The following are the five best free Web sites for personal finance:
1) MSN MoneyCentral - http://moneycentral.msn.com
2) Yahoo Finance! - http://finance.yahoo.com
3) CNN Money - http://money.cnn.com
4) WSJ's SmartMoney - http://www.smartmoney.com
5) Morningstar - http://www.morningstar.com
Up and coming - Google Finance - http://finance.google.com
Top for-pay personal finance sites:
+ www.investors.com (some free content, but all the good stuff requires payment)
+ www.fool.com
+ www.barrons.com
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
Tuesday, February 13, 2007
Monday, February 12, 2007
More Methods to Start Saving...
Here are some additional tricks to get your saving in gear -
Did you know that the U.S. savings rate has been negative for most of the past two years? (Commerce Department Bureau of Economic Analysis) Did you know that, on average, U.S. households now owe more than they earn in a single year? Isn't it about time you got more serious about saving?
+ Check Pennies - this is a great little method if you are one of those who still balance your checkbook...everytime you write a check, round the balance down to the nearest dollar; whenever you balance your checkbook, you'll find a small surplus in your checking account - transfer it immediately to some sort of savings account. If you have an interest-bearing checking account make sure to trim off those interest payments at the end of every month and transfer them to a savings or investment account as well.
+ 401k's - max out your contribution every year; there are a couple of potential benefits to this: tax-deferred savings and growth maximizes the advantage of compounding, and matching employer contributions are kind of like a bonus that you simply won't get if you don't use your 401k option.
+ Round Up Mortgage Payments - make sure to allocate the surplus to principal; two benefits: less interest payments over the lifetime of your loan, and earlier payoff (over the course of a 30 year mortgage this little trick could easily knock 2-3 months off your mortgage)
+ Sock Away Windfalls - make a point to save and/or invest any extra money that happens to fall into your lap e.g. a surprise inheritance, a bonus at work or a tax refund.
+ Budget - instead of saving whatever is left over, determine ahead of time what you intend to spend and immediately set aside the difference.
Do you know of any additional savings tips and tricks? Leave a comment!
ragingacademic
Did you know that the U.S. savings rate has been negative for most of the past two years? (Commerce Department Bureau of Economic Analysis) Did you know that, on average, U.S. households now owe more than they earn in a single year? Isn't it about time you got more serious about saving?
+ Check Pennies - this is a great little method if you are one of those who still balance your checkbook...everytime you write a check, round the balance down to the nearest dollar; whenever you balance your checkbook, you'll find a small surplus in your checking account - transfer it immediately to some sort of savings account. If you have an interest-bearing checking account make sure to trim off those interest payments at the end of every month and transfer them to a savings or investment account as well.
+ 401k's - max out your contribution every year; there are a couple of potential benefits to this: tax-deferred savings and growth maximizes the advantage of compounding, and matching employer contributions are kind of like a bonus that you simply won't get if you don't use your 401k option.
+ Round Up Mortgage Payments - make sure to allocate the surplus to principal; two benefits: less interest payments over the lifetime of your loan, and earlier payoff (over the course of a 30 year mortgage this little trick could easily knock 2-3 months off your mortgage)
+ Sock Away Windfalls - make a point to save and/or invest any extra money that happens to fall into your lap e.g. a surprise inheritance, a bonus at work or a tax refund.
+ Budget - instead of saving whatever is left over, determine ahead of time what you intend to spend and immediately set aside the difference.
Do you know of any additional savings tips and tricks? Leave a comment!
ragingacademic
Sunday, February 11, 2007
Some Musings On Debt - Advice for the Indebted
Many of you carry various types of debt; the most common and easily accumulated debt is credit card debt.
Merchants love that we have the 'plastic' because it feels so much less like actually paying for something than when we use real, hard, cold cash. Problem is, we use our credit cards too much. The average US citizen has over $8,000 in credit card debt. And, if all you're doing is making minimum payments, you're not putting a dent in that pile of debt you've accumulated. What to do, what to do?? Here are some options to consider - best is to adopt all of the following, of course!!
· First and foremost, stop spending money you don't have. If you're saddled with unmanageable debt, cut up all your credit cards and limit yourself to using cash, debit cards and checks. If you don't want to cut them up, throw them into a freezer bag, fill it with water and put it in the freezer; at least if you do get the urge to splurge you'll have to wait for your cards to thaw, and, well, by then you'll have time to think twice!!
· Work with your credit card companies to reduce your interest rate. Call up customer service and explain that you are experiencing financial difficulties but that you want to be able to continue making payments; ask for a lower rate. Typically, if this is your first time, you'lll get what you asked for. If not, hang up, and call again... You'll get a different customer rep... Try again... If that still does not work, call them up once more and say you want to have the card closed to new purchases - that should work the magic and they most likely will offer you a lower rate.
· Consolidate your debt - if you own a home, best is to get a home equity line of credit from your bank; pay off all your credit cards, that likely carry rates ranging from 12% to 24%, and you'll be left with a single monthly payment to your bank which may run as low as 4%!! You can also consolidate all of your debt under a single card - negotiate with the credit card company first and let them know you would like to transfer balances from other cards; again, they'll usually offer you a lower rate to do so. Cancel and destroy the cards you will no longer be using!!
· Pay down as much debt as you can every month - spend some time budgeting and maximize the debt you pay off every month; this will pay off greatly in the long run. As you pay off your debts, make sure to first pay off those debts that carry the highest interest rates!!
Merchants love that we have the 'plastic' because it feels so much less like actually paying for something than when we use real, hard, cold cash. Problem is, we use our credit cards too much. The average US citizen has over $8,000 in credit card debt. And, if all you're doing is making minimum payments, you're not putting a dent in that pile of debt you've accumulated. What to do, what to do?? Here are some options to consider - best is to adopt all of the following, of course!!
· First and foremost, stop spending money you don't have. If you're saddled with unmanageable debt, cut up all your credit cards and limit yourself to using cash, debit cards and checks. If you don't want to cut them up, throw them into a freezer bag, fill it with water and put it in the freezer; at least if you do get the urge to splurge you'll have to wait for your cards to thaw, and, well, by then you'll have time to think twice!!
· Work with your credit card companies to reduce your interest rate. Call up customer service and explain that you are experiencing financial difficulties but that you want to be able to continue making payments; ask for a lower rate. Typically, if this is your first time, you'lll get what you asked for. If not, hang up, and call again... You'll get a different customer rep... Try again... If that still does not work, call them up once more and say you want to have the card closed to new purchases - that should work the magic and they most likely will offer you a lower rate.
· Consolidate your debt - if you own a home, best is to get a home equity line of credit from your bank; pay off all your credit cards, that likely carry rates ranging from 12% to 24%, and you'll be left with a single monthly payment to your bank which may run as low as 4%!! You can also consolidate all of your debt under a single card - negotiate with the credit card company first and let them know you would like to transfer balances from other cards; again, they'll usually offer you a lower rate to do so. Cancel and destroy the cards you will no longer be using!!
· Pay down as much debt as you can every month - spend some time budgeting and maximize the debt you pay off every month; this will pay off greatly in the long run. As you pay off your debts, make sure to first pay off those debts that carry the highest interest rates!!
Saturday, February 10, 2007
Finance 101 - Markets are NOT efficient...
One of my famous pet peeves is that - contrary to prevailing academic opinion - markets are not efficient. Kahneman and Tversky are far more "in the money" than Sharpe could ever hope to be... (witness the dismal failure of Long Term Capital Management and the ensuing bailout...)
In my own investing as well as in the finance classes I teach I've taken a "nishtahin nishtaher" approach - i.e. neither here nor there, but rather as a compromise which allows the century long battle between fundamentalists and technical analysts to subside into something manageable. One must carefully analyze the fundamentals - yet make trading decisions based on the basic precepts of technical analysis. Why? Because technical analysis reflects the psychology of the market.
I was glad to come across a series of articles from Investopedia that serve to support my own theory; they are:
Brumley (2006) What can traders learn from investors?
Brumley (2006) What can investors learn from traders?
and...
Vonko (2006) Fundamental analysis for Traders.
In my own investing as well as in the finance classes I teach I've taken a "nishtahin nishtaher" approach - i.e. neither here nor there, but rather as a compromise which allows the century long battle between fundamentalists and technical analysts to subside into something manageable. One must carefully analyze the fundamentals - yet make trading decisions based on the basic precepts of technical analysis. Why? Because technical analysis reflects the psychology of the market.
I was glad to come across a series of articles from Investopedia that serve to support my own theory; they are:
Brumley (2006) What can traders learn from investors?
Brumley (2006) What can investors learn from traders?
and...
Vonko (2006) Fundamental analysis for Traders.
Tuesday, January 16, 2007
Three Methods To Start Saving Now!!
If you are hoping to delve into the world of investments, you need to make sure you have some cash to work with. Wetting your toes on Wall Street does not require millions and millions - through so-called DRIP programs you can start with as little as the current price of the stock you are thinking of buying. The following are three favorite methods to start saving right now - these are methods which I have been sharing with students in my finance classes for several years; one of the following always seems to hit a chord...and over time it will help you build that nest egg you are dreaming of:
#1 - Easiest - Piggy Bank - Go out and buy a piggy bank, one that's not too small but not too big; the clear ones are great for this purpose because you get to WATCH your savings grow! Every evening, put all of your loose change into this piggy bank. Within a year you should have between $150 and $300 saved. It's not a lot, but this is money you'll never miss!! Make sure to set a goal for this money - you could deposit it in your savings account as an extra contribution, or you may want to buy something relatively large like a DVD player or a new component for your stereo system.
#2 - A Bit Harder - Breaking Bad Habits - We all have bad habits...some of us smoke, some of us drink too much, some of us chew too much gum and others eat too many snacks. Choose a habit - better to choose one you were trying to do away with anyway... (if you choose smoking...I highly recommend checking out www.smokeclinic.com ) Figure out what you spend on your habit daily. Quit your habit, and at the end of every week, put the money you would have spent on your nasty habit in a glass jar. At the end of every month, make a point to go to the bank and to deposit your extra money into your savings account. If you smoke a pack a day, for example, you'll be able to save an extra $1000 every year by quitting (not to speak of the health benefits and longevity which you will gain...!) This is money you can choose to use for an extra long weekend you would not have been able to afford otherwise - or just keep it growing to live a better retirement!
#3 - Requires More Financial Discipline - Extra Savings - Decide on a reasonable sum, preferably a round sum that comes in bill form i.e. $5, or $10 or $20. Get another glass jar, and at the end of every week - say, every Friday afternoon - put one bill in your jar. Again, at the end of every month make sure to make that trip to the bank and to deposit your bills into your savings account. If you know you just don't have that extra $5 or $20 bill, you WILL get along without it. And, at the end of the year, you'll have an extra $250, $500 or $1000 that you would not have had otherwise. Make sure to decide NOW what you want to do with the money at the end of the year. If you don't have adequate retirement savings or a rainy day fund - well, you'll know what to do!! :-)
Good luck!
ragingacademic
#1 - Easiest - Piggy Bank - Go out and buy a piggy bank, one that's not too small but not too big; the clear ones are great for this purpose because you get to WATCH your savings grow! Every evening, put all of your loose change into this piggy bank. Within a year you should have between $150 and $300 saved. It's not a lot, but this is money you'll never miss!! Make sure to set a goal for this money - you could deposit it in your savings account as an extra contribution, or you may want to buy something relatively large like a DVD player or a new component for your stereo system.
#2 - A Bit Harder - Breaking Bad Habits - We all have bad habits...some of us smoke, some of us drink too much, some of us chew too much gum and others eat too many snacks. Choose a habit - better to choose one you were trying to do away with anyway... (if you choose smoking...I highly recommend checking out www.smokeclinic.com ) Figure out what you spend on your habit daily. Quit your habit, and at the end of every week, put the money you would have spent on your nasty habit in a glass jar. At the end of every month, make a point to go to the bank and to deposit your extra money into your savings account. If you smoke a pack a day, for example, you'll be able to save an extra $1000 every year by quitting (not to speak of the health benefits and longevity which you will gain...!) This is money you can choose to use for an extra long weekend you would not have been able to afford otherwise - or just keep it growing to live a better retirement!
#3 - Requires More Financial Discipline - Extra Savings - Decide on a reasonable sum, preferably a round sum that comes in bill form i.e. $5, or $10 or $20. Get another glass jar, and at the end of every week - say, every Friday afternoon - put one bill in your jar. Again, at the end of every month make sure to make that trip to the bank and to deposit your bills into your savings account. If you know you just don't have that extra $5 or $20 bill, you WILL get along without it. And, at the end of the year, you'll have an extra $250, $500 or $1000 that you would not have had otherwise. Make sure to decide NOW what you want to do with the money at the end of the year. If you don't have adequate retirement savings or a rainy day fund - well, you'll know what to do!! :-)
Good luck!
ragingacademic
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