Students Of Success

Did you ever see the movie The Italian Job, and if so do you
remember when John Bridger asked: “you see those pillars over
there, that’s where they used to string up thieves who felt
fine.” Make the transition from paper trading to real money
trading and you will feel FINE too - Freaked-out Insecure
Neurotic and Emotional. And what a great analogy ’string up’ is,
because after all those months of paper trading winners are
replaced with real money losses, that is exactly what you will
feel like doing to yourself.

The Trading Psychology Viewpoint

No discussion about trading, or the consideration to begin
trading, can be done without a harsh realization - the vast
majority of all traders lose.

It is said that the reason that most traders lose is because
they are not psychologically prepared to trade, that is they are
not prepared to accept financial risk for something of which
they have no control over the outcome. Trading is much more of a
psychological problem then a methodological one, only the
traders who have first accepted this have a chance of being
consistently successful traders. Without an understanding of
trading psychology and the various issues that circumvent
method, there will be virtually no chance to overcome the fear,
confusion, and despair that can be inherent in trading.
Ultimately, after a series of consecutive losses, method becomes
replaced with a feeling that it is impossible to do anything
right; if for no other reason than this situation, trading
psychology is more critical than trading method.

New Trader Scenario

Consider a scenario where a trader develops a method for day
trading an index future. The method gives 15 trades per day, and
the trader has gotten to the point where they are able to paper
trade with the following results: 9 wining trades averaging $85
each, and 6 losing trades averaging -$65 each - thus giving $375
average daily gains. The trader has achieved these results for
three consecutive months; their paper trading goals have been
met and it is time to start trading real money. Real money
trading begins, but things quickly change. Instead of trading
their method like they did when paper trading, the trader starts
’skipping’ trades trying to pick the winners instead of
accepting the 40% losers; of course, they invariably pick more
losers than winners. Trying to then correct this problem, the
trader decides that maybe they are entering their trades too
late. So now instead of letting the setup complete and then
doing the trade, the trigger is anticipated so the trade can be
entered earlier - the losses get worse.

With the continued losses the emotions take over: “What is
wrong, why am I such a pathetic loser? Maybe it’s not my fault,
maybe the method just doesn’t really work.”

The problems get worse with each trade, more emotions and more
loses - the trader quits trading. The trader now decides that
their paper trading results weren’t really adequate to begin
real money trading. They will go back to paper trading and
studying again.

Thoughts that are going through the trader’s mind now: “Maybe I
should try different trading methods until I can eliminate those
losing trades - then I will be ready to trade real money again.
Really, maybe I should just quit trading altogether - maybe I am
just a loser, and that’s why I can’t trade.”

The Trading Psychology Plan

What should be very apparent from this scenario is that the
trader never traded their paper trading method plan after
transitioning to real money trading. Unfortunately, the trader
is unable to realize what they have done, instead their emotions
first place blame on the method thinking that it really doesn’t
work, and then on themselves for being “such a pathetic loser”.
The final result being that the trader quits trading, and if the
real underlying reasons for what has happened aren’t accepted
and changed, this trader will never be able to trade real money
even if their paper trading results become 100% winners, which
of course is not going to happen.

The trader had a trading method plan, but they did not have a
trading psychology plan. They did not have a way to make the
transition from fear and emotion directed trading to actually
trading the method as designed. They did not have a plan to
objectively access and understand their given non-method
actions, and then define a ’setup’ for replacing them.

The trading psychology plan must begin with an honest assessment
and acceptance for what really happened: the trader never traded
their method plan; there is no other blame to be placed, or
excuses to be made. There is nothing wrong with the trading
plan, and regardless, the trader has not traded it in order to
be able to make that evaluation. As well, traders cannot
internalize trade loses where they lead to their viewpoint of
themselves - you are not a loser because your trade is a loser.

Trading Psychology Plan Components

* Accept that losing will be a normal part of trading. Not only
is it impossible to be perfect, it is not an objective or
necessary to be a profitable trader. * Replace the focus of
winning and losing with the objective of following your plan.
This was not done while paper trading, as the trader had a
specific profitability goal that they used to tell them when
they were prepared to trade real money. They did not understand
that the reason they achieved this goal was because of how they
followed their plan.

* Remain neutral and non-judgmental towards yourself. If
profitable trading is ever going to be possible, this is
mandatory. There is no way that you are going to be able to
trust yourself to manage risk while you are also telling
yourself that you are ’stupid’ or a ‘pathetic loser’ each time
you lose or feel that you have done something wrong.

* Eliminating your emotions is not the objective; I actually do
not think this is possible. Emotions are always going to enter
into trading - learn to control the emotions, instead of having
them control you.

* Accept that emotions are a part of life; they aren’t by
definition good or bad, and actually if you can shift the focus
of what the emotion represents, they can be very beneficial for
the trader. For instance, if I am feeling confused and that
causes an emotional response or hesitation, I want to feel that
emotion. This emotion becomes a warning to me that I should wait
and try to find more chart-market clarity before taking a trade,
something that can be very typical when markets are in
congestion.

* Start slowly - this may be the most important component of
your plan. For instance, begin trading real money for an hour at
a time, and then assess what you have done, always asking
yourself the question: did I follow my plan, or did I take
non-method trades.

Granted, you will not be able to approximate your paper trading
results as the expectancy of that plan was achieved by averaging
15 trades per day. However, not only will this help further to
shift the focus from how much money did I make to did I follow
my plan, it will also allow you to acclimate to the logistics of
real time-real money execution, and the related initial
emotions, where all of a sudden the market feels like it is
moving considerably faster. By doing this you will ‘build-up’ to
trading your full plan at a pace that won’t cause you to become
so overwhelmed by the process, and immediately cause you to
avoid what you had intended to do as fear and emotion becomes
too strong.

You have a great trading method and trading plan. You have
profitably paper traded, and you ARE now ready to start trading
real money - just be sure that you have a trading psychology
plan that is as good as your trading method plan, and that you
realize that neither will be of any use to you without the
other.

Frustrated by all the symbols in a stock quote? Here’s a basic overview to reading a stock quote on Yahoo Finance.

If you’re like many new stock market investors you are learning all sorts of new things, one of the many things you need to know is how to read a stock quote.

Yahoo Finance has a nice stock quote page, please follow along and go to this web page http://finance.yahoo.com/q?s=msft and find out what everything means.

Near the top of the page it will tell you that you are looking up Microsoft Corp. (MSFT) this tells us what company we are looking at. You will then see the last price (which is delayed 20 minutes) and you will see how much the stock has gone up or down for the day.

If you scroll down the page you will find a table with a bunch of data.

Last Trade: This is the last trade that happened on this stock (delayed 20 minutes)
Trade Time: This is the date or the time of the trade
Change: Amount the stock traded up or down in dollars and percentage
Prev. Close: The amount the stock closed at the last day it traded. Generally the day before, unless holiday or weekend
Open: Price the stock opened at today or if weekend or holiday last day it traded
Bid: What various investors are looking to buy the stock for at the current moment
Ask: What various investors are willing to sell the stock for at the current moment
1 yr Est: Estimate for the stock’s price in one year’s time
Day’s Range: The range in price the stock has traded that day
52wk Range: Stock price from low to high over the past year of trading
Volume: Number of shares of stock traded so far today
Avg. Vol (3m): Average number of shares traded each day for the past 3 months
Market Cap: This is the market price for the company take the number of shares outstanding and multiple by the price of the stock
P/E: Price to earnings ratio
EPS: Earnings per share
Div & Yield: The dividend (if any) that you could receive from the company for owning stock

Those are the basic items on that Yahoo finance page; you can also find charts, headlines and some more background information on the company.

Reed Floren runs a stock market forum where you can find answers to all your stock market questions register for your free membership at this stock market forum http://www.reedfloren.com/forums/index.php?act=Reg&CODE=00

Sales Leaseback compared to traditional property investment

Can a Sales Leaseback arrangement make investing in Orlando investment
properties more safe and reliable?

Yes. Providing a guaranteed rental amount each month is the safest and
most reliable way to realize a return on your investment. In addition
to freeing you from any financial worries regarding monthly income the
Sales Leaseback program also relieves you from the headaches of the
marketing and administrative duties of
operating a luxury resort.

The sale and lease back transaction owes its initial roots to
equipment leasing. In the case of real estate, the buyer purchases
real estate from the seller and the seller leases it back from the
buyer for a specific amount of rent. (Lease Back) In this case, the
owner is the lessor and the management company is the lessee.

The Sale and Lease back offers the following:

Increase in rental amounts each year

Typical Increases approximately 2% annually.

Consistent amounts are paid each month to the owner making it easier
to calculate yield and manage the property.

A fixed amount is paid to owner each month. If real estate is
approximately 2000 sq. ft, they would receive approximately $2000
The owner can stay at resort for FREE or a deeply discounted rates
Offer discounted rates to family and friends who want to stay in their
villa
while on vacation.

The typical resort earns its profits during the high season to offset
losses during the low season. Finding a seasoned professional to
manage your property during both high and low season is key to
your financial success for both short and long term.

As part of the Sale Leaseback program the only items paid for by the
Owner (lessor) are mortgage, insurance, taxes and utility deposits.
This makes it easy for the purchaser to acquire investment property in
Orlando because the challenges of managing the investment properties
are handled by the Lessee. Items paid for by the Lessee are Rent to
Owner, Homeowner dues, Electricity, Telephone, Cable, Pest Control,
Water and Sewer
and maintenance. This makes it easy for the buyer to purchase an Orlando
investment Property. Upkeep of property, landscaping, and housekeeping
is handled by the Lessee.

This makes the investment property management almost turnkey. All these
benefits make investing in Orlando Investment Properties a viable
alternative to both first time and seasoned investors.

Lisa Carson

lcarson@biminibayresortinvestment.com

http://www.biminibayresortinvestment.com
Sale Leaseback Investment Property Acquisition Specialist

Grading coins

The condition of a coin is commonly summarized by a grade. Because the value of collectible coins often varies dramatically with grade and overly generous grading is not uncommon, reasonable grading proficiency is an important skill for collectors. The material presented here is intended only as an introduction to the subject. Grading is a skill that can only be developed over time through referrals to grading guides, consultation with experienced collectors and dealers, and lots of practice.

Published standards set objective criteria for grading, yet some amount of subjectivity is inevitable — even expert graders will often assign slightly different grades to the same coin. While you can often ask an experienced grader for an opinion, being able to make your own reasonable assessment of grade is your best protection.

An overview of American Numismatic Association standards follows. ANA standards are widely used in the U.S. but are not the only system used. Much of the rest of the world uses the grades Fair, Fine, Very Fine, Extremely Fine, Uncirculated and Fleur-de-coin.

Numerals used in coin grades have been taken from the Sheldon scale (see Glossary).

Uncirculated Coins

Coins with no wear at all are referred to as uncirculated or in mint state (MS). Grades from MS-60 to MS-70 in one point increments are used for mint state coins. Criteria include luster; the number, size and location of contact marks; the number, size and location of any hairlines, and the quality of the strike and overall eye appeal..

An MS-60 coin may have dull luster and numerous contact marks in prime focal areas, as long as there is no wear. To merit MS-65, a coin should have brilliant cartwheel luster (attractive toning is permissible), at most a few inconspicuous contact marks, no hairlines, and nearly complete striking details. Grades from MS-61 to MS-64 cover intermediate parts of this range. Truly exceptional coins may be graded MS-66, MS-67 or, if absolutely flawless, as high as the theoretical maximum of MS-70. Many numismatists consider MS-70 to be an unobtainable ideal.

Terms such as brilliant uncirculated (BU), choice BU, gem BU, select BU and premium BU are still used in lieu of numerical grades by some dealers, auctioneers and others. Correlations between these terms and the numeric MS grades are difficult at best, because of inconsistent usage and in some cases overgrading.

Market values for many uncirculated coins vary dramatically from one grade to the next. Remember that whether a coin is described with a numerical or an adjectival grade, it’s only someone’s opinion. Until you are comfortable with your ability to grade uncirculated coins, make liberal use of other opinions, such as those available with slabbed coins or from experienced collectors and dealers you trust, or concentrate on circulated coins.

Circulated Coins

For circulated coins the grade is primarily an indication of how much wear has occurred and generally does not take into account the presence or absence of dings, scratches, toning, dirt and other foreign substances (though such information may also be noted).

ANA grading standards recognize 11 grades for circulated coins (listed here with brief, generic descriptions):

AU-58, very choice about uncirculated: just traces of wear on a coin with nearly full luster and no major detracting contact marks

AU-55, choice about uncirculated: small traces of wear visible on the highest points

AU-50, about uncirculated: very light wear on the highest points; still has at least half of the original mint luster

EF-45 or XF-45, choice extremely fine: all design details are sharp; some mint luster remains, though perhaps only in “protected areas”

EF-40 or XF-40, extremely fine: slightly more wear than a “45″; traces of mint luster may show

VF-30, choice very fine: light even wear on high points, all lettering and design details are sharp

VF-20, very fine: most details are still well defined; high points are smooth

F-12, fine: major elements are still clear but details are worn away

VG-8, very good: major design elements, letters and numerals are worn but clear

G-4, good: major design elements are outlined but details are gone; for some series the date may not be sharp and the rim may not be complete.

AG-3, about good: heavily worn; date may be barely discernable
While coins more worn than AG are rarely collected, two additional grades are nevertheless used to characterize them:

F-2, fair — very heavily worn; major portions may be completely smooth

P-1, poor, filler or cull — barely recognizable
While not included in the ANA standards, intermediate grades like AU-53,
VF-35, F-15 and G-6 are used by some dealers and grading services. When a grader believes a coin is better than the minimum requirements but not nice enough for the next higher grade “+” or “PQ” may be included (e.g. MS64PQ or VG+) or a range may be given (e.g. F-VF).

Split Grades

When there are significant differences between the obverse and reverse sides, a split grade may be assigned. Split grades are denoted with a “/”. For example, “F/VF” means that the obverse is F and the reverse is VF.

The overall grade is often determined by the obverse. An intermediate value may be appropriate when the difference is significant, especially if the reverse is lower. A coin graded MS-60/61 would be considered to have an overall grade of MS-60, and another at MS-65/63 could be considered to have an overall grade of MS-64.

Steve is the ceo of cashgcards-goldlynks rare/gold coin club he was the best isp in 1997 check out his about us page at http://goldlynks.tripod.com this article is free for distribution you can sign up for a free email course on buying and selling rare/gold coins for profit by sending email to goldcoinsinfo@yahoo.com membership of the coins club is free to join at http://goldlynks.tripod.com

Everyone dreams of early retirement. The idea of no longer having to work at an early age is very attractive to some people and they dream and wish all day long about the day that they can afford to say, “Take this job and…” well, you know. Unfortunately, for many people, early retirement is a dream that will never be realized. It is not because they are in a job that won’t allow early retirement or because they love their work so much that they can’t bear to leave it. It is simply because they spent their time dreaming about early retirement rather than planning for it.

There is almost no reason why anyone who wants to can’t enter into early retirement by the time they reach age forty or fifty. There are some who manage to retire early while still in their thirties. What’s the secret? Why are some able to achieve early retirement while others can only dream?

Because they planned for it.

Planning for early retirement should also begin early. In fact, the earlier the planning begins, the earlier the retirement can begin. Planning for early retirement should consist of a serious financial plan that includes aggressive saving and investing strategies. Of course the investing should not be so aggressive as to be overly risky. No one wants their best laid plans of early retirement to be torn asunder by a poorly planned investment.

If a person really wants to be able to go into early retirement, she needs to start planning now. Consulting with a financial planner should be the first order of business. The planner can show the potential early retiree exactly what steps to take to put together a plan for early retirement. With the right advice, the right plan, and a touch of luck, early retirement can be the reality rather than the dream for everyone.

Investment Tips by Mika Hamilton – Read more free investment tips, tutorials & reviews at http://www.Global-Investment-Institute.com

1. Know your current financial situation. Know you debts level. Calculate your income and expenses by taking into account the following:

Mortgage repayments
Personal tax
Loans and overdrafts
Living expenses
Emergency funds
Car expenses
Entertainment
Holidays
School fees
Credit card debts
Family commitments

Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainny days. 10% is a small amount that you won’t feel a pinch. Save it until you have managed to build a “dam management funds”.

2. Prepare funds for dam management. This goes in line with point 1. You need to keep at least 3 to 6 months ofyou income as dam management. After you have managed to do that then additional money that you saved can be used to invest.

3. Protect yourself and your family first. By this point, I mean you should have the basic life insurance that insure you and your family against terminal diseases and accident. This is very important as even though you might loose all your money through investment and if you or your family members need medical attention, it will be well taken care of.

4. Know your risk level. If you are not able to take big risks, short term investment and swing trading is notfor you. It’s better to invest in mutual or trusts funds which will give a steady payout and have lower risk.If you are a high risk or medium risk taker, you can try invest in stocks, growth and hedge funds.

5. Diversify your investment. Expert would tell you it is a must to diversify your investment. Your investments needto have a steady mix of stocks, mutual funds and/or bonds. Beside that, your should invest in different industryand/or different regions. This will help you minimize your risk as fluctuations in the markets will not have a big impact on your investments. Your ideal mix will be 20-40% stock and the rest mutual funds and bonds.

6. Do your homework before you invest. It is good to seek expert advice. But, the money is ultimately yours. So you need to do some research and make a sound decision on what to invest even though your financial advisors might have already worked it out all for you. This is to make sure you know what you are investing and able to keep track of them. If your investments suffer loses you will be able to make a right decision whether to sell or hold if you know your stuff well.

7. Do stock take yearly if not frequently. Your investment might already be reaping in profits. But, it is good to know how well you fare at the end of the day. Reinvest the profits and celebrate if you have success. This will serve as motivations for you and will make you more determined to acheive your financial goals.

Copyright 2006 Jason Chew

Jason Chew is an aspiring Entreprenuer and Investor. He is webmaster of an online investing resources and guide: http://www.investyourwaytosuccess.com
We like to here your views, give us your #1 question on investing here:
http://www.investyourwaytosuccess.com/questionaire.htm

Monday, January 9, 2006

After a rally to new highs this spring, most of 2006 will be a
downward tilting year for stocks, as will much of 2007. Forward
looking into any new year can be dicey for an investor or
trader. We see several significant changes coming.

We hope this small effort at determining dates for Major
Market Turns helps you to plan for these events by building
expectations in your mind of potential changes. Below, we
proffer our opinion of the coming Market Turns.

Timing Market Turns

For those awaiting the next big crash, your patience and hopes
will be tried and crushed. For those expecting a glorious race
to new all time highs throughout all the broad indexes, your
exhilaration will be tempered by a sharp reversal from new all
time highs in the Dow Jones 30 Industrials and the New York
Stock Exchange Index (already at new highs). The Standard &
Poor’s 500 Index will not make it to a new all time high
this year. The Nasdaq Composite Index and the Nasdaq 100 Index
will soon end their modest upward move.

The 3-Year Rally Ends Soon

Since the lows in October 2002, the broad market indexes have
rallied relentlessly for most of these 39 months. This upward
move will soon end. These first months of 2006, we believe
investors should be unwinding positions, taking profits and
going to cash or to interest rate sensitive models. We assume
most investors won’t be shorting stocks or indexes. Perhaps
investors will use the various inverse mutual funds that allow
for gains in this coming correction beginning soon.

Index and stock traders are sure to have an abundant year of
opportunities for making huge profits from the volatile swings
we foresee. Yes, volatility swings will be byword for 2006, as
are most market corrections.

Let’s begin with a caveat or what some people will wonder about,
“where we are coming from.” Long term, we are bullish on the
U.S. markets, the indomitable U.S. economy, and the American
people.

The Dates To Watch

As many of our readers know, the dates and times (intraday) that
our proprietary algorithms yield are independent of our bias for
what these dates will manifest, a low or a high. Our view that
October 21st and/or October 24th would mark the low to buy did
come true even though it wasn’t the exact low, which occurred on
October 12th. Those familiar with market structures ending like
that, such as Elliott Wave Theory, will understand a bit better
(though we aren’t wave theorists). We expect similar endings for
indexes this spring. That is, some will make new highs and
reverse from there while others will fail to make final highs.
Those failures to surpass recent highs are ideal locus points
for exiting bullish positions and establishing a bearish stance.
Essentially, these are the safest places in time to sell short
the indexes.

The dates to watch are as follows: January 23, March 13 and
April 11. More swing dates are interspersed between those, but
have not risen through the rigorous algorithms to show
themselves as significant enough to mention yet.

Our Bias

Our bias, at this time, for what these dates should manifest
shows the final high on April 11th as the high to sell. The
January 23rd date should mark the end of a move. Our view is
that it will be a high, IF a minor time locus date,
Wednesday, January 11th, strikes a low of a fast correction
beginning today, Monday, January 9th.

On the other hand, if the indexes continue their upward move
into Wednesday and Thursday, then we would change our bias to
the January 23rd date to arrive as a low. This date’s result
further colours our bias for the March 13th date, even though we
tentatively expect it to be a high.

We will update as time passes on the sites listed below.

Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.

Other times, you may have to buy your short call back so that you will not lose your stock. Sometimes, you may even want to allow the stock to be called away if you have decided that the stock has reached a level were you want to take your profits and begin to look for another opportunity.

The term roll means to move your position either out to the next strike or to move your position up or down a strike in the same month. The term roll means to move.

Rolling is normally done via time spread and/or vertical spreads. Without getting into the trading of spreads, which is a unique strategy in itself and a topic for future Options University courses, we will talk a little about the roll.

As stated before, the covered call strategy is most effective when executed month in and month out over an extended period of time.

In order to do this, an online trading investor must re-initiate the position every month at the option’s expiration. The re-initiation of the position every month is where the term rolling comes from. However, there may be times when you may want to give yourself a little more upside room for capital appreciation. In those rare cases, you will not want to roll the position, because it might be called away if the call you sold is exercised when it becomes in the money.

When an option’s expiration approaches, your short option can either be in-the-money or out-of-the-money. As we discuss the two potential outcomes, let’s first assume that we want to hold onto our stock.

If the option is going to finish out of the money, you would let it expire worthless and then sell the next month’s call. If the option is going to expire in-the-money and you want to keep the stock you will need to buy the short option back and sell the next month’s call.

This trade will consist of two online trading options. You will be buying one option and selling another, which is commonly known as a spread and is referred to as a single trade.

So, when you roll out your covered call or buy-write, you do it by doing a spread. The front month option, the one that you happen to be short, will be bought back thus ensuring you keep your stock.

The second month option will be sold short thus re-initiating your covered call strategy. The position that remains is long stock and short calls. As far as the selection process of the spread used for the rolling of the position, there will be some choices.

Of course, there is no choice as to the front month option, you must buy back the option you are short. However, you do have a choice as to the next month option you are going to sell, whether it be near term or farther out in expiration.

This goes back to our earlier conversation about lean. If you are no longer bullish then you would not have bought back your short call and instead allowed it to be exercised and have the stock called away from you. If you choose to roll the position then you must be somewhat bullish on the online trading stock. Your lean will dictate to you which new option to sell.

-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
If You Would Like to Learn More About Online Trading
Then Discover How to Protect Your Investments
With the Leveraged Power of options & Learn How
to Trade options Like the Pros..

Click Here –> http://www.options-university.org
-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

Copyright 2006 Emma Snow

Everyone knows the importance of setting aside savings. Whether it’s for retirement, emergency funds or saving for the family vacation, it is something that we should all be doing. Yet sometimes this isn’t as easy as we would like and at the end of the month our money is spent without setting anything aside. The financial services industry has become aware of this and has created tools to help us save. If you have difficulty saving, these tools may be your best way to ensure you have savings for whatever comes.

Direct Deposit

Of all the tools to help you save, direct deposit has been around the longest. Direct deposit is when your employer deposits your paycheck directly to your checking, savings, retirement or brokerage accounts. Many times an employer can deposit your check to more than one account. If this is the case, to help you with your savings, you could split your check up by how it will be used. Spending money could go into your checking account, investment money into your brokerage account, retirement into an IRA or 401(k) and a percentage into a savings account. This way you don’t have to actually move the money into savings, investments or retirement yourself, it is done for you automatically at the beginning of the month. Setting up direct deposit is usually just a matter of completing a form at your workplace. For many people, money that goes directly into savings is forgotten and therefore less easily spent.

Automatic Investments

When direct deposit isn’t an option or you just want another choice, automatic investments is a good way to help you save. With this, your paycheck goes into one account and then you setup times during the month when money is taken from this main account and put into other accounts such as IRA’s, investment accounts and/or savings accounts. This is something you schedule in advance and takes place on a monthly basis. This way, you don’t have to remind yourself to do it. This is very similar to direct deposit but where your bank or financial institution is doing the work for you instead of your employer.

This could also be used if your direct deposit limits you to one account or only allows you to split up your check by percentages. If this is the case, you can direct deposit your paycheck into the account where you have setup automatic investments and then have dollar amounts go into different savings accounts. This is helpful for depositing into accounts like IRA’s where you can only invest a certain dollar amount each year and you don’t want to go over your limit.

Tax Return Money

When tax season comes, consider saving your tax returns instead of spending them. This is an especially good idea for those who have a difficult time saving on their own. You can deposit your tax return directly into a savings account and start yourself a little nest egg. If you worry about your ability to keep it in that savings account, consider putting a lot of it into an account where you cannot get it out easily, such as an IRA, a CD or an investment with redemption fees when you take it out too quickly.

If you don’t have any issues with keeping your savings intact, instead of determining where your tax return money should go, you should instead determine why it is not coming to you in the first place. The IRS website has a calculator that will estimate your federal taxes and tell you what exemptions are appropriate so you can break even on your taxes each year. Doing this will give you more money each paycheck which enables you to start saving immediately instead of waiting for tax time. This also allows you to earn interest on that money for a longer period of time.

Investment/Savings Credit Cards

Credit cards that actually help you save money? For people who use a credit card for convenience and rewards and not for the ability to carry a balance, this is a great opportunity. Recently, a few cards have come to the market that offer investment or savings points when you make purchases. Fidelity Investments, Motley Fool and American Express are some of the first companies to offer these types of Credit Cards. The way they work is for every dollar in purchases, you earn points to put toward investments or savings that you choose. Once there are enough points to reach a threshold (determined by the card), the points are redeemed as cash and deposited to an investment account, retirement account or savings account that you have designated ahead of time.

Workplace Savings Plans

Many employers now offer workplace savings plans. These come in many shapes and forms, not just 401(k)’s but 403(b)’s, 457 plans, Roth 401(k) plans, etc. To contribute to a workplace savings plan, money has to come from your paycheck since they are employer sponsored plans. Your employer asks you to indicate what percentage of your paycheck should be deposited to your retirement savings account. Once this is done, that percentage will come out of your paycheck each time and go directly into your retirement account. It is difficult and sometimes impossible to retrieve money from your retirement account while working for that employer so this is a great savings tool for those who have a hard time setting aside money. Workplace savings also is good as it lowers your overall tax burden for the year, giving you even more savings.

Automatic Increases

The last way to help increase your savings is to use an automatic increase program on your workplace savings plan. Not all employers offer this; contact your human resources or benefits department to see if it is an option. These programs facilitate saving for retirement by automatically increasing your retirement savings each year. You generally choose what percent you want to increase the savings by as well as the date. When the chosen date comes, a larger percentage of your paycheck starts going into your workplace savings account. You can have it take effect right after annual salary increases each year making it less noticeable in your take-home pay.

If saving money isn’t one of your stronger qualities, these savings programs can help. Savings is the best way to avoid financial ruin. Having money set aside for an emergency, job loss, car and home repairs, or any unexpected expenses prevents you from having to take loans to cover these problems. In addition to liquid savings, retirement savings and college savings are long-term goals that often get overlooked or procrastinated. Taking advantage of one or several options from above is the first step in creating a healthy financial future for you and your family.

Emma Snow is a writer who specializes in financial planning. She has worked in the financial industry for over eight years. Currently Emma works on a Finance and Investing site at www.finance-investing.com and Investing Partners www.investing-partners.com

Gearing is where you borrow money to invest. As already mentioned, it is best to clear all your debt before looking at investment. However, there will arise situations where the investment is a good one and it is necessary to borrow a small amount to make the deal work. The borrowing may be for property or shares.

Gearing allows you to increase your investment and potentially obtain a higher return. On the downside, however, if the investment does not pay off you stand to lose a lot more. Negative gearing comes about when the interest you are paying on your borrowing is greater than the income from your investment (for example, from a rental property). You can claim the loss or difference against your taxation and write it off as a deduction against other income.

Negative gearing is not necessarily the best investment strategy. Even though you get a tax break it is still costing you money. That is, you may be saving yourself 25 cents in the dollar, but you have to spend one dollar to achieve that.

People look at negative gearing because they calculate that they will be able to sell the investment for more than they bought it and in the meantime their losses are deductible off other income they earn. They conclude that the Commissioner of Inland Revenue is in reality helping them fund the growth of the value of their property.

If it can be avoided, don’t borrow against your home for investment. This applies particularly when the investment is speculative. Things do go wrong and you wouldn’t want to find yourself (and your family) out on the street without a roof over your head.

If you borrow money to invest, this is known as margin lending. The extra funds raised allow you to invest more, increasing the potential returns, compared to what you would get from your standard savings. It allows you to use other people’s money so you can get a significant increase in your wealth from a small deposit.

The negative side is when share prices fall below a level and a margin call is made. When this happens you will have 24 hours to respond in one of three ways. You have to come up with the cash, you have to sell assets, or you have to provide additional assets to top up the equity.

If you have a margin loan, make sure you fully understand the terms of your loan and also put in place survival strategies in case things don’t work out.

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http://www.startrungrow.com

StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of “making business easier” for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.