instance, is 10% cash, 50% fixed-income investments (such as bonds) and 40% stocks. More aggressive investors may want to boost the stock component, more conservative investors may want to reduce it. But whatever asset allocation you decide upon, stick to it. Once a year or so, move money around to get back to your original split. This keeps you on track and prevents you from chasing the latest investing fad.
16. Be cheap
Many of our experts made the point that costs matter more than most people realize. "Paying 2% a year for investing advice may not look like much, but 20 years later you've lost one third of your investment," says actuary Hamilton. You can evaluate the cost of a mutual fund by looking at its management expense ratio or MER. Many funds charge 2.5% or more, but you can find many excellent funds with fees of 1.5% or less. So find a good fund with a low fee and neither objective will be compromised.
17. Forget last year
What a fund did over the past year is totally irrelevant to what it will do over the next year. In fact, top performers in one period usually lag behind in the next. As a result, there's no surer recipe for dismal returns than chasing last year's winners, says Kelly Rodgers, president of Rodgers Investment Consulting in Toronto. "When choosing a fund or a manager, look for consistency through many years."
18. Ignore your portfolio — selectively
Smart investors avoid looking at their portfolios too frequently. "Frequent reviews — such as daily — make you overly emotional and they can cause you to make unwise decisions," says U of T professor Kirzner.
19. Keep it simple
All of this investing advice may sound rather complex. In fact, if there's one common misperception among investors, it's the notion that an effective investing strategy has to be complicated, involving a dozen or more mutual funds and constant fine-tuning. None of that is true. "Keep your investment program simple," says financial author Cohen. "Remember that the financial industry is a fashion industry focused more on selling a never-ending stream of baubles than on helping you build wealth."
The MoneySense Portfolios offer a smart way to construct a great portfolio in just 15 minutes a year. If they don't appeal, find a good, cheap balanced mutual fund and funnel your contributions to that fund. (For the names of some good funds, check out Suzane Abboud's annual mutual fund rankings.) A balanced fund automatically divvies your money up among stocks, bonds and cash so you don't have to worry about micromanaging your portfolio.
20. Look for the right fit
"The first thing you should ask a prospective financial adviser is to describe the kind of client he or she likes to work with," says financial author Cohen. "If you don't fit that description, keep looking."
21. Understand how your adviser is paid
Many people don't understand how their adviser makes his or her money, observes financial consultant Rodgers. As a result, they don't know why an adviser may have a vested interest in churning their account, putting them in myriad funds, or constantly rejigging their portfolio.
To avoid that problem, ask your adviser to put on paper a complete list of all the ways he or she will derive compensation from your account, as well as estimated amounts. This list may include trailer fees paid by mutual funds, it may include upfront fees, it may include separate advisory fees—the possibilities are endless. But only by understanding your adviser's incentives can you judge whether the advice you are receiving is unbiased.
22. Consider risk
"If your financial adviser says a strategy or investment has 'little or no risk'," says financial author Cohen, "ask the adviser to put that in writing."
23. Ask questions
Rodgers urges investors to quiz any prospective adviser. Ask about his credentials (a Certified Financial Planner designation should be the minimum you settle for); also ask if he is restricted in the funds or investments he can recommend (some firms encourage their advisers to recommend only funds operated by the company or by approved outsiders). Make sure you understand his fee structure — and be aware that nothing is written in stone. If the price for his services strikes you as too high, don't be afraid to suggest that a discount is in order. Nobody should pay more than 2.5% a year, including mutual fund MERs, for financial advice. If your portfolio tops $500,000 you should be able to negotiate fees of 2.25% or lower and that should fall below 1.5% as your portfolio nears the million-dollar mark.
24. Beware of 10% solutions
Many financial advisers seem to think that history guarantees a 10% annual return from stocks. Not so, says Cohen. "Those statistics reflect index returns that make no provision for fees. Also, much of those historical gains occurred during the 1990s before the big boom went bust." In today's environment, counting on a 5% to 7% annual return is more realistic.
25. Write it down
Both Abboud and Rodgers recommend that you and your adviser draw up an investment policy statement that describes your level of investing knowledge. It should also outline your goals in terms of both the returns you want and the risk you will accept.
That's just the beginning. The statement should go on to list your investment constraints (for instance, whether you need your portfolio to generate regular cash payments) and your unique needs and preferences (such as, for example, not investing in tobacco companies or leaving behind a large bequest for your niece's education). A good investment policy statement should also state how frequently you and your adviser will meet (once a year should be the minimum) and how you will be kept up to date (by monthly reports mailed to your house, for instance). It should also select a benchmark, such as a stock market index, that the performance of your portfolio will be judged against.
How do you know if your statement is complete? Ask yourself if a new manager who has never met you could, with only that information, handle your portfolio the way you would like. Only if the answer is yes should you be satisfied.

Financial Skills

Always leave within your means. It doesn't pay to borrow money to buy clothes, shoes e.t.c. It however pays to save money even if the amount being saved is small. $50 a month in savings amounts to $600 a year.
If already in debt, for example credit card debt, try as much as possible to pay more than the minimum repayment amount. This will significantly reduce the interests you have to pay.

Freedom and Happiness

Everyone I know wants to be happy and free from life's worries. Financial problems, family disputes and lack of achievement are making a lot of people unhappy and under pressure.This is not what life should be about.Life is about freedom and happiness. Remembering this is the first step to a fufilling life.
Smile,
Be optimistic,
Be positive,
Avoid negative things and
You will be fine.
Good Luck.
Finally, join the campaign to spread the message of freedom and happiness.

AC Milan Are Worthy European Champions

AC Milan beat Liverpool FC to win this season's European Champions League. AC Milan did just enough to win by 2:1 against a very good Liverpool side who played well on the night. It was revenge time for Milan who threw away a three goal lead in 2005 to lose to Liverpool on penalties.
In the end Milan are worthy champions based on the way they have played throughout the competition.

Italy Win World Cup 2006

Italy have beaten France on penalties to win this years World Cup. I am impressed with Italy because they managed to win the World Cup despite the allegations of match fixing facing four top teams in their domestic league.
I however feel sorry for Zidane because of the way his World Cup ended.

Zidane is Incredible

Zidane should be named this World Cup's best player. Zidane's France had a difficult time getting to the knockout stages of the World Cup but have since been sensational.
Zinedine Zidane dazzled Spain in the Second Round and mesmerized Brazil in the Quater Final. Watch the clip above.
Football fans will miss him when he retires. There is only one Zizou.
Presenting him with the Adidas Golden Ball Award will be a good send off for him.

Great World Cup But

There is no doubt in my mind that this World Cup has been exciting and absorbing. I had a hard time waiting for the Quater Finals to start simply because I have become addicted to the game. My only complain is with the level of officiating.
I feel the referees have taken too much of a role in this World Cup and have unduly influnced games with their decisions.
For example, four red cards and sixteen yellow cards were shown by the referee in the second round tie between Holland and Portugal.
I understand the determination of FIFA to root out rough play and I support them. But the game is about players not referees and fifa should not forget that.

World Cup Heats Up

Ghana made Africa proud with their 2 nil victory over Czech Republic.
Spain and Argentina are looking very strong and will be hard to be beat.
But what is happening to France? Their play has been very disappointing.
Moving on, I think Germany and England will be in the quater final.

World Cup Excitement

The opening matches of the World Cup have been very exciting. I have been particularly impressed with the long range shooting of Germany.
Argentina have also impressed me with their clinical finishing. Arjen Robben has played phenomenally for Holland.
Trinidad and Tobago have pleasantly surprised me with their discipline which helped them to avoid defeat in their match with Sweden.
I hope it continues to be as exciting as it has been.

World Cup First Round

There are some teams that will not make it to the second round of the World Cup. These teams include Trinidad and Tobago, and Angola.
There are some teams that will make it to the second round. These teams are Brazil, Germany, England and Portugal.
With all the other teams, anything can happen. There are a lot of strong teams that may not qualify to the second round due to the toughness of their groups.
Let's keep our fingers crossed.