Markets can fluctuate from time to time. Investing in managed funds with a long term outlook is the key to achieving sustainable long term capital appreciation.

Long Term Capital Appreciation

Stock markets have been shown to outperform other asset classes over the long term. Investing earlier rather than later should ensure that your money has more time to work for you. Investing in a diversified managed fund means that you are not over-exposed to any one sector. As the outlook for an economy improves (or continues to be positive), so too does the likelihood of a diversified managed fund performing well. Whilst timing your investment can affect your overall returns, a long term view makes timing less important.

Smoothing Out Volatile Periods

Markets can be volatile beasts. The recent global financial crisis is a great example. Some markets dropped over 50 percent from their peaks. Many have subsequently recovered over 50 percent from their lows. Many experts have difficulty timing when to enter investments. While being able to pick a low to enter an investment is a wonderful skill, the truth is this is difficult. Stock markets do recover from their lows, and continue on to reach new highs as economies improve, meaning that investors can benefit from this upside, even without investing close to a low point. Even if one had invested at the absolute peak just before the huge 1987 stock market crash, that investment would be worth many times the initial investment today.

Compounding Returns By Re-investing Distributions

Companies often pay dividends to investors (after all, you are lending them your money!). Likewise, managed funds may distribute such dividends from the underlying companies in your managed fund to you (like an interest payment). By re-investing these distributions back into your managed fund, you will end up with additional units which in turn participate in the future performance of your managed fund. Do this over the long term, and you will end up with substantially more units than you started with.

Enforced Savings Plan

An investor is less likely to withdraw from a managed fund than from a bank account, or even a term deposit. Having your funds tied to market leading companies, through a managed fund means that as these companies prosper, so should you. Set up an automated system where you contribute regular amounts to existing managed fund investments (for example, on a monthly basis), and you will do even better.

Beating Inflation

Prices go up over time, sometimes substantially, such as with petrol prices over recent years. While managed fund performance can fluctuate from year to year, a decent managed fund’s long term trend is upwards, ensuring that over such a period, your invested capital increases. As a managed fund investor, you are a part owner in many companies. As they raise prices for their products, you, as a shareholder, benefit. This ensures that you don’t lose, and actually most likely gain purchasing power over the long term.

Share Trading involves both risks and rewards. A long term approach, as outlined above is the lower risk option for steadier returns.

Popularity: 4% [?]

This is a nice read that I got from the net.

You’ll be surprised at the countries that are most indebted right now.

The recent financial crisis and recession have been a worldwide occurrence. The events in the United States since 2008 have garnered most of the headlines because the U. S. has the world’s largest economy and national debt, but the reality is that many countries in Europe are in worse financial shape and continue to deteriorate.

The Netherlands joined the eurozone with a hard guilder a decade ago, but its current debt would likely disqualify it for membership.

Read more here

Popularity: 14% [?]

Making money isn’t as straightforward as it once was.

It used to be pretty simple: your father was a fisherman so you became a fisherman. Your father was a farmer so you became a farmer. Your father ran a store so you ran a store. It doesn’t work that way anymore.

Not to say people don’t follow in the footsteps of their parents but its less common and there are so many jobs now that it’s hard to choose. If you’re looking for something a bit more unique then you’ll enjoy our list of 5 weird ways to make money.

1. Sell Ads on Your Car ($400/month)

Companies like San Diego based AutoWraps will pay you up to $400/month to put large advertising banners on both sides of your car.

The company’s profile is as follows: “We offer a variety of exciting non-traditional marketing campaigns custom designed to help you reach your targeted demo.”

You might look a bit silly driving around town with a car plastered in ads but that $400 could go along way to covering your gas, insurance, or even the cost of your car.

2. A Million Dollar Webpage ($1 million)

The idea of making a million dollars selling individual pixels on a website for $10 each was so weird that even the website’s owner, Alex Tew, didn’t think he would make it all the way to a million dollars. You get all the major newspapers in the UK and many in the US involved and all of sudden young Alex looks like a genius.

When asked what the University student would do with the money, this is one of his replies: “I definitely need some new socks. Whenever I buy new ones they seem to disappear, or they disintegrate. So I want to buy some really expensive, long-lasting socks.” We hope you’re enjoying those socks Alex!

3. Sell Your Luscious Locks ($10 - $3600)

Just like eBay, TheHairTrader.com lets users post ads and bid on items. We’re not talking records and collectibles though…we’re talking hair.

This one might not be a great moneymaker if you can’t grow hair in the first place, sorry Dr. Phil.

4. Rent-a-friend (Various prices)

In Tokyo, you can hire yourself out for weddings and funerals to be a rented friend or relative. The Tokyo agency I Want to Cheer Up will dispatch you to funerals and weddings and for a price; you’ll have to pretend to be a relative. They also hire out husbands and wives to help single people get acquainted with the married life.

5. Pretend to be Saint Nick ($2.8+ million)

The guy that set up Santamail.org will send your children a personalized letter from Santa for the low price of $9.99. Their website says they have already sent over 290,000 such letters.

That means this faux-Santa has taken in over $2.8 million dollars since 2002. I’m guessing that mall Santas don’t make that much.

About the author

This is a guest post from Gary Foss from Bankruptcy and Insolvency Act Canada.

Popularity: 21% [?]

In the UK alone, there are more credit cards than people and around the world, people in developed nations are all too familiar with paying on plastic

Personal debt certainly isn’t a stranger. In the UK alone, there are more credit cards than people and around the world, people in developed nations are all too familiar with paying on plastic. ‘Buy now, pay later,’ is almost the consumer slogan these days! So being in debt isn’t as rare as it once was. Here’s how not to manage your debts.

Ignore Your Creditors

Ignoring your creditors when they call or write is a sure fire way to irritate them. They want their money and if you’re not making your payments on time, they won’t give up trying to get it. If you have a lot of creditors, it can be difficult to deal with and some form of debt consolidation or formal restructuring might mean you have far fewer creditors, thus fewer calls to handle. But don’t blank them. If you are struggling to balance the books, try talking to your creditors. Contrary to popular misconception, they’re human too!

Take a Payday Shopping Spree!

Want to ensure that your debts are going to haunt you for your entire life? Then hit the shops the moment that your monthly wage lands in your bank account. Go wild, buy things you really don’t need but just want! That really will keep you in the red. However, if you want to take a more sensible approach and look at getting back in the black, you might want to hold off on the splashy expenses. Ask yourself, before you make a purchase, ‘do I need this?’ Maybe switch a luxury purchase for an extra payment towards your credit card bill. Admittedly, paying off your debts is a lot less fun than splashing out, but you’ll feel all the better for it when you see those debts slowly disappearing.

Take a Payday Loan

Payday loans are incredibly high interest loans of relatively small amounts designed just to keep you afloat until your next payday. However, you will end up paying back far more than you borrowed. This is one of the most expensive ways to borrow money and if you want to fight back against your debts, is a real no-go!

Sneak into ‘Unauthorised Overdraft’ Territory

Overdrafts really aren’t a bad way to borrow. They’re often much lower in terms of interest rates and charges than credit cards or other forms of lending and, with most banks, providing you don’t step over the agreed overdraft limit, you won’t incur any additional charges. However, the second you go over your agreed limit, you will start racking up bank penalty charges which really can add up and before you know it, you’ve incurred more in fees than you even took in the form of unauthorised overdraft spend. Running short? Try agreeing a higher overdraft limit with your bank where possible. They’d much rather you enquired about extending the overdraft than just taking more. The worst they can do is say no.

If you’re serious about dealing with your debts, it really comes down to a sensible approach.
• Write a budget.
• Stick to the budget.
• Cut back on luxuries and treats.

Of course, if your monthly repayments exceed your income, you will need to seek professional debt advice to deal with your problems. However, such advice is available freely from a number of companies and charities.

Popularity: 14% [?]

The current financial climate means people are constantly on the lookout for ways that they can save money.

How to best control your personal income is often a topic of discussion. Through years of controlling my own finances, I have come across ‘rules’ or ‘guidelines’ that work wonders and others that simply don’t.

The current financial climate means people are constantly on the lookout for ways that they can save money. I’ve put together my top financial tips that I hope will prove useful for you all.

Budget! - Never spend more than you earn

Probably the simplest tip I can give you but budgeting is something that we all should do. Take a pen and write down your expenses for the month and work out how much you can afford to spend. By doing this, when you come to the end of the month you won’t have to worry about struggling to make payments.

Once you have noted down all your expenses, including your phone bill and any direct debits, think about the amount of money you would like to put aside for the month, it doesn’t have to be a lot, a little can go a long way. Then after deducting your expenses and how much you would like to put aside from your monthly income, you should try and not go over that amount. Budgeting works wonders because it gives you something to aim towards and helps keep you motivated.

Review Your Expenses – You could be paying too much

There are certain things, whether it is gas or electricity that we have to buy to survive. These necessities are the things that people often pay too much for. The easy way to avoid paying too much on the things we have to buy is to use price comparison websites. These websites do all the hard work for you as they compare all the market leaders for the likes of, insurance, money, utilities and even phone bills. These websites are a quick fire way to start you saving a lot of money.

Credit Cards – Reward Yourself

Many people often give credit cards a bad name. However, if used properly they can be a quick fire way to earning some decent rewards. There are so many credit cards on the market that they all offer something for everyone. If you’re a shopaholic then look for credit cards that will reward you with money off your next purchase, or if you’re a frequent jetsetter, take a look at airline credit cards, where you can build air miles depending on how much you spend on your card.

If you have the money to make a purchase and you look after your finances well, then you could always fund a big purchase on a reward card, so that you can reap the benefits, then just pay off the card straight away so you don’t pay any interest.

A few important things to remember if you use a credit card are, keep an eye on your finances, don’t overspend and always try and pay more than the minimum payment every month; doing these three things when using your card will help you save money.

Save – Open a savings account

People don’t get the best use out of savings accounts, but they are a sure way to save money. A good way to ensure you save a small amount each month is to set up a standing order. Set a small amount every month to go from your normal account into your designated saving account. By doing this every month your money in your savings account will build and build, and the more the money builds the more interest you will gain.

The Lifetime Savings Account for those of you situated in the US offers fantastic benefits. Whatever you put in your account is not tax-deductible, but any returns you earn from your LSA are tax-free.

If you like me are based in the UK, then using a cash ISA is the best way to save some cash. All interest is tax free and you can save up to £5,100 in the account every year.

I hope my top financial tips prove useful for you and remember, when looking at your finances; small changes can have a big impact.

About the Author:

This article was written by Andreas Nicolaides.

Andreas works as a financial writer for UK based MoneySupermarket.com.

Popularity: 47% [?]

Forex trading has always been a doubtful game for many of us. Successful trading does not depend upon what you trade but on how you trade. Over-trading and under-trading are the two main concerns of every Forex trader. If you trade in a planned manner you can avoid the imbalance and emerge as a successful trader.

Plan your trade

Plan your trading in such a manner that you get enough time to realize what you are into. Too many trades might lead to confusions even if you are following a proper trading plan. To keep the inclination level of over trading under control try extending the time frames. It is a known fact that slow and steady work over a longer time frame increases the potential of the end results. Try planning your trade on a daily basis with entry made on four hour chart. This will limit the number of valid signals you take on a daily basis.

Target based plans

Before you start a trade, set your goals. The figures you aim for should be realistic to achieve. Let your weekly target be anything about 60-100 points. There are two options:

• Set a long time frame and protect your profits by limiting the trading opportunities.
• Shorten the time limit to get more trading opportunities, but be ready to risk your profits.

Set your goals as per your capacity and capability. Weekly targets are more effective when you are over trading. You can easily achieve the set targets and avail plenty of time to devote on other issues. Trading requires a balanced combination of risk capital, influence and lot size to accomplish more points in a shorter time span. Once again remember eat as much as you can chew. Set the targets as per your ability, else you will overwork for no reason.

What is the best period for trading?

Emotions and sentiments play a main role in trading. It is always essential to achieve your previous targets before stepping into a new venture. Keep your mind-set positive, achieve the monthly and weekly targets regularly and set your mind free before opting for a new trade. You are risking your capital if you do not follow the mentioned aspects.

Learn from your mistakes

No one in this world is perfect. To polish your trading skills and learn more about safe trading, watch online presentations, read expert reviews or discuss your issues with a skilled trader. All these people have thorough knowledge about the working of Forex trade. Divulge your trading details to someone who has basic knowledge about your trading plan.

Discuss the system used for the trade, the reason for taking up the trade and scope for better trading with your counterpart. Set a specific time, say every week end or twice a month to revise and talk about your plans. You can also set goals and targets based on his or her opinion.

With proper guidance, opinion and planning you can reap huge benefits from your hard earned investments rather than stake them for no reason.

About the author

This guest post is contributed by the author of Forex Trading Blog.

Popularity: 14% [?]

Nobody want to be broke, right? We all want to make sure that we have enough money not only in the present, but also for the future.

For some people who are fortunate enough, this is never a major concern. But for the rest of us we have to struggle with the need to pay bills today and the desire to have a nest egg set aside for the future. Thankfully there are a few things that you can do to save for your future, no matter how tight your budget is.

Follow your budget

There’s a reason you set a budget for your money. It ensures that you don’t overspend and end up not having enough money to pay your bills. Sticking to your budget means that you won’t have to dip into your extra money.

Reevaluate your budget

Do you really need as much spending money as you’ve allotted yourself each month? And is each and every one of those 102 TV channels necessary? Review and tighten your budget and you’ll be surprised by how much money you’ll be able to put away monthly.

The 5-10% rule

As a rule of thumb you should be setting aside 5-10% of your weekly income for your retirement fund. If you are living on an extremely tight budget, try putting 5% into a savings account or RRSP. The more you can put away, the better. And you would be surprised by how little you miss the extra money once you don’t have access to it.

Little things add up

A lot of the time it’s not the large purchases that stop us from saving money, it’s the smaller ones. A dollar here, five dollars there can add up and you would be shocked at the amount of money yearly that slips away. Do you really need a coffee and donut from the local coffee shop every morning? Cutting out the little expenses like this can add up, and quickly.

Be careful with credit

While some forms of credit are inevitable (mortgage, car loan) others should be considered a luxury. And luxuries aren’t necessarily something you need. While it’s a good idea to have a credit card for emergencies, it’s easy to get sucked into the buy now pay later lifestyle. Too many people live off of credit and this is NEVER a good idea. You will end up with all of your money going towards minimum payments rather into your savings account. If you spend more than you can realistically pay you will end up in a vicious cycle of monthly payments that never see your debt go down.

About the author:

Vern Marker is an expert on a variety of topics including budgeting, marketing, and business. Want to ask an expert about something specific? Check out YoExpert.com

Popularity: 16% [?]

Often times we’re so busy in our daily lives that we forget that we can’t live like a rockstar, and need to budget and spend accordingly. Those little things you say like, “ohhhh it’s okay, I’ll make up for it somewhere else” or “I’m too lazy to send in that rebate” are actually hurting you in the long run. Here’s a few things you may want to consider when planning your budget and allotting spending money to yourself or your family.

1. Use online services like Mint

I’m saying this one in particular because I’m using it, and I absolutely love it. They just released a mobile phone app too, so you can track your budget and money on the road. You can separate your expenses, and Mint will automatically know what you are spending where. It will then alert you when you go over, as well as alert you when bills and credit card bills are due.

This will save you from 

• going over your budget and being more aware of your spending
• you’ll save because you won’t be wasting money on ridiculous late fees or overage fees

2. Being proactive with your car insurance companies

Actively seek our better insurance companies on both ends. There’s a TON of options out there and you want to make sure you aren’t losing out when you could be saving. For instance, some car insurance companies give you money back when you DON’T have an accident. Some health insurance companies give you a savings program with what you’re paying in. Do the research; you can actually end up saving a ton of money on these necessities.

3. Buying off Ebay/Etsy

Some people are afraid to use online auction websites for privacy reasons. That’s understandable, but when you can get a brand new TV for hundreds of dollars cheaper- I would say it’s time to take the dive and start using them. There are plenty of ways to track your auctions in Ebay, especially, to make sure you are only spending what you want to spend.

4. Get a credit card

This might sound like really dumb advice, especially if you’re trying to save money, but it’s probably the smartest thing you can do. When you don’t have revolving open credit accounts, it can actually hurt your credit. Put gas and groceries on your card (when you have the money) and pay it off at the end of the month, every month. This will keep revolving credit open as well as earn you rewards on certain cards. These rewards can be in the form of cash, gift certificates, travel etc.

5. Shop in bulk

Places like Sam’s Club and BJ’s Wholesale may cost more in the beginning, but they actually save you more in the long run. As you probably know, when you buy in bulk, prices go down. While you may not “need” a ton of beef, you’ll pay less for it up front and use it through-out the month.

6. Send in your rebates

 Many people will be too lazy to send in a rebate right away and then they miss the date. Rebates are sketchy enough to begin with (although they’ve gotten better with the issuance of debit cards for your rebate rather than waiting for a rebate check) but they’re technically money you’ve spent; you may as well get it back.

These are just a few small tips to make sure you are living frugally and saving money. Pretty much common sense, but not things that people think of everyday.

What are some budgeting/spending tips that you have?

Popularity: 9% [?]

Saving money is popular and very sexy. Why would you want to splurge your minimal income on crap that ends up in a garage sale anyway?

Emergency funds are meant to be kept for tough times. In today’s socio-economic times it is more important than ever to keep some money on the side for a rainy day. Most financial advisers recommend you save about 6 months worth of living capital which will cover your expenses should you lose your job, or run into financial hardship.

Most people worry about emergency money when they need it. If you do this, then it is too late because you are already facing a mountain of potential debt.

Job loss, unexpected bill, health problems

All of the above can move you over the financial edge, making your life an absolute nightmare. If you wait in the hopes of never needing an emergency fund you are kidding yourself. It would be like traveling without getting insurance cover, or driving your car without insurance (which is criminal to say the least).

I don’t earn enough, how can I save?

This is one of the excuses (albeit relevant) of many people. Please do not make the mistake of blaming your lack of income for not saving up for an emergency fund. People worse off than you have managed to pay off debt and more in a relatively short time frame.

If there is a will, there is a way and you could start with putting aside $5/week if that’s all you can afford.

A matter of interest

To invest your emergency fund for the most return open up a no-cost savings account that will give you good interest rates. While this might not matter much in the beginning, it will soon compound once you save a few hundred dollars.

What about excess pay?

If you receive an unexpected surplus of money, why not pay it straight into your emergency fund. That way it will earn interest and you can decide whether you really need that piece of clothing you put your eyes on.

Frugal is all the rage

Saving money is popular and very sexy. Why would you want to splurge your minimal income on crap that ends up in a garage sale anyway? If you are brutally honest with yourself you will notice that a lot of the stuff you own is not really needed.

Humans buy stuff out of frustration and a need for love. We wrongfully look for that special kick when buying luxury items (stuff we can live without but believe we can’t).

A good way to slowly change your mindset is by alternating your weeks between “normal” behavior and frugal living.

Emergencies do happen

No one is save from emergencies. You could receive a large unexpected bill in the mail tomorrow, throwing your financial situation into the gutter within a tiny second. While nobody wants to experience financial meltdown, you increase your chances of dealing with it by planning your emergency fund and then implementing that plan.

Saving is fun

If one day you find yourself with more money than you really need in your emergency savings fund you can splurge and buy something REALLY nice as a reward for sticking it out.

About the author

This article was written by Timothy who is a regular writer and part of the team at Credit Card Finder, a 100% free Australian credit card comparison and application service. Visit the Credit Card Finder website for more information on starting an emergency fund, or subscribe to their RSS feed for more practical articles.

Popularity: 31% [?]

In almost every state in the US one can buy an individual health insurance plan that has almost the exact same coverage as a similar group health insurance plan but at approximately 1/3 to 1/2 of the cost.

As the owner of a Florida health insurance agency, the owner of a website for comparing health insurance quotes, and as a CFPR with a health insurance license in 6 states I have to say that one of the most common areas of confusion that I come across even from some very smart people is the area of individual health insurance.

It seems that many people learn some measure of budgeting advice from their parents or a home economics class, they learn about car insurance from a little green lizard, and they learn about credit cards from quite often (unfortunately) trial and error but when it comes to health insurance people are often left out in the dark. Many Americans have a form of employer provided health insurance, called “group health insurance”, and what little they do know about group health insurance they learned from their company’s HR department.

To make things even worse when someone sets out to purchase an individual health insurance plan an “individual health insurance plan” is any type of health plan that is NOT employer provided) most have no clue how an individual health insurance plan even works as they mistakenly assume that individual health insurance plans mirror group health insurance plans in every detail. Let’s take a look at some of the “secrets” of individual health insurance plans and learn how they are different from group health insurance plans so you can choose the best individual health plan.

1. Individual Health Insurance is Usually MUCH Cheaper Than Group Health Insurance

Everyone knows that when you buy things in bulk they are cheaper - right? Well, not in the case of health insurance plans. In almost every state in the US one can buy an individual health insurance plan that has almost the exact same coverage as a similar group health insurance plan but at approximately 1/3 to 1/2 of the cost.

Why is this? With group health insurance plans insurance companies are required to accept everyone who applies for coverage regardless of their health history (called pre-existing conditions). With individual health
insurance plans companies require applicants to go through the medical underwriting process to determine if the insurance company is willing to approve the applicant for a policy (this means the better your BMI, the better your cholesterol, etc. then the more likely it is that you will receive the best rates).

It only follows then that group plans are much more expensive because the insurance company is forced to accept everyone for coverage onto the group health plan regardless of whether they are 100% healthy or on their death bed with a costly illness. This should give you a good indicator of where the costs for all types of individual health insurance plans are going because of the upcoming mandatory pre-existing condition coverage changes in the health care reform bill that are set to take place in the coming years.

2. Choice, Choice, and More Choice

The great thing about purchasing an individual health insurance plan as opposed to a group health insurance plan is that with an individual plan you have many different companies to choose from (where with group plans you are pretty much stuck with whichever insurer your company chooses for you). Of
course, the onus is on you to do your research and find the best individual health plan for you needs since you can’t just rely on your HR department any more to do the heavy lifting for you but choice is always a good thing - right?

3. Bigger is Usually Better

When it comes to choosing a health insurance company for an individual health insurance plan the bigger the company the better it is for you. Bigger companies have the purchasing power of many different policyholders behind them to allow them to throw their weight around during contract negotiations for prescription drug pricing, doctor pricing, etc. What this means for you is that while the cost of a prescription without insurance might be $100 it is not uncommon at all to have that prescription repriced
to $50, $25, or even less if you have individual health insurance with a big company like a United Healthcare, Humana, Aetna, etc.

4. Business Owners Can Jump on the Individual Health Insurance Bandwagon Too

Just because one owns a business that does not prevent them from purchasing the much cheaper individual health insurance plans for themselves and setting up a way for their employees to receive money to purchase their own individual health insurance plans as well. A medical reimbursement plan allows employers to reimburse employees for the cost of individual health premiums. The advantage to the employee is that the premiums are much cheaper and they can choose any plan from any company they want. The
advantage to the employer is that they pay less in health insurance costs while still being able to offer a health benefits package to their employees.

5. Even Before Health Care Reform Pre-Existing Conditions Were Covered

Did you know that even before the health care reform bill was passed into law the HIPAA laws dictate when individual health insurance plans MUST cover pre-existing conditions? The HIPAA laws are in place to give coverage to people who have done the responsible thing and bought health insurance coverage before they need it and through no fault of their own they are unable to continue coverage (i.e. their COBRA coverage expires, their company goes out of business, etc.).

Of course, the new health care reform bill regulations force insurance companies to accept people for coverage who have pre-existing conditions and have not done the responsible thing and purchased health insurance before they found out they need it so costs will likely rise dramatically in coming years.

For example, imagine if a law was passed that forced all car insurance companies to pay for damages due to a car crash from before a person even purchased their auto insurance and you have a pretty good grasp of how this scenario will play out on the health
insurance side - i.e. why not just pay a small fine for not having health insurance coverage rather than pay the high health insurance premiums because if you get cancer without health insurance then the insurance
company is forced to cover you anyway right? You can see how this will likely spiral out of control.

What do YOU think? Do you have any additional individual health insurance “secrets”? What do you think individual health insurance costs will look like in the future?

Popularity: 16% [?]