How to Maintain Your Money

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Why do some people achieve long-lasting financial success while others struggle with money for their entire lives? After years of seeking the answer to this mystery, I have discovered that the route to prosperity lies in the knowledge and application of some basic principles that govern money.

We have been examining the three tenets of money success - managing, multiplying and maintaining your money. After making smart use of the money you already have and making determined efforts to earn more, the final key is making plans to preserve your wealth for your lifetime and beyond.

Here are the four essential steps to maintaining your money:

Protect Your Money From Risks

Risk is the uncertainty of an event occurring that could have a negative impact on the achievement of your financial objectives. In order to preserve the money you have made, you need to plan strategies to counteract these harmful occurrences.

Investing risk is the possibility that the returns on your investment may be less than expected. The reality is that a great investing opportunity is like a double-edged sword - it can bring massive gain or cause you to lose big. To protect yourself against investing risks, consider:

- The consequences: what would happen to you if the negative event occurred?
- The probability: how likely is it that the negative event will occur?
- Your objectives: how will the investing risks affect your goals?

It's best to seek professional advice to help you decide if the returns are worth the risks.

Personal risk is the possibility that you won't be able to carry on with your investment plans. These risks include the loss of your ability to earn and early death. Building up an emergency fund with three to six months' living expenses is your first defence against personal risk. It is also crucial to get life and health insurance to protect you and your family.

Plan For Retirement

When you are young, strong and seemingly invincible, it's very hard for you to think about the time when you don't want to, or can't work for money any more. Sadly, I have seen that a major reason for loss of wealth is that people retire and outlive the money that they have acquired.

It is vital to start planning early for your retirement. Get help from an advisor to calculate how much money you will need to last throughout retirement. Then make a plan to save consistently by using salary deductions, and try to contribute the maximum to your pension plan. With time on your side, you can create a comfortable nest egg.

However, even if you have delayed planning for this life change, don't give up hope. Doing a retirement spending projection will let you know the extent of your shortfall. This will allow you to make appropriate plans to continue earning in your golden years to make ends meet.

Plan For Your Passing

It is financially smart to make plans while you are alive, to transfer your money and assets when you die. Estate planning is not only for the wealthy, but for everyone with dependents or any type of property.
If you don't plan for your passing, your survivors may find it hard to get money to pay funeral expenses, your outstanding bills, and estate taxes and fees on your property. Smart preparation for your inevitable demise can also help to preserve your wealth from excessive charges.

You can reduce the hassle and time it can take to pass on your property by writing a will, using joint accounts at the bank, buying property as joint tenants, and taking out life insurance with a named beneficiary. Make sure that you think carefully about who you want to carry out your wishes, and get proper advice from insurance, legal and financial experts.

Achieve True Freedom

There is more to financial success than just the accumulation of wealth; your mentality about money is also important. Isn't it sad to see people who may have significant monetary assets but who are fearful, stingy, and generally not enjoying their good fortune? What's the point of having money if it doesn't enrich your life and that of others?

To truly achieve financial freedom you must be aware that money is abundant; there is no shortage of wealth. However, if you hold on tightly to your money, you actually believe that money is scarce. Scarcity thinking will only keep you poor in mind and spirit, so try to increase abundance in your life by giving time and money to worthy causes.

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Property Investment Finance

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Our current economic crisis has brought down housing prices almost to the ground. The cost for obtaining a home today is the lowest in recent memory. This is an excellent opportunity to invest in real estate, to purchase it with the intent of either making an immediate sale or establishing a long term lease, but with credit no longer flowing as freely as it once did everyone is concerned about property investment finance: will the banks and creditors play ball?. The low prices are fantastic, after all, for those who can afford them, but without the aid of a creditor, who can?

It is tempting to think that banks have stopped credit entirely, but that is far from true. Yes, loans are being approved less frequently than in recent memory, but anyone who has a solid plan and a strong credit history should not have major difficulties obtaining a reasonable one. Bearing in mind that loans for investment properties are more stringent than loans for personal properties and generally require a better credit history and a more substantial down payment, it may not be possible for everyone who is looking to invest to secure one that will cover 100% of the costs. Even if that proves to be the case, there are still many other property investment finance opportunities.

Seller's financing, for example, where the seller assumes the debt of the property (to a percent that is determined by him and the investor) is more and more frequent in the current real estate market and can be used to either cover the percentage that the mortgage doesn't or even to replace the need for one if the conditions are right. There are also legal means to obtain personal loans for reasonable interest rates and the possibility of obtaining a home equity loan and using it to cover the down payment or even the remaining percentage not covered by a mortgage and/or seller's financing is always present.

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Real Estate Finance and Investment Strategy

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You may have decided you would like to start investing in property but you are not exactly sure how to go about it. One thing you should do before you begin is to research the financing options that may be available to you.

Most people, when they first begin their endeavor with property investing, find that financing is their only means of purchasing property. The following is some information regarding real estate financing and investment strategy that may be beneficial to you.

When you hear the term "leverage" applied to real estate financing and investment, you will find that this term simply means to use borrowed money for financing your property investment. Your initial investment will be the money that you use for a down payment.

In order for this leverage to be beneficial in your real estate finance and investment strategy, you will want to secure the borrowed money at a low-interest rate and make sure the term of the loan is over the longest period of time that is possible. This is to avoid yourself from being tied up in the property and having least money for your own or other investment usage.

You do have to remember, however, that the risk of your investment is tied in directly with leverage. If you place a small down payment on the property, the leverage is high and the ratio of the amount owed to the value of the property is high, making the property a high risk. The more money you put as a down payment on the property, the lower the leverage and the lower the risk.

Many, in their real estate financing and investment strategy, use pyramiding to acquire more properties. What this simply means is that you are using the equity on one property to help you purchase another.

For example, you purchase a property for $100,000 by making a down payment of $20,000 and borrowing $80,000. The properties value at the time of the purchase is $110,000. Six months later, you have a positive cash flow of $1,000 a month on the property and its value has increased by $40,000 due to your renovations. You now have equity of approximately $70,000 or more in the property.

You take out a home equity loan of $30,000 and this is used for the down payment of another investment property. This is also known as pyramiding and is a real estate finance and investment strategy used by many.

Pyramiding through sale is also another real estate finance and investment strategy used by many, as well. In this method, when your property's value has increased, you sell instead of taking out a home equity loan.

In the example above, if the same property was sold for its value of $150,000, you would use the money to pay off the initial loan of $80,000, deduct your initial investment of $20,000, what you have paid in interest and principal, as well as the cost of renovations, to discover you've made a profit of approximately $25,000 to $30,000 in a matter of a six-month period. This money can then be used as a down payment on another property.

Before you begin investing in property, it is crucial to understand what real estate finance and investment strategy you plan to use. However, it is also important to understand that property investment comes with risk. Research the facts and figures before you make any decision with your real estate finance and investment strategy.

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Real Estate Accounting

If there were any pessimists in the real estate markets, they are being proven wrong. As the prices continued to mount on in the recent years, these pessimists forecasted an explosion and tumbling of the industry. They were about to recount the big margin losses of the sector in 1980s and 1990s. But as the real estate capitalization rates remaining high, we come to a conclusion that it is just a mythical bubble and not realistic!

As the sector is becoming competitive the accounting practices involved with the real estate is also gaining importance. The main points on which the real estate accounting firms must concentrate can be listed as follows.

• A special, integrated approach- The approach while managing the finance must be integrated. The accounting, tax and consulting needs to be specifically taken care of by professionally qualified people.

• Consultancy with a cutting edge - Property management and operations, financial analysis, market risk assessment, financing and structuring, and information technology plays a very important role in the functioning of an organization. These things can provide a big cutting edge to your company, if managed properly.

• High expertise- There should be expertise people who know about the competitor and those who can forecast the trends. The thorough knowledge of the real estate history and the competitor analysis can make the whole difference.

• A 360 degree commitment- There should be a complete commitment to the clients. The relationship that the firm makes with the client is the best part of their business. The customer loyalty is the utmost important thing.

Now let us analyze the services offered by real estate accounting firms. Personal tax services, capital gains, installment sales and individual tax return preparation are prominently done in most of the real estate accounting firms. The operational improvement services, internal control reviews and the compensation programs must be designed carefully in order to make the business run in a smoother way. The audits, reviews, compilations, cost certificates etc are performed at these places. These are very crucial when it comes to get certifications from U.S department of Housing and Urban Development. Evaluation of expert reports and expert testimonials are also reviewed by the professionals in these accounting firms.

When a company gets bigger, its tax implications also get bigger. So preparing the tax returns, entity selection considerations, project analysis, alternative minimum tax issues etc are to be handled in a professional manner. These can be taken care by real estate specialized accounting firms only.

Estate planning, family limited partnerships, gifting strategies, asset transfers, tax credit programs, cash flow analysis and what not: The services list of real estate accounting firms goes endless. But one should be careful in choosing their accounting firm. Just concentrate on the quality of work they do and the quality professional they have. The rest can be history. So with the big boom of real estate industry, the specialized real estate accounting services are also in its form.

Real Estate Finance Strategy

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If you are considering a new home loan anytime soon, and you do not want to get an adjustable rate mortgage (remember, ARMs are very strong loans), you should consider a 2/1 buydown.

This is a great mortgage program for people who require a smaller payment now, knowing that they will have more money in the following years.

Here's how it works.

You pay an additional premium on your loan amount to get a 2 percent improvement on the rate. So, if the 30-year fixed rate mortgage is 6 percent, you will get a rate of 4 percent in the first year of your loan. In the second year, your rate will go up one percent to 5 percent, and in the third year, your rate will increase to the rate it was when you locked in your loan, the 6 percent in this example.

Then, it will remain fixed at that rate, until you pay it off, sell or refinance.

For people afraid of adjustable rate mortgages, this is a very powerful loan. It's also great for people buying their first home or for newlyweds, who think they have to rent, before buying. Remember, there are many ways to get into a home. This program is one of them.

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Charts For Effective Forex Trading

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Forex charts provide vital clues in Forex trading. Both seasoned and amateur professionals have used these charts to determine entry and exit points and rake in the profits. If you too wish to make a neat profit then here are five tips to help you get the most out of your Forex charts.

1) Look for the important aspects: You need to keep monitoring the charts every hour. While this may seem like a laborious task, the efforts do pay off. If you notice any resistance or support levels within a 2% range from the opening rate of the day, you should note it down.

Make sure to observe the chart of 15 minutes while especially considering the current price vis-a-vis the simple average of 60 period, the lowest and highest prices since 00:00 GMT, prevailing trends at the moment and the bottoms and tops during time period of 3 days. If studying charts is new to you, you should consider opting for a Forex training program. Such Forex training courses teach you the intricacies of studying charts as well as things to observe in them to achieve a profit.

2) Correctly using the information is vital: Once you have perused the charts and gathered the information listed above, it is important to use them appropriately. About intraday Forex trading always, check the chart on an hourly basis. This provides a bigger picture of trends.

If the bigger picture indicates a downtrend, ensure the 15-minute type of chart also indicates the same. If there are both minor and major trends, the minor one will be a reversal of the major trend and will last only a few minutes. You can easily spot these on the charts of 5-minute type. This is another technique taught in all the Forex training courses.

3) Knowing how to trade this information: By studying the charts in the above-mentioned manner, you can note the trend of the currency pairing you are trading in. In addition, through this information, you will also be able to gauge if the Forex trading is happening in the same direction as the major or prevailing trend or if there is a minor trend being experienced by your trading.

4) Understanding common Forex trading situations: There could be a situation where the major trend of Forex trading is towards a downside whereas our trading is on an up-trend or minor trend. The best tactic would be to sell as soon as the price is below the moving average in the 60 period.

Another situation could be when the major trend is downside and the minor trend is also downside. You will need to wait for a small up-trend to happen and then reverse as soon as it enters the market. Another tactic to follow in a similar situation would be to buy before the day hits the lowest value and have a tight stop order. Since risk is lesser conditions are favoring you.

5) Miscellaneous ideas to leverage: There are many other techniques, which are taught in-depth by Forex training programs. For example, an entry level start is well achieved by selling below the old bottom values and buying above the old top values. If the higher bottom value prevails it means a strong currency value.

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Essential Points to Avoid Losing in Forex

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With a daily Forex trading volume of over $3.0 trillion, Forex market gives almost infinite trading liquidity and flexibility. Forex trading is a lucrative and convenient way to make money using just a computer and internet connection at home. And for that reason, thousands of people dive right into Forex trading without really knowing what they are doing to begin with and end up with loss in the Forex trading.

In order to avoid losing in Forex trading, you'll need to consider three basic essentials points.

Essential #1

Risk is involved in the Forex market. So first of all decide yourself that how much money you are willing to put in and risk. Once after deciding how much of money to risk and decide your self that money has gone. Then the easier it will be for you to stop yourself from interrupting trades and panicking over emotional aspects of the trading game (this is the one thing that kills of most traders before they get past their first week).

Essential #2

Find yourself a well-established Forex broker platform. Currency trading is not for the faint at heart so you need to look for a Forex broker platform that has been in the Forex market for a long time. Remember that a broker platform that has been in the Forex market for a lot of years must be doing something right and will be reliable. Furthermore, a broker platform that understands any automated Forex trading system software that you might be using is the best type of broker platform you can have.

Essential #3

Take advantage of up-to-date publications and other tools. Your broker should have a list of these that are available for easy access via the internet. Just remember that education is something that you shouldn't take lightly. The more you know the more chances of your being successful in this market.

Whilst you don't always need to know much about Forex trading to be good at it (using automated Forex trading system software), it's always a good idea to know a little more about where your money is going so that you are never at the mercy of software to dictate your financial future.

I highly recommend using Automated Forex Trading System Software to automate the process of your Forex trading activities, not only you can significantly reduce the risks involved, you can also free up 99% of your time to learn a little more about what's going on behind the scenes.

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