Why do schools teach more about history and geography than finance?
In high school, we had mandatory history classes but no personal finance lessons.
Today, I hardly use my history or geography knowledge gained in school. Thanks to wikipedia, google maps, and other information sources, I don’t see the point in learning this knowledge.
Instead, I could have used lessons in:
* Building a Credit Score
* How to Calculate Payments
* What a Tax Credit was
What are some other finance topics you wish you had known?
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Friday, May 11, 2012
Thursday, May 10, 2012
A Trend That Could Pay Dividends
With even the IRS on its side, the downtrodden dividend may be poised for a comeback. In September, the U.S. Treasury Department announced that it was more than tripling the reporting threshold for dividends, increasing from $400 to $1,500 the amount of dividend income that can be earned before taxpayers must file Schedule B with their Form 1040s. According to the IRS, this change will affect more than 15 million people, saving them a bit of paperwork on their 2002 tax returns.
This comes amid renewed interest in the advantages of dividends. Recent studies have found a link between a company’s dividend-paying proclivities and its stock market performance. In one, by Standard & Poor’s, companies in the S&P 500 stock index that paid dividends during 2000 and 2001 gained an average of 10.3%, while stocks with no dividends fell by 9.6%. Dividend-payers also outperform in the long run, according to the S&P report. The share price of companies that have steadily hiked dividends during the past 10 years increased fourfold, while the average S&P stock only tripled.
Yet many companies, strapped for cash or pursuing more tax-efficient ways to reward shareholders, have been cutting dividend payouts. The 3.5% drop in 2001 among S&P 500 companies was the biggest in half a century, and it followed a 2.5% decline in 2000. Dividend advocates such as Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School, decry that trend, contending, among other things, that actual payouts to shareholders are a much better gauge of a company’s financial health than earnings figures are, because the latter so frequently exclude so-called one-time costs that may significantly affect the company’s performance. Siegel wants Congress to alter the tax code to let companies deduct the cost of dividends, while others have called for exempting dividend income from individuals’ taxes.
This comes amid renewed interest in the advantages of dividends. Recent studies have found a link between a company’s dividend-paying proclivities and its stock market performance. In one, by Standard & Poor’s, companies in the S&P 500 stock index that paid dividends during 2000 and 2001 gained an average of 10.3%, while stocks with no dividends fell by 9.6%. Dividend-payers also outperform in the long run, according to the S&P report. The share price of companies that have steadily hiked dividends during the past 10 years increased fourfold, while the average S&P stock only tripled.
Yet many companies, strapped for cash or pursuing more tax-efficient ways to reward shareholders, have been cutting dividend payouts. The 3.5% drop in 2001 among S&P 500 companies was the biggest in half a century, and it followed a 2.5% decline in 2000. Dividend advocates such as Jeremy Siegel, professor of finance at the University of Pennsylvania’s Wharton School, decry that trend, contending, among other things, that actual payouts to shareholders are a much better gauge of a company’s financial health than earnings figures are, because the latter so frequently exclude so-called one-time costs that may significantly affect the company’s performance. Siegel wants Congress to alter the tax code to let companies deduct the cost of dividends, while others have called for exempting dividend income from individuals’ taxes.
Monday, May 7, 2012
What is a payday loan?
What is a payday loan?
Payday loans are known as cash advances and check advance loans, just to name a few. What a Payday Loan is – a small short-term loan, anywhere from $50 to $1,500 with high interest.
Why would you get a payday loan?
When you need some quick cash because you’ve just been put in the unfortunate position of needing immediate cash and you are temporarily cash strapped.
How does that happen? Unexpected medical bill, car repair, or you might have to travel unexpectedly, like in the case of a death in the family. Sometimes because of unexpected bills you need quick cash to pay everyday expenses, like rent, groceries, utilities, etc. Whatever the reason, you need cash and you don’t have it.
Payday loans are popular because the advantages outweigh the disadvantages.
What are the benefits of payday loans?
You won’t have to go through the hassle of a credit check.
You can apply in person, on the phone or on the Internet.
The process takes less than 20 minutes.
The loan proceeds are automatically deposited into your bank account within 24 hours.
It’s affordable, at least immediately – you don’t have any up-front costs.
It’s discreet – nobody else is involved.
It’s secure – your financial information isn’t shared with others.
Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. It’s a “quick fix”. You can cover the shortage, and get on with your life. And you’ll be able to pay it back next payday, right? So you’ve solved your problem.
Where can you get a payday loan?
There are many payday loan companies.
Payday loans are known as cash advances and check advance loans, just to name a few. What a Payday Loan is – a small short-term loan, anywhere from $50 to $1,500 with high interest.
Why would you get a payday loan?
When you need some quick cash because you’ve just been put in the unfortunate position of needing immediate cash and you are temporarily cash strapped.
How does that happen? Unexpected medical bill, car repair, or you might have to travel unexpectedly, like in the case of a death in the family. Sometimes because of unexpected bills you need quick cash to pay everyday expenses, like rent, groceries, utilities, etc. Whatever the reason, you need cash and you don’t have it.
Payday loans are popular because the advantages outweigh the disadvantages.
What are the benefits of payday loans?
You won’t have to go through the hassle of a credit check.
You can apply in person, on the phone or on the Internet.
The process takes less than 20 minutes.
The loan proceeds are automatically deposited into your bank account within 24 hours.
It’s affordable, at least immediately – you don’t have any up-front costs.
It’s discreet – nobody else is involved.
It’s secure – your financial information isn’t shared with others.
Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. It’s a “quick fix”. You can cover the shortage, and get on with your life. And you’ll be able to pay it back next payday, right? So you’ve solved your problem.
Where can you get a payday loan?
There are many payday loan companies.
How to Manage Personal Finances Right Way
Personal financial management can be hard if you do not know what you are doing. For others though, they seem to breeze right through it. Here is why they succeed where others fail:
First, try to realistically evaluate the state of your personal finances. Be honest. Sugarcoating the situation will not make your problems go away.
Always monitor the amount you spent on each of your transactions, regardless of how small or big it was. The same goes for any payments given to you – keep track of them. Sometimes, we may let the small transactions delude us into a false sense of security.
Planning ahead requires personal finance analysis. This allows you to understand and become aware of what exactly you need to pay for every month as regular expenses. You may then create a budget in advance that can allow you to have a comfortable window of opportunity for making payments without being penalized.
To avoid penalties, schedule your monthly payments on a calendar. Then keep track of payments made and pending payments.
You might also want to invest in a personal finance software which will serve as your personal finance tool. It is better to invest in one that is easy to operate yet can absorb many functions for you.
To get the right type of personal finance software, bear in mind that the software should permit you to absorb the skills and knowledge of using it in a very short span of time. The software should have a function for categorizing your expenses so that you need not get confused as to where to place your entries. There are obviously some headers of categories that all software have in common (such as Shopping Expenses, Bills, Bank Credits, and Bank Loans) but examine the aspects of your software that seem unique and were made just for that software product.
A web-based finance software is a good option to have since it simply requires you to enter a password to gain access to your software files. You also gain the ability to access your files from any point of the globe so long as Internet access is available. This is very ideal for mobile workers or frequent travelers. Just be sure you choose an uncommon password and do not allow others to know it so that you stay safe and secure online.
At the same time, web-based software can be updated frequently so you can enjoy the use of new and better features created by the software developer. You can even get an intelligent software that you can program to remind you when you have to do certain tasks like file income tax returns and pay any bills. It is vital that your personal finance software permit you to create budgets for certain purposes or tasks. You must be able to write reports with your personal finance tool so that you can stay on top of your financial planning and manage personal finances better. A multi-currency function would also be useful for those who use multiple currencies.
First, try to realistically evaluate the state of your personal finances. Be honest. Sugarcoating the situation will not make your problems go away.
Always monitor the amount you spent on each of your transactions, regardless of how small or big it was. The same goes for any payments given to you – keep track of them. Sometimes, we may let the small transactions delude us into a false sense of security.
Planning ahead requires personal finance analysis. This allows you to understand and become aware of what exactly you need to pay for every month as regular expenses. You may then create a budget in advance that can allow you to have a comfortable window of opportunity for making payments without being penalized.
To avoid penalties, schedule your monthly payments on a calendar. Then keep track of payments made and pending payments.
You might also want to invest in a personal finance software which will serve as your personal finance tool. It is better to invest in one that is easy to operate yet can absorb many functions for you.To get the right type of personal finance software, bear in mind that the software should permit you to absorb the skills and knowledge of using it in a very short span of time. The software should have a function for categorizing your expenses so that you need not get confused as to where to place your entries. There are obviously some headers of categories that all software have in common (such as Shopping Expenses, Bills, Bank Credits, and Bank Loans) but examine the aspects of your software that seem unique and were made just for that software product.
A web-based finance software is a good option to have since it simply requires you to enter a password to gain access to your software files. You also gain the ability to access your files from any point of the globe so long as Internet access is available. This is very ideal for mobile workers or frequent travelers. Just be sure you choose an uncommon password and do not allow others to know it so that you stay safe and secure online.
At the same time, web-based software can be updated frequently so you can enjoy the use of new and better features created by the software developer. You can even get an intelligent software that you can program to remind you when you have to do certain tasks like file income tax returns and pay any bills. It is vital that your personal finance software permit you to create budgets for certain purposes or tasks. You must be able to write reports with your personal finance tool so that you can stay on top of your financial planning and manage personal finances better. A multi-currency function would also be useful for those who use multiple currencies.
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