The Philosopher's Stone

“If you know how to spend less than you get, you have the philosopher’s stone” – Benjamin Franklin

Ok, so how do you do it? It seems like any time I try to spend less, a new expense comes charging (so to speak) through the door. Here are a few suggestions I’ve gathered:

1. Robert Kiyosaki, investor, entrepreneur, and millionaire, says in his book, “Rich Dad, Poor Dad,” that one essential is paying yourself first. That is, determine what amount of your income you’re not going to spend (i.e. you’ll save or invest it instead), and then stick with it. Even if it’s just $10 per payday, do not let anything force you to spend that money.

2. Raise your standards. Take a month and calculate the amount of money you spend on snacks, sodas, fast food, and other junk that doesn’t last beyond the moment. As much as possible, dispense with frivolous spending, but at the same time don’t be afraid to reward yourself with big things. By refusing to spend on cheap or useless “stuff” you’ll have more available for things you really want. Rewarding yourself when you can accomplishes two things. It gives you a motive for saving and it gives you tangible evidence of your new found financial success.

3. Instead of thinking in terms of what you can afford, think in terms of what you really need. Don’t take out a mortgage for the maximum you qualify for. Lower the limits on your credit cards. Pay cash whenever possible to avoid paying interest. Learn to practice “purchasing patience” – wait overnight or longer when possible before buying so that you break the habit of spending on a whim.

4. If you haven’t already, create for yourself a financial buffer and don’t dip into it except for extraordinary circumstances. Some say you should have at least one month of living expenses set aside. Some say it should be two. I even know some who aren’t comfortable unless they have at least a six month cushion!

These, and other simple strategies can help you keep more of your money in your own pocket and set you on the path to financial independence.

Leonard Hopkins is an internet entrepreneur and small businessman. He edits two blogs, http://www.moneyrant.com and http://www.thedailygoodnews.com

[tags]money, debt, wealth building, personal finance[/tags]

The Magic Of Compound Interest

Christians are called to be good stewards of God’s resources. A steward can be described as someone who manages the resources of another. “The earth is the Lord’s and all that is in it, the world and those who dwell therein”—Psalms 24:1 (The New English Bible). To effectively manage God’s financial resources, it helps to have some understanding of modern day financial concepts, strategies, and mathematical formulas. Compound interest is a great ally in catapulting you toward achieving your financial goals. Through an understanding of compound interest, God can pour out a blessing upon you, which you will not be able to measure! Albert Einstein once called compound interest “the world’s most impressive invention” and dubbed it the “eighth wonder of the world.” Compound interest means all the money you’ve invested earns interest and then the combined amount of the original investments plus your interest earns more interest. Compounding means interest added to interest. Compound interest does not produce linear growth like the pattern 1, 2, 3, 4, 5, 6, and so on; it produces geometric growth through compounding like the pattern 1, 2, 4, 8, 16, 32, and so on. Usually, the more frequently your money compounds when earning interest, the better. For example, daily compounding is normally better than monthly compounding, which is better than quarterly compounding, which is better than yearly compounding.

A basic formula for compound interest is as follows:

FV = ID (1 + R)T, then FV – ID

Where:

FV = Future Value

ID = Initial Deposit

R = Rate (interest rate earned)

T = Time (number of years invested)

Assuming the following investment--$10,000 Initial Deposit, 6% interest Rate, 5-year Time period, the math would work as follows:

FV = $10,000.00 x (1 + 0.06)5

Formula results by year are as follows:

Year 1 $10,000. 00 x (1 + 0.06)1 = $10,600.00

Year 2 $10,600. 00 x (1 + 0.06)2 = $11,236.00

Year 3 $11,236. 00 x (1 + 0.06)3 = $11,910.16

Year 4 $11,910. 16 x (1 + 0.06)4 = $12,624.77

Year 5 $12,624. 77 x (1 + 0.06)5 = $13,382.26.

Then FV – ID = $13,382.26 - $10,000.00 = $3,382.26 (Total Interest Earned).

The effect of the individual parts of the formula in combination with each other produces synergistic results in the outcome that are greater than the sum of its parts individually. In other words, small increases in any of the components can have a dramatic incremental effect on the total compound interest earned.

Another useful tool in approximating the magic of compounding is the “Rule of 72.” Albert Einstein is credited with discovering the compound interest Rule of 72 and said, “It is the greatest mathematical discovery of all time.” The Rule of 72 is a mathematical way of approximating the number of years it takes an investment to double in value. You estimate the number of years for an investment to double by dividing 72 by the annual rate of return. For example, if you expect to earn a 10% return on your $10,000 investment, then 72 divided by 10 = 7.2 years for your investment to double in value to $20,000. Conversely, if you expect your $10,000 investment to double in 7.2 years and you want to know the interest rate needed, you simply take 72 divided by 7.2 = 10% interest. You can even use it to compare stock market interest rate returns to other investments. For example, assume you are looking at lots with a real estate agent. The agent tells you the properties have doubled in value during the last 14 years. You could get a quick estimate of the increase per year in value by doing the following math: 72 divided by 14 = 5.14% per year.

There is one formula that is infinitely more important than even the “Rule of 72”:
“1” cross + “3” nails = “4” given.
Praise God!

Bill G. Page is the author of Making Money Work: A Christian Guide For Personal Finance. This book explains the “Rule of 72” and many other financial concepts. It includes a CD ROM so you can easily calculate compound interest and lots of other complicated financial formulas. The book can be ordered from www.MakingMoneyWork.us or you may request the book from your local Christian bookstore—available to retail stores through Spring Arbor and Appalachian Christian book distributors beginning in September 2005.

This article is adapted from Making Money Work: A Christian Guide For Personal Finance with permission of Willie Glenn Page, Inc. Copyright 2005.

Bill G. Page

Making Money Work: A Christian Guide For Personal Finance (book and CD ROM)

http://www.MakingMoneyWork.us

[tags]money, finance, Christian, financial, Bible, credit, book, software[/tags]

Taking Control of your Finances

To find money to invest for your future, you need to make sure that your outgoing expenses are less than the income that you are receiving. You need to develop an excess that you can have free to invest.

Now before you start to think….”well I don’t have any excess left…if I was earning more money….then I would have some free”. Let me dispel this myth…and tell you that it is a known and excepted fact that the amount of money that people earn has little if any bearing on whether or not they have an excess left to invest. The only way to create an excess it to spend less than you earn, instead of spending all that you earn.

Even doctors and lawyers, who earn well over $100,000.00 per year, often end up at retirement with little more Net Worth than factory or office workers.

Net Worth is calculated by deducting the value of all the liabilities or loans you have from the income-producing assets owned to give you the net value of your income-producing assets.

Why aren’t high-income earners retiring wealthy? Why don’t they end up with a greater Net Worth than someone on a low income? It is quite simple. Human nature seems to dictate that whatever anyone earns….they spend….some even spend more than they earn and charge it on their credit card.

The higher your income grows…the more you spend and the only way to get out of this cycle is to realise that it is happening, and make a concerted effort to reverse this habit….and to begin reducing your expenditures so that you can free up money to invest.

The best way to do this, is to try the 10/90 plan. This plan simply means that as soon as you receive your pay….you put aside 10% of it for investment….and then use the other 90% to live off of. Put aside the 10%, and then pay all the bills and do the grocery shopping….and then after that whatever is left over you can spend.

Most people do it the wrong way around…they pay the bills, do the shopping and spend what is left over, never leaving any left to save or invest. By taking the investment money out first you will alleviate the temptation to spend it.

The road to wealth is not determined by how much you earn, but by how you utilise the income you have and how much you save and invest.

You need to take control of your finances. One of the best ways to start having more control over your money is to find out where it has all been going, and then amend your spending habits to allow you to live within the 10/90 plan.

If you write down a list of your monthly net income, then in another column write down a list of the essential items that you have to spend money on. You should be able to work out an average for telephone, gas, electricity, insurances and rates, from your previous bills. Work out an average of how much is spent on grocery shopping and petrol. If there are any other necessary utilities include them as well. Then deduct the second column from the first – and this will give you the maximum potential savings for each month.

It can be quite startling how high this figure can be and make you wonder where all the extra money went.

Another good learning experience is to simply write down for a fortnight every dollar spent and write next to it what it was for. You will soon find that there are a lot of unnecessary expenses, often caused by impulse buying, where you have spent money on items that you neither needed or really wanted, and could easily have gone without.

When you can begin to recognise these areas, and start to consider whether or not you are spending your money wisely, before you hand it over, then you will be beginning to take control over your money and are well on the way to embarking on your investment journey, which will enable you to have a financially secure future for you and your children.

Debra Lohrere is an author of several books on property investment and how to create financial security. Please visit. http://www.debra.lohrere.com/home.shtml

Debra Lohrere works as a Commodity Trading Logistics Administrator. She previously spent over ten years working in an Accounts Administration position with her primary roles being collections and financial forecasting. She also ran her own computer retailing business for many years.
Knowing the vital importance of cash flow in business led her to begin investigating the benefits of personal investments. She decided six years ago that it was time to start taking control of her personal finances and begin building a wealth base for her future.
She began researching the powerful medium of property investment as a means of bringing financial independence into a reach and began to build her own property portfolio.
Within the space of four years she was able to go from renting a house, to owning her own home and three investment properties, while having contributed very little of her own money to secure these.
She built up a large base of contacts with fellow property investors, which has proved to be an invaluable source of information.

[tags]investing,finances,wealth,retirement,invest,budget,budgeting,investment,money[/tags]

Take Control of Your Financial Future

So, you have to start making an income, but you have no real skills, and you haven't been out in the work force since dirt was created. Let's face it, in the divorce process, women most often end up with the short end of the stick financially.
But what can you do? What employable skills do you have?

I've done many things to make ends meet (all legal), including actually getting a job, meaning that I went out, beat the pavement, and handed in resume's and job applications, all in the hope that someone would hire me for a lousy $7 an hour after years of being at home with my kids.

Does this sound like you? Are you on the verge of divorce, or are you recently divorced? Are you without an income of your own? Are you terrified that you will be entirely reliant on your ex for child support or alimony as your only means of income?

Don't put yourself in that position. I did, and everytime he got pissed off about something, it would reflect somehow in my alimony payments. Yes, I could have taken him to court over it, but court costs money, and I didn't have it. It took awhile, but I finally gave my head a shake, and decided that I desperately needed to buck up and make my own money. I didn't want to depend on anyone else to give me a paycheck. Especially my ex husband. And I didn't have the desire to leave my kids to go out and work for some idiot, so my only other option was to start my own business.

Before your landlord comes knocking at your door, or your bank sends you that letter of forclosure, do something. There are lots of opportunities out there for you, and you don't have go out and work for someone else in order to make a decent living if that's not something that your situation will allow.

I've done many things. I'm the type of person who can do something until I get bored with it, then I move on. I've owned a successful extras talent agency, a thriving fashion accessories business, and a catering company. All were tons of fun both to start and to run, and the money that I made (and still make) is extremely gratifying. I still own and am involved in the fashion accessories business, and the catering company. And I will tell you, that if it wasn't for those endeavors, my children and I would probably be out on the street right now.

You really are the only one who can decide what should happen to you and your children financially.

Take control.

Melissa Harvey

Copyright 2006 Melissa Harvey All Rights Reserved

Melissa Harvey is a divorced mother of two, who took her financial future into her own hands, and is now making a comfortable living for herself and her children, without having to depend on anyone else. Let her show you how to do the same at http://reallifeafterdivorce.blogspot.com.

[tags]divorce,finance,women's issues,self-employment[/tags]

Student Loan Forgiveness Programs for College Graduates

Student loans are often necessary to finance a college education. However, many graduates find it difficult to repay student loans after graduation.

While there is a grace period of six months before graduates must begin repaying loans, in today’s job marketplace it may take longer to secure employment and often a new graduates begin at low salaries making it difficult to repay student loans.

Student loan forgiveness programs will officially “forgive” all or part of the loan amount, which means that that amount does not have to be paid back. There are student loan forgiveness programs for teachers, nurses, doctors, lawyers and other professions.

Student loan forgiveness may be possible for teachers by working full-time in an elementary or secondary school in low-income communities. Many education majors and others preparing for a teaching career take out Perkins loans. If a teacher meets certain qualifications it may be possible to cancel the entire Perkins loan. Perkins loans are provided by the individual college or university, so graduates will need to contact the financial aid department of the college attended to get information on debt forgiveness.

Heath care workers and medical professionals may also qualify for student loan forgiveness programs. Working in low-income communities or areas with a shortage of medical personnel is one way of qualifying for some programs. Health professionals can also have a set amount repaid on their behalf if they are conducting medical research through a special program offered by the US National Institute of Health.

Graduates of a variety of disciplines may consider the Americorps and Peace Corps volunteers student loan forgiveness programs. Americorps volunteers help in many areas of community service receive an education award of $4,725 for a year of full-time service which can be to repay a student loans.

Peace Corps volunteers are eligible for a 15 percent cancellation of their outstanding student loan balance for each year of Peace Corps service. Additional educational and financial benefits are available.

If you have large student loan balances, check into the many student loan forgiveness programs available in employment and volunteer opportunities that can help you reduce your debt.

Michael Carter is a contributor at http://CollegeFinancialAidGuide.com an online informational resource for educational funding, scholarships and student loans. Find out about more student loan forgiveness.

[tags]student loan forgiveness,student loan,loan cancellation,cancel loan,college,college financial aid[/tags]

Stop Planning for Future Retirement, Live Today In Style

For the past 85 years, the financial services industry - banks, financial planning, insurance and stock brokerages have experienced double digit growth by cajoling frightening individuals by the prospects of poverty and lack during retirement. Everything from radio, televisions commercials and print ads projected the bleak prospects for retirement if individuals did not save and invest. Individuals born between 1912 to 1945, currently ages 60 to 93, responded to this marketing strategy as they experienced the pain of the Great Depression.

The Great Depression caused the largest economic slump in industrialized nations ever. The Great Depression began in 1929 when the stock market collapsed. Stock market values dropped eighty percent. Not only did individual investors lose big, so did the banks. Many banks had a large chunk of stock in their asset portfolios. So much so that 11,000 banks out of 25,000 collapsed in the U.S. alone. Individuals lost on three fronts. They lost money in the stock market, in the bank and their jobs. The burgeoning manufacturing industry saw a 54% drop in output causing 25 to 30% of the workforce, approximately 12-15 million people, to go on layoff.

With so many people out of work, breadlines and soup kitchens became common place. People had no money to feed, clothe or house themselves. Unfortunately, the government did not have the resources to help them either. The impression of the Great Depression has been firmly imprinted on the minds of individuals, ages 60 to 93, born 1912 to 1946. Most have vowed to themselves they would never again suffer the lack they suffered during the Great Depression. Hence, these individuals are frugal; budget conscious savers who disdain credit and speculative investments. They sought the safety of guaranteed investments and the security of insurance companies who weathered the Great Depression. With the evolution of Federal Deposit Insurance Company (FDIC), they spread their money across several banks. Although they have money in banks and stock brokerages, they do not really trust banks or stock brokerages. They trust FDIC and SIPC (Security Investor Protection Corporation).

The financial industry evolved around the financial behaviors of these Depression Era individuals. These individuals amassed the greatest amount of wealth in the history of the United States. Because they were solely afraid of suffering another Great Depression.

The financial behavior of the Depression Era individuals is exactly contrarian to those born 1946 to 1964. These individuals are called Baby Boomers. These individuals never saw lack. Their mothers, once house wives, worked in the manufacturing industry during World War II. When their husbands returned from the war, many women continued to be employed outside of the home. Her employment brought new affluence to the home. It also brought her into the forefront of financial decision making. Women, now, influence 80% of financial decisions. After the World War II, The US government created an economic boom bringing new jobs and more income that the US economy has ever seen. Baby Boomers have always seen good economic times. They have never experienced financial lack, financial lost or suffering.

While Depression Era individuals are motivated by the fear of poverty in retirement and the future, Baby Boomers are not as they have never experienced lack, lost or poverty.

Hence their financial behaviors are opposite from the Depression Era individuals. Baby Boomers live lavishly, spending beyond their means on high limit credit cards. They are drawn to speculative investments with potential high returns as they trust risk. Their risk has paid off big.

Unlike the Depression Era Individuals who were natural planners and budgeters, Baby Boomers are not. Even though they are goal driven, they disdain budgets and plans.

The Great Depression taught delayed gratification as many people waited 10 to 25 years to accomplish goals as simple a purchasing a house. Depression Era individuals were already motivated to save and plan. All they needed was investment product education. The entire financial industry evolved around product differentiation. Depression Era individuals either bought product A or product B.

Baby Boomers are not motivated to save or invest. Neither are they good candidates for delayed gratification. They had success and wealth instantaneously. They earned more than their parents and grandparents. Wealth always seems to be available, so why plan for it. Baby Boomers live the good life without worry that it would be replaced by an economic depression.

Baby Boomers want the good life. They will not sacrifice the good life for retirement or the future. However, they are open to purchasing name brands luxuries at a discount according to Ira Mayer, famed marketing guru.

If Baby Boomers concentrated on Future Spending Plans, they could locate additional dollars to invest. For example, a family can easily spend $50,000 dollars a year on luxury items including travel. With discounts, they could reduce their expenditures to $35,000 a year saving $15,000 on product purchases. Normally, sales tax on the $50,000 dollars of products would be in a range from $3,000 to $7,500 depending upon the state they are living.

The family with the original budget of $50,000 could save up to $22,500 each year. Over 10 years that savings could accumulate to $298,000 or $643,000 assuming. The larger the savings generated from discount purchases, the larger the investment accumulation can grow. This accumulation can be used to live life more lavishly as it brings a certain peace of mind.

All Future Spending Plans should begin with access to luxury products at a discount. The internet has sites such as www.livinginstyleonline.com to perform that task. So Baby Boomers stop planning for future retirement and Live Today In Style.

Footnotes

Canada.com News 2/21/05 Article Investment Attitudes vary by Generation

Cleveland Plain Dealer 10/31/04 Article First Generation

Ira Mayer50+ Generationwww.epmcom.com

Marketing to Women

Encyclopedia Britannica
Great Depression History


www.livinginstyleonline.com

Ida B. Byrd-Hill is the President of Uplift Inc.and http://www.livinginstyleonline.com She was the President of The Harvard Group Wealth Management L.L.C. for 10 years. She created investment portfolios, insurance plans and residential/ commercial financing. She has served as guest columnist for the Michigan Front Page for 2 years and a speaker for the Better Investing television show hosted by David Chilton, author of The Wealthy Barber.

[tags]finance,retirement,fear of lack,depression,modern depression,retirement planning,financial planning[/tags]

Start Small and Your Wealth Will Get Bigger

We’ve all heard the phrase, “You have to start somewhere.” Nothing could be truer of creating wealth and prosperity in your life. Sometimes the idea of becoming wealthy can seem so overwhelming that we don’t know where to begin. After all, if we’re up to our eyeballs in debt or barely making it, how can we possibly think about getting wealthy?

Start small. This is one of the greatest wealth creating habits. If an oak tree can spring forth from a miniscule acorn, a money tree can certainly grow from a tiny bit of seed capital. Starting small can work in two ways to generate wealth: saving small amounts and investing small amounts.

Let’s start with the savings end of the equation. If you’re spending equal or more than your income each month (and most people are), then you need to slowly decrease your spending. It’s easier than it seems—just start small. Each month, choose one way in which you will decrease your spending. For instance, if you go out to eat once a week, see if you can cut that down to just once or twice a month. Are you saving a whole lot? No. But you ARE saving, and that’s what’s important. It’s also important that you don’t spend more in another area of your life to “make up” or reward yourself for spending less in your chosen area. If you consistently spend less each month, you will eventually begin to make headway. This wealth creating habit will help you develop your wealth slowly but constantly.

The great thing about spending less each month is that the results are cumulative. Let’s say the first month you decide to eat out half as much as you usually do, saving you $20 a month. The second month, you decide to spend less on entertainment by switching from your premium cable service to the less expensive service. This switch saves you $10 a month, plus you save the $20 from going out to eat less. You saved a total of $30 the second month, and $20 the first month – that’s $50 in just 2 months. Now, let’s carry that further. If you were to reduce your expenses by $15 each month (cutting an additional $15 of expenses each month), by the end of the year you would have saved $1,170!

If you’ve got thousands in debt looming over your head, $1,170 may not seem like much, but you have to start somewhere. Starting small and being patiently methodical is better than never starting at all! Plus, every month your level of savings increases until your small start becomes a giant tidal wave of savings. This will help you get out of debt faster and begin building your wealth. When you start saving, even in small amounts, you will have implemented another great wealth creating habit!

About The Author

Stephanie Yeh is deeply committed to the study and experience of prosperity and to helping other people achieve and experience prosperity. With the help of a strong 15-year network marketing business, Stephanie and her partner have helped many people achieve their prosperity goals. Her current project, the Journeyman Wealth Program, is aimed at helping 15 people a year fully achieve their dreams. Stephanie’s Prosperity Abounds website works on the basic principle that “You are the creator of your own reality!”. Get more details on her website at http://www.prosperity-abounds.com.

info@prosperity-abounds.com

[tags]savings,wealth building,finance,investing[/tags]

Sitcom Investing

A fickle stock market encourages good-humored mockery.

Recently, as I watched the premiere of a sitcom, an obvious omission breached television etiquette. Silence followed every exaggerated comedic set-up. There was no laugh track. Where were the premeditated giggles from the show's "audience?" At last, the viewer determines the funny moment.

It then occurred to me, the writers of this new show adopted an aspect used by investment news programs.

I will be the first to admit, in addition to the miscellaneous printed and electronic financial information, the television provides an abundance of supplemental financial news. However, the shows often leave me asking, "What's missing?" In addition, the shows may very well leave viewers with the ultimate responsibility, which segment is entertainment and which is practical advice.

Perhaps you may recognize one of the canned statements below that investment show gurus continuously utter. Although each may be applicable (and in may cases vital to successful financial planning), notice the missing "laugh tracks."

How many times have you heard "Invest For the Long Term?" The analyst may be leaving out "because I hope you forget my last appearance and the short term disaster I have caused for the viewers who actually acted on my recommendation." Each investor's long-term outlook is somewhat different for the other's and you should always review the guests' recommendations with caution. What is his or her reasoning for such revelation?

"Buy and Hold." The missing part: "because I have no idea of an exit strategy to recommend." True enough, the more successful investors are those who invest according to a well-planned strategy and stick to it. They generally hold onto their winners. There are, however, times that will dictate an exit strategy.

Finally, there's "Use Asset Allocation." The missing part: "because I cannot tell you which asset historically does better in this particular market environment." There are many ways to accomplish diversification in your portfolio and it does not always have to revolve around the division of stocks, bonds, and cash. Depending on your particular objectives, time horizons, and risks, an appropriate allocation may be derived from the use of just one type of asset. Either way, there are no guarantees when you place your money in the stock market and it is best to remind yourself of the risks of each investment. Try including real estate, collectibles and insurance products in your general financial plan.

We can all watch the appearance investment gurus make on financial shows. Perhaps we can include light-hearted follow-up statements as if we were watching a Rocky Horror film. We often enjoy the amusement provided by television personalities, however, it is important to review your investments regularly. Always examine your motive behind each buy and sell.

In actuality, your financial future is no laughing matter and should be guided with thorough commentary. Television shows come and go; your finances may one day be a legacy.

Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at tools2invest@yahoo.com

[tags]Business, Finance, Investing, Personal Investing[/tags]

Should You Have Separate Checking Accounts

It used to be that when you got married, you simply merged your finances. But that isn't the case in today's world. Finances are more complicated. Lots of people bring debt, student loans, child support and emotional ties to their money into their relationships. Sometimes a joint checking account doesn't work out and separate accounts are better. Sometimes separate accounts don't work.

What you have to do is sit down and talk about all of your options. Discuss your finances with each other, openly and honestly. Make the decision together.

The traditional option is having a joint checking account. This is the easiest method when it comes down to merging your finances. But you both must be accountable for what goes in and what goes out. This option requires a lot of communication. You have to both check the account register regularly and be responsible for putting in debits. If you have debt issues, don't keep receipts, don't write down checks and have a habit of spending without thinking, this may not be the best method.

The one-two method is having one joint account and two separate accounts. There are many combinations of this. Many couples will set up a joint checking account and keep their own individual accounts. They each put an agreed upon amount into the joint checking to pay the household bills and expenses. This method allows each person to keep their own financial freedom.

You will have to determine how much each person devotes to the joint checking. Start by setting up a budget to determine the monthly expenses. If you both earn about the same amount, you will each contribute half. Don't forget to both contribute to your savings for your shared financial goals, such as vacations and college educations for your children.

Any pre-existing credit card debt, student loans or other loans will come out of your own personal checking account.

How do you determine how much each person puts into the joint account if you make different salaries. Start by adding your two incomes together. Divide the lower salary by the combined salaries to get the percentage of income from the lower paid spouse. For example, $50,000 plus $25,000 equals a joint income of $75,000. You would then divide $25,000 by $75,000 and come out with .33, which is 33%. The lower paid spouse will pay 33% of the bills because they bring 33% of the money to the table. The higher paid spouse pays the remaining 66%.

Personally, we keep a joint checking account. We tried separate accounts but kept borrowing from each other and it was confusing and didn't really work for us. My husband makes 95% of our income, so he pays all the monthly expenses. My income goes straight into savings for our financial goals. That works for us.

Our good friends have separate accounts. In fact, there marriage was on the rocks for years until they split their finances. They each contribute to the household expenses, but for the rest of their individual stuff, they are on their own.

Either way, you have to have communication. You have to talk to each other about what is going on. Be open and honest. You don't want money to separate you, even though you have separate accounts. Be generous with each other and wise in your decisions.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today

[tags]personal checking,personal finance,online checking,checking account online,marital finances[/tags]

Saving for College Put Your Kids to Work

If your kids are approaching college age, you’re probably starting to think about how you’re going to pay for it. Most parents don’t start doing much until in the few years before college – which is often too late. So how can you pay for those huge college expenses? One partial solution is to get your kids to help out as much as they can.

There are lots of ways to do this. First and foremost is getting a job – a lot of parents don’t want to do this, especially because of the risks that grades will suffer. If your child is likely to be competitive for a scholarship, this is a very important consideration, and you probably should go that route instead. If not, it actually isn’t that harmful to work part time – five to ten hours a week doesn’t interfere with studying much at all. If the alternative is not being able to pay for college, then it’s well worth the risk – working teaches your kids responsibility and the value of a dollar, and if they can’t balance school and a part-time job, they aren’t going to be suited to the hectic pace of college. You don’t want to overload your kids, though – don’t make them go out and work thirty hours a week. They need to be contributing to the costs of their own education, but they don’t need to be treated like cheap labor. The point of a job is partially the money – but more importantly, it’s to teach your kids how to manage their lives. If you aren’t going to be able to pay for college entirely, they may have to work part time to pay their way through. If you haven’t taught them how to do this, it will be a sudden shock at a time when they won’t have you there to guide them through it.

Teve Torbes is an awesome owner of a frontline plus cats site, who knows a whole lot about frontline plus cat stuff. He has also created a valuable frontline plus for small dog resource.

[tags]college, saving, finance, parents[/tags]