The Biggest CEO Mistakes of 2010

The American economy continued to recover in 2010, helping businesses generate record profits and create $1.9 trillion in untapped cash on their collective balance sheets.

Of course, some companies did better than others. In this interview with Sydney Finkelstein, professor at the Tuck School of Business at Dartmouth and author of Why Smart Executives Fail, we discuss the biggest CEO mistakes of 2010.

As you'd expect, former BP CEO Tony Hayward made some of the biggest blunders of the year. Especially memorable was Hayward's decision to watch yacht races while oil was still gushing into the gulf.  And his "I would like my life back" comment during the crisis is likely to go down as one of the dumbest things ever uttered by a CEO. 

President Obama also makes Finkelstein's list of blundering leaders, though he does admit Obama has had a very strong run during the lame-duck session of Congress (successfully passing the tax extension; repealing don't ask, don't tell; passing the START treaty; and passing the 9/11 worker's healthcare bill).

HP's former CEO Mark Hurd makes Finkelstein's list for his behavior involving contract worker Jodie Fisher.  Fisher had accused Hurd of sexual harassment, though an investigation by HP's board of directors found no violations. However, they did conclude Hurd had violated the company's code of conduct.  He proves that it's not always what you do, but how you do it.

A lesser-known executive with a well-known business also makes the list.  Andrew Mason, CEO of daily deals website Groupon, made a huge mistake, Finkelstein says, by turning down Google's $6 billion buyout offer.  Unlike Facebook's Mark Zuckerberg, who rightly turned down billions, Mason would have been wise to take the money and run.  It may be too soon to criticize Mason's decision. Time will tell if Groupon can sustain market dominance.

by Peter Gorenstein in Newsmakers

Home Accounting 101 (everyone should know) .

Get a handle on your finances with this guide. Figuring out your net worth and drawing up a budget is easier than you think.  

Calculate Your Net Worth

Let’s start at the beginning: Before you do anything else, it’s essential to figure out just how much you are worth. The easiest way to do it is to get a pad and pencil and make two lists—one of your assets and one of your liabilities.

 

Your Assets

Start by adding up the current value of everything that you own or have coming to you:

• Cash: Total of your checking and savings accounts, money-market funds, and CDs (certificates of deposit).
• House: The market value of your home.
• Other things of value: This includes jewelry, automobiles, home furnishings, art, vacation home, and such.
• Insurance: Figure out the cash value of all your policies.
• Investments: The current value of stocks and bonds, any rental properties, real estate partnerships, oil and gas partnerships, gold and silver, company stock options, personal collections (stamps, coins, antiques, and such), notes receivable, and the book value of a business.
• Retirement savings: RRSPs, pension and profit-sharing plans, 401(k)s, any deferred compensation, and company savings plans (only count the money you could take if you left the company tomorrow).

 

Your Liabilities

Now add up all your debts—the amounts that you owe to others: 

• Mortgage: Be sure to include home equity loans.
• Loans: Bank, car, and any other loans or notes.  
• Credit card balances or any other outstanding debts.

 

Your Net Worth

Once you have your two lists and have totaled them up, subtract your total liabilities from your total assets. The result is your net worth. Write that figure down. Memorize it. That’s the number that will tell you when you can retire and how far along your are toward reaching your financial goals. Chances are your net worth is more than you think; however, if you find out that you are worth less than you think, let it serve as a wake-up call to revise your budget fast.

 

Get with the Budget

Every household should have a written budget. Some people have the feeling that if they balance their checkbook regularly that should suffice. But focusing only on your checkbook is not a realistic, safe, or forward-thinking way to approach your financial well being. It is also crucial to be honest about your budget, even when you overspend. Again all you need is a pad and pencil.

 

Total Income

Add up all the money that you can expect to receive during the year: 

• Regular paychecks and bonuses.
• Part-time or freelance income.  
• Interest.
• Dividends.
• Other income: Rent on properties, benefits, and so on.

 

Fixed Expenses

Next add up all the payments that you make on a regular basis during the year: 

• Mortgage payment or rent.
• Electricity, gas, and water.  
• Telephone: Home and cellphone.
• Internet service.  
• Alarm service.
• Cable or satellite dish.  
• Insurance: Life, medical, dental, disability, homeowners, and automobile.
• Debt payments: Home equity and car loans.  
• Commuting expenses: Tolls, train or bus tickets, and such.

 

Variable Expenses

Now add up all the payouts you make that vary more widely from month to month: 

• Food and beverages.
• Paper goods: Toilet paper, paper towels, and so on.  
• Car maintenance: Gas, oil, upkeep.
• Home maintenance and other improvement.  
• Furnishings and appliances.
• Clothing.  
• Personal grooming: Haircuts, beauty products, etc.
• Recreation: Dining out, sports or cultural events, movies, museums.  
• Vacation.
• Gifts and contributions.  
• Health care not covered by insurance.

 

The Moment of Truth

Subtract all your annual expenditures from your total annual income. If the total expenditures are less than the total income, you are living within your income; if the expenditures are more than the income, you need to go through your variable flexible expenditures—and some of your fixed expenditures as well—and reduce your spending.

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By Reader's Digest

Dependent VS. Independent Status

Ok, let’s go over a common scenario…

You’re 21 years old, have been living on your own for a couple of years, are legal drinking age and yet you still need your parents information when filling out the FAFSA. It seems unbelievable, but it is true. The US Department of Education considers a student a dependent up until the age of 24 except in certain circumstances. Below I have broken down the difference between an Independent VS. Dependent student.

Independent Status

• You are at least 24 years old on the day you file your FAFSA
• You are or will be enrolled in a masters or Doctoral degree program at the beginning of the school year
• You are married on the day you file your FAFSA
• You are a parent
• You have dependents other than your spouse who live with you and who receive more than half their support from you at the time you apply
• Both your parents are deceased (or were until age 18) a ward of dependent of the court
• You are currently serving on active duty in the U.S. Armed Forces for purposes other than training
• You’re a Veteran of the U.S. Armed Forces.
• You were a foster child after the age of 13.
• You are an emancipated child as determined by a court judge.
• You are homeless or at risk of homelessness as determined by the director of a HUD approved homeless shelter, transitional program, or high school liaison.

If none of the above criteria apply to you, you’re a dependent student – even if your IRS tax status is different, even if you have no idea where your parents are.

That said, in rare cases, your school’s financial aid officer can override the FAFSA results to help you get more aid if you can demonstrate a compelling case that your parents and family provide absolutely no support, and therefore you’re not really a dependent. This is called a professional judgement override and while they are granted extremely rarely, they do exist. If you need a professional judgement override for dependency status, gather up as much documentation as you can, from rent bills to utility bills to the legal judgement from a court emancipating you from your parents and bring it to your financial aid advisor. While you’re not guaranteed anything, it’s at least worth a try.

Here’s what a financial aid administrator had to say on the topic of professional judgement override:

For Dependency Overrides the Federal guidelines are extremely clear. Being self-supporting is NOT grounds for an override.
Instead you must prove INVOLUNTARY DISSOLUTION OF THE FAMILY. This means you were forced to leave your parents’ home and have no contact with them. You must explain,in detail, why you cannot live with your parents. Then you must have official third party letters, on letterhead, that back up your story.
Just because you feel mature enough or responsible enough to be on your own does not erase your PARENTS’ OBLIGATION to assist you with your education.
We accept letters on letterhead from H.S. Guidance counselors and teachers, lawyers, personal counseling centers, social services, clergy, etc. We also will accept police reports documenting abuse. Absent that, we require two letters from people personally knowledgeable to the relationship with the parent like a Grandparent, Aunt or Uncle. The letters must be very detailed about the situation and their relationship to the student.
Most students make the mistake of having a roommate or employer write a letter that the student is self sufficient and pleading for us to just cut them some slack. They don’t realize that Fin Aid reps are personally liable for willfully violating Federal Law. I’ve been in Financial Aid for 12 years and I haven’t met a student yet that is worth going to jail for.

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Posted in FAFSA by Kristin Morris

Credit Card

Today, Credit cards are increasing in popularity. But Credit card fraud can happen with anyone, anytime and anywhere. And, with growing technology sophistication, fraudsters have found several means to steal your money. The article suggests few simple tips to avoid being a victim of credit card fraud.

1. Avoid sharing credit card information over the phone as much as possible and do so only when you call up your credit card company. Never give out your credit card information or verify the details even when the person says he is calling from your bank.
2. Do not respond to any emails that ask you for your credit card information or suggest you to go to a website and provide your credit card details.
3. Always remember the PIN number on your credit card. Do not write it anywhere on the credit card or on paper.
4. If you prepare a list with your credit card account numbers, expiration dates and bank addresses, be sure to keep it in a secure place.
5. Check your credit card bills promptly to find out if there are any changes that you are unaware. Stays updated on the information and collect your receipts so that in can compare the deductions with the monthly bills.
6. If you find out any unnecessary charges added to your transaction, type a written application and forward it to your credit card issuer.
7. When you receive a new credit card, sign it immediately
8. Avoid writing any credit card information in the public place, as you never know who could steal your information
9. It is not necessary but if you can, have a separate credit card holder other than your wallet. You can even use a small pouch for that purpose.
10. At the time of address change, do not forget to inform your credit card issuer. Send a written application and verify whether the suggested changes have been incorporated or no.

Mortgage

One of the most important reasons why people choose to go for mortgage refinance is that they want to lower their monthly expenses. That is why people often look out for the ways to get a lower mortgage interest rate. However, please note that getting a lower rate in no way ensures a reduction in monthly payments. Therefore, have a clear idea of how refinancing can help you, before you go for it. Fortunately, regardless of everything, there are some proven ways that can help you get a lower rate. Let me give you an insight into the same.

Improve Your Credit Score
Your credit score plays the most important role in determining the rate of interest. You can maximize your chances of getting a lower rate by improving your credit score. In this connection, it is important for you to take care of the following things. Always remember that the information included in your credit report reveals your standing with your creditors.

• Make the monthly payments in time, as a missed or late payment will only result in a bad credit rating for you.
• Never stretch credit cards to their maximum limit because if you do so, it will adversely affect your credit score.
• Most importantly, do not forget to review your credit report before you apply for a mortgage refinance. The objective is to look out for inaccuracies, if any. Inaccurate information in the report may justify higher rates. Therefore, as soon as you find something wrong, immediately contact both the credit bureau as well as the creditor to get the error rectified.
• You can also improve your credit rating by closing inactive credit card accounts. You just have to send a letter in this regard to the company. However, do not forget to check your credit report one month after closing the account. It must also include a comment that the company has closed your accounts at “customer’s request”. The phrase “customer’s request” is very important otherwise other lenders while checking your credit report may assume that the company has done the closing, and not you.

Opt To Escrow Your Taxes And Insurance
You can also qualify for a lower mortgage refinance rate by choosing to escrow your taxes and insurance. When you authorize your bank to collect for insurance and taxes, it reduces the risk factor, and the bank is very much likely to offer you a better rate.

Pay Points
Paying points is another great way to qualify for a lower rate. However, this option is viable only for those who are planning to live in their home for many years. If that sounds like what you plan to do, you must go for it.

Go For A Short Term Loan
This is one of the easiest ways to get a lower rate. However, it is important for you to understand that shorter term may result in higher amount of monthly payments even though the rates are much lower. Therefore, this strategy is definitely not a good choice for those who are considering the option of refinancing as a way to reduce their monthly payments.

Put More Money Down
Another easy way is to put more money down. This way, the bank finds lesser risk and may easily be convinced to offer you a much lower rate. However again, if you are considering the option for mortgage refinance to reduce your financial burden, you may not like this idea. This idea is a better option for those who want to pay their loans quicker and save money that they may otherwise have to pay as interest.

Last, but not the least, do not forget to do some thorough comparison-shopping. Get at least three quotes from different lenders so that you could make an informed decision. Negotiation also plays an important role in getting a lower mortgage refinance rate. Do visit my website for more details on mortgage refinancing.

Leasing

It is very common nowadays for companies to make lease contracts regarding their equipment instead of buying it first hand. If the business flourishes and makes profit, they will have the option to buy such equipment after the loan comes to an end. As you can see, equipment leasing works very much like car leasing. There are many advantages to equipment leasing, but we are not here to discuss them. In this article you will find the basic points to keep in mind regarding equipment lease contracts.

Number 1: Your Obligations Vs. The Leaser’s Obligations

As beneficial as equipment leasing might be, you have to know that you will have much more obligations than your counterpart. Once they have signed the contract, the responsibility is all yours to carry. Apart from paying the lease contract on a monthly basis, you will have to ensure the proper care of the machinery, you might even have to pay insurance fees, rental fees, among others. Make sure you will be able to handle the pressure before signing the contract.

Number 2: Security

Some leasing companies might demand some personal guarantee from you (the lessee). You might need to have a co-signer who will answer for you in case you default on the lease contract.

Number 3: Lease Contracts Are Triple-Net Contracts

What does this mean? This means that the consumer is in charge of equipment maintenance, insurance (liability and casualty insurance) and taxes (use and property taxes) associated to it. In other words, the real owner will not pay a dime as long as you are leasing the machinery.

Number 4: Hell-Or-High-Water Clause
This clause will appear on the lease contract, and it means that the lessee has the obligation to pay rent for the entire life of the lease despite any external event affecting either the equipment involved or the lease contract itself. Any claims against the leasing company must be taken separately to court.

Number 5: Defaults On Payments

Most leasing companies are very tolerant when it comes to payment dates, they know how hard it can be to get a new business off the ground, or how tough it is to keep up when your economy is not going through its best time. But as understanding as they might be, you should not abuse their trust. Tolerating slightly late payments is one thing, bearing with complete default is another. Full default on your lease payments might lead to extremely expensive legal battles you will not want to fight. Keeping up might be hard, but it is for the best.

Number 6: When The Lease Ends

When the lease contract comes to an end, you might face a variety of options regarding the equipment. Some leasers will allow you to buy the equipment at a bargain price, others will prefer a fair market value, and others will not let you buy the equipment at all. You might be able to renew the lease contract or to simply return the equipment and move on.

If it is your choice to fully terminate the contract and return the machinery, keep in mind that you will be charged penalty fees if it is not in good condition and out of working order.

Insurance

Insurance is a type of risk management, used to evade against the risk of a conditional loss. It is the method of the reasonable transfer of the risk of loss, from one unit to another, in swap for a premium, and is regarded as a assured and notorious small loss in order to prevent a large and destructive loss. The premium or the insurance rate is the factor that is used to resolve the amount to charge for insurance coverage.

The insurance can be for your life, your health, or your property like the car, home etc. it is needed that you have auto insurance by law, if you own a car. It is very important that you understand the various types of auto insurance quotes before you buy any policy. So that you can buy that policy which will cover your particular needs.

Not just the terms of the policy should be understood that fulfill your needs but also it should be affordable. It is better if you compare different policies of different companies to get a best and affordable one. To compare the different insurance quotes you have many websites in the internet that will make you do it in minutes. A thorough comparison of the different packages and the rates gives you a good idea to get the best deal basing on the average market prices. Choose the auto insurance policy that meets your requirements and well fits within your budget.

The most important thing to lead a happy life is your health. Health insurance is the policy which pays for your medical expenses. It also sometimes includes the insurance that covers the disability or the custodial care needs or long term nursing. This insurance can be provided by a private insurance company or a government organized social insurance program.

You can buy the insurance policies online also. There are websites related to it that offer you with affordable insurance online. You can have all types of policies such as family health insurance quotes, affordable auto insurance quotes, affordable homeowners insurance, affordable life insurance quotes, and quality renters insurance.

Auto Insurance

Many might feel that auto insurance is not very important unless they meet with a situation where they need one. Unlike many other countries of the world, auto insurance is a mandatory issue in the United States. Therefore, every citizen looks for suitable auto insurance quotes available in different companies.

Factors that influence auto insurance quotes:

In US, not only the owner of the automobile needs to purchase an insurance coverage, but also his family members who have reached the age of holding a drivers license is covered in the insurance policy. The various insurance policies offer coverage for various factors. The insurance policies cover loss or damage caused due to collision and other factors. Rental cars are also covered by some policies. The owners can purchase those policies which hey require. Different policies have different auto insurance quotes to offer to the customers. Temporary policies will have lower quotes than those policies which give a person longer service and greater security.

These quotes also depend upon other factors like driver history and make and model of the automobile. It also depends on the location as insurance policies are different in different states of USA. Therefore, one can find different insurance quotes in different states. A survey was done in the year 2006 which showed that the states located in Middle America offered lower rates than those offered in the other parts. The cheapest rates were traced in North Dakota, which was followed Iowa and South Dakota. After three years, that is in April 2009, the states like Wisconsin and Iowa recorded the lowest rates. New Jersey and Louisiana recorded the highest insurance rates, which was followed by New York and Florida.

How to get online auto insurance quotes

Now, the question arises as to how one can get auto insurance quotes? With the introduction of internet at every household of the country, getting insurance quotes have become very easy and a hassle-free process. One just needs to have a computer with internet connection and connect to a website which offers online quotes. To simplify the search a Us resident can enter his state name and select the companies available in that state. He needs to fill up a simple questionnaire which will be sent to the various insurance companies of the state. After going thought the questionnaire the insurance companies will send the quotes matching the criteria sent by the citizen. All he needs to do is go through all he quotes and choose the one he finds most suitable for his needs.

By this simple and easy process one can not only get good deals, but also compare and evaluate various quotes offered by the different companies present in a particular state. One can find a great variety of quotes which may range of the most expensive to the cheapest ones. It is not a good idea to go for the cheapest rates available without considering the side benefits other rates are offering.

So, be careful and select the best auto insurance quote!

Tax

You grow your savings so to use them later. Outside of contributing they grow according to how you invest them. Government's taxation plays an important part in how you choose what to invest in and how to hold that investment.

This article overviews how your savings or investments are taxed and how that influences what you choose to invest in.

Taxation affects growing your savings three ways. It:

1. Affects how much you're able to contribute to your savings from your working income
2. Determines how much of your investment earnings will be taxed annually, and
3. Takes a share of the your investment gains when you sell them

Because of this omnipresence of taxes at every savings or investment interaction, you must understand how taxes work so you can minimize their drain on your savings. So, here's how to 'view' your savings and investment in relation to how they're affected by taxation.

First, let's categorize investment types according to how they 'hopefully' increase.

There are two fundamental types of investments. They are:

• Debt-based investments, and
• Equity-based investments

Debt-based investments 'borrow' money from you and pay you 'interest' at least annually for the use of your money. At the end of the borrowing term - if there is a term at all- all your money is returned to you.

Examples are your bank savings accounts, CDs, bonds, and the like. These investments kick out an 'annual' income for you to use or reinvest as you wish. They're also 'income-based' investment for those seeking some relatively assured annual income from their investments.

Interest earnings are taxed annually; they're added to your income to be taxed as your highest income tax rate. Only earnings are taxed - not what you loaned to get the earnings.

Equity-based investments require you to 'buy so as to own' an investment - perhaps a share in a company (like stock). Your share or ownership value, called capital, hopefully will increase in time so when you sell your share you'll receive back more than you paid; but there's no guarantee.

The gain of what you receive over what you paid (called your basis in capital) is called your capital gain. Most equity-based investors seek capital growth.

Capital gains are taxed only when you sell your equity-based investments. These are taxed at very low capital gains tax rates if you hold your investment for more than 1 year. Your capital basis is never taxed. Some equity-based investments promise a yearly dividend (earnings) too. These relatively assured earnings make 'dividend- paying' equities an 'income-based' investment like debt-based investments.

Dividends are taxed annually. Generally they're taxes like interest. But some are taxed at low tax rates depending on what income tax bracket you're in.

I'll call investments you make in equity-based and income-based subject to the taxation I've outlined above 'normal taxable investments'.

The government has set up and regulates retirement-savings plans as an incentive for workers to save for retirement. Examples are 401(k) and IRA savings plans. The incentive is tax-based and prescribes a completely different taxation method for whatever investment type you use within these plans.

The taxation procedures for these government-regulated plans are:

• All contributions to these plans are deductible from working income. This eliminates the income tax that would be due on what you contributed to the plan that year.
• All earnings or gains from what you invested in within the plan are tax-deferred until you withdraw your plan savings at retirement.
• All withdrawals will be subject to your income tax rates. Withdrawal before you turn 591/2 will include penalties in addition to the income tax.

So, you should view all your savings as partitioned under the two taxing systems for savings:

• Normal taxable investments
• Regulated-savings plans

These tax attributes determine your investment options as follows:

Normal taxable investments:

Income-based investments are generally highly taxed - interest earnings at your highest income tax bracket as for nonqualified dividends. Qualified dividend earnings may have lower 0% to 15% tax rates though. So, choose generally assured earnings only if you need the yearly earnings to live on and for an emergency fund.

Equity-based investments have their capital gains taxed at low rates (5% or 15%) if held for more than 1 year - otherwise at income tax rates. These are clearly tax-advantaged investments to use to grow your savings over the long term.

Regulated-savings plans:

These help you put more into your savings every year - but contributions are limited. Always contribute when your company matches your contributions. Their tax-deferred character helps yearly compounding too. Choose high earning income-based investments for their assurance.

The best long term growth approach is in equity-based capital growth items - stocks and residential property - held as normal taxable investments.

Refinancing

Refinancing working capital loans and commercial mortgages is a good illustration of why small business owners have increasingly been forced to consider new commercial financing alternatives. Even though refinancing commercial mortgage loans and working capital loans is doable, small business owners should be prepared to face some unusual difficulties.

For small businesses trying to deal with reduced cash flow and sales, the process of small business loan refinancing has become much more relevant. In some situations business owners are being forced to refinance existing loans by current lenders, and in other cases they are attempting to secure additional cash. Difficulties for refinancing are now occurring frequently with short term business funding and long term commercial real estate loans.

Some commercial finance situations lend themselves better to refinancing than others. There are two scenarios that are particularly difficult to refinance, one involving SBA loans and the other business opportunity financing. The need to replace existing business lines of credit with new financing arrangements is now emerging as equally difficult.

The need to revise commercial real estate loans in which commercial property serves as collateral is a more traditional example of refinancing. Because many banks have decided to stop making commercial loans, some borrowers will need to refinance simply to replace their existing commercial mortgage. Due to a slow economic pace, a number of small business owners are exploring the possibility of refinancing in order to get cash from existing equity to support their business financing needs. As borrowers are discovering, commercial refinancing is not as straightforward as it might have been in the past for either of these cases. Two specific problem areas will be particularly challenging.

One factor proving to be a refinancing obstacle is business valuation. Declining sales levels lead to reduced commercial property values because commercial appraisals often derive business value from the income approach. The lack of recent profits for many businesses is another key problem impacting business loan refinancing. Because some financial uncertainties have reduced sales for many businesses, a high number of merchants are showing losses on recent financial statements and tax returns. Because lenders look at cash flow to see if it is sufficient to cover debt payments, recent losses are likely to be a significant difficulty when attempting to refinance commercial mortgages and other commercial loans.

Whatever the specific financing situation for a small business, commercial borrowers should be better prepared if they approach the process with a realization that there might not be the usual obvious solutions to refinancing business loans. Before the end of their current efforts to refinance business debt, it seems likely that most businesses will need to consider both new business financing programs and new commercial lending sources

Debt Consolidation

A credit card is one of the ways of payment with the use of plastic cards that are issued to the customers for the payments. Credit cards are different from the debit cards. The main difference is that as in debit card the account holder's amount in the balance will not be removed from his account. Its operation is also different from that of debit card.

Once you are issued a credit card the issuer will lend some money to the card holder normally on different interest rates. If the consumer uses the credit card the payment is done to the issuer in a longer period and settles the balance at the cost of charging interest. Almost all of the cards are of same size and shape anywhere.

The process of the credit cards issue and the usage is very and also it works in a simple way. Once the consumer is issued a card then he can start purchasing the goods using the card but to the limit of the credit only which is fixed by the issuer. The consumer can also use the card online shopping, it is very easy to use and it is faster than the regular ways of payments. He can make all the purchases online or offline when he is having the liquid cash.

Each card is supported by the concerned company. As in every field in this also you find some of the best companies which will offer you the user friendly services and their features cannot be even compared with the others. Examples of this type are master credit cards and visa credit cards. You can apply for the credit cards in any bank or the concerned companies or can also simply apply online.

Not just having a card you should be regular and sincere in the later payments to the issuer. Almost all of the companies will be having regular check up of the payment details of the customers and if they find any one irregular, initially they may warn you or sometimes your services will be terminated also. And also you will not be to do further purchases.

Debt is the amount of money taken by one party from another similar or even be said same as the credit card. Most of the individuals or the corporations use debt for making large purchases which they cannot afford in normal situations. This is done in the same way as in the cards with an agreement to pay the amount at a later date along with the interest. Debt consolidation is the way of taking our one loan in order to pay many others. This is generally done to have lower interest rate and also a fixed interest rate for the ease of servicing only one loan.

This process is generally suggested to one who is paying the credit card debt as they render more interest rate than even an unsecured loan from any bank. Those who have the property such as a car or the home can use this method of the secured loan by using their property as collateral. This will result in a lower interest and reduces their efforts.

Banking

Online banking has become popular for many a reasons. A growing number of business bankers are using the internet for making business transactions because of the real-time convenience and cost-effectiveness that it offers. Banks even offer specially designed software to the business owners through which they can perform their various business transactions. These days every bank is offering online business banking facility to new customers. Take advantage of it. It’s anytime a better option than traditional banking. You can save considerable amount of time since it is available 24*7; and can be able to manage your money beautifully, from anywhere.

With online business banking, you can avail a lot of benefits like; you can pay your dues and bills anytime, from anywhere and it is a safe and secure process, so you don’t have to worry about your money. Online banking also pays your bills automatically. If you want your bank to make automatic payments for you, all you need is just notify them about the specific time of payment. You can also set a particular time schedule to make the payments occur at regular intervals with respect to your payment terms. It also allows you to transfer your money from one business bank account to another. This is particularly useful if you have more than one business bank account. The transactions are completed within the day itself.

Online business banking offers you a range of additional facilities that you can avail; such as, business credit card, small business loan, bank overdraft, and the most notable feature – you can open accounts in several foreign currencies. You can allow your trusted acquaintances or business partners to have access to those accounts and operate them independently. The level of authority is even adjustable for different users. You can actually set a certain level of authority on the basis of the trustworthiness of the person you are allowing control to. If any kind of illicit use of your account occurs, the bank is liable to cover the loss. You can even stop the transactions of your account(s) anytime, and from anywhere. Furthermore, you get regular account updates in your e-mail

Student Consolidation Loan

Education plays an important role in the life of the students. It is important for the growth and over all development of the child. Higher expenditure is the main problem for the parents. To promote the talent students the loans for the students have been introduced so that their future and education become secure and safe.

Loans for students provide quick assistance of money to help the students to continue their studies and higher studies. These loans are quick and provide quick assistance to the students. There are some of the basic points for the loans for students:

• Loans for students are beneficial for the gifted students who want to achieve something in their life.
• These loans are helpful for the learners as well who do not have any source of income.
• These loans act as the support for the students for their education and schooling.

There are other options as well in the market like the scholarships, personal savings, etc but the loan for students has many advantages like they are provided with the low rate of interest and easy to avail. Any student can take the full advantage from these loans. Both the government and private lenders take active part in providing these loans to the students.

The loan amount is directly paid to the school from the lenders and the remaining money is kept to the student for other expenses. To save the money and tine the student can avail the loan online as well. This online service is free of cost. The student does not have to worry about the repayment as the student can repay the loan till the studies finishes. The student can use the loan amount for other personal sue also like:

• Tuition fees,
• Buying the books;
• Buying the computer;
• Hostel fees, etc.

The credit history matters in the case of availing the loan. So the student can get the co-signer with him/her to acquire the loan s for students.

Personal Finance

Do you treat your household like a business? Maybe you feel that treating your business like a business is quite enough. But think about it for a minute. As someone who owns a small business or a professional practice, you know there are some fundamental ways to operate that group activity so that it is a profitable, expanding endeavor. Read on to discover how you can apply the same rules to your household as well, which goes a long way towards helping you with your personal finance planning.

And not only do the same fundamental rules apply to your household activities, but the more you apply sound business practices to your household, the more financially secure you and your family will be.

But how do you get started?

Why not start your new approach to personal finance planning with a change of terminology? Let's think of your household as the "parent company". In business, a parent company owns junior or "subsidiary" companies and other assets. Well, your household owns assets too: a small business or practice or stocks (subsidiary companies), bonds, cars, collectibles, etc. It has money that it owes, called liabilities, such as mortgages, car loans, and personal loans.

The household also has income, whether earned as salary or as dividends from investment activities and it has expenses such as the cost of living and so forth.

The household also has executives that make day-to-day management decisions: you and your spouse. It also has staff: all of the members of the household, each of whom are responsible for certain functions.

Like any other business, your household reports its financial condition every year. The 1040 income tax return is essentially an income statement and balance sheet for the business activity for the year. The household tax identification number is your social security number. The government views you personally and your household as business activities. The sooner you adopt that same viewpoint, the sooner you will act like a business owner and run your "household company" more profitably.

Every business must have certain areas functioning to be viable: These include executive planning, personnel, sales, finance, technical delivery, quality control and public relations. Any one of these functions that are either not done at all or done poorly will make the business activity non-viable and, quite possibly, bankrupt. The household is no different.

If you are an employee of a company, you may think that these functions do not apply to you. They do. If you are employed, you have contracted your services for a salary (not really any different than being self-employed) which is then gross income for the household "corporation". It is the lack of business perspective that has caused the adverse economic conditions in which we find ourselves.

One of the greatest omissions in the management of household business activity is the lack of a plan. Financial planning is the only way to ensure that the proper things are being done to run the household as an expanding, profitable enterprise. Yet, the vast majority of American households do not have a plan and the results are obvious-a record number of bankruptcies, unsustainable debt, and low income.

But you don't have to follow in their footsteps or remain on that losing path. Why not revamp your personal finance planning, apply the basic natural laws of business to your household, and grow your financial resources to achieve your life goals?

Retirement

Planning ahead for your retirement is a full time job. But the question is, where do you start? Firstly, if you're young enough; let's say late teens or early twenties', congratulations you can start planning ahead for your retirement.

Of course, you must have a full time job, make sure that you don't have any debts building up; because if you do, you must pay debts off immediately. Secondly, you must write down your everyday goals and adhere to them in order to work up to the specific goals that you want to achieve in life.

For example, if you have your own home, which is a good investment, make sure that you have your home mortgage paid off as quickly as possible. Make sure that you also have special account for your retirement. Your RRSP's should be the most priority for your retirement savings plan.

When doing other investments with the bank such as mutual funds, stocks and bonds, make sure that you understand what your financial advisor says because you don't want to invest into a risky investment where you can lose thousands of dollars. That would be gambling your life away, which you don't want. Your investments should be low risk and secure, with a sufficient amount of interest on your return.

When a person is sixty-five years of age and have a lot of money to retire on when they're ready for retirement, they'll will resign from employment and have time to enjoy themselves by traveling or just doing anything that they want to do.

Before any family member passes away, they should tell their children or other family members that they want to give them part of their investment so that they can use it for good things in order to reinvest the money themselves for their retirement.

Financial Planning

If you worry about money, you are like many people. A recent financial poll demonstrated that two-thirds of respondents felt anxious about their long-term financial situation, yet less than half of that actually seek formal help in making changes to their bottom line.

Fortunately, getting help isn't nearly as complicated - or as expensive - as you might think. Whether you make only a little bit of money and are worried about making ends meet, or you have a six-figure salary and are wondering how to make your money work for you, everyone can benefit from financial planning.

What is Financial Planning?

Financial planning is the process of meeting your life goals by properly managing your finances. It can be done by yourself or in conjunction with an investment professional. The basic steps to creating a financial plan include:

1. Establish goals. What are the goals you want to achieve? Do you want to get out of debt? Buy a home? Establish wealth? Figuring out where you want your money to take you will help you find a reason to start saving and investing.

2. Gather data. Once your goals have been established, it's time to gather all your financial data. This can include things like your tax returns, insurance polices, bank and brokerage statements, etc.

3. Evaluate your financial status. After you have all your documentation in one place, it's best to meet with a qualified financial planning advisor who will help you make sense of your financial situation. The objective point of view will help you reach new conclusions about yourself and your finances.

4. Develop a plan. After you and your financial planning advisor have gone over your status, your advisor will help design a plan that is right for you. Depending on your goals, this may include setting a budget, creating an investment plan, or planning for your estate.

5. Implement the plan. Once your financial plan has been developed, it is up to you to implement it. This can take anywhere from a few months to the next twenty years.

6. Monitor. Once the plan has been implemented, you should get together with your financial planner from time to time to evaluate how it is working for you. Most investments are long-term, so you can most likely anticipate having annual reviews. Of course, if your life changes through job change or loss, marriage, divorce or another unforeseen circumstance, you should visit your financial planner. Your planner will review your plan and help you make any changes necessary to accommodate your new circumstances.

Benefits of Financial Planning

One of the key elements to financial planning is understanding where you want to go and how your money will help take you there. By examining your life goals and understanding how your finances will help you reach those goals, you can make informed and meaningful decisions about your finances.

Having a good financial plan in place can help you meet your financial goals such as getting out of debt or purchasing a home. A good financial planner can also advise you on how to protect your family and possessions financially in case of emergency.