Personal Finance | Money Management

Personal Finance | Money Management

Saturday 30 April 2011

REITs are a good investment for you?

Many people dream of investing in the large apartment, buildings. Shopping centers, office and commercial - yet few have the necessary resources and expertise for such investments. Real Estate Investment Trusts (REIT), one of the ways that ordinary people can invest in the large and expensive real estate.

The REIT invests in income producing properties. These properties can be condominiums, commercial properties. Strip shopping centers, hospitals, housing, and so on. In practical terms, the REIT is similar to unit trust investments are pooled, and the REIT buys and manages income-generating properties.

How Do You Make Money From REITs?

REITs are essentially landlords. The revenue consists of all the rents collected from the tenants. The expenses include property management, property tax, utilities, mortgage payments, and more. The profit is what's left over after all the bills are paid.

This profit is given back to investors in the form of dividends.

The great news is that REITs have a powerful incentive to distribute a minimum of 90% of the taxable income to investors; REITs do not have to pay corporate income tax if they meet the 90% minimum payout.

There are 3 main types of REITs:

1. Equity REIT.

The most common type is an equity REIT. These companies invest in income producing property that the REIT will also manage. When REIT's are considered as investments, this is the type that is typically being referred to.

2. Mortgage REIT.

These REITs invest in outstanding mortgages and also make loans backed by real estate. While the underlying property values are important for both equity and mortgage REITs, mortgage REITs values are also very dependent on interest rates. This type of REIT accounts for less than 10% of all REITs operating in the United States.

3. Hybrid REIT.

The hybrid REIT is a combination of an equity REIT and mortgage REIT. So this type invests in both mortgages and actual real estate assets. The hybrid REIT potentially has the greatest diversification.

Some equity and hybrid REITs will invest in numerous properties of varying size and function. This diversification should provide some stability relative to the change in value of the individual properties. What can affect values? Vacancies, non-payment of rent, a general downturn of the local market, and interest rates are a few of the things that can affect the values.

How Do You Evaluate an REIT as an Investment?

As an investor, you can buy and sell your shares in an REIT just as you could with any other stock. Be sure you educate yourself in the proper way to evaluate an REIT. It is not in the business of manufacturing anything and it is not providing a service. The common methods of evaluating stocks may not apply in the same way.

Most REITs specialize in a single type of property, like apartments, retail space, or commercial office space. Many REITs limit themselves to a geographical area as well; this can be an important consideration when attempting to determine which REIT is best for you.

A great REIT will manage its properties to get the best possible income growth and then reinvest that money in properties that generate an even greater return than the existing properties. Those are the two things an equity REIT must do to excel.

A good measure for evaluating REITs is "funds from operations" (FFO).

This discounts gains and losses from the sale of assets and adds back depreciation. A long-term FFO growth is generally a good indicator of the financial health of an REIT.

While FFO gives an indication of the strength of an REIT, it is not the only predictor of an REIT's value. REITs own a lot of assets, and the value of those assets has the largest impact on the current asking price of an REIT's shares. 

The REIT may be the investment vehicle, which was looking to expand your portfolio. As always, be sure to educate yourself, or seek advice from a financial expert before investing your hard-earned no money for new investment.

Friday 29 April 2011

Make your money work for you with these Easy, liquid investments

A myriad of savings and investment options available today is complex and confusing. If you are not familiar with the investment strategy, it is not easy to choose the options that are the best value for your money.

The bottom side of investing money that you can lose money when they were invested. For example, if you invest in real estate, you need to sell or lease the property to see money from it.

On the other hand, if you invested in liquid investments, easier access to money if need be. A liquid investment, then the best of both worlds: the search for interest money, and you still can get it if need be.

Try these investment options that are both easy and liquid - you can invest in them right at your own bank and you have fast access to your money should the need arise:

1. Certificate of deposit.

A certificate of deposit is one of the simplest investment options with decent returns on your money.
  • A certificate of deposit (CD) is also referred to as a time deposit, which means your money has to stay invested for anywhere from 3 months up to 5 years for the stated return.

  • If you need your money for a true emergency, you can cancel the CD, although you'll forfeit some, if not all, of your return on it. A good option is to go with the short, 3 month CDs until your finances are stable and you have some additional money put away.

  • Interest rates are higher than a regular savings account.

  • Your savings are insured at all times.

  • Your interest rates are set to increase the longer you have your money saved.

2. Money market savings account.

Having a money market savings account is also a great option for investing and making the most from your money. With this type of account, your interest rates are much higher than with a standard savings account.
  • One added benefit of such an account is that you would be limited to the number of withdrawals each month as a technique to safeguard your investments so you'll make the most on your money.

  • Another benefit is that your investment of $250,000 or less is insured.

3. Money market mutual fund.

Money market mutual funds are a little riskier than CDs and money market savings accounts; however, with greater risk comes the opportunity for greater returns. These funds allow short-term security investment. However, the fact that you are investing in short-term securities means that your investment would be exposed to less risk.
  • Tip: To get the most out of it, try to make your investment principal as high as possible because this is when the truly good returns come into play.

4. Tax-exempt money market.

A tax-exempt money market option is a type of money market fund, the difference is that it's liquid and allows investment in tax-exempt securities. You don't need to be as concerned with investing the highest amount possible because your returns will be tax-free and of more financial worth to you.

You can expect that the high yield as experienced investors only adding a little common sense to the decisions. Learn about the less-liquid investments, and once you build up that fund, where money works for you. You will have an easy transition to higher earnings portfolio.

Thursday 28 April 2011

3 Offbeat Investments must be taken into account

When most people think of investing in real estate, homes, mini-malls or apartment buildings come to mind first. However, this is just the tip of the iceberg for real estate investment. Offbeat consider the following real estate investment opportunities. These investments can have a significant impact over the long term, and very well change your financial future.

1. Recreational Vehicles (RV).

Believe it or not, RV rentals and sales are a very big market. With baby boomers leaning into retirement and young families seeking a way to lessen their vacation costs, many people are willing to buy or rent an RV.

If you're hoping to purchase an RV to save money on your family vacations, keep the RV until it makes sense to sell it. Make routine cosmetic updates to the RV throughout the years to match the expectations of buyers.

Consider renting out the RV for a profit. The RV rental market is hungry with renters but is much underserved. You can easily rent out class C motor home for 7-nights for a minimum of $125 per night! If you're fully booked every week out of the year, you can earn $46,000 in just one year!

For class A RV you can charge in upwards of $200 per night, or $1,400 for a 7-day week - which equates to $73,000 over the course of a fully booked year. Pop-up campers can be rented for as much as $75 per night - or just over $27,000 for a fully booked year.

Even if you're only able to rent out your RV for two weeks out of the month for $125 per night, you're able to earn $23,000 per year!

2. Self-Storage.

Self-storage is a big industry. The shaky state of the economy may be partially to blame as the number of multi-generation homes and families downsizing their living quarters are increasing.

The Self Storage Association reports that one in ten families rent out-of-home storage space. Typically, units rent between $50 per month for a small unit to over $200 for a sizeable storage unit.

The cost of purchasing a self-storage facility varies widely. It can cost as little as $200,000 or as much as $3,000,000 depending on the size, location and demand for the service in the area.

Keep in mind, aside from the mortgage, there is still overhead. Utilities must be operating in order to keep the storage facility at an acceptable temperature; this is to avoid ruined personal property. Also, employees might be necessary, as well as a security system. But as a whole, the investment generates fairly passive income.

3. Online real estate.

Online real estate, otherwise known as websites, requires very little investment and can typically generate a good ROI over time. Traditionally real estate is thought of as tangible, but don't disregard the earning power of online property. When you consider that Candy.com sold for over 5 million dollars, online real estate has the potential for astronomical returns.

Approximate startup costs are as follows: $10 for a domain name, $0-75 for a standard website template to over $750 for a unique website design, and content creation starting at around $15 for a quality article.

The key to making money online is having high quality and a high quantity of content in addition to money making streams like marketing other company's products, on-site advertising, or product sales.

There you have it - three markets where competition isn't very fierce, and the bar to entry is relatively low. Investing in any of the three offbeat investments is mentioned, you have the opportunity to maximize their investment dollars. And over time, you may be able to invest in a full-fledged business.

Tuesday 26 April 2011

3 Tips on ways to live well

In contrast to the common belief, the essential to financial freedom is certainly not simply targeted on the volume of the house can receive a month. It takes into account learning to manage money, and spending priorities. This approach is also known in this life.

Below you will find some great suggestions in your life instruments in order to build savings. You do not need to move into a shoe box or completely give up entertainment and shopping - but the following tips will help you learn how to better spending decisions.

Consider these strategies:

1.    Have a slice of humble pie.

If you're constantly in a competition with your neighbors, coworkers or friends, you're never going to stop spending. In the back of your mind, you'll always try to "beat" them by having the newest car, a biggest house, most expensive clothing, and more.
  • Once you eject the competitiveness from your mind, you'll be able to effectively trim the fat from your budget.

  • If you're a smoker, now is the time to quit. If not for your health, do it for your financial future. In some states, a pack of cigarettes can cost $10. If you're a pack-per-day smoker, you can save $300 per month by ditching this harmful habit.

  • Work with what you have. There's no need to upgrade your car if the one you're driving now gets you from point A to point B. If your current home isn't to your liking, make some updates or redecorate - it's a far less expensive fix than purchasing an extravagant estate.

2.    Trim your grocery budget.

Coupons aren't the only way to save money on your grocery bills (though they certainly help). You just need to be conscious of your purchases. It's possible to feed a family of four for under $10 - with a high-quality meal to boot!
  • Never go grocery shopping hungry or tired.

  • Three nights per week, cook up something very inexpensive for dinner, such as beans and rice or homemade soup. It'll be a nice change of pace, without feeling deprived. And of course, the biggest bonus is that you'll save money!

3.    Make savings a priority.

Savings isn't optional. It's necessary for financial emergencies - and they always come up in some form or another. Treat it as any other bill each month. Place this, as every other bill, in your budget workbook. You do have a budget workbook, don't you?
  • If you'd like, break it up into pay periods. In order to save $800 per month in a 2-income household, each partner would have to set aside $100 per week. A $400 goal would be just $50 per week. When a savings goal is broken into manageable pieces, it's a far less daunting figure.

  • When you're unable to meet your savings goals, either find a way to make more money or spend less money each month. If you're able to trim the fat from your monthly expenses, there will always be a way to meet your savings goals.

  • Budget your " fun money" as well. When you budget a set amount for unnecessary shopping trips and entertainment, you can't shop until you drop. When the money runs out, you're done.
No need to change your whole life to live below your means. It's all about minimizing costs, if possible, and refuses the desire to live largely - even if the means to do so. By implementing these simple tips, you can cut hundred dollars - if not more - out of the monthly bill, and stash it into your savings account!

Friday 22 April 2011

Savings, and money management decisions: What's Within it to suit yourneeds?

Are you dreaming of monetary self-sufficiency, but work to be too hard think that it's attainable for suit your needs? Are the expenses built up in your home? Have you panicked the financial obligations that are included with the next action to head criminal for your residence?

Appreciatively, there is always hope.

Based on The country In these days, nearly 2/3 of us citizens are in financial obligations. People, up to 50 % have halted being charged one or more of their charge cards. Yet still the instance has run out of an unmanageable help you defeat.

You are able to attain the monetary liberty you ought to have in case you know the correct picks for making, and you happen to be willing to think that you can do it!

When you draw years to come in check, the benefits you feel will drop every style of your life. Many of the day-by-day highlights you countenance that seem wholly unconnected to dollars can recede. Your physical health shall increase quickly as you pick up control of your tension stages. Plus, you can think more clearly about your targets and goals.

Fewer stress ways additional time to enjoy your family and encourage the romantic engagements that have been numbering one to you personally. Baby steps within the right monetary course will offer you the flexibility to enjoy your well being!!

Luckily, the fiscal serenity you need is right around the corner. You can have the victory others only think about upon taking small steps to triumph over these kinds of six parts:

1. Personal Money Management | Monetary

Everyone knows they wish an allowance. Indeed, you've probably been told this kind of endlessly! The good news is that setting up a workable family budget are easier than you think that. This first stride to financial freedom will inspire you to work with your debts as a software to extend your life and go after your desires.

* The secret to any successful finances is to earn more cash versus pay. The only method to do that is through children budget. But when you recognize in which you are and where you want to go, you'll have a path guidance to get generally and the self-esteem to know that anything is a possibility. Merely an achievable people finances may give you which ones confidence.

2. Personal Money Management | Saving Money

After you have built your roadmap to achievement, and you will be earning more than you spend, you now need the proper strategies for saving cash. When you know the correct measures to select, transitory and lengthy financial savings will become a satisfaction.

* Your savings fund your desires. Before you begin to save lots of money into the vivid potential you have always dreamt about, you will be able to awaken every single day and deliver the results toward many desires. Your family is going to be excited, too! Positive emission of light shall take the place of the gloomy, ancient billows of commercial obligation.

* Commencing a riches course shall also pull you ease in contrast to anything you've ever experienced before. You'll be able to take trips to the postbox without knots inside your stomach. Where the smartphone bands, you will definitely realize that the man on the other instrument end isn't an invoice antenna. Your bills shall be salaried plus your next will be protected.

3. Personal Money Management | Credit

An essential element within your path guidance to results is little or no use praise shrewdly. Credit, kept in its proper role in your monetary longevity, could be a resource inside your monetary prosperity arsenal. Untouched, however, credit can damage your monetary longevity.

*, However, there is the chance after you be taught when to utilize a praise, how to use it cleverly, and ways to successfully run your credit history. Consuming sure methods toward efficient praise administration can confirm that you're monetary soon is often a bright one.

4. Personal Money Management | Getting Debt Relief

When you get free, nothing can stop you from a lifestyle all the memories you intend to reside. No matter how excessive the lot might seem to start with. The only technique to the top is through small steps. The real key, although, is becoming measures that front you inside the right guidance. Knowledge is electricity if you reach that information.

* If you gain knowledge of effective ways free of debt, you will definitely find themselves exhilaration as the nearer to becoming debt-free. You will try to feel more in control of your daily life in comparison with you ever have before.

5. Personal Money Management | Adding Extra Money

One stumbling block you may face is coming up with thanks to earn the money you need to survive and thrive. However, with all the right strategies and a willpower to succeed, this kind of stumbling prevented might be was a stepping-stone towards your results.

* Many on-line and off the internet money techniques offer the ability to recognize your goals if you will definitely consider step one now.

6. Personal Money Management | Defending Your Identity

On the world, we live in at present, failing to protect personally against id piracy and other monetary offenses could derail even greatest of individual projects you've made. Luckily, protecting yourself is less complicated compared to you think. When you do, you will have the self-confidence that goes from knowing you've done everything pressured to protect your triumph.

Your personal abundance is closer than you think. However, the choice is your own. It is possible to continue to the couch, like most others, paralyzed by fear and residing at a stressful life span that drops far wanting everything you crave. Alternatively, you are able to need actions today that will cause a bright in the new tomorrow to suit your needs along with your relations.

In the event, you build a true to life path guidance, utilize helpful strategies to reduce your financial obligations, make use of credit score wisely, and save toward your goals, you'll have the monetary independence that most only love.

Tuesday 19 April 2011

Low-cost investment for beginners

The best way for a newcomer to the rust of the investment to start slowly. Investing just a little cash, if you have not learned the ropes in a very clever idea. This allows you to go to learn, and possibly you will make money without losing tens of thousands of dollars due to failure of an infant.

Try starting out with these investments that require a lower bar of entry and are some of the simplest investments to grasp:
  1. Stocks. Beginners should stick with the safer, seasoned stocks that have proven to be stable moneymakers over a period of time. Of course, the appreciation of the stock won't skyrocket overnight, but then again, it is very unlikely to plummet overnight as well.
  • Generally, the "safe" stocks are with well-established businesses that sell everyday items that people will purchase whether or not an economic crisis is in place. Businesses that sell moderately priced personal care items, food, and cleaning products fit nicely within this category.
  • When choosing a hot stock, the chances of earning money quickly are higher. However, the stock can lose value easily just as fast. However, if you buy low and sell high and can do so quickly, there's money to be made.
  • Choose an online broker, such as www.etrade.com or www.optionshouse.com as the startup cost is low - generally less than $10 - to gain access to the members area which will give you all of the tools, advice and buying power necessary to make a successful buy or trade.
  1. CD. A certificate of deposit holds no risk; however, the return is minimal. Another caveat is that you're unlikely to see your money or any return for a while, as the general CD terms are 6 months, 12 months, 1 year, 3 years and 5 years.
  • Essentially, when you open a CD, you're loaning the bank your money. In return, you're repaid with interest, which is generally low.
  • Most seasoned CD investors like to have three CDs at a time: one for a 12-month term, another for a 2 year term, and a third for a 3 year term. When the first CD has matured, they're able to cash out, yet still have two CDs accruing a higher interest.
  • The startup cost for a CD varies widely and depends on the funds you have available and are willing to put forth. Some CDs can require as little as $500, while others can have a minimum of $10,000 or more.
  1. Mutual funds. Rather than the investment and all of its earnings being solely yours to claim (and fund), a mutual fund has thousands of investors contributing their own monetary investments into the funds of the investment as a whole; hence the term mutual fund.
  • Mutual funds are attractive to beginners because the fund is managed by a seasoned investment professional that calls the shots - and because of this, he is often able to generate more money for the investors as a whole, rather than if they were to go it alone.
  • You can start a mutual fund with very little cash - in some cases as little as $500 to $1,000 in a lump sum or even $25 per month on a regular basis.
As you can see a very profitable investment. Although you may not be able to use the proceeds to buy the house, everyone has to start somewhere. The investment using the above methods, you'll be off to a great start.

Sunday 17 April 2011

Personal Money Management-Best Ways To Simplify The Budget

Finance has a knack for complicated. Therefore, the budget is as simple as possible. Here, at Personal Money Management site, you can better manage your finances, so focus on issues that are important. Simplification of the budget is also a positive impact on all aspects of financing will help keep everything under control.

Stressing out over your finances is a waste of your time, so rein them in today with a simpler, easier to manage budget.

Follow these strategies to make your budget easy, workable, and effective:

Personal Money Management | Start with a simple spreadsheet.

Keeping things in a spreadsheet can simplify your budget significantly. Set it up however you like or download a free template for Excel or Google Docs; just choose something that works for you.

Personal Money Management | Devote 60% to your expenses.

The 60% Solution is a budget strategy that entails fitting your expenses into 60% of your gross income so that you can dedicate the remaining 40% to retirement, debt repayment, short-term and long-term savings, and fun or entertainment expenses.

Personal Money Management | Devote 10% to your retirement.


Put 10% of your gross income toward your retirement, such as in a 401(k) investment plan. Refrain from touching this money for any purpose unless the circumstances are dire.

Personal Money Management | Devote 10% to debt repayment and longer-term savings.

Invest in an index fund or stocks if these are your investment vehicles of choice. Otherwise, put the money away in a savings account and touch it only to repay debt or in financial emergencies.
Personal Money Management | Devote 10% to your short-term savings.
This money is for periodic expenses like medical expenses, auto maintenance and repairs, appliances, birthday gifts, Christmas gifts, and home maintenance costs. Spend this money when you need it, because that is precisely what you're saving it for.
Personal Money Management | Devote 10% to your "fun money."
You can spend this money in any manner that pleases you. This is guilt-free money that you can spend on movies, entertainment, eating out, comic books, junk food or anything else that you wish.

Budget Software Program | Reduce the number of categories you use.

Many budget software programs instruct you to use a million different categories or subcategories. If you want to simplify your budget, use as few as you can. Rather than having a category for every entry, combine some expenses into a larger category to keep it simple.

Automatic Debit | Pay your bills online.

Automate your bill payments as much as possible so that you don't have to remember to pay your bills every month or buy stamps. Consider automatic bank withdrawals and pay bills online through automatic debit whenever you can.
Automate your savings.
Every time your paycheck is deposited into your account, have a transaction scheduled that will transfer a specific amount into your savings from your checking. Aim to find a high-yield savings account for this purpose.
Keep your fun money in cash form.
Take out your 10%, keep it in cash, and use it as you see fit. Watching the cash disappear from your wallet can actually teach you a lot about where the money goes.

If you study, you will find many techniques to simplify the budget. Do what works for you and your family. Avoid facing a new budget plan, because I think it must be better. If it does not really help the budget, then this is not a "best" option for your needs. Sometimes it is easier and more efficient.