ABCMoneySource

2007-02-27T08:24:00.000-06:00

Technology has not only allowed investors to trade online, but has provided them with the tools needed to analyze stocks like the pros. In fact, technical analysis has become more popular than ever over the last several years. Traders evaluate past price movements to help forecast a security's future price. ===> read more...

Retire young and live off the profits

2007-02-20T08:20:00.000-06:00

In the fast-paced, exemplary world today, money matters more than most other things. This is the era of LPG (Liberalization, Privatization, and Globalization.) People are interested in exponential growth of money rather than slow growth. So, instead of saving all your income and using it for your post-retirement life, you can invest your income in a judicious manner to multiply it and earn much more from it.

Investment properties are a hot option for that kind of a plan. Investment property is a property that is not occupied by the owner, usually purchased specifically to generate profit through rental income or capital gains. There are lots of convincing reasons for you to realize the benefits of investment properties. ===> read more...

2007-02-17T10:25:00.000-06:00

There is so much information available about mortgages that it can be overwhelming. How will you get through it all? It certainly pays to do as much research as you possibly can. The more information and education you provide for yourself, the better off you'll be! SO...., do your homework, find someone you can trust and go with the best information you can get for the biggest purchase of your life. ===> read more...

2007-02-16T19:12:00.000-06:00

You probably need life insurance if you have a family or are planning one. But life insurance is expensive -- don't buy it if you don't need it. It typically doesn't pay to have life insurance if you're single and have no one depending on your income. Nor does it pay to have life insurance policies for children. There are much better ways to invest for them. But assuming you do want a life insurance policy, here are some helpful tips ===> read more...

MoneyManagement for Kids

2007-02-16T13:26:00.000-06:00

In the multi-dimensional and fast paced world of today you need to inculcate knowledge about money management in children from a young age. ===> read more...

Bankruptcy Study....

2006-11-30T20:32:00.001-06:00

To Tithe, Or Not: Do Debts Come First?
... Said Henry J. Sommer, president of the National Association of Consumer Bankruptcy Attorneys, which criticized the judge's decision and the bankruptcy reform: ...

This Blog is presented by ABCMoneySource.com When you get a chance, visit us to access MoneySources from the comfort of your computer.

Which Credit Card Is The Best Deal For You? - American Chronicle

2006-11-21T09:00:00.000-06:00

Which Credit Card Is The Best Deal For You? - American Chronicle

Which Credit Card Is The Best Deal For You?
American Chronicle, CA - 17 hours ago
The marketing departments of credit card companies are paid to make their deal look like it is the best for you, but is it really? ...

Eliminate Credit Card Debt (Benton Evening News)

2006-11-21T08:59:00.000-06:00

Eliminate Credit Card Debt (Benton Evening News)

(ARA) - You've heard the old adage, pay down your credit card debt each month to avoid the nasty interest rate charges and fees that result from revolving balances.

Using credit card for overdraft protection (Bankrate.com)

2006-11-21T08:58:00.000-06:00

Using credit card for overdraft protection (Bankrate.com)

It's a little known industry perk: If you have a checking account and credit card with the same institution, you may be able to link the two and use your credit card as overdraft protection.

Get master's at Stanford, without going to the Farm - San Jose Mercury News

2006-11-21T08:57:00.000-06:00

Get master's at Stanford, without going to the Farm - San Jose Mercury News

Get master's at Stanford, without going to the Farm
San Jose Mercury News, USA - 3 hours ago
... The new online degree offered by Stanford and a handful of other respected universities ... But a masters-level degree from the School of Engineering is a good fit ...

Grocery Store Clerk Accused Of Stealing Credit Card Information (WISN TheMilwaukeeChannel.com via Yahoo! News)

2006-11-02T22:36:00.000-06:00

Grocery Store Clerk Accused Of Stealing Credit Card Information (WISN TheMilwaukeeChannel.com via Yahoo! News)

A Milwaukee grocery store clerk who, police said, was caught on camera stealing customer credit card information.

Here we grow again....

2006-10-27T10:04:00.000-06:00

Yep, it happened again... we hit a new high in the stock market yesterday. As I write this post, the Dow is down about 24 points due to GDP numbers coming below expectiations and the fact that traders usually don't like to hold positions over the weekend. A slight pullback was going to be seen today anyway unless there was a REALLY GOOD reason to stay in over the weekend.

Still, for the year the "blue chips" are up 13.5% for the year and have set records for 13 of the past 18 trading sessions. How can you stay out of the market?!?!?!?!?!

Get in, learn, profit from your experiences and build a better future for yourself.

Not in the market?

2006-10-25T06:08:00.000-06:00

Why not? With so many ways to painlessly get into the stock market without having to be a financial expert, I don't understand why so many people still shy away. Here are three ways to help you stay informed and get in the market for the long haul.

Subscribe to a business newspaper. The Wall Street Journal is an invaluable assett to have when trying to keep yourself informed. Yes it has one section that is filled with numbers but don't let that scare you. It also has alot of in-depth stories concerning politics, international news, personal investing and other worthwhile stories that all (in some way) affect the rate of return on your investments. Just glancing at the headlines each day and reading the stories that interest you will help you stay ahead of the curve act accordingly with respect to your investments before many other people do. Usually, when you are ahead of the crowd with your investments, the crowd will carry you to higher rates of return. Think of being in the ocean and catching a wave early and riding it to shore.

Get in your company's 401(k) today. If you're not already in the 401(k) plan, get in today. Contribute the maximum allowed by your company. In most cases, your company will match a certain percentage of your contribution. THAT IS FREE MONEY. WHY AREN'T YOU TAKING ADVANTAGE OF THAT???? Your participation shouldn't cost you anything and experts manage your money for you. In most cases today, there are investment experts who will counsel you on how to invest your monthly contribution.

Start your own monthly investment in a simple savings account at the bank. With interest rates on the rise and internet banks competing with their brick-and-mortar counterparts, the return on simple savings accounts are difficult to ignore. A great place to invest your cash is in a savings account with Citibank® e-Savings. Earn 5.00% APY and you can set up a monthly automatic transfer out of your regular checking account into your e-savings account. Before you know it, you'll have a nice chunk of money to start a mutual fund with or invest in an IRA.

What are you waiting for? Take advantage of the opportunities that are out there and put some money back for when you retire. You'll be glad you did.

Banks are getting a clue

2006-10-21T07:09:00.000-06:00

An article in this morning’s Wall Street Journal (10/21/06) by Jane J Kim discussed how more banks are “chasing credit-hungry consumers” online. Why is this important? Who knows why banks are just now using the internet on a wider scale. My opinion is that banks are sometimes slow to come around. The internet has been cutting into their business for years, they’re now feeling the pinch and recognizing that the “internet thing” is not a passing fad. It’s here to stay.

Use of the latest technology can help speed up business, which in most cases, keeps costs low. The less human interaction during a banking transaction, the better. At least that’s my opinion. I don’t see why I need to go sit in front of a banker and ask for a loan when I can get on the internet, apply, be approved in seconds, and have the funds in my account in 24 hours or less. Internet banks and traditional brick-and-mortar banks who have figured this out are ahead of the curve. There are still a few people who value the human touch – I’m not one of them when it comes to things that can be better served with technology.

Competition keeps prices reasonable. For several years now, there have been many online financial institutions offering their products through the internet only. That business model allows them to keep operating costs down (no brick-and-mortar location) and pass those savings on to customers in the form of higher yields on savings products and lower interest rates on loans. In some cases, the difference in rates between online banks and traditional banks may not be much. In today’s world where consumers are able to send their money to any financial institution almost effortlessly, that money tends to follow the best rates offered – anywhere.

30 year mortgage hits a 7 month low!

2006-10-06T11:26:00.000-06:00

Falling 6.31% to 6.30% (woo hoo!!) the 30 year mortgage rates hit a 7 month low. That was a sharp enough drop to spark a rise in refinance applications of 18% last week alone. Housing bubble burst? It seems to me that people are trying to breathe new life into that bubble.

Gas Prices Falling -- So What?

2006-10-05T10:04:00.000-06:00

Gasoline prices have dropped more than 20% in the past few (2?) months. What does that do for you and I? Plenty! The less we have to spend putting gas in the tank -- a commodity which we very much need -- the more we have to spend elsewhere -- like on food, clothing, maybe even eating out or going to a movie.

Gas prices have an enormous affect on the economy. It is one of those "must have" commodities of today. So when gas prices rise, we spend less elsewhere and that hurts local businesses everywhere -- suddenly there's a national "belt tightening." We need gas for our cars so we can get to work, get the kids to and from school, get to the grocery store, etc. Delivery drivers, truckers feel the pinch because they certainly need gas to fuel their vehicles to get goods to the store shelves. They pass along the incresed cost of fuel to the locations they serve, who in turn pass it along to us in the form of higher prices on food, clothing, and other necessities! So we end up paying for high gas prices at the pump and EVERYWHERE else.

Thankfully, the price of crude oil (the underlying commodity that drives the price at the pump) has been gradually falling. Iran has settled down, there have been no major hurricanes like last year, the summer driving season is over, and crude oil inventories are at high levels. Translation: supply is higher than demand so the price continues to fall. That is the best way to get the price of most anything to fall -- quit using it! When supplies start building up, prices fall to get the product moving again. Merchants adjust their prices to entice buyers to spend. Market forces are much better at adjusting prices than any govermnent could ever do.

Want to keep the price of gas falling? Plan your daily driving -- if you know you're going to have to take the kids to school and then pick them up later, try to do errands while you're out. It saves just a little bit if you do more while you're already out and about rather than coming home between to-do's.

Don't fill up completely every time you go to the gas station. That one takes some discipline. My car holds about 16 gallons of gas. I put $25 worth of gas in the tank once a week. I know that gas has to last me all week long so I am careful what I use it for.

Buy gas when you see the price fall a few pennies. I watch the price of gas at the stations around where I live. I know that when I see the price of crude oil fall, there is sure to be a fall in price at the pump soon. So if I'm near my refueling day, I might wait to see if the price falls or if the price is too good to pass up, go ahead and get some fuel in the tank. Just know that it still have to last until next refueling time.

Just a few simple things to do your part on a daily basis to increase the overall supply of fuel and watch the cost continue to fall. Are you making that much of a difference? Not really, but if you get others to follow your example, the intended effect on fuel prices will be evident at the pump.

Stock Market Hits Record High

2006-10-04T07:15:00.000-06:00

When headlines like this were posted across the world back in 2000 the mood of traders and investors was a lot more euphoric. It took 6 years but this record demonstrates the reselient American economy and the strength of Democracy. In 2000 the Dow Jones Indurstial Average closed at a record high of 11722.98 but yesterday, the DJIA closed at a new record high of 11727.34.

It's a much different world today than the day when we hit the record in 2000 -- Of course, with 911 changing everything. Yesterday when the Dow reached the new record, traders barely even noticed. There was no applause; when the market closed, barely anyone reacted. People were more concerned with other news of layoffs and speculation of how the drop in oil prices will help out consumers going into the holiday season.

I like the fact that there wasn't much celebration of the record. I think it shows discipline on the part of investors. What is exciting is the days to come. Ok, the Dow hit a record. Will it back off today and have a record fall? Or will it keep pushing higher? Stay tuned!

More high yield accounts to put your money!

2006-09-26T06:06:00.000-06:00

One of the advertisers on ABCMoneySource.com is E-LOAN -- a popular online lender. If you need to purchase a home, refinance, or obtain a home equity line of credit, they are a great source for low rates. They are announcing today an online savings account that will pay an interest rate of 5.5% along with certificates of deposit (CD's) paying between 5.6% and 5.75% yeild. What a deal!

The competition among financial institutions and banks only means more attractive savings rates and lending rates for you and me as consumers.

These financial instutions are able to pay higher yields on interest rates because they just don't have the overhead of traditional brick-and-mortar banks. How long can it last? Only time will tell, but my suggestion would be to lock in good rates while you can.

Home mortgage rates dropping again

2006-09-05T07:32:00.000-06:00

Home mortgage rates fell again this past week because housing data is weaker and consumer confidence seems to be dipping a little. The average for a 30 year fixed mortgage was just over 6.4% -- one year ago, it was hovering around 5.7%. The average for 15 year fixed rate mortgages was just over 6% -- one year earlier it was around 5.3%.

Rates are continuing to drift lower continuing a trend that began this past summer beginning in July. So... have you still NOT refinanced your house yet? Act now while the rates are still relatively low -- anything could happen to make mortgage rates drift higher.

Buy, Buy, Buy

2006-08-06T17:56:00.000-06:00

Went on vacation this past week and had no access to a computer to update my blog -- that's why I've been away for awhile. I do have a story that's related the different subjects on this blog -- it's about real estate investment.

The place I vacationed was Durango, CO and boy has it changed since I was there as a little kid 20+ years ago. The houses in town don't look much different, but boy has their value changed! We took a rafting trip down the Animas River and had a great guide named "Kirk." We were talking about whatever came to mind and the subject of real estate came up. He said that he bought his house over 20 years ago for $52,000 and now the average home price is $465,000. Care to calculate how much of an increase that is? Well, I'll save you the trouble, it's a 794% increase in value since he bought his home. Checking into real estate prices there through a few local publications proved Kirk true.

Just reminds me what Will Rogers said many many years ago -- "buy land, they're not makin' any more of it." I guess the 'ol laws of supply and demand are still true. There is less and less land for sale so the supply will only get tighter and tighter ... making the price go up, up, up!

Of course Durango is an extreme example of what can happen but normally your real estate investment should increase in value each year -- that's even with minimal maintenance. If you have the chance, BUY A HOME because it's one of the key ways to build wealth.

4 Common Sense Ways to Protect Your Identity

2006-07-24T06:00:00.000-06:00

It’s hard to get through a week without reading about someone’s identity being stolen and their financial life literally ruined in a short period of time. Identity theft is relatively easy and sometimes the crime isn’t discovered until victims are several thousand dollars in the hole. We make it very easy for identities to be stolen; and sometimes freely give our personal information to would-be identity thieves.

Recently I was in line at the post office and there was a girl on her cell phone just a few spaces in front of me. She was talking rather loud, as most people on cell phones think they have to do. If I wanted to steal her identity, I could have because she made it very easy for me or anyone else within earshot of her conversation. In less than 5 minutes she blurted out her first and last name, home address, cell phone number, talked in detail about a few relatives, school friends, church, and I eventually got her place of employment from a casual glance at her id badge she was proudly displaying. With any two pieces of information, an enterprising identity thief (or debt collector, private investigator) can get the rest of what they need to know to become you and spend your hard earned money.

Keep your voice down
Not only is it beyond rude to impose your cell phone conversation on people nearby, you can go a long way towards protecting your identity by keeping the conversation to yourself. The only people around you who want to listen are those who are out to get some juicy piece of information. Always assume someone else is listening and will use your information to their advantage. Keep your voice down or excuse yourself to a more private location if you must give out some personal information on the phone.

Avoid displaying picture id’s, security badges, name tags
I guess that some people are proud of where they work or maybe feel important if they wear their picture id’s and security badges outside of work. Make it as hard as possible for someone to find out who you are. If someone takes a look at you, with the intent of obtaining information you wouldn’t normally give out to strangers, and sees nothing, they’ll move on to a more vulnerable target.

Shred it all
Shred old receipts, bank statements, and any other personal information to keep from dumpster divers and your friendly neighborhood trash collector. Dumpsters are a gold mine for identity thieves. Old receipts, financial statements, and similar documents contain a lot of personal information which can be used. Shred these documents before you throw them away. I’ve watched my own trash collectors take a few seconds to see what they’ve put in their truck and rummage through it. I’ve never seen them take anything out of the trash and put if up in the cab for safe keeping but you are better off not giving them a reason to be nosy.

Use technology to your advantage
Spyware, adware, computer viruses, and a host of other things are out to get any piece of information about you. Just a simple software program (Norton AntiVirus or McAfee Security Center) can make you a difficult enough target that the majority of identity thieves will leave you alone and search for an easier target.

It really just comes down to common sense. Do what you can to protect yourself and be aware of your surroundings. A little prevention goes a long way to making our busy lives less complicated. Two days ago I was standing in line at the same post office and there was another girl on her cell phone directly in front of me. No matter how hard I tried I couldn’t hear what she was saying. She protected herself very well by just keeping her voice down and not drawing anyone’s attention.

5 Best ways to improve your FICO score

2006-07-20T06:00:00.000-06:00

Having a good credit score saves money in so many different areas of life – not just when you go to borrow money. Utilities, insurance companies and employers are just a few entities that may use your credit record to make a judgment about you. To be a trusted risk by the utility companies, get the lowest interest rates, lower insurance rates, and qualify for your dream job as a Wall Street money manager; be vigilant about doing everything you can to maintain the highest score possible in the 5 most important areas.

#1 – Be on time
35% of your score is based on your payment history. Paying off your accounts in full each month is best but if it’s not possible in a given month, then pay a little bit over the minimum payment….and pay it on time. This shows current and future lenders that you are committed to paying back what you owe.

#2 – Keep a low profile
Using all the credit that is available to you (max out all your credit cards) that spells trouble to current and future lenders. Maxed out credit lines make you look like someone on the verge of missing payments and eventually defaulting on loans. When that happens on any one of your accounts, all your creditors have option to close your line of credit without notice. Avoid this by using only 35% to 40% of your available credit. Doing this will keep your payments low and show current and future lenders that you have some self discipline in using credit.

#3 – Keep that old account open
If you have an old credit account that is still active and doesn’t cost you any monthly or annual fees, keep it open. You can achieve a higher credit score if you can show you have been using credit for long periods of time. Are you tempted to move amounts owed to other cards and close the account with a zero balance? Pay it off instead of constantly moving it around and closing accounts. Not only are you continuing to rack up interest charges and fees on that block of money you keep moving, you are hurting your credit score by piling up closed accounts and shortening your average account history.

#4 – Keep your search for new money short and sweet
Inquiries, inquiries, inquiries and more inquiries. Each one chips away at your score. Make a lot of them at once – car loan, refinance – and your score will take a dive that is hard to recover. Searching for money one loan at a time will demonstrate a restraint on your part and not make you look desperate to open new lines of credit.

#5 – Keep only a few cards open
Stop applying for those department store cards just to get the discount! Instead focus your purchases on a few of the big ones (Amex, Visa, Mastercard, Discover, etc.) that give you rewards or cash-back bonuses for your purchases. Most cards have a rewards program where you can earn miles for every dollar spent which you can then use for airline tickets, hotel points, magazine and newspaper subscriptions and more. The more you focus your efforts on cards that reward you soon you’ll be off on a vacation you don’t have to pay much (or anything) for so you can buy more stuff!

FICO: The 5 categories that make up your FICO score

2006-07-18T06:07:00.000-06:00

The Fair Isaac Corporation is the company that originated the FICO® score which is widely accepted as the standard measure of credit risk. It is a scoring model that over 2,600 businesses worldwide use to determine your credit worthiness. These businesses include banks, lenders, insurance companies, retail stores, telecommunications companies, and government agencies. Throughout our lives, we’re going to be involved in one way or another with one or all of these institutions, so it will be easier in the long run if you pay attention to your credit record and maximize your FICO® score.

The higher your FICO® score, the easier your financial life will be. Knowing these 5 categories will enable you to maximize your score, be viewed as a good credit risk, achieve the lowest interest rates (saves you money) and maximum lines of credit when you need to borrow money.
#1 – Payment History
Payment history makes up 35% of your total score. Any open line of credit you have will appear on your credit report and if all lines of credit (credit cards, installment loans, retail cards, etc.) are paid and current then you have nothing to worry about here. If a payment on any of your open lines of credit falls outside the 30 day grace period, your credit score could fall as much as 100 points. Yes, you can bring it current again but it takes longer for your score to regain the points loss than it does to lose the points in the first place.

#2 – Amounts Owed
How much you owe to any creditor will have an affect on your score. The question is, what will affect your score positively? On revolving credit accounts, a good rule of thumb is to never use more than 35% of the available credit. If your credit card has a limit of $5,000 then only use $1,750 of it at any given time. This shows potential lenders that you are a disciplined user of credit.

#3 – Length of Credit History
Are you a recent college graduate and just got your first credit card? Maybe you’re a longtime user of credit with established accounts. Throughout your financial life, establish credit lines with the knowledge that the longer good lines of credit are open, the better your score will be. Think twice about canceling old accounts because it may hurt your score. Also, use them periodically to keep them active. Potential lenders like to see that you have a high degree of stability when considering you for a loan.

#4 – New Credit
Tempted to apply for the retail card to get the discount at the counter? The cost of multiple inquiries for different types of credit has the potential to hurt your score. Keep the credit lines to a minimum by passing up the temptation to “save money” at the counter by opening a new credit line. In the long run, it may end up costing you money by giving you a lower credit score and lenders will charge you a higher interest rate on future loans.

#5 – Types of Credit Used
Not all credit is good credit. You can get department store cards, gas cards, consumer finance accounts, mortgages, home equity lines of credit, and the list goes on and on. The best types of credit to have are “major” credit cards like Visa, MasterCard, American Express, or Discover and a mortgage. Stay away from department store cards and gas cards because they usually lead to having too many lines of credit open and lower scores.

The #1 Way to Turn Bad Debt Into Good

2006-07-12T06:02:00.000-06:00

A good definition of bad debt is financing something you consume. If you finance something you consume, you have to feed it, or it loses value over time (cars?) you can put it into the bad debt category. There is an excellent way to turn these bad debts to good debt.

Think of all the purchases you make in a week. Groceries, eating out, gas for the car(s), movie tickets, toys for the kids, fountain drinks at the convenience store, coffee drinks at your favorite coffee bar, and the list goes on and on. Some of these purchases are paid for with cash, but most are put on the plastic. Not such a bad idea until the bill is due. That’s when you get to pay a finance charge for all those espresso drinks you bought over the last few weeks.

In today’s society, more and more of our purchases are put on plastic of some kind – debit card, credit card, gift card, etc. We are becoming a cashless society and you can position yourself to benefit from this ongoing trend.

Stop carrying cash
Once your cash is gone, it’s gone forever. Once you spend it, it can’t earn interest for you. Instead, it earns interest for the person you gave it to. If it’s stolen you can’t replace it. Hopefully you earn some kind of interest on your checking account. If not, it’s time to find a bank that will pay you for keeping your money on deposit with them. Keep your cash in the bank so it can continue to earn interest. Credit cards can be cancelled in a few moments and you are not responsible for unauthorized purchases.

Put all your purchases on a credit card
Putting all your purchases on a credit card gives you some notable benefits. First of all is that you are using the banks money today to pay for the things you need. That leaves your own cash in your own account where it can work for you earning interest. Carrying less cash makes you less of a target for theft. Since credit cards offer various rewards programs, the more you spend on your card, the more rewards you earn.

Pay off your card
That is easy to say but difficult to do. The number one way to turn bad debt into good is to pay off your card each and every month. That requires some discipline on your part but will pay off in the long run in two ways. Your cash stays in the bank to earn interest, and you build your credit score by paying you bill in full each month.

4 Kinds of Good Debt

2006-07-11T06:02:00.000-06:00

Debt is a lot like cholesterol. Some debt is good and too much bad debt will make your life miserable. Through our financial lives, it’s only the good debt that we want to allow on our balance sheet. Good debt improves our lives over the course of time. Here are 4 types of good debt.

Real Estate
Real estate is the cornerstone of much wealth in the US. For most of us, our homes will be the largest and most valuable asset we’ll own. Unless you’ve “come into money” chances are good that you are going to have to take out a mortgage to pay for your home. This is considered good debt because you’re buying an asset that should increase in value over time.

Investment Real Estate
Right along with your home, owning rental property can be very lucrative. If you have the chance to purchase a rental property and then rent it to someone for a monthly payment larger than your mortgage payment, jump at the chance. That’s a great way to build wealth and generate income.

Education
It is impossible to put a value on a college degree. With a college degree, the money you earn over your career will eventually make the cost of school pail in comparison. There are always going to be stories about people without college educations “making it big” somehow. Those people are the exception rather than the rule. Get as much education as you can. You’ll earn more as a result.

Cars
The thought of borrowing money to pay for something that begins to lose value as soon as you have the keys in your hand seems to go against the “good debt” principal. However, we need a car to get to our jobs, and get other things done in our daily lives. If you buy your car the right way, it can be an asset to you and not a big financial drain. When you buy a car, go for the largest payment you can over a two year period and look for a car that will fit that schedule.

At ABCMoneySource our mission is to empower YOU with understanding on money matters and quickly find MoneySources to finance your dreams..... All from the comfort and privacy of your computer.