Those guides and books have nothing of value, all the information they contain is superfluous or can be found anywhere on the net. Most of them lack the only thing that could have some use: copies of the forms you need to fill in order to apply for a government grant and detailed explanations on how to fill them.

And even those who include forms and models of letters have little value since all that can be easily obtained at each government agency that provides access to funds in the form of government loans and grants. And of course, you can get all that for free.

Government Grants

There are many government agencies providing funding for different purposes to individuals and organization that meet certain requirements. However, qualifying for such money grants is not an easy task and a guide or book won’t help you either. In order to successfully apply for a government grant there are many things you need to know.

First of all, you should see whether the purpose that the money you need would have fits into any of the grants’ categories. There are grants for first time home buyers, college students, physically challenged people, starting businesses, non-profit organizations, etc. As you can see, if you want the money to buy yourself a new state of the art high tech TV, you are out of luck.

You also need to make clear how much money you’ll need because generally grants offer a limited amount of funding. The idea is to provide assistance to the underprivileged and not to finance those who can get finance by other means like private loans or government loans.

Thus, by keeping grants to small amounts, the government can help as much people as possible. When it comes to business grants there is more flexibility but they won’t finance huge ventures either. For larger amounts, the only option is private finance.

How to Get Them

As stated above, there is no need to pay for expensive books or guides, most government agencies have online sites whit contact information. There are also private sites explaining everything about government grants with information and examples of forms and letters so you won’t have problems applying for government grants and you won’t need to spend hours figuring out the explanations that appear on government sites with all the technical terms and so.

Thus, search the net for government grants and you’ll find many online sites that will help you understand grants and will explain you how to apply and get approved. However, you need to be careful too, because there are many sites which are nothing but scams and will want to take your money and provide nothing in return, just like the guides and books.

Financial emergencies arrive unawares and you might get worried a lot about to where to get the cash from. For this very purpose, you have a facility called the instant cash advance. It will make you sigh in relief because all your emergency cash needs can be fulfilled through this. All you’ll need is a confirmation regarding your employment, a previous salary stub, and a checking account.

If you meet these conditions, then you don’t need to bother about your credit score or anything else. There will be no embarrassing interviews or fear of rejection. You can be given the loan instantly, as the money is often electronically wired in your account. Instant cash advances’ upper limits are usually $1500.

An instant cash advance can be yours just about as easily as you switch channels on your TV. With as many online companies as private lending institutions, you are never far from seeking a cash advance. However, you need to know certain facts about them before you actually seek one. The rate of interest on this form of credit is very high as compared to the normal loans. For, say, a hundred dollars, you might have to pay a fee of 15% to 30%.

The instant cash advance should be sought only in dire circumstances. This is because if this variety of loans is abused, then you are sure to land up in a never-ending kind of a debt; also, they should be sought for the shortest period possible because the fee is rather high. The amount of loan should be only what is really required by you. You will not like paying interest on money that will lie idly in your account.

An instant cash advance solves a lot of problems for people who are unable to maintain a budget or those who don’t have a sizeable paycheck to meet their needs completely. Also, medical emergencies could arise unforeseen. However, make sure that if you seek an instant cash advance, then you should repay it on the day set for repayment. Rolling the amount over to a new date could end up being very expensive.

There has been a sudden flooding of the market with numerous companies offering instant cash advances so they are now available at competitive rates. They are a means of ready credit for emergencies and should be treated in the same fashion.

An example of buried treasure? As a young man I buried 100 ounces of silver under my parents house. There was a crawl space that could be accessed from the basement. I pulled the plastic back that covered the dirt, and roughly five feet out from the west and south walls dug a hole. I put my plastic container with it's ten ten-ounce bars of silver into it, covered it up and left it there for years.

Did I tell anyone where it was, or even that I had buried it? Of course not! The point of hiding things is so nobody knows where they are, right? By the way, I have long since dug the silver up and sold it, and keep my money in the bank now instead of the ground. However, what if I had died while I still had this buried treasure under my parents house?

My guess is that it would be at least a couple hundred years before anyone found the silver. there was no reason for anyone to be digging under that part of the house. There was also no way for anyone to know they should be looking. The obvious question arises: How many people have died and how many die every year without ever telling a soul about their hidden money or buried treasures?

Many. The treasury department estimates that billions in currency alone has "disappeared" in recent years. Where is it all? Here are some of the places to start looking.

Places To Find Buried Treasure

- Under rocks in highway rest areas. There are many reports of criminals and drug dealers to burying large amounts of cash under rocks in the woods at highway rest areas. Hide the evidence, get sent to jail, and what if he never comes out? Treasure hunting time!

- Under the edge of cement slabs. Look for sagging or cracked cement where the ground might have been loosened up.

- In old pump houses. People used to hide things in the pump houses, in the ground underneath, and even inside of pipes that connect to nothing.

- Caches buried near signs. The point was to have a way to remember where the treasure was buried.

- In hotel rooms. Hotel owners report that cheating spouses on business trips hide their rings before going out for the evening, and then forget them. Look under mattresses, on top of light fixtures, and behind pictures.

- In rivers, especially next to bridges. Criminals and kids throw things off bridges to hide them quickly. I have seen several bicycles laying in the bottoms of rivers, and I hear that guns are a common find.

- Inside old books. This has been a common place to hide money for years.

- Inside walls, usually by outlet covers. An outlet cover usually has just one screw to remove, and you might se something by shining a flashlight inside the wall.

- Buried under rocks in backyards. The rock is for remembering where the buried treasure is, and backyards are more common because the person is less likely to be seen burying something here.

Have you ever hidden anything? Do you have anything hidden now? If you wanted to hide money or other valuables, where would you put it? You can understand how things get buried and forgotten. Now start to think like the person who hides things, and you're ready to search for buried treasure.

Not so long ago, the 0% balance transfer promotional periods were introduced in the credit card industry. The idea was that for a period of time (Usually 6 months) the credit card company wouldn’t charge interests over unpaid balances transferred from other credit cards. Sometimes, this offer came together with a 0% APR promotional period too, which implied that there was no interest rate for purchases either.

These offers draw attention to many credit card holders who immediately turned to credit cards that featured this benefit. In a short amount of time almost all credit card companies where offering this kind of cards.

Smart people saw a great opportunity, they could keep transferring the balance from one card to another just before the promotional period ended, thus getting free finance for an uninterrupted period of time. This was immediately noticed by credit card issuers who limited this practice in many different ways.

Balance Transfer Fees and other Charges

The solution that the credit card industry implemented consists on charging a fee (instead of an interest rate) for balance transfers. The idea of 0% balance transfer is lost since, though there is no interest rate, transferring the balance from one card to another is no longer free of charge.

Moreover, in order to cover their costs, credit card issuers charge other fees and costs. In order to compensate for the 0% interest rate on balance transfers, this kind of credit cards come with higher issuing fees, renovation fees, maintenance fees, penalty fees and so on.

Also, when the promotional period has ended, the interest rate charged for financing the unpaid balance can be extremely high, almost abusive. It can even double the interest rate charged by regular credit cards for the same purpose.

Credit Card Surfing

This practice, which consists on transferring the credit card balance from one credit card to another taking advantage of the 0% promotional periods, can be used and is still used by many people who have large balances. The fee charged for transferring higher balances is thus, not that onerous.

Nevertheless, you should know this is a risky practice, because if for some reason, it cannot be performed on time, the interest charged for financing the unpaid balance may be too high and you could easily exceed the credit card limit incurring in penalty fees and higher interest rates.

So, if you decide to take advantage of this feature and transfer your balance from one credit card to another, make sure to read the fine print of your credit card contract and watch for hidden fees that may turn such transaction too onerous and useless.

Are you tired of creditors calling your house day and night? Are you tired of creditors being rude and asking for a payment every hour on the hour? You can stop it and answer your phone in peace.

A creditor is a company or person that extends "credit" by allowing a consumer to borrow money based on an agreement between the two parties that the money will be paid back at a later time. Creditors provide you with a form (agreement) to fill out that gets approved allowing you to use their credit based on the guidelines of the signed agreement.

If you make just one late payment (usually 30 days or more late), all creditors have a Collection Department that quickly calls to remind you to send a payment (even if the payment is one day past the due date). The first few calls the creditors seem really nice and ask when you will be able to send a payment. Then they quickly turn into the Attila the Hut and start being rude and use all kinds of tactics to get you to make a payment. This is unethical and is illegal according to the Fair Credit and Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) which can be obtained by calling the Federal Trade Commission or going to their website at www.ftc.gov. The FCRA was instituted in 1996 to ensure the accuracy and fairness of credit reporting for consumers. The FDCPA was instituted in 1996 to stop abusive behavior by creditors. A creditor cannot call you before 8:00 am or after 9:00 pm. Also, creditors cannot use threats, profanity make false statements, use unfair practices, or make repeated calls to your home to collect a debt.

If a creditor contacts you, as a consumer, legally you have the right to ask them to stop by writing a letter indicating that the creditor should not contact you any further to obtain the debt owed. If you feel a creditor has violated the Fair Credit Reporting Act you may file a complaint against them by calling the Federal Trade Commission at 1-877-FTC-HELP or going to www.ftc.gov to fill out an online complaint.

In the future, if you ever fall behind on your payments and to prevent creditors from harassing you, notify your creditor immediately that you are having financial problems and try to setup a payment plan with them to prevent bad marks on your credit report.

Good Debt vs. Bad Debt. Many of you may be saying what is good debt and what is bad debt? Well let's start with debt. According to Webster's dictionary debt is, "something that is owed or that one is bound to pay to or perform for another or a liability or obligation to pay or render something".

Is debt really good, no it’s not but the term "good debt" will be used here for illustration purposes. Good debt is anything that you can't afford to pay for up front but have the money to pay for on a schedule such as a mortgage or home equity loan. Bad debt is anything that you can't afford to pay for up front, that is usually something you want instead of something you need, or you can't or didn't save up the money to pay for it so you apply for a loan or charge it.

The most common form of bad debt is a credit card. Credit cards should be used with discipline. The best way to establish and maintain good credit is to purchase something with a credit card and then pay off the balance when the bill arrives. This shows the credit card company that you pay your debts on time and are a responsible shopper. Other examples of bad debt are cars and personal loans. I know you are saying, but I need a car! Yes a lot of us need a car to get around but you don't have to buy a new car. The value of a car starts to depreciate as soon as you sign the paperwork. It is better to buy a used car and finance it for one or two years or save money to buy the used car in cash.

Examples of good debt are a mortgage and business loans. Some other financial experts may disagree and include car loans with this but I believe anything that you can borrow against and that has a monetary value is a good debt. The value of a car only decreases so although the car has a monetary value, that value is less than the original price paid for the car. An exception to the above statements is student loans. Student loans are a good debt because the end result is furthering your education which results in a higher paying job (monetary value). The money from that job can be used to pay off your student loans. Some of you may say I can borrow against my credit card to get a cash advance; but it is still a bad debt because you didn't have the cash up front and you will be charged a higher interest rate and fee to get the cash advance. Also, the value of cash does not increase unless it is in a mutual fund or investment. The best way to determine if you have good debt or bad debt is to prepare a liability statement. This statement will identify your income and all of your debts and the difference of the two equals your total liabilities (your total debt).

Bad debt has no value or the value decreases over time. Good debt has value and has the ability to increase in value over time. Keep in mind at any time a good debt can turn into a bad debt if you miss a payment or if you are living above your means. Your debt-to-income ratio should be between 28% and 36%. If you debt-to-income ratio is above 36% then you need to do a financial health check and see how to cut expenses, reduce interest rates, and increase the amount sent to pay for your monthly debt payments.

More and more Americans are turning to the Internet to pay their monthly bills. Whether it's through their bank's website, a bill paying service, a vendor website, or direct debit, they enjoy the convenience and speed of paying bills in this fashion. Each method has advantages and disadvantages and one method may not fit all needs.

Paying bills through a bank website allows you to set up payees and schedule payments to be disbursed on a schedule you determine. Many banks now offer this service free of charge. Payment is sent either electronically or by paper check. However, this service may not be suitable for people who prefer to pay their bills very close to the due date as there is a lag between the consumer setting up the payment and the bank actually sending it. Different banks have different lag times, but it's safe to count on 7-10 business days before your payment is received.

Bill paying services offer similar service to banks, but typically charge a monthly fee for their services. The benefit of bill paying services is that often they can integrate with personal financial management software and allow bill paying directly from the application. These services will also have a lag between the payment request and the actual payment.

Vendor websites that allow online payment are a good choice for last-minute payments since they are typically credited either immediately or the next day. Check the fine print on the vendor website to be sure you understand when payment will be credited. Paying all your bills this way can be a hassle since you have to visit multiple sites and not all your creditors may be set up to receive online payment.

Finally, for recurring bills with a fixed amount, you may want to consider direct debit. Direct debit allows creditors access to your bank account so that they can withdraw your payment amount automatically each month. Generally, this method works best for mortgage payments, car loan payments or other payments with fixed amounts since variable amounts, like credit card payments, might make it difficult to manage your account.

Whatever method or combination of methods you select, you still need to keep careful tabs on your account to ensure that the proper payment amounts were sent on time. Be sure to continue to balance your checkbook each month in order to avoid problems.

Remember the words of the old song...'we had joy we had fun'? That’s probably how you felt when you first bought things on your card without paying cash. But that high comes down pretty fast when the monthly statement comes in. Paying off the dues is hard. It's time to put a few action triggers in place so bill time doesn't have to be distress time.

Paying the minimum due every month does not change the balance any which way. The reason for this is something that credit card companies hope that you will not figure out for quite a while so things work in their favor. The minimum amount you pay is only the interest on the outstanding dues. So your balance due to them is still the same while they benefit by getting interest from you each month. Carry on in this vein and your debt keeps mounting with each purchase, not coming down.

So now, what does one do? One way would be to pay more than the minimum amount due. That would make some dent in your principle amount. Next, stop using the card until the outstanding balance has reached zero because any purchase over and above that will only attract more interest. So say ‘No’ to more credit card purchases unless it’s an emergency.

Another option would be to transfer your dues to a card which offers you a grace period that's interest free and has a lower rate of interest. Get a new card to offset your old but don’t charge anything on the new card or you will start the same cycle on the second card and you will have another debt trap closing in around you.

Credit cards come with payment agreements. The most popular is that of a revolving agreement where you make some payment towards the outstanding due and they charge interest on the balance. Another is the charge agreement where you have to pay the balance in full every month. The third is the installment agreement where you pay a fixed amount each month. Select one which suits you the best and keep at it lest your credit rating goes down and you find yourself ineligible to get another credit card.

Remember to use credit cards responsibly to avoid problems with your credit which in turn can result in complications in many aspects of your life.

Is saving important? Should you save the money you earn?

Recently, I read an article from my local newspaper. In this article, the author's friends do not save any single cent. They just spend all their income in the month!

The reason is, they are losing money by saving!

This is mainly because of high inflation rate nowsaday, the money they save does not have the save purchasing power as before.

So, instead of saving money, they would rather to spend all the money they have before the value of their money gone away.

It sounds reasonable too. Why should you keep the money when you know the value of money drops everyday?

Spend the money today could give you more purchasing power than tomorrow!

Wrong!

The is the biggest trap which could make you poorer and poorer!

In order to have your own wealth and fortune, you should save as much money as you can, from today after you finish this article.

Ok, you may be confused now. If you save money, actually you're just losing money because of inflation, but, if you don't save, you will become a poor.

So, should you save your money?

My employer is a wealthy old folk and he is now still doing his own million dollar business.

His secret to become a wealthy person is save his income from the business and invest his saved money in a profitable investment for example mutual fund, real property and fixed deposit.

You see, my boss is not just save his money from his business, but also invest the money!

By saving money, you will have ability to get into the most profitable investment.

Saving money is a preparation. Most people cannot get rich is because they don't prepare!

For example, one day your friend calls you and inform you that he is going to sell his house in a hot area.

Because of the financial difficulty, he needs money and he is willing to sell you his house under market value and just ask you for a 5,000 bucks as deposit.

You know the area is good and has a great income potential for rental, and you know this is a great chance and great deal.

But, you have to say 'bye-bye' for this deal because you don't have money for deposit.

Why? This is because you don't save money and you have to pass this great opportunity!

From the above short story, you will discover that why saving is so important to get rich.

If you don't save money at all, you really don't have any chance to get rich. If you just save money and don't invest, the inflation will eat out all your money.

In conclusion, saving is your first step. Save your money and invest smart, you should be able to make your own fortune

When I’m counseling newlywed couples, I get this question a lot, “how should we combine our money to pay for household and other miscellaneous expenses?” It’s a very important and excellent question. My first response is however, “do you have a budget in place?” Most of the time the answer is no, but that is why they’re meeting with me in the first place. Once a budget is completed we can answer this question, because you must understand how much it cost to live in your lifestyle comfortably on a monthly basis.

So lets say both husband and wife work a full-time job. The wife brings in a net income/take home salary (after taxes) of $1500 a month; the husband brings home $1700. Their monthly household expenses are $2000.00. This includes mortgage/rent, food, clothing, automobile expenses etc. If we combine their incomes together, their total is $3200 (1500 + 1700). Their monthly budgeted expenses is $2000, so we will divide this amount by their combines incomes 2000/3200 which will give us 62.5% or rounded up 63%. Now, we can conclude that they both should contribute 63% of their monthly income to their household expense account. Now the wife will put $945 into their joint account and the husband will contribute $1071 into that same account. As for their left over portion, they can agree to place an equal percentage in a joint savings or in a separate account for personal expenses or do both. I recommend both! They can create a vacation account, a gift account etc. But a couple should definitely have both a joint checking as well as a joint savings account for unknown expenses and emergencies.

Most of my clients are happy with this arrangement because it allows them to operate as a unit, yet leave room for their individual spending habits. I often suggest however that purchases over an agreed amount be discussed say $500 or $1,000 but that’s just a suggestion. I also suggest that the couple attempt to live below their means in case of an unexpected emergency or loss of income and if a couple plans to start a family they should both contribute an increased amount into their household fund while they are both working. This will decrease the stress of being overwhelmed by bills that are not of necessity. Save up cash for big-ticket items and avoid abusing credit cards (a common occurrence among newlywed couples). This system should work for all income levels.

There are so many businesses out there that will protect your identity. For a fee.

However, you can actually do a better job of it yourself. For free.

While some of the steps may seem a little extreme, you need to remember that around 33.4 million Americans have been victims of identity fraud since 1990. You need to take those drastic steps to protect yourself and your family from identity theft.

Most people have to start by changing many simple things. The first, and most basic, thing to change involves your Social Security Number. Now I know that it used to be printed on your checks, written on your work or school id and on your medical chart at the doctor's office. But now it is too risky to use it for those purposes anymore.

Identity theives are specifically looking for your Social Security Number. With it, they can pretty much access all of your accounts. They can get your creidt, insurance coverage and a lot of other financial transactions. It is what says you are who you are.

Memorize your Social Security Number (and those of your spouse and children) and don't ever carry the card with you. Don't write it down. Don't give it out when your write a check (use your driver's license number instead). Don't give it to anyone who calls you first. You should only use it for employment and credit applications.

If you have an account that uses your Social Security Number, such as a student loan, ask that they use a different account number instead.

If someone asks for your Social Security Number, ask why they need it, how it will be used and how it will be protected. Find out what would happen if you didn't supply them with it.

You should also protect your driver's license number, address, telephone number, credit card numbers and other financial accounts from others as well. Try not to make information sensitive phone calls on your cell phone where you can be overheard.

You need to change your passwords and PINs frequently for accounts that you access both on and off the internet. Don't write these numbers or passwords down. Make them easy for you to remember, but hard for anyone else. Many advisors suggest that you take a phrase and use the first letter of each word for your password. This makes it very hard for someone to guess it. For example, you could take the phrase: I hate coming up with passwords, and make it into a password of: IHcuWP. Just don't write it down!!!

Everyone should own a shredder and use it. Shred every piece of paper you throw away. This includes receipts, credit card offers, unused convenience checks, replaced credit cards and all statements from financial institutions.

Store your papers in a safe deposit box. You might want to include your tax documents, copies of all your credit cards and the names, numbers and accounts numbers of all your financial relationships. This way, if something does happen to your home or your wallet, you can easily access all of your information. For information you store at home, such as receipts and statements, invest in a safe for your paperwork.

Remember the words of the old song...'we had joy we had fun'? That’s probably how you felt when you first bought things on your card without paying cash. But that high comes down pretty fast when the monthly statement comes in. Paying off the dues is hard. It's time to put a few action triggers in place so bill time doesn't have to be distress time.

Paying the minimum due every month does not change the balance any which way. The reason for this is something that credit card companies hope that you will not figure out for quite a while so things work in their favor. The minimum amount you pay is only the interest on the outstanding dues. So your balance due to them is still the same while they benefit by getting interest from you each month. Carry on in this vein and your debt keeps mounting with each purchase, not coming down.

So now, what does one do? One way would be to pay more than the minimum amount due. That would make some dent in your principle amount. Next, stop using the card until the outstanding balance has reached zero because any purchase over and above that will only attract more interest. So say ‘No’ to more credit card purchases unless it’s an emergency.

Another option would be to transfer your dues to a card which offers you a grace period that's interest free and has a lower rate of interest. Get a new card to offset your old but don’t charge anything on the new card or you will start the same cycle on the second card and you will have another debt trap closing in around you.

Credit cards come with payment agreements. The most popular is that of a revolving agreement where you make some payment towards the outstanding due and they charge interest on the balance. Another is the charge agreement where you have to pay the balance in full every month. The third is the installment agreement where you pay a fixed amount each month. Select one which suits you the best and keep at it lest your credit rating goes down and you find yourself ineligible to get another credit card.

Remember to use credit cards responsibly to avoid problems with your credit which in turn can result in complications in many aspects of your life.

If we have to trust peoples’ exaggerations, bad credit loan lenders are either magnificent philanthropies or greedy and abusive burgesses. But the truth about bad credit loans and bad credit loan lenders is different. As with all in the financial industry, bad credit loans are nothing but business. And though some lenders may come close to the above descriptions, most of them are neither philanthropies nor greedy green monsters who take money from people in desperate situations.

Bad Credit Loans: The Lender Story

When a lender is facing a loan request from someone with bad credit he sees exactly that: Someone who, in the past, has failed to honor his debts on time, who has borrowed too much money or who has even defaulted or gone through a bankruptcy. What he sees and what he can trust to be true is the information contained in the credit report.

So it doesn’t really matter if the borrower had to face unexpected circumstances than no one could predict or if there is someone else to blame for the bad credit tag. Unless the credit report shows that, the lender has no way of knowing for sure and though unfair as it may sound, the lending business is not a matter of trust, it is a matter of risk.

A bad credit score screams “risk” and the lender takes note of that. A lender doesn’t make money with a single loan, in order for his business to work he has to lend to many people. Statistically speaking, bad credit applicants miss payments and pay late more often. Thus, the higher interest rate charged for bad credit loans compensates for the possibility of a certain amount of bad credit loans to be non recoverable. You may think that this is unfair and there is no reason for you to bear the burden of other people’s credit behavior but this is the only way a lender can offer bad credit loans or any other kind of loan.

Bad Credit Loans: The Borrower Story

On the other side of the loan, the applicant is in need of funds, something unexpected happened and money is needed but credit is not widely available due to some past financial mistakes. He knows he won’t make the same mistakes any more and wishes that lenders would trust this claim to be true.

If you are a borrower, what you need to understand is that the only way of showing this claim to a lender is to have an impeccable recent credit history. Even if the past mistakes are still in your credit report, the last six months of your credit history must be clean of late payments and missed payments. Otherwise the lender will consider you even a higher risk.

For a borrower, facing a bad credit loan implies higher interest rates, lower loan amounts and non flexible repayment programs. The terms of the loan are not advantageous but as a bad credit borrower there are not many options available out there to choose from.

Good Debt vs. Bad Debt. Many of you may be saying what is good debt and what is bad debt? Well let's start with debt. According to Webster's dictionary debt is, "something that is owed or that one is bound to pay to or perform for another or a liability or obligation to pay or render something".

Is debt really good, no it’s not but the term "good debt" will be used here for illustration purposes. Good debt is anything that you can't afford to pay for up front but have the money to pay for on a schedule such as a mortgage or home equity loan. Bad debt is anything that you can't afford to pay for up front, that is usually something you want instead of something you need, or you can't or didn't save up the money to pay for it so you apply for a loan or charge it.

The most common form of bad debt is a credit card. Credit cards should be used with discipline. The best way to establish and maintain good credit is to purchase something with a credit card and then pay off the balance when the bill arrives. This shows the credit card company that you pay your debts on time and are a responsible shopper. Other examples of bad debt are cars and personal loans. I know you are saying, but I need a car! Yes a lot of us need a car to get around but you don't have to buy a new car. The value of a car starts to depreciate as soon as you sign the paperwork. It is better to buy a used car and finance it for one or two years or save money to buy the used car in cash.

Examples of good debt are a mortgage and business loans. Some other financial experts may disagree and include car loans with this but I believe anything that you can borrow against and that has a monetary value is a good debt. The value of a car only decreases so although the car has a monetary value, that value is less than the original price paid for the car. An exception to the above statements is student loans. Student loans are a good debt because the end result is furthering your education which results in a higher paying job (monetary value). The money from that job can be used to pay off your student loans. Some of you may say I can borrow against my credit card to get a cash advance; but it is still a bad debt because you didn't have the cash up front and you will be charged a higher interest rate and fee to get the cash advance. Also, the value of cash does not increase unless it is in a mutual fund or investment. The best way to determine if you have good debt or bad debt is to prepare a liability statement. This statement will identify your income and all of your debts and the difference of the two equals your total liabilities (your total debt).

Bad debt has no value or the value decreases over time. Good debt has value and has the ability to increase in value over time. Keep in mind at any time a good debt can turn into a bad debt if you miss a payment or if you are living above your means. Your debt-to-income ratio should be between 28% and 36%. If you debt-to-income ratio is above 36% then you need to do a financial health check and see how to cut expenses, reduce interest rates, and increase the amount sent to pay for your monthly debt payments.

Did you know that people who maintain a savings account and regularly deposit money into it have a far better chance of becoming wealthy by the time they retire than people who don’t hold a savings account? While it’s true that simply depositing a few dollars each week into a savings account won’t turn you into Bill Gates overnight, the fact is that people who can effectively manage their money, even in smaller amounts like opening a savings account and adding a few dollars on a regular schedule, stand a much greater chance of retiring wealthy than people who don’t have a savings account. The theory is that people who can be thrifty and save money when they have very little of it can be just as thrifty when they eventually get a higher paying job, reduce their expenses, or come into money in some other way.

Also, many financial institutions are offering a product termed a high yield savings account. This type of savings account will usually require someone to set up a regular schedule, via direct deposit, of a certain amount of money over a specified period of time. In return, the institution will offer an extremely reasonable interest on the amount that you deposit. Currently rates are approaching 5%, with some institutions offering rates over 5%. Also, if you maintain a higher balance on your account you can receive an even higher interest rate. High yield savings accounts are a great option to consider at anytime, but people who should be especially interested in this are younger people without enough money to really get into serious investing. Even tiny amounts of money invested regularly over a long period of time can add up to an enormous amount due to compound interest.

The key to generating a nice sum of money in your savings account is very simple – don’t spend it. Many people think that just because they open up a savings account with a decent interest rate that they can just go ahead and take a little out every month to spend. When they see their balance is grown by a few hundred dollars they go ahead and take out $50 to buy a new toy. Doing this is a surefire way to shoot yourself in the foot, and nobody will ever become wealthy by spending their money instead of making it work for them. High yield savings accounts can be a great tool to invest money and earn a good interest rate, and when combined with a high yield checking account will provide for easy access to the money if it is needed.

Try to leave the money in there unless an emergency comes up and you absolutely have to have it. Start by opening up a regular savings account at your bank, and then making regular deposits into it. Most banks will let you set up a payment schedule where they just deposit a certain amount from your checking account into your savings account on a certain day every month. Don’t think about that money, pretend it doesn’t even exist, and after a few months of running your system like that your budget won’t even miss that money anymore. Check your balance at the end of the first year, and remember that the way compound interest works, the longer you keep that money in there without reducing the balance in the account, the more you will make off of it.