Great Ways to Save Money

Have you ever wondered how you could save money but dont know how? You dont have to worry as you do not even need to deprive yourself! You could start simply by:

1. reducing, stop buying or subscribing to magazines. Instead you could either borrow from family, friends or even the libraries. You could also consider going to the websites of the magazines and you will be surprised at the amount of free information you could get. Also, think about it, what do you do with the magazine after you have read it?
2. Shop at the hypermarts and/or warehouse sales as they usually have offers. Remember to stock up only on fast moving items to avoid wasting money on rancid food.
3. Eat at home. Eating out has become a convenience and convenience comes with a price as it is an activity which has become part of our daily fast pace lifestyle. Keep eating out as an activity to celebrate special occasions or minimise the number of eating out in a week. Instead of eating out 4X a week , you could take some time on weekends to plan the following week's menu.
4. Homemade skin care. Again, if you go to the internet you will be surprised on how you could save from using ingredients from your very own kitchen.  You can take care of your skin and still save money. Try this: Honey and oatmeal can exfoliate dry skin. - Ginger seeped in a bath softens your skin. - Cucumber and milk softens tired skin.

Without drastically changing your lifestyle, you have started your path on saving money. Secure your future by using these money saving ideas, today! Good luck!

Extra Income

Extra Income simply means an income that you can earn other than the monthly pay cheque from employment. This extra income can be used to buy the wants, spend on luxuries or even to settle outstanding debts. There are lots of uses when there is extra income. The "want" list is endless. Second income is definitely welcomed though not many would be prepared to work a second job.

When we compare income levels in different countries, it is evident that the average income per person is less than $15,000 a year. In other words, there are many people who live near the borderline. Extra Income will really come in handy.

There are a variety of options available to earn the extra income. These available options are targeted to generate employment and at people who can use their skills that are lying dormant to make some more money for themselves. In order to achieve a moderate success in generating an extra income we must be aware of our strengths and weaknesses. This would greatly help in selection of a most suitable way to generate extra income.

The selection process consists of logical steps. Firstly we need to ask ourselves of an honest opinion of our strength and what we excel in. What do people around us compliment or criticize us on? Are they merely perfectionists?

Internet can generate a whole lot of ideas for generating extra income. Network marketing in general market terms has been successful to some extent. Internet offers something similar also known as affiliate marketing. The internet also offers a host of other options like writing, advertising and simple non-technical jobs which can increase your regular income. This extra income that can be earned from these opportunities depends on how good your skills are in the field of your selection.

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) are open-ended investment funds listed and traded intraday on a stock exchange. They aim to track the performance of an index and provide access to a wide variety of markets and asset classes. The key to successful investing is to choose markets and asset classes that will rise in the long run and staying invested. 

ETFs are simple tools which can be used for a wide range of investment strategies.  An ETF combines the features of a unit trust with those of a stock.  Listed on a stock exchange, an ETF invests in a basket of stocks that aims to track the performance of an underlying index.  The fact that ETFs are straightforward, flexible and cost effective, it is possible for the entire portfolio to consist only of ETFs.

One of the strategies for value investors ie Strategic allocation is buy and hold. ETFs cover many asset classes and markets and are ideal to be used as portfolio construction tools for long term strategic allocation, especially with their low management fees. Investors who bought ETFs can keep their ETFs indefinitely as long as the ETF is listed.

Investing like most other things are not without risks.  ETFs do come with some risks and have different levels of complexity.  The more complex ones are unsuitable for the average or new retail investor.

Can You Make Money from Stock Market?

An excerpt I read in one of the free books I received from attending some of the money making previews said:

"More Millionaires have been created from the Stock Market than any other source ... Bloomberg Magazine."

Initially I was surprised. After reading the book, I realised that it is possible. If you venture into unfamiliar ground, there is always an element of risk. Like everything new, there is always risk. Before you go and dump your money into investing, learn the skills and follow the rules.

You must develop a plan of action and people generally do not plan to fail but they fail to plan. Once you have your plan of action, you must act on your plan. Wishing is not a substitute for action. In order to achieve your goal, you must take daily action towards your goal.

You can only achieve success if you put into action your plans and you must continually review your action plans and tweak it where and when necessary.

How Much Money Should You Invest?

As a first time investor, I would think it is best to determine how much money you should invest. You must first determine how much you actually can afford to invest and what your financial goals are.

First, let’s take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to lay your hands on in a hurry in the future.

So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you’ve recently received, this will probably be all that you currently have to invest.

Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time.

Speak with a qualified financial planner to set up a budget and determine how much of your future income you will be able to invest. With the help of a financial planner, you can be sure that you are not investing more than you should – or less than you should in order to reach your investment goals. Whatever the case, the onus will be on yourself to safeguard your money.

For many types of investments, a certain initial investment amount will be required. Hopefully, you’ve done your research, and you have found an investment that will prove to be sound. If this is the case, you probably already know what the required initial investment is.

If the money that you have available for investments does not meet the required initial investment, you may have to look at other investments. Never borrow money to invest, and never use money that you have not set aside for investing!