Personal Finance

Is Consumer Spending Trapping You in the Rat Race?

Buying consumer goods can trap you in the Rat Race!
This article will show you how and what to do to escape.
Consumerism is very seductive and insidious. It relies on scientific marketing to prey on your emotional needs and weaknesses.
The proposition is the satisfaction of your emotional needs by purchasing the “right” products. Shopping Therapy, so called.
Example: “Want to have younger looking skin? Buy Vorsage, Extra Moisture Crème!”
They are playing on your fear of looking older, promising younger looking skin by the purchase of their product. Of course, that will be followed a year later by the “New and Improved, Extra Moisture Crème,” which, of course, you would run out and buy.
Another example is your emotional desire to be part of the In Crowd; peer pressure.
Products are featured in luxurious, expensive settings or in use by glamorous celebrities; inferring that you can be just like Mike if you buy his shoes.
Wouldn’t you kill to be seen in a $400 pair of famous designer slacks at your friend’s wedding next week? What about a $350 denim Sean Jean jacket at the concert? Retailers can actually charge you an extra 5 to 100 times more for their brands than for comparable generic items, and you pay it!
Next year, you would not be caught dead in last year’s hot brands. The merchandisers have programmed you to demand the latest, which will cost you the most. They are playing you like a fiddle, laughing all the way to the bank; while you scramble to find money to pay your bills.
Do you see what is happening? Each dollar you spend on this crap tightens the grip of the Rat Race Trap.
The objective of Consumerism is to separate you from your money, period.
Each product is a bait. Products are continually dangled before you without regard to need or safety. Think Pet Rock, the motorized air freshener, lawn darts or the Chevrolet Corvair, that 1960’s icon which Ralph Nader proclaimed, “Unsafe at any speed!”
The ultimate objective is to have you charge your purchases so that you will be able to buy more products, even if you do not have the money.
These purchases are far more expensive than they appear.
That $400 pair of designer pants actually costs you $600, if you are in the 33% income tax bracket!
In order to net $400, you must earn $600 in salary, since 1/3 or $200, is deducted as taxes.
Therefore, every consumer item you buy costs you 50% more than the price tag!
If you finance the purchase, and pay only the minimum each month, you will pay another 50-200% of the price in finance charges, (after tax!) requiring decades to pay it off!
Let’s look at the purchase of a car, probably the single biggest waste of money there is!
Take the Chevy Tahoe, a popular, mid-market SUV. Purchase price, $36,000. You put $6,000 down, borrow $30,000 for 5 years @ $607/Mo. Total financing cost, $36,420.
Add the down payment of $6,000, totaling $42,420. After taxes. You have to earn $63,630 in order to net $42,420.
That $36,000 Chevy Tahoe will cost you $63,630!
It gets worse!
If instead of purchasing the car, you invested the money in your IRA or 401(k), a pre-tax investment.
Same scenario, you have $9,000 plus $910 dollars per month deducted from your salary, pre-tax, the first year. You continue the $910 per month for the next 5 years. Remember, only $607, not $910 per month is deducted from your net pay.
If you just stick the money in a run-of-the-mill index mutual fund, you should receive a return of about 10% annually. You’ll have about $85,000 at the end of 5 years.
After 10 years, during which time you would have had to buy another car, your IRA would now have over $250,000 in it. This analysis only reflects the purchase of a car. How much more would you have spent on other consumer goods during that period?
In reality, had you spent that same money on assets, things that go up in value; like stocks or real estate, you could probably have been able to escape the Rat Race at the end of that 10 year period! You are the one who decides how to spend your money.

Copyright 2005 Bill Young. Bill is a former bank mortgage officer and licensed financial planner. He is a real estate investor, lecturer, author and a personal wealth consultant. If you would like to know how to stuff your IRA with enough tax-free real estate click here: http://ARealEstateIRA.com
If you are facing foreclosure and want to keep your home: http://SaveYourHomeLLC.com If you must get rid of it: http://WeTakeOverYourPayments.com

Sri Lanka – CELL Calling Cards

Taking Control of Your Finances

Does life feel like it is spinning out of control? Has a high-flying lifestyle set you on a crash course toward financial ruin? Have your credit card balances snowballed beyond your control? Then it is time for you to take control of your finances.
To have successful money management, wealth accumulation, and financial freedom, you must take control of your finances. No one else is going to do it for you. You are responsible for your finances.
“Money doesn’t manage itself,” Robert Schuller.
1. Figure your current net worth. You can not take control of your finances before you know what your current financial situation is. You need to know what your current net worth is. Is it positive, or is it negative because of all the debt your family has accumulated? Do you have investments? Valuable antiques? Valuable personal property? Debts? Credit card bills? A home mortgage? You can use our printable net worth worksheet to help you figure out your family’s current financial position.
2. Start a record file system. If you desire to become financially successful, you need to keep track of your financial records and statements. Keep in mind that disorganization costs money. Buy a small file cabinet and start keeping and organizing all financially related papers.
3. Income and expense record book. You also need a clear picture of what the family’s total monthly income is. How much are you earning? Your spouse? Are there interest and dividend payments you could add to your total monthly income? You must know how much money is coming in to your household and how much is being spent. Include every purchase and every cent. You will never be able to take control of your finances until you have a firm understanding of your current income and spending habits.
4. Start a budget. Start a budget, and stick with it. Once you know how much income you have and where and what you are spending your money on, you can create a budget. You do not need a certain “income” to budget and save money. All it takes is the self-discipline to learn how to save and to take action to save a little bit each paycheck. For more budgeting help, visit http://www.savingyourwaytosuccess.com.
5. Create financial goals. After you have a clear picture of your current financial position, create a written list of goals you desire to accomplish. Get out of debt? Save enough money equal to 6 months income for emergencies? Pay of the auto loans or student loans? Start investing in an investment program, such as a Roth IRA? Save enough money to purchase your family’s own house? Where do you desire to be financially one year from now? You may want to create several lists of goals in a time-frame of six months, one year and five years. Place your list on the refrigerator door so everyone in the family will see it and constantly be reminded of what your family is shooting for.
6. Taking control. If you have followed the above by calculating your current net worth, organized all your family’s financial records, created a record book of your income and expenses, started a budget, and created financial goals of how much you desire to accomplish, you will be taking control of your finances. You will no longer be controlled by bills, debt and uncontrolled spending, but rather, you will be saving money, getting out of debt, accumulating wealth, and becoming financially independent. You will be saving your way to success. Congratulations and good luck on your endeavors!

Justin P. Ertelt is the author of Saving Your Way to Success, and owner of http://www.savingyourwaytosuccess.com, helping others acheive financial success. Justin can be reached at justin@savingyourwaytosuccess.com. To learn more visit http://www.savingyourwaytosuccess.com

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Bankruptcy Forms: Having The Right Ones

Filling out bankruptcy forms can be one of the most difficult parts about filing for bankruptcy, although these forms are a necessary evil to complete the legal process. Unfortunately these legalities can add major emotional stress to an already difficult situation. Especially if you have decided to go about filing on your own, without the help of a lawyer or financial service company, you may find yourself overwhelmed with trying to understand which bankruptcy forms are right for which chapter.
If you are an individual who is filing for bankruptcy, most likely you will be filling out bankruptcy forms specifically dealing with either Chapter 7 or Chapter 13. Even as a business you may be filing for Chapter 7 or Chapter 13, although you may be filing for Chapter 11 as well. In any case, there are separate forms that need to be filled out with each particular chapter stating the intention to file bankruptcy under that chapter.
The individual or business may also have other special bankruptcy forms that go along with a particular chapter. For instance, Chapter 13 and Chapter 11 are reorganization chapters and will require a form that discusses how and when creditors will gather to meet and discuss the finances of the individual or business for repayment plans. If the individual is filing for a complete liquidation, Chapter 7, forms for possible exemption of assets will need to be filled out if the debtor plans to keep any of their personal belongings.
In all cases, the debtor will be required to file bankruptcy forms regarding a statement of petition, a list of creditors, personal income, personal property, and Declaration of penalty under perjury. These forms will simple let the courts know of the individual or business’ plan to file, the assets the debtor has available, the current available income, and the debtor’s knowledge that lying about finances will have legal consequences.
With the new age of technology, all bankruptcy forms are available through the United States court system at http://www.uscourts.gov/bkforms/bankruptcy_forms.html. Of course the availability of the forms does not necessarily mean that all individuals or businesses will clearly understand which forms apply to them. If you are confused about which forms to fill out, don’t be afraid to ask the court system for help.
Unfortunately the court system may be overwhelmed with other cases they feel are more important making it difficult to find answers to bankruptcy form questions. In this case, you can always consult with a legal aide, a bankruptcy attorney or even a financial service organization that can help you understand the paperwork better.
Even if you don’t plan on hiring an attorney to handle the case for you, it may be worth the time and energy to consult them regarding the paperwork that goes along with the process. You may also want to consider a bankruptcy service organizations online, which can help answer questions and guide debtors through the process.
Keep in mind that each state court system has secretaries available who can type up the forms for you, although there will be an additional charge for this service. Most law firm or legal aide organizations have similar services that may be beneficial in helping debtors get through the process of filing bankruptcy forms.
Article Source: http://www.articledashboard.com

Credit: Ian W Anderson of Bankruptcy 411, the bankruptcy information site. For more bankruptcy information and articles like this one visit: Bankrupctcy

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95% of Retirees Retire Into Poverty!

I recently saw a Wall St ad quoting a startling Government statistic: “Of the 77 million baby boomers planning to retire in the next 10 to 15 years, 95% are hurtling toward unexpected financial difficulties.”
Those “Difficulties” are that they will be unable to support themselves without continuing to work for the rest of their lives!
Can you imagine, after a lifetime of hard work, struggle, hardships, maybe even tragedy, you’re about to end your life in poverty, disease and want unless you work till you drop?
Is that all there is? Or do you want to be in the fortunate 5% who can retire without money worries?
What does the Wall St ad suggest you do about this? Buy their little Retirement Newsletter!
1. Techniques for saving for retirement without changing your lifestyle today
2. How to build the best portfolio for long-term income
3. How to make sure you don’t outlive your income
4. Advantageous mutual funds, REITs and variable annuities
5. Estate-planning strategies
Let’s take a look at their newsletter’s suggestions:
1. Saving for retirement without changing your lifestyle today? What Bull! It is your current lifestyle that got you into this mess!
2. A portfolio for long term income? Baby, you need more income, right now. In the long-term, your butt will be dead!
3. Don’t outlive your income? What income? They just said that 95% of you will not have enough income to support yourself.
4. Advantageous Mutual Fund, REIT’s and variable annuities? All products Wall St makes commissions on! Ask them what difference they will make in your retirement fund in only 10 years.
5. Estate planning strategies? What estate? Aren’t we talking about the 95% of baby boomers who will not be able to quit work?
No, boys and girls, I don’t think their approach is going to solve your problems!
I remember a quote, someone said that if you keep doing the same things and getting the same miserable results, you need to do something different.
You absolutely MUST change what you are doing, your trajectory, if you don’t want to end up like everybody else.
Here is what you must do right now.
First, figure out what you will need to live on, say 80% of your present take-home pay.
Check with your Human Resources Dept. for a projection of what your pension will be, if any. Check with Social Security to see what your projected retirement benefits will be.
Then add in any savings or investments you have including the equity in your house and how much income that would produce if invested at 10%.
Ten percent? Unrealistic? To some. Those who do not know about the returns available from private mortgages, tax liens and other safe, sophisticated real estate investments.
Add up all of your projected incomes and compare with the 80% of present take home figure.
Your problem is now identified and quantified. You have a goal. If it is severe as I think it will be, you will have to pursue aggressive investment strategies such as real estate to catch up. You might even have to “change your lifestyle.”
Otherwise, you will end up spending your Golden Years working at the Golden Arches. How embarrassing to have one of the neighborhood kids recognize you. “Hey, ain’t that Tommy’s Grandpa?” And then to throw ketchup-doused, Tater Tots at you!

Copyright 2005 Bill Young. Bill is a former bank mortgage officer and licensed financial consultant. He is now a Personal Wealth Consultant, helping clients to Quit the Rat Race and become financially independent at Any age! Baby Boomers might want to check out his Emergency Retirement Plan at http://IRAInvestorsExchange.Com. If you are facing foreclosure and want to save your home: http://SaveYourHomeLLC.Com if you must get rid of it: http://WeTakeOverPayments.Com

Puerto Rico – CELL Calling Cards

Personal Loan

Personal loans are loans that can be availed for any reason unlike other loans that you take out for specific purposes, such as home loan to buy a house, car loan to buy a car, debt consolidation loan to consolidate your debt, and so on. Personal loans are multipurpose loans that you may avail to fulfill your needs. You may use a personal loan to buy a car, for home improvement, to buy a holiday package, to pay for college fees, and much more.
A large number of lenders offer personal loans. You can compare personal loan deals offered by various lenders and choose the best deal for yourself. The most convenient way to search for a personal loan is to surf the Internet. Many lenders offer personal loans over the Internet. Many brokers and introducers also use the Internet to help you access the lenders who offer personal loans.
Based on the rate of interest, personal loans are of two types – fixed rate and adjustable rate personal loans. In case of fixed rate personal loans, the rate of interest and the amount of monthly installments remain the same throughout the loan period. In case of adjustable rate personal loans, the rate of interest fluctuates with the changes in the interest rates prevalent in the market.
Based on the mode of repayment, personal loans are of three types – installment loan, balloon loan and single payment loan. In case of an installment loan, the loan amount along with interest is repaid in the form of monthly installments until the expiry of the loan period. In case of a balloon loan, only interest is paid at regular intervals and the entire principal amount is repaid at the end of the loan period. In case of a single payment loan, the principal amount as well as the interest is paid at the end of the loan period.
Depending upon the loan period, personal loans are of two types – payday loans and bank signature loans. The loan period of a bank signature personal loan is usually one year while the loan period of a payday personal loan is less than one year. Payday loan is usually taken out when there is an urgent requirement of money. It is repaid as soon as the borrower receives his/her salary.
For More Information Visit www.easy-loans-shop.co.uk.

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Read This Article If You Are In Serious Debt

Are you worried about your current debt situation, which is now getting seriously out of control? Are you thinking that it is possible that you may never be able to pay off all those loans? Are you worried about your home being foreclosed on or your credit cards being shut off for late payments? Have you even once or twice contemplating simply killing yourself to get out of debt? Well you are not alone often people jokingly talk about just killing themselves to get out of all their monthly payments and accrued debt.
Although all this may sound funny in a way your serious debt load is not simply going to go away anytime soon. And it surely is not a laughing matter, as eventually perhaps in 2020 you will have to pay off all those loans even if you only make the minimum payments on your credit card bills, which will effectively extend those payments until well into 2036. Which indeed, makes one wonder if the International Terrorists will finally get you by then or if you will make it to a ripe old age and actually be debt free?
You need to take control of your personal finances now and pay down those credit card bills and pay off those car loans and start investing and saving for the future. You cannot go on this way in perpetual debt and end up living a comfortable life style. Think on this.

“Lance Winslow” – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

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Secured Personal Loans – Mould it the Way you Want

There are certain things without which we can’t live……….money is one of them. Each one of us needs money to survive and to fulfill our personal wants and desires. Most of us run out of it at some point or the other at the course of our lifetime. That’s the reason almost all of us borrow money at some stage in our lives. You may need money to buy a new car, pay off your debts, home improvements et al. These financial needs requires significant amount of money, which most of us can’t afford. At such situations you can count on personal loans.
If you are a homeowner then you can utilise the equity on your property and make your home pay for your needs and wants by availing secured personal loans. A secured personal loan is a type of loan which demands collateral against the loan taken. It is specially crafted to fulfill all your personal needs and desires.
Secured personal loans are one of the most flexible types of loans available. It can be used for a wide array of reasons like debt consolidation, holidays, education, home renovation etc. It depends on the borrowers how they decide to spend the loan amount. Yet to remember that secured personal loans should not be taken to pay off day-to-day expenses, rather it should be taken to cover up some major expenses. A secured personal loan enables you to borrow from £5,000 to £75,000, although some lenders will consider offering up to £100,000. The repayment period varies from 5 to 25 years.
The main benefit of a secured personal loan is that they are offered at cheaper interest rates than unsecured personal loans. However like any other type of loan, repayment options should be studied carefully and understood before applying for secured personal loans. The most important thing is to make sure you know exactly what the monthly payments will be, and how much you will pay back in total. So, while shopping around for the best deal, don’t rush! Collect and compare the loan quotes from various secured personal loan lenders. This will help you locate the right loan that befits your expectations and requirements.

About the Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Chance4finance as a finance specialist.
For more information of Secured Personal Loans please visit:

http://www.chance4finance.co.uk

New Caledonia – CELL Calling Cards

Your Gift from the IRS for 2006: New Limits and Contribution Amounts

Here are some of the changes in contributions and compensation limits that are in place for 2006:
IRA Contributions:
For those eligible, the 2006 maximum allowable contribution for a traditional IRA is $4000. This is the same for Roth IRA contributions as well. If you are age 50 or over, the “catch up” amount is an additional $1,000.
SEP Provisions:
For plan years beginning in 2006, the maximum compensation limit moves from $210,000 to $220,000
Maximum SEP Contributions for 2006 increase to $44,000 from $42,000, the limit in 2005.
Simple IRA Plans:
The non elective employer contribution wage base is $220,000.
Contribution limits for an employee remain at $10,000.
The “catch-up” provision for employees age 50 and over is $2500. This is up $500 from 2005.
401(k) Contribution Limits:
For 2006 the elective employee contribution is $15,000. This may also be subject to limitations under an employer plan. The “catch-up” provision is $5,000.
Social Security Wage Base: The new wage base is $94,200 up from $92,000 in 2005.
Annual Federal Gift Tax Exclusion:
Generosity increases $1,000 from 2005, with the new 2006 exclusion set at $12,000. In future years, this can again increase for inflation adjustments but only in $1,000 increments. It probably safe to say we won’t be seeing any increases for a while.
Federal Estate Tax Exclusion Amount:
This has moved from $1,500,000 in 2005 to $2,000,000 in 2006 and will remain level through 2008. This is still a hot potato in Washington, and what will eventually happen here is still very much up for grabs.

Glenn “Chip”) Dahlke, a senior contributor to the Living Trust Network, has 28 years in the investment business. He is a Registered Representative of Linsco/Private Ledger and a principal with Dahlke Financial Group. He is licensed to transact securities with persons who are residents of the following states: CA. CT, FL, GA, IL. MA, MD. ME, MI. NC, NH, NJ, NY.OR, PA, RI, VA, VT, WY.
If you have any questions or comments, Chip would love to hear from you. You may contact him by email at dahlkefinancial@sbcglobal.net. You may also contact him at the Living Trust Network’s web site. Its URL is http://www.livingtrustnetwork.com.
Copyright 2005. Living Trust Network, LLC. All Rights Reserved.

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Get Started With Your Retirement Plan

When looking towards retirement many people just think about the joy of not having to work anymore. Unfortunately, even though a person retires they still have bills to pay. The need for careful planning is perhaps the most overlooked part of retirement. Having a set plan in place before retirement will help to ensure the golden years are golden.
The following list gives some great points on how to plan for retirement.
1. Save money. Before retirement setting up a savings account or 401K will get a person prepared for life without a steady paycheck. A 401K is usually sponsored through an employer where the employer matches contributions the employee makes. Money put into a 401K also goes untaxed which can mean immediate savings. IRA’s are also another way to save for retirement. These accounts are also not taxed.
2. Determine your expenses after retirement. A person should have a fairly good idea what monthly expenses they expect to have after retirement. Having a rough idea will help a person determine how much they need to save to be able to make it. Then considerations also need to be made for special purchases like cars and trips.
3. Working after retirement. Many people chose to take on a part-time position after retiring. Most often it is to supplement their income, but for others it is a way to socialize and gives them something to do with all the spare time they now have. If a person is not planning on working anymore at all then they should have some idea what they do want to do with their time. Many retirees find that retirement can be boring after years spent in the work force.
These three points will give a person something to think about when planning for retirement. Getting a good financial plan is the first step. It is also important to consider what life will really be like once the daily work schedule is gone.

About the author: Stephen Kreutzer is a freelance publisher based in Cupertino, California. He publishes articles and reports in various ezines and provides retirement information on CyberTopics!

Luxembourg – CELL Calling Cards

Read This Article if You Want to Be a Millionaire

Everyone wants to be a millionaire, yet many people are millionaires on paper or they control a million dollars worth of property. Some look like they are millionaires, but indeed if they paid off all their loans for the money they borrowed well they would have a negative balance in net worth. Meaning they would be poorer than a street bum. Indeed this is rather funny for someone living in a nice home, driving nice cars and eating in fancy restaurants isn’t it?
Do you want to be a millionaire, a real millionaire? Do you want it so bad that you buy lottery tickets too? Do you find this kind of funny? You know you will not win, but you pay to play, because you like to imagine yourself winning? So, chances are you are one of the many millions who want to be a millionaire, admit it. You know you can be a millionaire quite easily if you are careful with your money and would not be such a spend thrift? What’s the matter you do not want to read any further? What did I get to you?
You know if you charge up a storm and pay interest the wrong way you will never get there. Why do you do these self-defeating things, which are keeping you from being the millionaire you want to be? Why are you so self-destructive and why do you go on this way? Working hard is not enough you have to be smart about your money and not waste your earning, inheritance or winnings on trivial crap and paying interest the wrong way to your addiction to plastic. That is the first thing you need to do, change your mindset. Think on this.

“Lance Winslow” – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

Liechtenstein – CELL Calling Cards