Tag Archives: Financial Education

Credit Crisis: Are We Set Up for The Perfect Storm?

Robert Prechter discusses what’s backing your dollars
January 26, 2012

By Elliott Wave International

In this video clip, taken from Robert Prechter’s interview with The Mind of Money, Prechter and host Douglass Lodmell discuss “real” money vs the FIAT money system, and what is backing your dollars under our current system. Enjoy this 4-minute clip and then watch Prechter’s full 45-minute interview here >>

Watch the full 45-minute interview FREE

Get even more valuable insights as Mind of Money host Douglass Lodmell interviews Elliott Wave International’s President, Robert Prechter, about how to keep your money safe, the deflation versus inflation debate, and many more topics that are critical to your financial future.

Start watching the free 45-minute interview now >>


What Is Backing Your Deposits in the Bank?

By Elliott Wave International

Is the bank really the safest place to keep your money? Robert Prechter joins the Mind of Money host Douglass Lodmell to discuss what backs bank deposits and how you can keep your hard-earned money safe.

We invite you to watch the interview below. Then read Robert Prechter’s free report, Discover the Top 100 Safest U.S. Banks.

What is the best course of action to safeguard your money?

Read our free 10-page report, Discover the Top 100 Safest U.S. Banks, to learn:

  • The 5 major conditions at many banks that pose a danger to your money.
  • The top two safest banks in your state.
  • Bob Prechter’s recommendations for finding a safe bank.
  • And more!

Download your free report, Discover the Top 100 Safest U.S. Banks, now.

This article was syndicated by Elliott Wave International and was originally published under the headline What Is Backing Your Deposits in the Bank?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Get a Act of God Plan

lightning

In light of recent natural disasters around the globe-earthquakes, floods, fires-it seems only to right to recommend having an Act of God Plan, especially if you live in a disaster prone area. Ensuring you have a safety net set up should you get into strife through no fault of your own is paramount to survival, and easy to arrange.

1. Have a Cash Stash

Always have a little amount of cash hidden in your house should you find yourself in a situation where you have no access to money. Flooding will easily cause shortages to cash machine dispensers, and often in a crisis situation many staff will not be working as they’ll be sorting out their own affairs. The only problem with having a wad of cash in the house is the associated temptation. To avoid dipping into the stash when you’re a bit short of money, keep it in a locked up section of your emergency grab bag, and if you’ve already been involved in a natural disaster you won’t need reminding of why it’s important to keep your mitts off.

2. Carry a Credit Card

Even if you don’t normally carry a credit card, it’s a good idea to have one should you find yourself in a sticky situation. Whether you’ve lost your wallet or need to pay for accommodation, clothes or food, having a credit card can make things a little easier in dreadful circumstances. One advantage of having a credit card is their emergency assistance feature-emergency funds can be wired to wherever you are, should you have that function set up on your card.

3. Invest in Insurance

While most of us hate giving money to the insurance companies, it is worth it when you run into problems, be it travel, home or content insurance. The golden key is to read and double read the terms and conditions. Yes, they’re ludicrously boring and often hard to understand, but it will make all the difference when you come to making a claim. Also, talk to someone to clarify their terms if you need to. However, sometimes things happen that you’re just not prepared for so wouldn’t know to ask about, or check. In the Brisbane floods, in early 2011, a number of people who took out flood insurance in good faith were told that their claims would not be awarded because their houses were insured against flooding, not inundation from the river!

4. Emergency Contact Numbers

Pretty much everyone owns a mobile phone these days, and rarely lets it out of their sight. However, when you’re caught in a freak flood and all you think about is hanging on to your nearest and dearest, your phone no longer seems so important. Having a few numbers memorized is a good idea. And while it seems obvious, because most phones are set up to show names not numbers there is little opportunity, or need, to remember other people’s numbers. Just one or two contacts are all you need to let people know you’re safe. They can then contact others on your behalf.

5. Safe Place to Stay

If you’re unfortunate to be caught in a natural disaster, but lucky to be near your family, go stay with them until things start to return to normal. If you live in an area prone to bush fires it’s important to have a substitute home organised prior to fires breaking out, that way you know exactly where to head without having to think about it in an adrenaline fuelled situation. Sometimes things happen that you just can’t plan for, so if you’re travelling in an unfamiliar city and don’t know anyone in the immediate vicinity, head over to any of the disaster relief centres where you’ll be offered a place to stay and support during what could potentially be a terrifying and lonely time.

This article was written by William from Life Insurance Finder. Visit Life Insurance Finder to compare Income Protection Insurance

The Ultimate Money Guide for Bubbles, Busts, Recession and Depression

< Just released:
New blockbuster book
by Martin D. Weiss!

Dr. Weiss has just released his new book — The Ultimate Money Guide for Bubbles, Busts, Recession and Depression — and already it has soared to the top of the charts on Amazon.

In this fully updated and expanded edition of his latest New York Times bestseller, Dr. Weiss shows you …

  • Why even the shocking trillions in bailouts and guarantees Washington has handed out have not been enough to prevent a new debt crisis (page 31) …
  • Why Wall Street cheerleaders, top economists and our leaders have been so wrong at every stage of this crisis — and why listening to them now could cost you up to half your wealth in 2011-2012 (page 38) …
  • What REALLY can happen if your bank fails — what the FDIC insurance covers and what it does NOT cover … why many depositors could be very disappointed (Chapter 6) …
  • How to find safe insurance companies, the best life insurance policies and the best annuities. What insurance agents never tell you … policies nobody needs but almost everybody buys … plus much more (Chapters 7, 8 and 9) …
  • The ultimate alternative ETFs for reaping wealth in the worst of times. Follow these steps to help protect your portfolio and reap far larger potential gains (Chapter 11) …
  • 3 shocking reasons why Wall Street ratings on stocks and bonds are dangerous. Hidden conflicts of interest, bias, payola, cover-ups and scams that could lure you into deadly investments (page 41) …
  • Your home loses another 20% of its value — but THIS investment wipes out your loss or even hands you a profit. The five-step hedging strategy every homeowner should be using now (page 173) …
  • 5 easy ways to spot the REAL bottom in stocks and bonds — and use it to help pile up massive wealth in a recovery (page 193) …
  • How to maximize your bond market and Treasury yields with safety: Six simple steps (page 209) …
  • Dividends: Your next great income opportunity. Four simple steps to find stocks with steadily rising dividends (page 217) …
  • The best time to buy gold — 700% profits possible! Get your timing wrong, and you’re likely to lose a bundle. Get it right and Katie, bar the door! How to invest in gold, gold ETFs and mining shares during a depression (page 229).

The table of contents — plus sample pages — are available here at Amazon.

Hard copies are available online and in bookstores.

Plus, you can download the book instantly for the Kindle and for the Nook.

How to Interpret Your Credit Card Statement

understanding credit card statement

By: Guest blogger Mark

Understanding a credit card statement is important if a credit card is used regularly to spend money and budget is being followed. For someone who has been using a credit card for an extended period of time, reading the statement is old hat, but for someone who is new to using a credit card there are some features of the statement that need to be explained. Understanding the fine print, both on the front and back of the statement, is important to fully understanding the charges within the statement. The statement for each credit card company varies slightly but for the most part there are common elements in each of the statements. There are several key pieces of information that must be examined when each statement is attained that will help the individual better understand their account.

APR – On the front of the document the first piece of information that needs to be examined is the Annual Percentage Rate, or APR. This is the amount of interest that will be paid on an annual basis. The APR is an important factor in calculating the amount of money going into the credit card. The higher the rate, the more money it will cost in the long run to use this credit card. Interest rates of each credit card can be compared on a variety of websites available online.

Minimum payment – Another pivotal piece of information that must be looked at is the minimum payment due. This is the minimum amount of money that must be paid on the credit card during each billing cycle in order to remain in good standing with the credit company. This amount is typically determined as a percentage of the new balance. The minimum payment must be made by the due date in order to protect the individual’s credit reputations. Late payments have a negative effect on an individual’s over all credit score, which reflects poorly when trying to take out a loan for a house or other large item.

New Balance – The new balance on a credit card is the amount of money that is still unpaid or owed by the cardholder and will be a number present on the statement. This can be determined by starting with the remaining balance from the previous month and subtracting any payments that were made on the balance. To calculate the amount owed the new charges and miscellaneous fees accrued during the most recent billing period must be added to the previous amount.

Interest Paid – The finance charge is essentially the cost of doing business with the credit company. This is the money paid to the lender for using their credit. This finance charge is indicated on the each monthly statement and it is the interest that is paid on the unpaid balance of the account. The way in which this charge is determined varies with each credit company and the way in which it is determined affects the amount of money that the individual will be charged. The most commonly used calculation method is the average daily balance, which calculates the monthly finance charge based on the amount of debt on the account each day.

Fine print – The back of the credit card statement should not be ignored. There is a lot of fine print on the back of the statement and can present quite a headache. Although these paragraphs are not the most interesting read ever, there are many important details that can affect whether the individual is a successful credit card holder. One of the most important pieces of information that can be found on the back of the statement is the information about the Cash Advance Fee. This is a charge that the credit card company charges the individual when the card is used to take a cash loan from a bank. Generally there is an allowed amount of money that can be withdrawn using the card and the fee the credit company charges is a percentage of the loan amount. It is important to recognize this information on the back of the card in order to not break the fine printed rules of the credit company.

Understanding a credit card bill is the first step towards being a successful credit card holder. It is important to take the time to review the information on the statement and make sure that everything on the state is in line with the contract that was signed. It is also important to notice and verify any changes on the statement compared to the previous statements. An error can always occur and it is the responsibility of the cardholder to recognize these errors. Understanding finances is difficult but taking the time to learn a little about a credit card statement could save a lot of money in the long run.

Mark writes about finances at CreditCardCompare.com.au, an Australian website based just north of Sydney.

Quantitative Easing – Why your money is losing its value by the minute

money down the toilet

Have you ever wondered why when you think back in time you get impression that your money bought you more than it does now. Well, wonder not because it is not a mere impression but something that is happening for real. It is called inflation and it is an insidiously destructive force. It is capable of eating away at your wealth and in worst case scenario it can transform itself into something called hyperinflation which will wipe away the entire purchasing power of your money literally overnight.  Hyperinflation has happened in the past and it is in fact happening right now in Zimbabwe (see this Wikipedia link).

So how does inflation occur? First off permit me to clear one thing first.  Inflation is most often defined as a rise in the general level of prices of goods and services in an economy over a period of time. This definition is a bit misleading and superficial. A more accurate definition is that inflation is simply an increase in the total supply of money over a given period of time. The increase in the money supply is perpetrated by the world’s central banks (ie Federal Reserve, European Central Bank, etc.) They do this by basically PRINTING MONEY. One of the euphemisms for “printing money’ that central bankers use to befuddle and mislead you is “quantitative easing.” Quantitative easing is central banker lingo for “printing money like there is no tomorrow” As you can probably already tell quantitative easing is bad for you financial well-being.  I personally think it is important to understand this concept of quantitative easing, and I found a video that I believe will help you in grasping this concept.

I hope you enjoy the video. If you’d like to read a more detailed article on quantitative easing checkout this post on my finance blog.

Cheers,
Alan