Financial Goal Setting - The Easy Way

Setting a financial goal can be a difficult task. However, financial goal setting can be easy when you create a road map for your money.

If you want your money to work for your goal then you need to tell it what to do. If you do not know what you want your money to do, you will find your money going to waste month after month. Knowing exactly what it is you want needs to be the first step in the process of creating wealth.

When determining your financial goal, always begin with the end in mind. What sort of financial shape do you want to be in 20 years from now? What sort of lifestyle do you want to be living?

Do you want your house paid off? Do you want to be paying for your children's college education? How much do you want in retirement savings? What age do you want to retire at?

For example, I have set a goal to be debt free by April 2009. This is going to be tough considering the fact that I am $72,900 in debt right now. I have also as a mother of young children, I decided that I wanted to do this and stay at home with my kids at the same time.

This goal has lead me on a path to find ways to create an income from home that will be enough to reach my goals.

When you are planning a road trip, the first decision is always where you want to go. The answers to the above questions will be on our financial road map to tell us the destination for our money.

The second step in planning is knowing your short term goals. What do you want to do in the next 2-5 years? Do you plan to have a baby? Buy a home? Buy a different vehicle? Go on a large vacation? Pay off your credit cards? Do you want to retire?

The answers to these questions are the roads you will follow on the journey to your ending destination.

Next we need to determine what needs to be done on a daily and monthly basis to be able to meet at of your goals. It is best to break each individual goal down into steps so you can feel a sense of accomplishment after each step is completed.

Here is an example on how to break a large financial goal down into steps:

Goal- Save 20% for a down payment plus money for closing costs on a new home

1. Save 3% for closing costs on my new home




2. Save 5% towards my down payment




3. Save 10% towards my down payment




4. Save 15% towards my down payment




5. Save 20% towards my down payment

This gives you five milestones to celebrate and helps keep you on track so you don't get overwhelmed by the big picture. During each step just concentrate on getting through that one step as quickly as possible.

This will give you focus and drive and by having the steps small and obtainable it will keep your motivation level high.

I find that having a definite goal with a set date gives me the motivation to keep going. I have been paying down debts by earning money online.

Parachute Investing

Ever jumped out of an airplane? It’s all right if
you have got on a parachute. Pretty dense if you don’t.

Every bargain any stocks, common finances or Exchange
Traded Funds? It’s all right if you cognize how much you
are willing to risk. Pretty dense if you don’t.

Parachute investment is buying an equity
with a parachute so you won’t hazard all your money
or, better yet, give back the net income you have got made
as the stock or monetary fund went up and then travels down. If you bought that hummer at $12 per share and
during the past couple of old age seen it travel up to
$52 you don’t desire to give back that nice
profit, make you? With a parachute you can save
most of it. How?

When you put in any stock of monetary fund you
must cognize how much you will put on the line before you purchase it
and how much of the net income you are willing to
give back when it turns down. Take that beauty
at $12. Instead of going up it went down. Are
you willing to agonise as it drops to $5? If you
had a parachute you would have got jumped out of the
airplane before it crashed. If you had an exit
strategy for your stock you would have got sold it
before you lost a large ball of your cash.

The secret of a safe investing is an exit
strategy. When you bought Mr. Twelve Dollars you
shook custody and told him I’d like to be your
friend, but if you change your name to Ten
Dollars I am leaving. Maybe that that is not
very nice, but nice doesn’t cut it in the
investing world.

Mr. Twelve Dollars said I am going up and
I desire you for my friend. Please follow me and if
I waver you can go forth and we will separate friends. Now that brands sense. You drag along and after
it travels to $52 it makes falter. Bash you cognize where
you are going to travel forth or are you going to ride
it go back down to $12? In other words make you
have got your parachute on?

That parachute is your continuing issue strategy
that is in topographic point every day. In the investment
community it is called an unfastened trailing stop
loss order. Any broker can set this in topographic point for
you. You might be lucky adequate to have got a broker
who cognizes where to put stops, but
unfortunately there are not many of them.

The brokerage industry makes not learn its
employees (brokers) how to protect customers’
money. If that is the lawsuit you might desire to use
the old criterion 10% rule. Rich Person the broker place
an unfastened halt every Friday at 10% of the closing
terms of that twenty-four hours as it folds higher. Never
lower the halt loss. Brokers detest this as it
do them work, but that is what they are there
for and that is how they earn their commissions.

With your parachute you can always protect
your original cash purchase from a large loss and as
your stock advances you can lock in net income as
the stock advances.

Every investing should have got a parachute.

Reverse Profit

How can anything “reverse” be a profit? I travel to the Money Show every twelvemonth to see with friends who have got booths and are speakers. Then when folks are filing out of talks I listen to their remarks about what I cognize the talker have been saying.

The Money Show is for investors from all
walkings of life; however, my conjecture is the median value age
is close to 60. Those who travel have got accumulated a
nest egg and now are retired or very fold to
retirement. They came to learn more than about how
to do their money grow.

Last twelvemonth there were 256 separate events not
counting what was given in the Exhibition Hall. Almost without exclusion talkers were showing
how cash can collect faster if the listener
bought his merchandise whether it was a mutual
fund, stock, bond, partnership, software or who
cognizes what. Are there that many money makers
out there?

One talker had an hr telling the market
was owed to clang and the thing to make was purchase long
term set option. He also said if you would not
make that to purchase some authorities chemical bonds which were
paying about 2 to 3%. The issue remarks I heard
were pretty well summed up by one lady who
said, “Is helium nuts. How can we dwell off 2%?”
When in a bear market the old expression is,
“He World Health Organization loses the least is a winner”. No, it’s
hard to dwell on that small a return, but
don’t lose large sums of money by trying to be invested
at all times. There have got been many old age in the
past where cash with no percent tax return beat out the
heck out of the stock market.

Go back to 2000 and retrieve that the
NASDAQ lost 78% of it value in 3 years. If you had
been in cash from 2000 to 2003 you would have
saved about 40% to 60% of your retirement
account. The Buy Normality Holders have got got still not
recovered their investments.

Selling out close (I did not state at) the
top, state within about 10 or 15%, the account would
have remained pretty darn healthy. Many investors
lost 30 to 40% Oregon more than than of their hard-earned money
and they would have got been able to purchase back many more
shares when the market resumed its upward journey. That is what I mention to as a “reverse profit”. The
net income is what was not lost by hearing to the
Buy Normality Hold brokers and financial planners.

There are 100s of thousands of investors
who have got got learned not to allow their portfolios
to depreciate more than 10 to 15% because they
have learned to sell when their equities start
to travel down. They sell and reinvest in a better
stock or monetary fund or sometimes just go forth it in
cash if there is not a good equity to buy. The winning rule of the stock market is
having an issue strategy that volition prevent
losing money.

There are modern times when having cash at zero
percent tax return will beat out a negative 45% inch the
overall market. What you don’t lose is called a
“reverse profit”.

Copyright 2006 All rights reserved.

Read Your Bank Statements and Save Money

Are you one of those kitchen drawer offenders - a person who does not read their mail, but instead dumps it into a kitchen drawer where it stays until the end of creation?

Well, before you throw your bank statements into the infamous kitchen drawer, read them – because you may be loosing money.

I know you are scarred to look at them, because you are afraid of what you will see. However, I promise you, that if you man up, open your statements and read them you can save yourself money that you did not know you were spending.

Often when we don't properly manage our accounts we subject ourselves to miscellaneous charges that we are not aware of. So just by discovering those charges, and correcting the problem, you have just saved your self some money now and in the future.

Spending Patterns

Bank statements list every transaction that you have made within the month. The statement will show where your money is going. Since it is a detailed list of transactions it is a good source to identify spending patterns. So, if you are coming up short in the pockets every month and can't remember where you spent your money, your statement will show you. Try it, pull out 3 consecutive months of statements and read each item debited from your account, you will begin to see a pattern and for most of us, a pattern of waste. This will show where you can make some cuts and save some money.

Unnecessary Fees

A dollar here, a dollar there can add up to a lot of dollars missing out of your account. Bank statements not only list every transaction that you made with in the month, but list activities that you were not aware of like miscellaneous bank fees. Most bank fees can be avoided, but if your statement is sitting in the kitchen drawer, you probably don't know that you are being charged.

Some common bank charges are:

Monthly Service Charges - some bank accounts require you maintain a certain minimum balance every month. If you fall below that minimum, they will charge you a nice hefty fee until you get above that minimum balance. If you are not reviewing your statement you will one day find out that your little stash has gone bye- bye.

Overdraft Fees – your bank will charge your account when it has to transfer money from one of your accounts to cover drafts in another account. My bank charges $27.00 for every overdraft – ouch!

NSF Fees – are hefty, running upwards of $25 - $35 dollars. You can save tons of money by simply opening your statement and balancing your account. Not to mention if you bounce to many checks your bank can elect to suspend your account.

ATM Fees – the bank will charge you anywhere from $2.00-$2.50 per transaction for using the ATM machines. For example, if you use the ATM 4 times a week it will cost you an average of $10 a week or $520 a year. These fees can be avoided by reviewing your statements and then by making certain changes like walking into the branch once a week and withdrawing enough money to last you for the week, instead of running to the ATM daily racking up unnecessary charges.

Human Error

The last thing you need is to bounce checks because someone made a mistake. A few years back, I deposited my paycheck into my checking account. When I completed my transaction, I did not look at the receipt that the teller gave me. A few weeks later, I was getting ready to write out some bills and as custom reviewed my statement. I then noticed that my account balance was too low and discovered that there was no record of the deposit that I had made a few weeks prior. Luckily, I keep my transaction records – so I pulled out my deposit receipt only to discover that the teller had placed my check into someone else's account. Needless to say, I flew down to the branch like a bat that escaped from Hates to get this big problem corrected. To make a long story short, they put the money back into my account, despite the other person having a little shopping spree. This could have potentially caused a lot of problems. If I never looked at my statements, I would have not discovered the problem before I started to write out checks.

The simple task of reviewing your bank account on a monthly basis is a habit worth developing. Though to some, it may seem a little scary at first, the benefits of incorporating this practice will soon outweigh any apprehension that one may have. After the initial shock and adjustments, you will soon find that by simply reviewing your account transactions you can uncover many opportunities to save money.

Insights Into Tax Preparer Frauds

Tax season can send blood pressure soaring and often people try and find interim relief by hiring tax prepares to compute taxes and fill tax return forms for federal and state taxes. It is important to make all efforts to avoid tax preparer frauds and become victims of erroneously filed tax returns.

The IRS every year tries to raise tax payer consciousness by issuing warnings about tax preparers who file fraudulent tax returns and the tax payer becomes the victim as he or she is unaware of the mistakes deliberately made. Tax payers face criminal charges and have to pay steep penalties for crimes committed unknowingly by them.

You can avoid tax preparer frauds by opting to file your returns personally or appointing a tax preparer who is above board and is a qualified person with an established reputation.

• Avoid appointing tax prepares who make tall claims about saving you thousands in taxes. Such people falsify your records and fill fraudulent tax returns.

• Insist on getting references of clients and checking the references out. Also find out if there are any legal cases or complaints against the tax preparer.

• A reliable tax preparer will sign your tax return and send you copies of all documents filed with the IRS.

• Always make the effort of checking the return before you file it so that you know what you are filing as federal or state returns. Ask for substantiation and clarifications on any point you do not agree with or understand in your tax return. Only sign the return when you are fully satisfied that everything is accurate.

• View preparer's who suggest basing their fee as a percentage of tax refund they get you. View such people with suspicion.

• Never sign any blank forms. To avoid last minute problems begin the tax filing procedure well in time.

• Ensure that the tax preparer appointed by you does not inflate expenses, enter false information, hide income, or claim credits when not due. Learn how tax preparers manipulate records and ensure that your tax return is accurate and above board.

Protect yourself and be an honest citizen by only choosing a tax preparer who is qualifies, has the right affiliations, has not complaints against him, does not lead you up the wrong path, and gives you a clear idea on what to expect as a tax refund.

If you ever suspect a fraudulent tax preparer check with the IRS or report your suspicion. The IRS has toll free lines: 1-800-829-0433. The IRS has collated data on tax preparer frauds and presented it at http://www.irs.gov/newsroom/article/0,,id=134094,00.html . Be aware and read through the IRS guidelines. Protect yourself and your reputation as an honest law abiding US citizen.

Work Hard-Save Hard

Few people understand the power of hard work plus saving. They do not understand the potential anyone has to achieve financial success and independence from the compounding power of hard work plus maximizing your savings. By incorporating both into your financial plans, you magically compound your ability to achieve financial success!

Many people think hard work, or having a good paying job will make you successful. It does not! It will only make you sore and disgruntled if you never save a portion of your earnings. It will only make your boos wealthier, not yourself, unless you pay yourself out of every paycheck, setting aside little dollar employees, which will work for you, earning you more dollars employees, which will earn you more, which will earn you more and so on until you a substantial net worth and cash flow of your own.

Money earned from work must be saved, and not spent foolishly. If it is spent, than the extra work did not move you closer to success. If the extra money earned from extra work is spent frivolously, then nothing was really accomplished. By saving income, you will be advancing towards financial success. Work is the key to making money, but saving is the key to success.

Working hard will earn you money. Working harder will earn you more money, but it does not matter how hard you work and how much you earn, unless you save at least a portion of it. You may be able to afford new clothes, or get a newer car, or eat at classy restaurants, but you are not getting ahead in relationship to success. "Hard work is the best investment a man can make," Charles M. Schwab, an American steel manufacturer, stated inspirationally in 1931, who lived on borrowed money the last five years of his life and died broke. Why? Maybe because he didn't save any of that hard earned money. Hard work needs to be a part of your plan of achieving success. Working hard helps you get ahead; it is a very wise investment of your time, but you need to save hard also. You need to be working hard and saving hard to reach financial success.

In order to save money you need to earn money. The harder you work, the more money you can earn, the more you can save and the more imminent success becomes. It works in that sequence. Scramble it out of order and it leaves you with nothing. Work in itself will not make you a success, but working harder to earn more money, to save more money will. The only place where success comes before work is in the dictionary.

Working in itself can not possibly make you more successful; it will only earn you money. Working harder and smarter, being frugal with your money, maximizing your savings and investing wisely will generate success, financial stability and contentment.

Saving and work must be brought together for success. Work harder and smarter to earn more money. After more money is earned you will be able to save more money. With more money saved, you will be able to reap the benefits of success through saving much sooner. Invest in yourself to use your time and effort to increase the knowledge you have of your career. Work wholeheartedly and ingeniously to prove to your boss you go the extra mile and deserve the raise. Or foster the idea of creating your own business, or even a side-business to generate an additional income stream. But then continue to save or even increase your savings amount of what you earn! By saving and working smarter and harder, you will be able to reach success!

The Hidden Costs of Free Online Tax Preparation Services

If you need to file your taxes and you are looking into free tax filing services you should be sure that there are some hidden costs involved most of the time. While many services boast a lack of hidden costs, it is almost inevitable that you will pay something, though the service claimed to be free. The fact of the matter is that many services claim to be free, but then you will pay to file the returns electronically; therefore the services are not free at all!

The way that online free online tax filing services get away with calling their services free is that they say that the service is free; you simply have to pay a convenience fee as well as the price of filing electronically. What this means is that you can end up walking away from your free tax preparation with a bill for $50 or more. This really isn't a bad deal, but when you think that you are getting something for free it can be quite a shock to receive a bill for this dollar amount.

There are cheaper tax service options out there, but generally if you want to have your taxes done right you will need to pay a bit. Other than the actual hidden costs of convenience and electronic filing, you should be aware that many tax service options that say that they are free don't charge you, but you lose money because the system is not able to pick up all of the deductions that you may be able to take. This takes money out of your pocket. Many people end up owing money to the IRS when they use these services when they could have had a refund if they had used a different service or done their taxes on their own.

The hidden costs of free online tax preparation services can cost tax payers quite a bit of money. This is why you should be assure free tax providers really know what are they doing and will go to bat for you looking for deductions that will save you money, and perhaps get a great refund for you. Ask about the systems that they use and also ask for credentials before you accept the supposedly free help from someone. The saying that says "you get what you pay for" applies to free tax filing services as well as other things.

7 Financial Steps Every Working Mom Needs to Know

Being a working mom means you have two full-time jobs – your family and your career. The last thing you want to deal with are your finances. As if you don't have enough to worry about! However, they can't be ignored, especially with kids in the picture. Use these seven steps as a guideline to ease your stress and help you sleep better at night! These steps will simplify your life and streamline your money responsibilities.

1) TAKE A FINANCIAL SNAPSHOT. A common obstacle to taking control of our finances is getting organized. Start by taking a 30-second snapshot:


• How much do you OWE? Include mortgage, credit cards, student loans, personal loans and home equity loans.


• How much do you OWN? Include all investments, bank accounts, retirement plans and home equity.


• How much do you SPEND? This should be one number for your monthly spending. Be sure to include all those extra expenses that create havoc on our budgets.


• How much do you EARN? What is your total income after taxes for the year, the month and year-to-date?

2) DEAL WITH YOUR DEBT AND CREDIT REPORT HEAD ON. The first step is to run a credit report from all three agencies and get your FICO score at www.myfico.com. On the credit agencies websites, you can fix any mistakes you might find. Then consolidate and transfer any credit card debt, to a permanent low interest rate credit card. You can find one at www.bankrate.com. At the same time: stop using your credit cards and go back to a cash basis. Finally, come up with a payment plan to determine when you will be debt free. Create your own at http://www.kiplinger.com/tools/.

3) CREATE A SPENDING PLAN. An easy-to-follow spending plan can make all the difference in your money life. This one is easy to follow and will work wonders for your cash flow. Many of us have gotten used to paying everything with our credit cards and we do not know where our cash goes. As a result, there is not much left over at the end of the month. Sound familiar? Start by living on cash ONLY for the next two months. Then, come up with a set weekly spending amount and stick to it for the week – NO MATTER WHAT! For example: your weekly spending amount is $350 for all your non-fixed expenses (food and clothing included!). You will find that there is more money left over at the end of the month and now you can take your family to Disney World – guilt free! Whatever is in your wallet is your weekly spending money. When you run out of money in your wallet, you are done spending for the week. You can still do the things you love, but you need to prioritize them on a weekly basis. If you have a big purchase that week (i.e. new shoes for the kids), plan accordingly.

4) MAKE SAVING FOR RETIREMENT A PRIORITY: There are so many expenses fighting for your time, that saving for retirement keeps getting pushed to the back burner. For many working moms that feel stretched, I suggest to start saving at least 3% of your income to your 401(k). It lets you take advantage of your company matching and saves you money on taxes. It is not really enough to retire on but it is a great start! If you are already contributing to your 401(k), then increase it by 1% every six months and every time you get a raise. You won't feel it! If you don't have a retirement plan at work, setup an automatic savings to a ROTH or Traditional IRA at a mutual fund company. See if you can maximize the $4,000 limit by contributing $333 automatically every month.

5) SETUP AUTOMATIC SAVINGS. Make it automatic, automatic, automatic. Preferably, setup the automatic savings to a money market that is not at your bank. It is a bit harder to get to but you also can't touch it as easily! Even if you can't afford that much, start at $50 a month. Facts are that people that save on an automatic basis, end up saving more money. Consider ING DIRECT www.ingidrect.com or Emigrant, www.Emigrant-Direct.com. They are currently paying 4.50% and 5.05% on their money market with no fees and no minimums.

6) YOUR CHILDREN'S COLLEGE EDUCATION. With the surge in popularity of 529 plans, more parents are focused on saving for their children's college education. If you feel confident you will be sending your child to a Public University, verify if your state has a prepaid college savings plan. Your money will go much further! If you want to leave your options open, then the 529 plan is a better choice. Some of the benefits include: When the money comes out for an accredited college, it is free of federal taxes, the money grows tax deferred, very easy to use, can be made automatic and the donor (usually the parent) has control. Visit www.savingforcollege.com for more information about your state's plan. Another way to get more bang for your buck is through Upromise www.upromise.com. This company gets you free money for your 529 plan by shopping for everyday things. Finally, you should go online and use a savings calculator to see how much you should save. T. Rowe Price www.troweprice.com has a sophisticated yet easy-to-use site.

7) EXAMINE YOUR INSURANCE. I keep meeting more and more working moms that do not have life insurance. Make sure you and your spouse are properly covered. It does not have to be expensive; you can find very inexpensive term insurance (visit www.accuquote.com). You only need life insurance until your youngest child is 18 years old. To figure out how much you need, check out the life insurance calculator www.kiplinger.com/tools. While you are at it, is your will up to date? If not, make an appointment with an attorney right away. You can also DIY inexpensively with a will program on www.nolo.com.

8) CHANGE A MONEY HABIT. I threw in another step for good measure. Very often, we get stuck in our money habit ruts. A few suggestions to see positive changes in your financial life:


• Open all the money envelopes the day they come in


• Switch money duties with your spouse


• Make your finances as simple as possible. Close and consolidate accounts.


• Say a daily money affirmation. For example: "I am open to receive financial prosperity and abundance."


• Read a financial book


• Call someone. A friend, family member or financial planner. Don't complain but ask for support and guidance on how to move forward. It's always easier working with someone than alone.

Jack and Jill

Jack and Jill went up the hill to bring a
pail of …money. Money? They are continuing
to fill up their pail with pillory without any
consideration to the value of these equities. They are not worried at all as they are buying
“safe” common funds.

Everyone cognizes common finances are safe. Jack
and Jill cognize they don’t cognize how to pick good
pillory so they go forth that to the monetary fund manager. He is an expert.

When you look at the long term record of 99%
of the common finances you will see that expertness has
been sadly lacking. I detest to remind you of the
2000 to 2003 period, but I must. In fact I must
state you it is going to go on again. Now you
desire to cognize when….and sol make I.

And that is the problem with almost every
monetary fund manager. As long as the market is going up they
can’t make much damage to your account, but when
it revolves over and caputs down they have got no idea
how to put when a bear market is in progress. Not a single 1 of them will acknowledge that
cash is a position.

Cash is a position? They are in shock. Of
course of study they are. If brokerage clients put
their money in a money market account while the
market is falling it intends they do not do any
committee at all and if they urge this to
their clients the brokerage manager will fire
them because he won’t make any money either. “Keep your clients fully invested or I’ll show
you the door” is the manager’s comment.

You must learn when to sell. Any sap can
buy, but it is the wise adult male who cognizes when to sell. To see the status of the overall market one
of the best indexes is the SP500 Index. Your
broker compares everything he makes with the
SP500 because it is a wide alkali of 500 stocks
that are widely traded.

The high-grade index is the SP500 Index. Draw a 40-week chart of the shutting prices. If you
don’t cognize how inquire your broker. He will tell
you. Write it down and salvage it. It is very
simple. Rich Person him put up a 40-week Simple Moving
Average to look on that chart. Look at 5 years
worth of prices. Immediately you will see that
if you are in the market while the 40-week ma is
going up you are making money and if you are out
of all your places while the index average is
going down you will not lose money. It doesn’t
get any easier that that.

Jack and Jill can fill up their pail as the
market is going up and need not slop their
accretion while they walk confidently down
the hill retention their bucket full of cash not
equities.

Is Offshore Banking Just For Crooks and Conmen?

Is offshore banking just for crooks and conmen? Well, let me put your mind at rest and say, no.

An offshore bank account is simply a bank account in another country. Some people have them because they were born there. Some have them because they do business abroad. Some have them because they want to have money kept safe from nuisance law suits. Some have them because their own government is unstable. Some have them because their own currency is unreliable. Some have them because they want to hide money from the wife!

There are other advantages too. First, no tax is deducted from interest earned on deposits. Secondly, there will, or should be, be no active onshore bank accounts to aggravate your case for non-resident classification the Inland Revenue or IRS. And, third, private offshore banking is strictly confidential.

You might also want private offshore banking to:

- Expand your business;

- Simplify business administration;

- Asset protection;

- Global and/or tax-free investing;

- Trade worldwide.

Simplicity of operation may be even more important than lower taxes. If you are planning to set up a company other than a bank or other finance-related company, then you will find certain jurisdictions to be more suitable for business operation. Different countries obviously have different laws, and there may be huge differences between them.

Any country that is not your home country may be considered offshore and many of these provide as much or more financial safety.

Some banks will open a so-called numbered account. A numbered account is maintained under a number (or a false name) only; the actual account holder's name is protected by the bank. Such accounts may be held by both individuals and corporations. The bank itself must know who you are, under 'due diligence' and 'know your client' rules.

Also, another benefit of going offshore is you may save money in taxes. Offshore banks are located in tax havens. Not having to pay taxes can save businesses significant amounts of money and is the main reason, other than privacy, that individuals choose offshore bank accounts.

However, you don't have to be ultra-rich. All you have to be is an entrepreneur interested in doing business abroad or via the world wide web.

Because credit cards provide easy access to offshore funds and accounts in tax haven countries, this situation allows income to be hidden. Although is not illegal to have an offshore credit card, the average person does not need one. Some individuals use offshore credit cards to evade paying taxes.

This is a foolish reason to get an offshore account. If you are resident in and doing business within a country, you are subject to its tax laws. If you are also a native, or passport holder, your 'wiggle room' with regard to local taxes is likely non-existent. Take advice from a specialist accountant before trying to hide the revenue from your dry-cleaning business!

If, however, you are doing business abroad, and your money stays abroad, and/or you're are not domiciled in the country you're operating from, it becomes progressively easier to own and operate an offshore bank account legitimately. You just need to get up-to-date on local tax law.

Trading Online Stocks

Trading on Online Stock market simply means buying and selling of shares through your computer, internet enabled mobile phones and personal organizers all of which are linked to the forum known as the World Wide Web. The online stock market and online stock trading, though a recent phenomenon has provided millions of people to diversify their investment strategies and invest in online stocks across the world.

The advent of the Internet and Internet trading has led to the growth of stockbrokers offering the service of online stock trading to the consumer. Before you actually decide to take on their service of the stock trading system, you can first try your hand at imaginary portfolio maintenance where the stock broker will provide you free information as well as portfolio monitoring. You can see how well you perform and then take on the challenge of committing real money to online stock trading.

Guide to online trading – All you need is an online brokerage house, a computer, internet connection and some money to invest. It is also essential to be aware of the laws of investing, economic conditions, market volatility and fluctuations. To make money through the online stock trading system, one must exercise caution as well as prudence.

Online stock trading typically is less expensive than other forms of physical dealing as, being an automated process, cuts down the expenses of a middleman. If you want to set up a trading account with the broker, you have to register and transfer money into your new account. Although online brokers do not really offer advice on stock trading, you can access all the research resources online. These include share prices to company reports, analysts' earnings forecasts to company-specific news. Once you have studied the market and decided on the online stock that you want to buy, you click on the designated buttons on the screen and execute your choice. The deal is carried out instantly without any hassles that are typical of conventional transactions.

Online stock trading prices and stock market indices are normally delayed by 15 minutes to avoid paying Stock Exchange charges for 'live' prices. However, if you are prepared to pay an extra monthly charge, or if you're a frequent trader, you can get access to live business news and prices as well.

All online stock deals are sensitive in nature and are encrypted for security reasons. It makes it virtually impossible for a hacker to crack the code and intercept those details in transit. Online stock trading is as safe, if not safer, that most other types of dealing.

Online Stock trading is a popular and easy way to trade in shares and stocks. But remember to invest only as much as you can afford; if used unwisely it can lead to your financial ruin. However, with prudence and awareness online stock trading is a good way to earn money.

The Secrets of Success

The Secret of Success is not really a secret, it's just a philosophy of life that many of us choose to avoid or ignore. Quite simply, success often comes disguised as hard work, perseverance, and a bit of luck.

Most of us are somewhat dismayed and disappointed when we learn that the secret is what we always suspected. But short of inheriting an empire or landing a huge sporting contract, there is no such thing as a Secret.

That said, there are things you can do to improve your odds of achieving success. The first step is to define exactly what you mean by success. For some of us it would be a million bucks in the bank, for others it may be good health, or a happy family life. Your definition of success automatically points you in the direction you need to travel.

For financial success, you need to start a business or make some good investments. Saving money, controlling your spending, and managing your time are obvious steps within this area. There is an old story about Conrad Hilton being advised by his mother to leave his small hometown in New Mexico to find and build his dream in the city. He was reisitant to this idea, but eventually realized that he had to change his way of life if he expected to build an empire. It pays to evaluate your habits and beliefs to determine how they may be adversely impacting your road to success.

So, if there is a secret of success, I would say it starts with defining success, then dedicating yourself to accomplishing the steps to realize the level of success you desire. Even if it means changing your lifestayle or questioning your long held beliefs.

Fake Money

Reach in your pocket and take out that large axial rotation of bills. Depending on how many of them you have got you experience pretty good. BUT did you cognize they are not deserving the paper they are printed on? Huh? Let me explain.

Yes, those measures are legal legal tender because those cats in American Capital passed a law stating they must be accepted for payment. They are Federal Soldier Modesty Notes and it says right on the bill, “This is legal legal tender for all debts, public and private”. That is OK, but if you travel to the U.S. Mint will they deliver it in gold or silver? Old Age ago they did, but not since 1971.

Almost everyone have bought stock in a company. The company issues shares and each share stands for a part of the ownership in that company. It is against the best interests of the stockholders to publish further shares unless something of equal value is added. Why? Let’s maintain it very simple. Suppose the company is deserving $100,000 and it have issued 100,000 shares of stock. The stock have a book value of $1.00 per share. If the officers of the company make up one's mind to publish another 100,000 shares to engage security guards (like soldiers), rental (not buy) an airplane, addition the accounting staff (these folks make not increase production) and pay the executive directors more (who will bring forth the same amount as they are now) you will detect that all these disbursals make not add to the company’s profits. The value of all shares is now 50 cents per share because the value of the company have remained the same. $100,000 divided by 200,000 shares is 50 cents per share.

What have all that to make with your money? You have got seen in the paper that the Federal Soldier Soldier Modesty Bank (it is neither Federal nor keeps a reserve) have had an auction bridge for Treasury Bills. Sir Alan Greenspan have authorized the printing of those T-Bills. With just paper and ink he have created millions of dollars of debt for the government. And who is the government? YOU. Each clip the Federal turns on the printing fourth estates to sell authorities chemical bonds it effectively dilutes the value of the money you have. That is called inflation. Unless the productiveness rate of the country additions by a similar amount it devalues your currency.

Should you care? What it amounts to is everything will cost more than because your money stands for less. This is pecuniary rising prices and have nil to make with the supply of goods. Yet some twenty-four hours (who cognizes when) those chemical bonds will have got to be redeemed. The thought of the cardinal authorities is to maintain lacrimation down the money so they can pay off the debt with cheaper and cheaper dollars. This is a method of creating money instead of raising taxes yet you are paying for it.

Throughout history there have got got got got been scores of private and authorities banks that have issued fake (fiat) money and in every lawsuit they have failed and the holders of the fake money have lost. Volition that go on this time? I would not wager against it.

Trapeze Artist - Swinging with the Stock Market

When we travel to the circus we see a trapeze creative person workings on a high wire or swing either alone or with other athletes. They cognize what they are doing because of changeless practice, but every once in a piece there tin be a mistake, even a small 1 that can cause 1 of them to fall. The consequence is death or serious injury when they hit the ground.

When you look below them you will see a net. Thank goodness. No 1 desires to see them get hurt. As expert as they are they take precautions. In almost every community or athletic event there is some sort of safety network available and this is true in the stock market for all investors. There is never any ground for investings to fall to the point the investor is hurt. Are there a nett that interruptions that autumn and maintains the investor from losing all or portion of his money? Yes there is.

It is called a Stop Loss Order. Brokers don't like them and never urge them because it intends he must watch your account and the average broker have too many clients to make that. However, you can instruct him to put an Open Stop Loss Order that agency it is automatically in every twenty-four hours protecting your shares from loss. If you are not allowed to put this sort of order you should travel your account to another brokerage house. They obviously don't care about protecting your money.

Let me give you an example. Suppose that last twelvemonth you bought Lake Herring Systems (CSCO) at $50 per share. The first inquiry to inquire yourself is how much am I going to put on the line in lawsuit this stock travels down instead of up? You set up $5,000 and bought 100 shares. How much are you willing to risk? $500. $1,000. More? Well, today it is about $15 so if you did not have got a loss protection you would be out $3,500 and that is too much. The Stop Loss Order is your Safety Net! If you don't have got one you can be seriously hurt. One of the basic regulations is never to lose more than than 10%. Look at what you have got to see if you would have more than money today if you had placed a Stop Loss Order just below the highest shutting terms for your stocks. I cognize you would be money ahead.

There are literally thousands of pillory that have got lost 80% and 90% of their value. For those poor people (pun intended) who did not have got a safety network they are badly ache and some are just about dead. Sorry, folks, it did not have got to happen.

I don't care what you own. Now you should immediately look at everything in your portfolio and make up one's mind where you need to put those stops. If you don't set a nett in topographic point you could be hurt.

Paddle Your Canoe

At some clip in your life you have got been on a river in a canoe and hopefully you had a paddle. You cognize about being up the brook without one.

You quickly learned that paddling up watercourse is much harder than paddling down stream. The lesson of going with the flow can be applied to many facets of life and especially to the stock market. In the brook it is easy to cognize which manner the current is flowing, but in the market it is much more than difficult. At least that is what Wall Street desires you to think.

On the river there are markers and pilotages buoys to assist you with your passage, but in the money human race there are few such as true indicators. Actually it is very easy to determine the flow of finances in the market. Standing on the shore are people (brokers) cheering to travel to the right and another adjacent to him screaming to travel to the left. “Buy, buy, buy”. Very few of them cognize which manner the current is headed. You have got to calculate this out yourself.

Fundamental analysis is excellent, but it is very poor to allow you cognize when and where to paddle (put you money). There are many technical tools available, but these tin be hard to master for many people and few brokers cognize or care to learn them. However, there is one very simple method that makes work.

That method is too simple for brokers who desire you to believe that you need their “expertise”. They sure don’t want you to happen out as you won’t have got to pay them commissions any more. The paddle you need to have got to impel in the right direction is called the 200-day Moving Average Paddle and you can get it free if you cognize where to look. You can make this yourself, but if you have got a computing machine just travel to the web land site www.bigcharts.com and chink on their Synergistic chart box and they will do all the work for you. You can make this at the library of you don’t have got a computing machine at home.

Using an index such as as the SP500 you easily see that when the terms (your canoe) is above the 200 line (the current of the river) you should be a buyer of pillory and common finances and when the SP500 terms is below the 200 line you should be in a money market (even if it only pays 1%). You don’t desire to be under water. This is a simple manner to see the direction the market is flowing and volition maintain you from losing money when the market starts down.

No 1 cognizes when the current will change. And don’t attempt to guess. Let the river (market) state you the direction of flow.

Get yourself one of those good paddles and learn to maneuver your ain canoe.

Best Online Stock Day Trading Services

What is Online Day Trading?

Answer a simple question. If God approaches you and asks what do you need the most now? 'Money' would be your answer most of the times. Or may be peace. But for peace, you will have to get rid of the basic human instinct of envying the new expensive car your neighbor has just bought. But come on… that is human. So, to get rid of the jealousy you will have to buy a car costlier than him. Well that needs a warmer pocket for sure. And you and I know that it rains dollars only in dreams. So, what is your next course of action? Day trading is an interesting option.

Day trading is the first thing you need to know. Shares and stocks are the basic units of trading. Do you know shares? If yes, it would be simple for you to understand this. But if you are ignorant of the term, just know that as you buy shares from a company, you give it a small amount to invest into business and as it earns some profit, it gives the percentage of profit equal to your share. So here, the company works with your money and pays you the profit, without you actually working. Now let us come to day trading. Here you buy the shares and sell them as soon as the value raises to a level you have decided. You earn some profit. Or may be, if the share loses its value, you might lose some money as well. Experience is an important factor here as it helps to make a more informed and accurate decision.

We will show you how, even you, though naive, can earn through this business, toil-less money. What you need here is an experienced hand, for you cannot afford losing a lot before gaining it yourself. So, you need to go to a day trading stock broker now. Now who's that? A broker is a person who represents a brokerage firm and helps you buy and sell shares and takes some commission for his service. There are many day trading firm that are offering their services online.

SogoInvest is an online day trading firm that offers a variety of advantages to the investor. Actually, this discount brokerage site is one of the best and the most reliable of them around. It has two account types namely SogoInvest and SogoElite. Also its various investment packages – the Platinum, Gold and Bronze give you further options to select what suits your budget and your individual preference. What more, it has strategies to minimize the financial risk. It has the choices of making automatic investments daily, weekly or monthly. This best day trading stock broker also offers another very great benefit. It allows you to buy shares in fraction, i.e. you can buy any expensive share in fraction if you do not have enough money to buy the full one but are still interested in buying that share. So, with this day firm trading for you, you can earn safe and easy money.

We offer you very easy route to earn and that too online, without perspiring whatsoever. Have more queries? Just visit www.sogoinvest.com, the day trading stock broker and see if its discount online trading strategy to earn can benefit you.

The Compulsive Impulsive Trader

The Stereotype

We are all familiar with the stereotype of the "compulsive trader." Traders who are compulsively looking for trading thrills, while telling themselves they are doing it to make a profit.

The rush of adrenalin that comes from making the "big" trade and then watching to see if it is followed by a "big" win.

It is not so different from betting at the race track.

It is far removed from what is required for successful market timing.

Compulsive impulsive market timers take trades because of emotional responses to news events, market rallies, or market sell offs, because they "feel" they know what is going to happen next in the markets.

They take trades not because the trade is required, but for the thrill of the trade itself. All risk controls are ignored, no logical trading strategy is followed, and no exit strategy is prepared ahead of time.

Of course anyone can act impulsively at times. But in the investing world, impulsive trades are almost always losing trades. And compulsive impulsive trading, can lead to outright ruin.

Delaying Gratification

An interesting test was run to measure a person's impulsive tendencies:

Participants were asked to decide between taking an immediate, small monetary reward (that is, $100 right now) or a larger reward given later, $500 in six months.

Impulsive people tended to take the smaller, immediate reward. They have difficulty delaying gratification. They can't wait for the larger reward. They want what they can get as soon as possible.

Even disciplined people can act impulsively when the conditions are right.

There is little harm in impulsively going for a latte instead of your usual morning coffee, black with two equals.

Yet while some impulsive decisions may have little effect on one's life, impulsive decisions when trading the stock market can have major negative consequences.

Compulsively Impulsive

Trading (market timing) requires that investors clamp down on emotional impulsive behavior. Market timing is possibly "the" perfect example of unemotional, non-compulsive and non-impulsive planning. Timers look far ahead in time, planning for gains that may not be realized for months. If in cash during a bear market, actual profits may be postponed years.

Instant gratification is the exact opposite of what market timers must expect. Those who think that long term buy-and-hold investors hold the edge in long term planning are not correct. It is market timers, following a plan that takes years to unfold but offering gains far in excess of a simple buy-and-hold, who have the real long term strategy.

Conclusion

Compulsive traders will have great difficulty being successful (profitable) market timers. Market timing is the non-compulsive execution of a planned strategy, that can only be successful over time.

Impulsive traders will have great difficulty being successful (profitable) market timers. Market timing requires adherence to a trading strategy that requires trading not when you feel the urge, but only at specific points in time when your trading strategy tells you to do so.

Compulsive impulsive personalities face many difficulties. But in investing, be sure to hold those impulses at bay if you want to successfully beat the markets.