Money Talks in Bloggy Sense: August 2009

Saturday, August 29, 2009

How to Teach Money Management to Your Child

Financial responsibility is one vital attribute of a successfully managed life. It is a lifelong effort that should start at an earlier age up to the twilight years and even beyond. Learning financial responsibility while you are young prepares you for proper money management later in life. Training your child to manage his money is not just a gift, but a responsibility as well for the parents. When a child learns how to responsibly manage his finances, he gets a foretaste of financial stability when he grows up.

Teaching a child financial responsibility should start early. This can be as simple as telling a 3 year old "no" when they want you to buy something. Or even saying, "We don't have money for that today". These statements are helpful for a child to hear as they are based on reality. It will also allow the opportunity to open a discussion about money. This may not happen at 3 years of age, however, it will allow a child to be more comfortable when he/she is developmentally prepared.

Next, teach children the actual value of money. Teach them the meaning of a penny, dime, quarter, dollar etc. Teach them how to count money. Although this is taught in school, it is vital to financial responsibility to grasp this concept early. There are many books or workbooks that are helpful.

Next, teach a child the meaning of money by teaching them how to earn money. Discussions often happen early about why a parent must go to work or pay bills, etc. Discuss ways an adult earns money by discussing various jobs or careers. You can then discuss how they can earn money. Common jobs for children are chores, lemonade stands, paper routes, mowing lawns, and babysitting.

After a parent has taught a child how to earn money, it is time to teach a child how to spend and save money. 1 way to teach spending and savings is to have 2 piggy banks. Mark 1 as spending and the other as savings. Have a standard plan of how much goes into each piggy bank. For example, if a child earns $5.00 per week by completing chores, maybe $3 goes into savings and $2 goes into spending bank. It takes quite an effort to teach your child how to spend and how to buy something. This is also a delicate task to handle as a parent because it should be modelled and appreciated.

After there is enough money saved to open a savings account, take the child to the bank. Explain why people use banks. Next explain their new account by discussing their savings statement. This is very helpful for young children, as it is a hard concept that you have money being cared for by someone/something else. Banks are often initially frightening for children. Continual friendly explanation is often helpful.

As a child grows, you can have them place their checks for birthdays or holidays in their respective piggy banks. As he becomes ready for work until he finds a job, try to keep them on the same system. This helps encourage proper appropriation of funds for wise spending and saving.

Friday, August 28, 2009

Build relationships through proper communication of feelings

Healthy and open relationships rely on quality communication to sustain them. At times, these interactions have to be honest and blunt for the relationship to grow and be strong. However, caution should be exercised so as not to repel the other person because sometimes the truth hurts and it could scar the relationship permanently.

We have to understand that these feelings are important and expressing them is not only necessary but also helpful for personal growth. We cannot help the way we feel about certain people or situations but we have to express these feelings in a constructive and helpful manner. Yes, we can control the method in which we convey our feelings if we put ourselves in the other person’s position and try to understand how they feel. Then deliver our feelings in a well thought out constructive fashion.

There are times that direct communication may not be necessary or could be disastrous, yet, keeping these feelings unexpressed may be too heavy to hold. In this case, find a creative outlet to communicate your feelings. You can try to use poetry, painting or other art forms to express your feelings. You can also write down how you feel in a daily journal. This journal can be an effective tool that allows you to express all the feelings you have about something or someone without fear of reproach or judgment. But understand that someone may find this journal and if you write less than flattering things about them in the journal, it could make the situation worse.

As a rule however, talk to someone you trust about how you feel. It really helps just to have someone listen to you and constructively, this person can give you an entirely new perspective on the situation. And then you can effectively manage the situation in a new light that is worth the bucks...

Wednesday, August 26, 2009

Frugal Lifestyle: Creating Tempting Leftovers For "Free" Meals

BY Rosey Dow

The greatest saving strategy you can have is to use every scrap of food that comes into your home. The trick is to disguise leftovers as a completely new meal. Here are some ideas for putting leftovers to good use. And while you are at it, consider the advantages of planned leftovers.

After each dinner, add leftover vegetables with their juices to one large freezer container. Add any leftover gravy or cooking juices as well. When the container is filled, use it as the foundation for nutritious and tasty vegetable soup...practically free.
Leftover mashed potatoes can be used in Shepherd's Pie, Canadian Meat Pie, or in Beef Patties.
Leftover gravy can be used in Shepherd's Pie or over Supper Pancakes.
Freeze bread heels and stale bread in a bag or freezer container. Blend the frozen bread to use it as bread crumbs or cube the bread for stuffing or bread pudding.
Rejuvenate leftover muffins by scooping out the center, filling the cavity with butter or jam and baking at 350° until warmed and the butter is melted. Or cover the warmed muffins with creamed eggs for a breakfast treat.
Use leftover oatmeal in Oatmeal Cake or Oatmeal Muffins.
Marinate leftover vegetables such as broccoli and cauliflower, or even green beans, in Italian dressing and use them as a flavor accent for your salads.
Thick stews can be used as filling for pot pies. If your stew isn't thick, add a few potatoes and simmer until it thickens.
Add white sauce to any leftover vegetables and heat thoroughly. Add cheese, for more protein.
Cook twice as much broccoli, cauliflower, or spinach as you need for a meal. Set aside half the vegetables to appear again in 2 days in a casserole with cheese and crumb topping or in quiche.
Leftover pasta or rice can become the crust for quiche or meat pie.
Grind leftover ham in a food processor or meat grinder to mix with a small amount of mayonnaise and use as a sandwich spread.
Meatloaf is often left over but seldom used. Place ¾" thick slices of meatloaf on a broiler pan. Spread with ketchup and broil for 3-5 minutes. Top with cheese and returned to the broiler until melted.
Use leftover coleslaw in soups and stews. Simply place coleslaw in a colander and rinse it under a faucet, then dump the coleslaw into the soup pot.
Biscuits can be split, buttered, and toasted under a broiler for 2 minutes. Use these biscuits as a substitute for rice, potatoes, or cornbread in recipes such as Creamed Chicken or Curried Chicken. Or sprinkle on cinnamon sugar for a tasty breakfast.
Use leftover pasta or rice in casserole recipes. This would be an excellent way to save time as well.
Besides banana bread and other baked goods, brown bananas have many uses: banana milkshake, banana-peanut butter sandwiches, Banana French toast (add mashed banana to milk and egg dip).
Leftover cake can be used in many ways. Use your imagination. If you have leftover chocolate cake, make a trifle with chocolate pudding with cherry pie filling for a delicious Black Forest trifle. How about yellow cake and vanilla pudding with peach pie filling and raspberry jam for a Peach Melba flavor?
Sour milk should never be poured down the drain. Instead, use it to make baked goods that call for buttermilk such as pancakes, waffles, gingerbread, or cornbread.

And now I'd like to invite you to check out Penny Pinching Meals, a cookbook that will save you time and shrink your food budget with your family happy and satisfied. See the free video at http://www.youtube.com/watch?v=fXdaHLb0RAo Rosey Dow is CEO of ExpertsinFocus.com

Tuesday, August 18, 2009

The Real Story Behind Credit Cards

by Carmin Olivier

A credit card can be an asset to your lifestyle, but if not handled carefully it can become a liability, especially if you find it so convenient and easy to use that you lose control of your spending. This short guide will help you understand how you can use your credit card so it works to your advantage, not against you.

A credit card can:

Offer free use of funds, provided you always pay your balance in full, on time.
Be more convenient to carry than cash.
Help you establish a good credit history.
Provide a convenient payment method for purchases made on the Internet and over the telephone.
Give you incentives, such as reward points, that you can redeem.

On the other hand, credit cards can:

Cost much more than other forms of credit, such as a line of credit or a personal loan, if you don't pay on time.
Damage your credit rating if your payments are late;
Allow you to build up more debt than you can handle;
Have complicated terms and conditions;

A credit card is first and foremost a flexible payment tool accepted at 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made so, essentially, short-term credit is granted without the consumer paying any interest. Among its many features it provides:

Access to unsecured credit (no collateral required against amounts charged)
Interest-free payment from time of purchase to the end of the billing period
Instant payment of purchases, allowing for instant receipt of goods and services
24/7 access
Fraud protection

However before you decide to use your credit card, carefully consider all of the factors and weigh them against your personal needs and values. Handling money and credit cards wisely is a talent few of us are born with. But it is a skill that can easily be learned. The place to start is with budgeting. It's simply an organized way of managing your finances, basically, it gives you an overall picture of where your money is coming from, when it's coming in and how it's being spent. A budget should be flexible, changing according to your circumstances.

Budgeting helps us achieve short-term goals like paying the monthly bills on time; it's also for longer-term financial goals like buying a home, a car, paying for an education, a wedding or a holiday. When you take control of your financial affairs, you're more confident about the future.
A budget is key to financial control. It gives you a "Polaroid picture" of where you stand financially and where you're heading.

Credit card control tips

Use a low or no-fee credit card and save on the annual fee that some companies charge.
Only charge to your credit cards what you can pay off in full when the bill comes.
You might not use your credit card as much if you start believing that you have to pay off your entire balance at the end of each month.
A good way to help to reduce what you pay on your credit card is to search for a card with a lower interest rate. Many financial institutions now offer at least one of these types of cards.
Remember that when you take a cash advance on your credit card, the interest starts accumulating immediately and not on the due date of your credit card bill.
Also keep in mind that if you make only the minimum monthly repayment you may never get out of debt.

The main advantage of having a credit card is convenience but if you're not good at budgeting and managing your finances, the over-use of credit cards can leave you with a debt that's very difficult to pay back. Take this friendly advic e...

Sunday, August 16, 2009

Earn Money in Unusual Ways

Money has a character that is so persistent and domineering for people. That is why you must endeavor to discern and deal carefully with that character and become its master. Earning money requires that character on your sleeve as you apply common sense in every sphere of your life. Unfortunately, in the game of money-making, common sense has become uncommon. There are lots of ways by which you can make money if you will only use a little common s

ense and that strong character that money carries. And these are unusually available. Here are some unusual ways to earn money that some of us may not have considered and may now consider or ignore. The choice is yours.

Personal shopping for other people
Did you know that some people with more money than time will pay you to do their shopping for them? And if you have a flexible schedule this could be a much more interesting way for you to earn money than working at the local pizza joint or student cafeteria. Some independent personal shoppers anywhere from $25 to $250 an hour! And depending on the situation may reasonably ask to be reimbursed for transportation costs.

Blogging
Of course you'll also need decent writing skills in order to get paid to blog and you'll need to learn how to set up a blog and drive traffic to your blog or blogs. This is more on product reviews/marketing and pay-per-click advertising.

Become a Tutor
If you're knowledgeable in a particular topic area, you might consider becoming a tutor. In fact there are tutoring services that will help bring students to you and you may also be able to work directly with your school to obtain tutoring clients.

Selling old books and Items
Selling books yourself on sites like Amazon and Half.com will allow you to make a lot mo

re money. Most college students and even your friends have a lot of stuff that they spent a lot of money on and don't need any more: Video games, books, and even used shopping bags from Abercrombie & Fitch or Gucci can have value on eBay. Curious about how much your stuff is worth? Just look it up on eBay and see what it's selling for.

Babysitting
This can also be a way to earn great money -- especially if you live in an area with a lot of wealthy families! How profitable can babysitting be? Just ask Kevin Federline. Britney Spears agreed to pay him $20,000 per month in child support.

Selling sperm
Look around your house, and you'll probably find plenty of ways to raise cash for textbooks and old unused items. And if that isn't enough, look within and you just might find something very valuable- your sperm! Here, you need to be in good health with a strong family history of good genes, and your sperm have to have high motility. But if you meet the criteria and aren't terrified by the notion of having children all over the world whom you don't know, this can be a fantastic way to make money. Whew…

Selling your hair
With the economy squeezing the budgets of more people around the world, some people are looking for creative ways to pay their monthly bills. Selling hair on the Internet is just one of those unusual methods. The longer the hair, the more it is worth. Untreated hair is also likely to fetch a higher price.

eBay arbitrage
A lot of people like buying stuff on eBay, because it’s cheap. And some people never buy on eBay, because they are afraid of being ripped off. Here is your solution to making easy money on eBay. Go to Craigslist.Com and see what items people buy and sell most often. Look at prices. Then go to eBay and see, if you can get it cheaper. Once you find your niche, you can buy things on eBay (or better yet, act as a representative for an eBay powerseller) and sell them for a profit using local classifieds and Craigslist. You can do this online as well. Set up a proxy store, and when you get an order, simply buy the same item on eBay for less, substituting shipping address from your own to that of your buyer.

Finding out things
A lot of people are busy nowadays and can’t find out things which would support their lives. We are in the information age and it’s only those with the latest information survive the tide of time. Spend quality time finding out things and make money from it. For instance, so many people are seeking for the right mechanic. You can actually print find out the right mechanics, make directories and print handbills. You might paste them on organizations and you will be surprised of how much people will call on you. The mechanic will pay you for every referral and this is just something you do in your leisure. This is just but a tip of the iceberg. There are still so many things to find out. So you still have a chance to make money just by finding out things. Consider your neighborhood, what does the inhabitants needs desperately? In your school environment, what can you do to make money legally from the students? You might be laughed at, but never worry because you are making money and that is the most important issue.

Hobbies
Hobbies are what we love doing in our leisure times. But do you believe you could actually make money from those scrap hobbies. Some of us love singing, dancing, crafts, writing, reading etc. what you have to do is this: find out how to harness the power of creativity and make that hobby pay you. Today, I earn from my hobby. I enjoy writing on different topics and that is why I wrote this for you. Just give it a little time and watch how money comes into your pocket.

Real estate
This is absolutely wonderful. Save some money, buy a house and sell it out after renovation. You would be surprised how much profit you would make from it. However, it’s on the long-term basis.

Thursday, August 13, 2009

3 Steps To Increasing Your Income

Most accountants, financial planners, wealth-building experts and real friends agree that there are really only three ways to increase your income. You can either:

1. Increase your revenue (make more money),or
2. Decrease your expenses (spend less money), or
3. Do both 1 and 2

However, what is not so obvious are the words that should always follow these income-increasing statements. Accountants, financial planners and wealth-building experts are often so close to these principles that they assume we all know them to be true. They also tend to believe that everyone , not particularly a woman, has the necessary discipline and patience to automatically make them happen. Here are the reality-based revised versions of the statements that, although might not be as easy to relate to, really make more sense and, if you follow them to the letter, will help keep you on track. If you want to increase your income you must either:

Increase your revenue (and at the same time keep your expenses the same or less than before) , or
Decrease your expenses (and at the same time maintain or increase your revenue), or
3. Do both 1 and 2

One version of Parkinson’s Law is that “expenses rise to meet income.” Put another way: “The more you make, the more you spend.” If you truly want to increase your income, it is important to maintain the same, or even a scaled-down, style of living for a period of time.

For example, if you make $45,000.00 per year and receive an annual raise of 10%, you gain an additional $4500.00 per year ($375.00 per month) for a new total of $49,500.00. It is awfully tempting to spend this extra $4500.00, rather than invest or save it. In addition, it is easy to talk yourself into upgrading your lifestyle by trading up for a more expensive car, taking an unplanned vacation, shop online for that much talked about gadget or some other deserved reward. After all, you just increased your income by $375.00 per month. Right? Wrong if you spend it!

If you spend the extra money, you have not really increased your income at all. In fact, if you spend it and then take added taxes and other liabilities into account, you may actually have less income than you had before the raise! Weird, huh?

The point here is that it’s not just about making more money. It’s about what you do with the extra money that determines whether or not you have truly increased your income. The reverse is also true. Let’s say that instead of the 10% raise, you get no raise at all. But, you decide to raise your income by cutting expenses. If you find a way to cut your expenses by 10%, you actually are gaining over $375.00 per month. If you are able to cut your expenses by $4500.00 per year, in reality, you just increased your annual income by 10%. Weird again, but true.

Your desire, ability and willingness to both cut expenses and increase revenue will determine how fast and how much your income will jump. It’s a powerful combination, and this is the secret that most wealthy people use all the time. The usual color of money is green, so refresh your financial gain by following these eco-friendly(economically friendly) steps.

10 Guide Questions for a Better Financial Life

"You answer my questions with questions..." The lyrics of the song "Question" strike me often.

What does it really mean? So, each of us has the ability to find the answer to any question. They key is to ask the right questions. If you're frequently asking yourself, "Why was I so dim-witted to get into debt?", your mind will provide an answer like, "Because you're a loser."

You should remember that your brain will keep working on your question subconsciously until you obtain an answer. We've all had the experience of waking up in the middle of the night with the answer t

o something you were thinking about earlier in the day. The quality of the answer is directly related to the quality of the question. A better question is "What action can I take today to start reducing my debt?" Your brain will ponder this until it returns an answer. like a concerned friend. That may be something like, "Get financially organized. Look through all my credit card statements and see if I can determine if any one card is better than another."

According to Scott Bilker, the founder of DebtSmart.com, here are 10 questions whose answers will guide you to a better financial life:

What action(s) can I take today to start reducing my debt?
How can I start making more money within the next 5 days?
What can I do to start saving money?
What did I learn about finances today?
What day, this week, can I commit to going to the library and researching my financial options?
How can I use my computer to improve my life financially?
How can I double my income within one year?
What dreams did I have when I was younger that I should revisit today that would improve my life?
Do I have the right amount of insurance?
How can I enjoy the process of working to reduce my debt?

Now find the answers...

Related site: Pinay Questions (filipinastudes.blogspot.com)

Friday, August 7, 2009

How to Save Money When Buying Groceries

The money that you spend on buying groceries each month is not fixed like it is in maintaining your car or everyday traveling. In order to control your spending on groceries, you will need to understand how you end up spending extra money on groceries. These are thing

s that you probably never noticed or realized before. Let me therefore share some friendly advice by attempting to show you some strategies of the shopkeepers that make you spend more than needed.

For you, a grocery shop must be a simple place where you can shop for food and some other household goods but the fact is that it is an example of how the shopkeepers sell more to the consumers than required. It is necessary for you to understand the tactics of the shopkeepers and purchase only those items that you want to shop and avoid all the other things. This will help you to save money by not buying things that the shopkeeper wants you to buy.

Here are some steps for you to understand how a shopkeeper tries to sell you those items that he wants to sell you.

- As soon as you enter the shop, the first thing you will notice is the smell. The reason for this mouth-watering smell is the placement of the bakery near the entrance of the store. The smell is of those freshly baked products. This smell makes you feel hungry because the deserts give out an enticing smell and therefore you feel like buying them. This will make you spend more than you desire. The shopkeeper knows this and hence the placement.

To tackle this kind of a situation what you can do is, go for shopping only after you have had your meals. When you are full, it becomes easy to resist the smell of the bakery deserts and bread.

- The location of the grocery store in the shopping mall is another reason. You will notice that you have to travel a lot to reach the grocery store. On the way to the grocery store, you come across so many other stores that you can’t resist stopping there. That is why it is said that the longer you stay in the

store the more will you spend. That is why you are made to walk so much to get that basic staple food which is bought by everyone. Or perhaps, the beautiful lady or the nice-looking guy you met in fashionable attire has already bought some and you want to follow suit.

To avoid this situation, you can make a list of all the items you need to buy and stick to them till you leave the store.

- Packaging of a product is another factor that attracts you. The colors they use for packing are really bright. This doesn’t mean that you have to end up buying them. You might end up buying the wrong item. If you buy them in bulk from some another place, you will save.

Use the above tips and be careful that you don’t spend more than required when you go out grocery shopping.

Wednesday, August 5, 2009

Success Factors for Becoming Debt-Free

Perhaps you have noticed that debt is nasty and importunate. Debt has a sticky feature, like chewing gum that gets in your hair and wedged into the tread of your sneakers. It's like a splinter you can't get out . The harder you try to get rid of it, the more of it there seems to be. When you dislodge a chunk, you can't believe how much is still left and how hard it is to clean out. It's not an illusion -- or a sign of your own personal failure -- that debt is so sticky. Once you're in debt, researchers have established, you're much more likely to stay in debt for a extended period.

Resolving to get out of debt is easy; actually getting started is a bit harder. But the real ordeal is sticking with your plan. Here's what makes an effort succeed.

Persistence
It's the secret element that is as imperative as, possibly even more important than, finding the funds: persistence. The idea was that each person would race against herself to pay back her debt -- not against each other. You work at your own pace, and everyone's pace is different. It doesn't sound much different than making those monthly payments on your own. In other words, there's no question that debt tends to persist, and you have to cultivate an extraordinary persistence of your own to deal with it.

Accountability

Determine and recognize exactly how much you owed and how much you were paying, and regularly update your progress (or stumbles). If you don’t update your records, you fail. You tell yourself that this is your pursuit and no one’s gonna think and work as determined as you will and can do. We all know that feeling, whether from being on a diet or a too-strict budget. You've tightened your belt to the point that you're afraid to loosen it, lest you go hog-wild crazy. It's a valid fear, and being aware of it is your best defense.

Because most people make a simple but drastic mistake when they borrow from their cards or homes: They don't think about having to repay the money with after-tax dollars. If you feel like your debt is dragging you down and you don't know how you'll get out from under, maybe it's time to put on your running shoes. Ready, set . . .

Reinforcement

In a world where senseless shopping and fashion pursuit always get a gold star, it's hard to find any support for putting money toward financial freedom instead of feeding that plastic monster. To that end, reward yourself (not monetarily) whenever you overcome the temptation. How? That’s easier than looking for the money. You just got to be sensible and resourceful because there is more to life than buying the items or services that you thought are important.

It's not necessarily the big-ticket items that sink your budget. It's the steady onslaught of little ones. Sometimes you need to take drastic steps if you want a dramatic improvement in your financial life.

Camaraderie

Community spirit -- call it what you will. I think of it as the buddy effect. It’s not like you can talk to your best friend about your financial problems -- or your mom or your sister. So having a forum where you can say, 'I just got a $100 birthday check, and I'm putting it toward my credit card balance” -- and then getting a round of cheers from other people -- it's incredible. You don’t simply struggle on your own, others too are struggling like you do and others have already succeeded. Why don’t you find a common ground to share your experiences and get their push. That's because what getting out of debt requires, more than anything, more than money itself -- is stamina. Not only men, but women should build their stamina around supportive peers.

Sunday, August 2, 2009

Being the family reserve fund…

If you've saved well and others in your family or clan haven't, should you feel duty-bound to spend on their behalf? Well, here are some situations you could be falling into:

Your mom just called again. It seems that because you and your husband live a lifestyle that is careful, frugal and paid-off, you 'owe' your brothers' kids gifts; you 'owe' it to other family members to go and visit, and when you 'fail,' your brothers call her and complain. They all seem to think that you should spend because you can.

Or, no one on your side of the family talks to you anymore because you finally said 'No more' -- to thousands of bucks streaming from your bank account to theirs. The blood connection seems weakened and even the friendship goes low.

Your mother-in-law expected you to let a struggling relative and his wife live in a property you own, for less than market rent. But you are planning to rent it to augment the expenses for your daughter's education.

And, you know what it's like, too, when a family member is in financial crisis. You’re helping a relative now, with some amount here and there, when you can. It's intended on your part; You were asked directly only once, for help with a car problem. It may not be wise but you continue out of . . . guilt . . . sympathy . . . fear of them suffering if you don't help.

You begin to ask yourself if you have to bust your butt for someone else's gain especially when that someone feels like they only need to work 25 hours a week! You are fed up with being treated like the local ATM by family members who either expect gifts (the biggest gripe) or who need the occasional bailout.

What's outrageous is when the request is a demand, an expectation. "You have more money, so you should share it!" And it could be worse when that expectation threatens your own financial stability. What happens if you get consumed?

Whose fault is it when relatives expect a handout? Is it your responsibility to communicate what you are and aren't ready to do. Should you be forced to wear a "Reserve Fund" label?