Let us consider the effects of paying the minimum amount due on a bill, versus paying larger amounts. If you have already read my article Credit and credit cards then you are aware that the interest due on a loan amplifies the cost of the thing you bought. If you already have a debt, then what can you do to minimize the excess cost from the interest?
Let’s assume you have one credit card bill with a balance of $5,000 with a 15% interest rate. If you don’t charge any additional money to this account and pay the assumed $100 minimum amount due each month, it will take approximately 79 months (6.6 years!) to pay off this loan. At the end of this loan you will have paid $2895 in interest charges to use that original $5,000.
Now that the weather is so cold, the kids can't go out and play for long periods like they can in the summer. This means more hours to fill with fun indoor activities. Although the temptation may be to entertain the family by spending money (going to the mall, renting movies, visiting a fast food restaurant or arcade), there are ways to keep the kids busy without draining your pocketbook. Here is a list of indoor activity ideas that are all either completely free or cost very little.
Nancy Twigg is the editor of Counting the Cost, a free
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(www.countingthecost.com/index1.htm). For more creative
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fastest person through the intersection just gets to spend more on gas.
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The second circle of my money machine are investments that pay a high direct return of cash, whether it be dividends or interest. This has led to exploring the various types of income-paying investments, which I list and describe here.
Something I've learned is that a company that pays a dividend generally is better run and more stable. The dividend becomes part of the expectation the shareholders have from the company, and the management knows to operate the company so that the dividend is paid on time every time. Often if dividends are cut or not paid, the stock price immediately dives, making a huge incentive to company management to keep the dividend flowing.
http://www.simpleliving.net/ - "Tools, Examples & Contacts For Conscious, Simple, Healthy & Restorative Living"
I'm singling out the Motley Fool web site because I am particularly fond of them and their message. I believe their core message is that everyone can take control of their own destiny, financial and otherwise, and that having sound financial footing is a huge assist to having greater freedom and flexibility in choosing every detail of your life.
Web Site: http://www.fool.com/ - The web site is a huge resource containing a school, financial research resources, daily writings by a staff of analysts, and a huge array of message boards covering thousands of financial and non-financial topics. The Fool's School explains a lot of philosophy as well as fundamentals of analyzing companies and their stocks. You can learn a lot about the world by analyzing companies, and it isn't as hard as you might think to do the research yourself. Most importantly, their web site is an "online community" where people meet, discuss and learn together.
How would you like to have a machine that spat out money every month? Of course you would, who wouldn't? Let me show you how to do it, and how anybody can create their own money machine.
To understand the machine, simply follow the arrows. Each box is for a different general purpose, and is made up of one or more accounts suited to the specific purpose. Ideally you add and remove money in the machine soley through your main checking account, but in practice you can do so with any of the accounts. It is probably best to build the machine one box at a time rather than trying to do it all at once.
Ever hear the phrase "Credit Report"? You most likely have, for example if you've rented an apartment the landlord often wants to check your credit report. What's in the credit report? What does it mean? How can you see yours? And why would you want to see your credit report?
The reason to want to see your credit report is simple; the information in your credit report is used in numerous decisions made by companies you do business with. If your credit report looks bad, that's all the companies care about, and they'll deny you credit cards, give you high interest rates, refuse to let you rent an apartment, and more. Especially alarming would be if there is false information on your credit report, information that might even refer to another person entirely, and this false information makes your credit report look worse than it actually is.