Start as Soon as Possible

The first step to building wealth is to decide that you want to start at the earliest possible time. If possible, know what you want and start with what you have to do while you’re still young. If you’re not getting any younger and you’ve just decided, don’t worry, but don’t postpone either. Start as soon as you realize that a life of office work and paying debts is not for you.

Invest in Stocks

When you’ve made the decision that you’re up to building wealth, invest immediately but wisely in stocks. Stock investments are one of the soundest ones you can ever make. Sure, not everyone succeeds with stocks all the time, but it’s better than any get rich quick scheme. In fact, it’s better than most wealth building schemes. When you’ve mastered the ropes, stock investments are sure to make some great returns.

Diversify and Compound Stock Investments

Use your earnings from your initial stock investments to invest in even more stocks in different corporations. Keep on investing and allow your gains to grow. In time you’ll be surprised with how much you’re already earning.

Make Other Investments

Building wealth doesn’t just involve concentrating on one type of investment. It may be true that some people still end up successful and well off by just focusing on their stock options. You might however, want to consider diversifying your investments. What are you going to do with all that money once your earnings double or triple over? The answer is to look for other ways to make it grow. Other investment options include buying bonds and mutual funds, delving in real estate and trying your hand out at network marketing. You might even consider opening a savings account that you promise never to touch. No investment is too small if it is a good and sound one.

Hold Out

The last and probably the best and most sensible step to building wealth is to hold out. Once you have some extra money on your hands from your investments, resist the urge to buy a flashy new car with it or some trendy clothes. Hold out from the temptation to waste your initial earnings on things that are not essential. Just think that the money you pay that auto dealer or that boutique will never again grow or make returns for you. This is not to say however that you should never reward yourself. Just be certain first that your passive income is steady and good enough to support both your future needs and present wants.

Do these steps sound too simple for you? Sometimes it is in the mere simplicity of a suggestion that makes a difference.

Some may not realize however that finding the road to financial wealth involves building true wealth first and foremost in oneself.

Have the Right Attitude

Building true financial wealth starts with building your inner attitude towards achieving your financial dreams. You need to recognize first of all that you cannot get rich in a blur. You do not get rich by just sitting at the shore waiting for your ship to come in. Building true wealth starts with hard work and allowing your assets to grow slowly but steadily. When you can hardly count your assets, that is the time to sit back and relax. You also need to realize that your assets cannot grow if you do not have the discipline to hold back from splurging every single extra cent that you get. Hold back from immediately rewarding yourself.

Discover Your Innate Skills

The right attitude should also include having enough dedication to realize your true potentials. Sure, it may be tough understanding even just the basic technical details of stocks and bonds, but you are not an idiot. Recognize that you are not so below par not to be able to understand. In other words, even if you are dreadfully afraid of numbers, awaken that sleeping potential expert in you.

Associate with the Right People and Resources

If you’ve gotten down to understanding the basics but the figures are still way over your head, get in touch with help. Get a hold of good books to read about financial management and investments. Enhance your knowledge and abilities by reading as much as you can. Along with self discovery, ask the right people for good advice. Do not just ask any neighbor or friend, go to those who know what they’re talking about. Get a good broker or talk to people who have actually had some success at building true wealth.

Keep on Making Those Investments

Aside from occasionally buying what you want every time you earn big, make sure you roll your extra money over to even more investments. Don’t think that just because your shares are doing good that you should stop just there. Keep on investing in different stocks. Diversify your investments too. Get into bonds, mutual funds, real estate and marketing.

Remember, the first key to financial success is building true wealth deep inside your own self. The road to financial wealth is in you.

Every day when you go to the mailbox there it is: another offer from a credit card company to transfer your high interest account to a lower or 0% rate with a different card. Should you take this offer? Can you lift the nagging burden of monthly fees, compound interest, and a heavy debt load by transferring your balance? The answer is a resounding maybe.

There are pros and cons to playing the balance transfer game. And those who don’t know the rules of the game will lose without even knowing that they are playing. The main reasons to consider transferring your high interest credit card balances are: short-tem relief, emotional relief, and long-term interest savings.

Transferring for Short-Term Benefits

Lower monthly payments: If you currently owe $3,000 on a card with an 18% APR, then it would cost you $275/month to pay off your debt in one year. If you transfer to a card at 0% intro APR, you can pay off the same card with monthly payments of $250 per month. So anyone struggling to meet their monthly bill will gain some immediate relief. So how can this be bad?

As with any short-term fix, you pay on the other side. First of all, beware of any balance transfer fees. Some card issuers charge a service fee when transferring balances over to your new card.

What a Relief: The emotional component of credit card debt is very powerful. For many consumers the idea of finally getting out from under the debt they have been carrying is enough motivation to grab at any attractive offer they see. Unfortunately, most people who latch onto balance transfer offers for this reason find themselves trapped by the same lifestyle choices that allowed them to ring up debt in the first place.

One down side of transferring your balance is that most people feel so much better they are “freed” up to go out and start spending again. Also, most consumers who transfer balances will only pay the minimum balance, so it takes them more time, and therefore more money, to pay down the balance.

Playing the balance transfer game is a lifelong hobby, as you must constantly look for cards with lower rates, and constantly switch credit card companies, rather than ever paying off the debt.

Long Range Results

Impact on Your Credit Score: Unfortunately, one of the least understood rules of the Balance Transfer Game is the Credit Score Penalty. Every time you apply for a new credit card your FICO score is lowered. This is the score used by credit card companies and mortgage lenders to determine the rates they will offer you. So you may be transferring to a lower APR today, but raising the rates you will be offered tomorrow.

Interest Does Matter: The question that you need to ask is “How can I ensure I am getting the best possible interest rates today and in the future?” As shown in the example above, your interest rate will have a direct effect on the amount of money you pay out over the years. Just don’t be tricked into thinking that you are locking in a lower rate when you transfer that balance. Balance transfers do not affect future purchases, and they are only effective for a set period of time.

So the way you handle your credit cards today is a better indicator of your long-term payments that the attractive rate dangled in front of you today. By the way, the same credit card company trying to lure you away from the competition today will be checking your credit score in about six months to see if they should raise your interest rate.

When you’re trying to find that perfect car, it is easy to fall prey to smooth talking salesman, we have all experienced the Shark and Minnow type feeling, getting smooth talked while having that bad feeling on the inside. It happens everywhere in each state, in each city, generally multiple times. But why is this? We all need a car, but why is the sales model so crappy to be blunt. Where does the root lie? And it is a lie.

It all starts with a need, or what we think we need. But where does this need come from? As you guess it, I have the answer, status. In America, we are bombarded with constant advertisements of the American dream with the pretty wife and the fit husband and the better than average behaving kid. We see these things and immediately we reference our life thermometer and it just doesn’t seem to match up, almost no ones does. But we want this, we want this dream that has been sold to us, or at least we think we want it, and if we don’t want it, our peers want it and they talk about it and then the need nestles itself into our heart and mind, thus creating a drive for better things. It’s called the Jones’ we must keep up with them, but why? We have been told so, therefore it must be true.

Car salesmen and car companies feed on this imaginary but very real desire and create pristine car commercials with appealing ads that are entertaining to watch. They show pictures of people feeling relieved, happy, satisfied and other good emotions that we crave on a daily basis. But the truth is, happiness is being debt free, not getting into more debt buying a car we don’t need and a payment we cannot afford. I wish sometimes the car commercials would show someone not being able to afford a car payment or repossession, but that is just the Pollyanna in me that would want to create a perfect world.

So now we have a person who cannot afford a car, sitting in it, thinking “This is it!” I have arrived, and nine times out of ten it is only a feeling that has been accepted in society for us to feel. The realism then sets in when they get the car payments that can be outrageous. The sad part is that most of the lower model cars, such a Cavaliers are sold more than any car on the market, they are “affordable” to whose income is under 40,000 per year. I should know, I almost bought one! This article is not intended to be a downer, but more of a wake up call for one to analyze the actually need or want when buying a new car.

"Do you think I should use a credit repair service?" is a question that is often asked in forums and newsgroups that deal with credit and finance matters. "Are credit repair specialists the only people who can help me to repair my credit rating?" To answer these questions we first need to distinguish between genuine credit specialists and those that merely claim to be so, and then to consider whether you have to employ someone or whether you can deal with the problem yourself.

Anyone considering using a credit repair service should first read the advice of the Federal Trade Commission on this subject. Under the heading of "The Scam" it warns of companies that promise to clean up your credit report so that you will be able to take on new loans to buy a car or to move house. In many cases these companies charge you a large fee upfront and then fail to deliver. Warning signs to look out for are companies that want you to pay in advance before they provide the credit repair service and those that do not explain your legal rights. Other indications are suggestions that you should create a new "credit" identity, or even a new personal identity, both of which could amount to fraud.

Despite these dire warnings and talk of scams there are, of course, many genuine credit repair specialists who can help people to improve their credit score. There are limits as to what can legally be achieved. Provided you realise that accurate information on outstanding debts cannot be removed, it is possible to challenge inaccurate records. A specialist who is dealing with these problems on a regular basis will have the knowledge and experience to be able to investigate your credit report and advise you which of the negative entries can be removed. The application for removal of any incorrect entries can then be handled on your behalf.

On the other hand there is nothing to stop you dealing with the matter yourself. Everyone is entitled to receive a free copy of their credit report once a year, and it is recommended that you should do so. If you find any inaccurate or out of date information on the credit report, you should write to Experian, or whichever of the other companies that produced the report, and request the entry be removed or corrected.

So, should you use a credit repair service? Well that is up to you. There is no legal reason why you should not deal with the matter yourself. On the other hand some people may feel happier to pay a credit repair specialist to deal with it on their behalf.

It usually starts innocently enough with maybe by racking up credit card debt or student loans and quickly turns into a downward spiral of bills piling up, jacked up interest rates, late payments and pretty soon you've hit bottom. It's time to change your mindset and take control of your financial situation!

1. Change Your Habits
This can be the hardest step but you need to stop getting further into debt and take a 180. Open your wallet and take out all of your credit cards and only spend what you have.

2. Track Your Spending
Find out where your money is going! Track where every penny goes for one week from gas to your morning latte.

3. Make a Budget and a Plan
Now that you have an idea of where your money goes, start evaluating where you can cut costs and how much of your income you can put towards paying off your debt. Set goals that are achievable like "Pay down half of Visa card in 8 weeks".

4. Start a Savings Account
If you lost your job today or your car needed major repairs, would you be able to make ends meet? If not, then start putting aside a set amount each month. The general rule of thumb is that you should have a nest egg of 3 months salary in savings. If you can only do $50 a month, you are still putting yourself in a better situation than you were.

5. Pull Your Credit Reports
Request a free copy of your credit report and analyze who you owe and how much. This may not be pleasant but is a must!

This may seem like an easy question to answer but the sad fact is that most people think that just because they aren't bouncing checks that their budget is working. This couldn't be further from the truth. The point of a budget is to help you reach specific financial goals you have set for yourself. In the following article we are going to discuss some the ways to ensure your family budget is really working by showing you some ways to periodically check your budget.

Firstly when setting up your family budget it is advisable to create checkpoints. These checkpoints should be set up with your goals in mind. So if you decide that you want to save up to buy a new car in 6 months, the you would create monthly checkpoints to ensure that you are on course to reach your goals.

Secondly, make sure that you are setting realistic goals. Don't create a goal to buy a new car in 6 months if it just isn't possible for you to save enough money. For example, if you make $2000 per month and you only have $200 left over at the end of the month, it really isn't possible to save more than $1200 in 6 months time.

Lastly, make some cutbacks. Take a hard look at the where your money is being spent. You will be surprised where your money goes. You will be amazed at the different places you can cut back spending in your household budget. Most people don't realize that eating out is a huge money leak in a home budget. It is easy to spend $10 a day on fast food which equals $300 per month or $3600 per year. That is a down payment on a new car.

As you can see these are a few simple ways to ensure that you budget is functioning on all cylinders. The most important thing you can do to ensure that your family budget is working is to stay on it and consistently checking it. After a few months, it will become habit to do these things and before you know it, you will accomplishing your financial goals!

Personal loans are very popular with the public when they require cash for any reason whatever. The name of the loan implies that it is your business what you do with the loan. There is no control exercised by the lenders what you do with the money. The lenders are only interested in getting back their money plus costs. There are secured and unsecured loans depending on your circumstances.

If a borrower has a bad credit history then the lenders will prefer him or her to take a secured loan. This covers them in case you had difficulty later on in paying off the loan successfully. The loan could be secured by the borrower’s home or any other collateral that the lender will approve of. The interest is usually a little less on a secured loan than on an unsecured one.

There are home owners who prefer not to put their homes at risk and would rather pay a higher interest rate than do this. There is always a chance that something could happen that you could not pay your loan off and then you could lose your only asset. Which ever way you prefer to have your loan secure, or unsecured the banks and money lenders will accommodate you, you just have to find the right lender.

Personal loans are borrowed for any number of reasons. Many borrowers use the proceeds of this loan to pay for tuition fees for their children when they start studying at college or university.

We give you a detailed analysis of this factor and a couple of reasons for making extra payments that will finally throw light on the subject.

Under Normal Conditions

The data we are about to give you was taken from a mortgage calculator, established with a macro on an Excel spreadsheet. As you read on, take note of the data and make a little chart, so that you will have the numbers clearly in front of you: Without making extra payments, a mortgage for $20,000 set for 10 years at an interest rate of 6% would have the pre-established 120 instalments to pay.

As A Consequence

As a consequence of these premises, the monthly payment you have to turn in is $222.04 for 120 months. During this program you will be paying a total amount of $6,644.92 on interest, for the complete loan. Now, let us introduce extra payments:

With Extra Payments

Let us suppose you want to make an extra payment of $50 a month. Every month, you will make a total payment of $272.04. At this rate, your payments will reach the total sum owed before the established term. The new length will be 93 months, just over 2 years before the initial time span. Consequently, the amount you will have payed on interest is 4,993.27. A simple mathematical operation will give you a sum of 1,651.65 paid less on interest.

Two Main Reasons To Do This

The first one is that you save $1,651.65 on interest, and the other reason is that the loan will finish earlier. The logical question here is, “Why don’t I just take a loan for a shorter period?” Well, it is fair enough to give you the cold figures. An approximate length would be 8 years, meaning 96 months, only three more than the 93 that you would get in the case of 10 years with a $50 extra payment, right?

Make A Pause

Take note of these figures in your chart and continue. Now, are you ready for the news? 93 payments of $272.04 mean $25,299.72. On the other hand, 96 payments of 262.83 give you a total paid sum of $25,231.68. You save 68 bucks. On a span of 8 years! Is it all that much difference? Nope. But what if I told you that you can happily sacrifice those 68 bucks in favor of another, more important advantage?

The Real Advantage Of Making Extra Payments

There is a difference between the established payments and the extra payments. The established payments are obligatory. The extra payments can be made at your leisure, and depending on your cash availability. So, you can make good use of your yearly bonus and put it on extra payments of your loan. Next month you have no extra cash, you don’t pay a thing.

Control

So, while a shorter period would tie you to a fixed payment which is higher, a voluntary extra payment can be stopped if you find it hard to make ends meet. You would then have control of your monthly payment, avoiding a tighter budget and therefore the risk of delinquency, which would in turn affect your credit report.

You can even make higher extra payments, should you receive an increase in your salary or if your business grew, ending the loan even sooner.

The First Evaluation

Judge the debts according to whether they are secured or unsecured. This means whether you risk losing property used as collateral or not, if you don’t pay. Examples of this are the car loan, secured with your car and the mortgage, secured with your home.

So, There Are Priorities

Family needs are first. Food, essential clothing and unavoidable medical bills are top of the list. Next come your housing bills. Rent or mortgage must be kept up. If you own your home, real estate taxes and insurance are a must, unless they are taken care of within the mortgage. Condo fees or mobile home lot payments are essential.

Next come utility services. Pay the minimum required to maintain the service. Having no light or gas is a real hassle. Well, you’ve been camping haven’t you? If you need to keep your car, pay loan or lease installments as a next priority. However, this may go up a couple of steps if you need your car to keep your job. Car insurance will have to be considered too.

Child Support Debts

These are next, even though one might think they should be first on the list. Following these debts, income tax is a hot issue. Even if you can’t afford to pay all the taxes that are not deductible by your employer, you must file your federal income tax all the same. In fact, if you have lost income, you will also have to pay less tax, this is a great truth.

Low Priority

Debts secured with household goods are low priority. This kind of debt should be treated as an unsecured debt. Should a creditor threaten to sue you if you don’t pay up, do not move this debt up the priority scale. Most suits are never carried out.

Court judgements will inevitably make you give these debts a higher priority, since the creditor can use public force to seize some of your property.

Things That Should Never Make You Flinch

Collectors’ efforts for getting their cash should not make you budge even if they do stand all day at your front door. Threatens to ruin your credit record should not affect the priority of a debt, either.

Credit Cards

These are a separate matter. They can wait until you have paid all other essential debts. When you have freed some cash from your income, next thing is a loan to consolidate your credit card debt. By taking action and sticking to your initial plan, you begin to lose fear of your collectors. This is capital because it gives you the trust to start an upward soar in your economy. You begin to look at things in a different way and you will even be surprised at how you got yourself into that situation, if it is so simple to have sound finances.