I got to thinking the other day about the lifetime cost of my bad habits, both those habits past and those present.

And I don’t just mean the simple cost of, say, those Marlboro cigarettes, the morning Starbucks, or the weekend case of beer. I mean the full opportunity cost when you also include things like the interest you or I could have earned by saving money. And some years the employer matching you or I could have gotten by taking advantage of company-sponsored 401(k) plans.

Unfortunately, I am sad to say, I know enough finance and Microsoft Excel to make the calculations. And the results were not pretty. (You might just want to stop reading right here.)

But one final set of comments. First, to keep things easy I looked at forty years of bad habits vs. forty years of saving and investing. Second, I assumed that you or I would invest via an employer’s 401(k) account that provided a 50% matching contribution and that earned a 6% real rate of return. Finally, I assumed that the marginal tax rate was 25%.

And by the way: I also used an inflation-adjusted rate of return input. So my numbers are actually already adjusted for inflation.

Got a light Marlboro Man?

I figure a pack a day habit now costs, what, $6 a day? And I remember when, as a teenager, you could buy them for $.45 out of a machine when the adults weren’t looking.

While $6 a day sounds bad, when you look at what happens if one would have used the money for saving inside a company 401(k), it gets even worse.

A $6 a day tobacco habit turns into $12 in daily savings once one adds the tax savings and the employer matching.

And then once one compounds the interest over four decades, no kidding, you’re looking at a potential $716,936 dollars. And remember that’s un-inflated. If inflation runs, say, 3%, one actually ends up with considerably more. About $1.7 million.

Make Mine the Million-dollar Mocha

Okay, tobacco. Sure. You know that had to be bad. But what about something more innocuous. Something that’s not really a bad habit, like stopping off at Starbucks in the morning.

I figure a morning mocha grande runs about $4 with tip? That’s not so bad, is it?

Well not so quick Howard. A $4 a day caffeine fix turns into $8 in daily savings once you or I add the tax savings and the employer matching.

And then once one compound the interest over four decades, you’re looking at a potential $477, 957 dollars. Again, that’s un-inflated. Run inflation at 3% and one actually ends up losing the opportunity to accumulate a little over $1.1 million.

Last Call for Alcohol

One last example. How about enjoying a half case of beer over the weekend. Just to unwind from the pressures of our jobs, I mean. Nothing serious.

Say $10 for the beer and $10 for the munchies you’ll need to go with them?

A $20 per weekend party splurge turns into $40 of lost investment money once you include the tax savings and the employer matching. Then once you compound the interest over four decades, you’re looking at a potential $341 ,398 (if un-inflated) and slightly more than $800,000 (if inflated at 3% annually).

How the Math Works

Interested in how a $6 a day bad habit magically turns into $12 a day of savings? Here’s how the math works. First calculate the amount you take home after taxes as a percentage on your last dollars of earnings. For example, if you pay a 25% marginal tax rate, you take home only 75% of those last dollars you make.

Next, divide the daily bad habit cost by the tax home rate. For example, divide the $6 pack-a-day habit by 75% to get $8. Essentially, this calculation shows you how much you can save into an IRA or 401(k) using, say, your cigarette money once you factor in the income tax savings.

Finally, you need to add in the employer savings. To calculate this, multiply the grossed up savings by matching rate. With a 50% match and $8 of grossed up savings, the employer contribution adds another $4, producing total daily savings of $12.

And that’s how a $6 a day bad habit turns into $12 of daily savings.

Closing Comments

Don’t get me wrong. I’m not saying you should give up every bad habit. Er, I haven’t given up all of my mine.

But do consider that regular spending on things you or I may not really even want can easily double in amount when you stop spending and start saving in something like an IRA or a 401(k). If one then plops the savings into a tax advantaged account—something like a 401(k)—the numbers get big fast.

It can be hard to make choices in regards to your finances. But you have to get used to it. It is part of managing your money wisely and being an adult. Choices have to be made.

So what can you do?

First, don't spend time worrying about the decision. Worry does nothing. No one has ever had a bill paid by worry. No one has gotten out of debt by worrying or made a million dollars by worrying. Worrying gets you nowhere.

Actually, too much worry can get you into trouble. People make rash decisions when they are desperate. And worrying can make you desperate for the first solution that comes along.

Instead, you need to set a certain amount of time aside during the day to think about your decision. When that time is up, you walk away and leave your thoughts there. I know this is hard to do, but if you are truly working towards making a decision during your time, you should be able to leave it there for a while.

The choices you have to make shouldn't consume your entire life. That is no way to live.

Start by writing things down. This can be an effective tool for organizing your thoughts, comparing choices and getting a sense of the true situation. For some reason, when you see things on paper, they often look much differently. You are often able to leave things alone for a while and clear your mind if your thoughts are safely on paper.

For example, if you are deciding whether or not to sell your home, you could make a few lists. Start with your selling of the home page. List what you gave for the home, including closing costs and an major improvements. Then write down how much you owe. How much do you expect to get for your home? Write down a few realistic numbers. Now you can see what your profits might be.

Then look at your options for after you sell your home. Are you looking at moving up? Calculate what your mortgage payment would be if you moved into a larger home. Then look at moving down. I know that idea may not make sense to you, but consider what having even less of a mortgage might mean to your finances. If you are in a financial pickle right now, a smaller mortgage might be helpful.

Put things down on paper. When you are in debt, this is one of the best ways to start looking at how you will deal with your debt.

Most importantly, decisions must be made. We make small ones every day. Large ones seem so much more important and take more time. But you can't second guess your every decision. Once you make your choice, it is made. And you will deal with the consequences. Take your time, review the facts and use your calculator. Don't just rush into things based on emotion. Remember, plans don't always work out and you have to reassess the situation. But if you plan wisely and take your time, things will work out in the long run.

You want to open a brokerage account but you can not seem to have a good conviction about the brokerage fee and account minimums. Yet you are certain that you want to start with a brokerage-trade. So what should you do?

First of all account minimums are (ought to be) only small ones – as low as $500 for example. However, account minimums differ with the type of brokerage account. So make sure you are aware of this and that your budget fits well with the kind of brokerage you are trying to get at. It is true that many do not have any brokerage deposit minimum at all. Now, you might be wondering why some brokerage firms require between $1,000 and $5,000 in starting-up an account. This is because of the many possibilities and reasons behind brokerage fee and account minimum variations.

One alternative is to just invest via ‘drips’ or direct investing plans or dividend reinvestment funds. This allows you to buy small amount of stocks directly from the company which is usually commission-free. The advantage of ‘drips’ is its dividend-growth. A good deal on interest-rates should also be obtained and put to good use through short-term savings instead of having interim money in stocks. Finding the best brokerage may be a little more complicated than you might expect.

As already mentioned, you can get very low commission-fees, but those commissions would not be a big matter if you do not trade very often. So, if you only have a minimum-asset then you should also have a minimum maintenance brokerage fee and avoid it if at all possible. The main idea is to look for a top-rate brokerage focusing on mutual-fund offerings and fees. Among such are FirstTrade, TradingDirect, and Brown/Co. These brokerages do not require any minimum-assets therefore also eliminating any high maintenance brokerage fee. The logic is quite simple; if you have a minimum-asset of $2,000 but failed the required two-trades-per-year then you will be charged 8% of your account-value as maintaining fee.

Ask ‘Is it still worth calling an investment?’ ‘With such fees?’. Unless you are an excellent negotiator, why bother. You can freely look for a brokerage with low or no minimum requirements, always, especially when you think your asset-size or trading habits will put you at risk of getting whopped by high account maintenance fees. The main thing is to really look around before you settle with a particular brokerage.

We are now in the digital age. All nations now converge on the WWW. What better way to make business? Traditional business models have now been changing as rapidly as the change in technology.

The method of generating revenues in business used by the several companies to sustain their enterprise is now replaced by newer kinds of business models to respond to the new internet commerce. Yet all these are necessary. A business model positions businesses in a more or less predictable value-chain and so determines whether and how a certain company makes money efficiently and effectively.

Nonetheless, the fundamental business models are still retained, only that it comes in a fresh garb. One good example is the age-old auctions. Auctions have been a very reliable form of brokerage model since time past. It is only in these days though that this type of brokerage model has been gaining a more popular ground. In the past, auctions, as a brokerage model, could only be implemented in the brokerage industry to set the prices of commodities for sale or lending such as agricultural items, financial instruments, and unique items like fine art and antiquities. These days though, the use of the auction brokerage model has now expanded to more goods and services – almost any other items and services you can think of – all through the basic backing of a commissioned brokerage agent. Other business brokerage model types that are now established and prevailing in the internet, aside form online auctions are of several forms:

Marketplace Exchange (Orbitz; ChemConnect) operates either independently or under the assistance of an industry consortium covering the entire marketplace transaction process from assessment to negotiation and finalization.

Virtual Marketplace/Mall (Amazon) hosts online merchants and automated transaction and relationship marketing services while charging applicable setup, monthly listing, and/or transaction fees.

Buy-Sell Fulfillment (CarDirect; Respond) is where a brokerage acts in-between the buyers and the sellers, taking orders to buy or sell a product or service, while also handling related terms like pricing and delivery.

Demand Collection System (PriceLine patent) is an ingenious ‘name-your-price’ business brokerage model wherein the broker arranges the fulfillment of a sale after a prospective buyer makes a final (binding) bid for a specified good or service.

Auction Broker (eBay) is the auction-type wherein the broker charges the seller (individual/merchant) a listing-fee and commission settled with the transaction’s value and according to varying terms of the offering and bidding.

Transaction Broker (PayPal; Escrow) provides third-party services for buyers and sellers to settle their payment transaction.

Distributor is where the broker facilitates business transactions between franchised distributors and trading partners through a catalog operation connecting a large number of product manufacturers with volume and retail buyers.

Search Agent is a software “robot” used to search-out the price and availability for a good or service specified by buyers, locating hard-to-find information.

All these new-age brokerage models have facilitated the operation (and new rise) of brokers whether specializing in real estate, mortgages, international shipping, insurances, and the like. And these are flourishing as more internet business models continue to evolve.

Online Trading Brokerage has been starting to hit big as a business brokerage career. Some newer brokerage companies in the market now offer transaction services in the form of a website-interface. It’s easy to go online. Low commissions are usually offered in as low as one to two US-dollars. This online trading brokerage also provides fast transaction-rates at only two brisk seconds. No money and time wasted. Yet it is not only the technology of the internet that has scooped interest in online trading brokerage.

Some people decide to go for an online trading brokerage because of its several underlying benefits. The online trading brokerage first of all is able to serve convenience. Some people consider the discreet yet gainful method of brokerage – simplicity and ease. The World Wide Web could now be a reliable broker as an actual person or a touch-tone phone business relation. Usability and service has now also become a possibility when it comes to interactive brokerage. In point of fact, most conventional brokerage firms have began to also offer online trading brokerage to keep up with the day’s hi-tech brokerage industry. Their web site’s interface is most always easy to navigate and use and their customer representatives are also responsive. And some brokerage groups still maintain a local office so the stocks holder could drop-by to deposit money in person. The most common method to handle money-transactions though is through an easy point-and-click email of checks.

Most online brokerage account holders deposit funds through the internet just as they may also go online to pay an ordinary bill. As long as he possesses a bank account then it is also effortless to send money to his brokerage electronically. Electronic money transferring allows the broker holder to just mail in a check and then it gets automatically credited to his account. Then he can also place orders over the Internet if not by phone or in person.

To know more about the essentials of online brokerage, it may be helpful to take a particular case in perspective.

The Interactive Brokers LLC is a US-based online brokerage firm that operates on most markets worldwide. If offers options-markets, foreign exchange, futures, bonds, and of course stocks. The IB is a direct-access brokerage group aiming to support active and self-help online traders by offering fee-discounts and using avant-garde trading software. Everything goes electronic. To encourage online-trading, IB places substantial commission-based surcharge to all verbal-telephone orders. Also strict and conservative when it comes to margin-policy, IB does not issue any prior margin-calls. Accounts should then be careful to keep in the maintenance-level to avoid liquidation. Yet on the good-side, it lowers the risks for bankruptcy due to customer defaults – secured!

Using a bank can really save you money, but there are also ways in which you lose a lot of money. If you are not proactive in recognising potential dangers and mistakes, then you could be caught out. Here are some of the most common personal banking mistakes and how to avoid them.
Not reviewing your statements
Many people get their statement each month, open it and then throw it away. If you don't look at your statements properly then you will not see mistakes on your account that could be costing you a lot of money. If there is a payment that you did not make then you could be charged a fee, and there is also a chance that you card has been copied. Checking your statements against all your purchases each month is imperative.
Paying too much
Many people are too lazy to shop around or to question the fees that they pay each month on their accounts. If you look at the fees you pay you might find that you are paying far too much. If this is the case then it is time to shop around for a better deal, because you could save yourself a lot of money each year just by not paying expensive banking fees.
Leaving paper around
When you look at your bank statement or open bank related information, make sure that you don't leave it lying around. If you carelessly discard information relating to your account then you are an easy target for identity thieves and fraudsters. Make sure that you keep all bank related information in a safe place, and shred any documents that you are going to throw away.
Using ATMs without care
When using an ATM, make sure that you take precautions. Do not write down your PIN number anywhere near your card, and make sure that you shield your number when you type it in. Being aware of people around you when using an ATM can stop most potential crime.
Banking online in public
Although you might need to check your account urgently, checking your online account and carrying out transactions on a wireless network is not totally secure. There is a chance that someone could access your details, or that the transaction will be lost. Use your online banking at home if at all possible.
Not establishing a relationship
If you want to get the best deals from your bank, then you need to establish a relationship with them. If you have a local branch, then arrange a meeting with the bank manager so that you know who they are. Although you might never need their help, if there are any problems or you need extra funds then knowing your bank manager can really help.
Only borrowing from your bank
If you have been loyal to one bank for a while, then perhaps it is time to rethink that loyalty. Although you might think your bank offers the best deal, whenever you want to purchase a new financial product you should shop around. There are many other places, particularly online, that can offer you great deals on borrowing money from credit cards or loans. If you are careful with your banking information and shop around for the best deals, then you can avoid most of these common personal banking mistakes.

Personal loan can be the right solution or the much needed help in an hour of need. Undoubtedly, we all have unlimited desires and undoubtedly, we should keep on dreaming till the end of our lives. Because, thats what we call life. So, anytime you feel that your financial capabilities are stopping you from fulfilling those desires or wishes then do not feel bad and simply go for a personal loan.
Personal loan has become hugely popular among people as they are like all time companions and which can be used for anytime and any reason. Thus, a personal loan can be called as a loan for all reasons and all seasons. You can go for it to bear the expenditure of wedding, to buy a new car, to go out for a rejuvenating vacation, for home improvement, to fund education etc.
When you are desperately looking for money, then it would be wiser to go for a personal loan rather than borrow money from the relatives or friends. Involvement of money can sour any relationship in the world. So, why go for other options when personal loan is quite easy to procure with so many loan options and numerous lenders.
Whether you have some big plans or small ones, you can procure personal loan. If you can afford to offer any collateral or security against the loan amount, then you can go for secured personal loan and if you do not have anything to offer against loan amount, then you can simply go for unsecured personal loan. Both loan options would suit you as per your financial capabilities. If secured personal loan comes with a longer repayment period and a big loan amount, then unsecured personal loan does not come with any risk of repossession.
It can be quite easy to procure a personal loan, but you would find it quite difficult to get the right sort of personal loan as there are numerous loan plans. So, it would be wiser for you, if you search the personal loan on Internet. Despite loan plans you would also get free loan quotes. Thus, you can easily choose what you want.

Both the use of credit cards, and account overdrafts add up to your short term debt. That is, debt you’ll have to repay within a small time period. If you fail to meet payment, you’ll incur in penalty fees and other costs that will add up to your debt turning your Christmas finance more expensive than it already was.

During Christmas time and due to presents, arrangements, price rises, need for transportation, etc. the amount of money you usually spend on a monthly basis increases considerably. That increment is not always covered by Christmas bonus and if your income doesn’t level up to the expenses or even stays the same you won’t have enough money to afford everything you need to pay for. Thus the need of finance appears.

Benefits of Personal Loans

The interest rate charged for personal loans is much lower than the interest rate charged for financing you credit card unpaid balances and your account overdrafts. While the interest rate of credit cards and account overdrafts can reach up to 25% APR, the interest rate charged for personal loans tends to stay under 10% APR even for people with Bad Credit.

If you are lucky enough to be able to provide some sort of collateral (i.e. a house, car, etc.) you can even get a much lower interest rate by requesting a secured personal loan. Moreover, you’ll also be able to get larger loan amounts this way along with longer repayment programs to keep your monthly installments affordable enough.

The fixed monthly payments that come with personal loans are perfect for those who cannot avoid the temptation of paying the minimum amount on their credit card in order to keep spending on other things. This could easily end up in accumulating debt till the minimum payments won’t be affordable anymore. Fixed installments solve the problem since you cannot choose the amount to pay each month and this combined with the low rates turn personal loans cheaper and safer than credit cards.

Finding a Lender and Selecting a Loan

If you’ve made up your mind and you’re convinced that the best source of finance to pay for Christmas Spending is a Personal Loan, you may wonder where to find the right lender and which loan is best for you. In order to make things easier for you, you can search the net for online personal loan lenders and request loan quotes.

You’ll receive many different loan offers. When comparing them, pay special attention to the APR as this rate includes almost all of the loan interest rates, fees and costs. But be also aware of other loan terms and be especially careful with hidden fees that some lenders conceal within the loan contract’s fine print. Provided you do that, you’ll sure find the lender and loan that best suit your needs fast and without hassles.

So you’ve accepted a lucrative position at another company within your industry. Perhaps you’re in the middle of a career change. Maybe you’re uprooting and heading to greener pastures somewhere else. Whatever the reason, you’re changing jobs. Out with the old, in with the new.

Amidst the hassles of moving, finding the kids a new school, and settling in to your new position and community, it’s easy to lose sight of the finish line—retirement. Your 401(k) is probably your most important investment in regards to retirement savings. Don’t let it get lost in the shuffle when a change in your professional life comes along.

When switching jobs, there are three things you can do with your existing 401(k): leave it where it is, roll it over into an account with your new employer, or move the money into an IRA. Cashing out the plan is not an option. We repeat: DO NOT CASH OUT YOUR 401(K)! It’ll badly set back your retirement savings plan. You’ll be hit with income taxes plus a penalty of 10 percent if you’re under age 59½. What’s more, you’ll miss out on tax-deferred savings.

Leave It Where It Is

There’s nothing wrong with keeping the cash where it is if you’re happy with the plan at your old job. If you’re confident you can keep track of it, if you’ve got a nice chunk of change in there, or if the plan your new employer is offering is less than appetizing - leave it be. Just make sure you tell your old HR department about your plan to leave it behind. If there is less than $5,000 in the account, they have the right to dump you.

Roll It Over

Most financial professionals agree it’s a good idea to have all of your 401(k) dollars under one roof. It’ll work harder for you as one asset and you can dip into it (as a loan) if a financial emergency arises. If you do decide to rollover, make sure to jump through all of the (relatively minor) hoops and fill out the appropriate paperwork with both your old company and your new employer.

Drop It Into An IRA

If your new gig doesn’t offer a 401(k) program, or if you dig the investment freedom that comes with an IRA, go this route. You’ll have much more of a choice when it comes to investing your retirement dollars, as thousands of mutual funds will be at your behest instead of a dozen or so 401(k) options. Be cautious when going this road, though. 401(k)s are generally a smidgen more protected from those evil creditors than are IRAs. It’s a minor detail now, but if you ever declare bankruptcy or get sued, it could become a much bigger issue.

Whichever route you choose, know the rules. Way back when, details were cloudy on the IRS-friendly way to transfer funds from one 401(k) to another account. Investors had to put 401(k) funds into a “conduit” IRA if they believed they would move the funds into another 401(k) account in the future. The money couldn’t be mixed with other retirement savings and new contributions were also verboten. Sound confusing? It was.

But no longer. Mix all you want. You can transfer an old 401(k) account into an IRA while still making payments, move it from a new IRA into a Roth IRA, or shift the funds directly into a new 401(k) account. The choice is yours.

However, make certain to complete a “trustee-to-trustee transfer” when you relocate your funds. This basically means you’re directing your new employer to schedule the details of the transaction with your old company. This way, you can avoid your old job writing you a check for your existing 401(k) balance, wherein you have 60 days to drop it into a new account. This is not a headache you want. When you go this direction, your previous company will hold back 20 percent of your money for income tax purposes.

The next time you file your taxes, you’ll get the money back, but meanwhile you’ll have to make up the difference yourself within the 60 days. No thanks. Even more frightening: if you don’t roll over the entire balance within 60 days, the taxman cometh. The IRS sees that deficit as a taxable withdrawal and enforces regular income taxes along with a 10 percent penalty.

In order to apply for a government grant you need to be aware of certain things that will determine if you’ll get approved or not. You have to know that you’ll only be able to receive a limited amount of money, that government aid is awarded based on the needs of the applicants, that the amount of money granted also depends on the amount of applicants, etc.

Fully Funding?

The main problem with government grants is that, since the amount of money available for financing college studies is limited, those who receive grants don’t receive enough money to fund their studies in full and sometimes have to resort to other sources of finance or give up on their studies.

There are however, federal loans that can be obtained more easily than grants and will help you to finance your studies and you won’t have to repay them till you join the workforce after finishing your studies. Combining a government grant and a federal loan is possible but very complicated. There are many restrictions as to the amount of government aid you can receive.

The Poorer, the merrier?

Since government loans are awarded based on the needs of the applicants, those with families that could afford paying for college most of the time can’t get approved for government grants. Even if in order to aid a family member to pay for college huge sacrifices had to be made, government grants may not be available for such families.

The most underprivileged are more likely to get approved for government grants. However, if there are not so many applicants and the amount of money destined to government grants is not fully taken, the “first arrived, first served” rule may apply. There are also some limitations based on geographic and field basis. There are certain territories and knowledge fields that the government is more interested to cover than others. This must also be taken into account when filling grant applications.

Where to apply

Government agencies are the place to go when you want to apply or find information about government grants. There is a lot of research to be done in order to get financial aid from the government. It sometimes seems as if they’ve wanted to make things as hard as possible so as to discourage applicants.

There are however, many online sites providing information and access to online forms that will show you where to apply and what specific requirements you need to meet in order to get finance for your college studies. So if you are in need of funding, just do a search for student grants or college grants and start your hunt for government aid.

Even if you think you don’t need to or you know for sure your credit report reflects your real credit situation, it is always a good idea to request a copy of your credit report at least once a year (you can get a copy for free) in order to see where you stand and to plan ahead your actions to improve your credit situation.

What to Look For

The most common inaccuracies are: pending payments that have already been made, outstanding loans that have already been canceled and open accounts that have already been closed. Also, it is not uncommon to find loans wrongly informed. For instance, you may have requested a $10.000 loan and they might have informed a $100.000 loan.

Even though these are the most common mistakes, you should do a thorough examination and make sure there are absolutely no mistakes or inconsistencies on your credit history. A minimum discrepancy could motivate a decline in a loan or credit card application.

Fixing Credit Report Inaccuracies

When you discover an inaccuracy, the first thing you need to do is to make sure it actually is an inaccuracy. You may think that you didn’t miss a payment but you actually did. Or you may think you didn’t pay late but you just didn’t notice it. Get hold of any documentation in your possession that shows proof of the inaccuracy and make several copies.

The next step is to write a letter to the credit report agency telling them that you’ve found what you believe to be a mistake on their behalf and that you wished for it to be corrected. Tell them which negative information is inaccurate and ask them to remove it or correct it. Enclose to the letter all the copies (never the original) of the documents proving your claims.

The Credit Agency will check this info and if your claim is true, they’ll correct the information and send a new copy of your credit report to you. They’ll also send a written explanation of their investigation even if they conclude that there was no mistake on their side. You can always resort to legal means if you believe them to be wrong and they refuse to exclude the negative information.

Eliminating Accurate Negative Information

Only time can aid you in eliminating negative information from your credit report. Some stains on your credit history will remain for as long as 10 years (bankruptcy), others may only remain for a couple of years. What really helps improving your credit score and history is to maintain an impeccable credit behavior. Paying always on time, never missing a payment, reducing your debt exposure, paying your credit card balances in full whenever possible and at least the minimum payments the rest of the time are the best way to fix your credit. Then, it is all just a matter of time.