How A Single Mom Can Get Rich

There are countless books on how to get rich. We buy them for hope, but the best of them offer us a mindset. If you want to make money you have to think like someone who makes money.

One book that has really helped me change the way I think about money is Secrets of the Millionaire Mind by T. Harv Eker. This book encourages you to explore what you learned from your parents about money. You learn what your “financial blueprint” is for success. This book taught me a system for saving money.

Eker’s system involves setting up a number of jars, and putting money into them each week. One jar is labeled “Financial Freedom.” That money is only for investments that will bring you passive income. There are other jars for “Long-Term Savings,” “Education,” and “Give Away.” The last jar is everyone’s favorite: the “Play” jar. That’s money you’re required to spend on yourself. You’re supposed to use it to treat yourself to something luxurious— a massage or an expensive dinner—something a rich person would buy. The idea is to set aside 10% of each paycheck in each jar. If that’s too much, you at least put in something—whatever you can afford on a regular basis. The important thing is the habit. I used this system, and it gave me the security of knowing that at least I had control of some of my money. If you would like to learn more about this system and get a copy of this life-changing book go to:

www.secretsofthemillionairemind.com/a/successfuldivorce.

I am a firm believer in the Law of Attraction: whatever you pay attention to will expand. If you constantly complain about debts, they will grow. It’s like the bad day that always gets worse: you stub your toe, the dog throws up, the kids start fighting, and by the end of the day you’re lucky if a tractor-trailer hasn’t smashed into your house. Bad luck seems to create more bad luck. The key is to stop as soon as it starts happening, and change how you think and feel. So you stub your toe. It hurts, but you get over it. The dog throws up? Clean it up and move on. The kids fight, so you break it up and send them to school. Find and hold onto a positive attitude.

But, you say, you don’t live in my house Easier said than done.

True, but let me give you a trick that will usually get you out of a bad mood: Be grateful. Think of everything that you have and who you love. Feel the feelings of joy and love you get from having those people in your life. Be grateful for your pets, your house, your car, a sunny day, a rainy day, anything and everything It is amazing how good you will feel by doing this every day. More of those good feelings and thoughts will flow your way.

The same idea applies to money; the law of attraction can bring you great abundance. Each day visualize what you want. “See” that house you want, or the car, or whatever. Be in the moment and actually see yourself enjoying these things. Feel how good it feels. Make a “Dream” Board. Cut out pictures of the things you want and stick them on a corkboard or poster. Look at this daily. Before you know it you will begin to attract these things into your life. Believe me, it works.

Two terrific books about the law of attraction are Joe Vitale’s The Attractor Factor and Esther and Jerry Hicks’s Ask and It Is Given. An amazing movie you can order online called The Secret (http://www.thesecret.tv/home.html) also explains how the law of attraction works. Take this seriously; it will change your life. By bringing more to your life, you will enjoy life more and be less stressed.

These fundamentals will improve your life financially. Study wealth. There is so much great information out there. Read everything you can. Continue to learn. I am addicted to learning and I love to read. If you aren’t fond of reading, then listen to audios in your car, and watch informational DVDs. Open yourself to new ideas. You will see dramatic changes in your finances. Apply the principles you like, and disregard the rest. Continue this quest and in time you will have everything that you desire!

About the Author: Christina Rowe is the author of the new book Seven Secrets To A Successful Divorce-What Every Woman Needs To Know . Find out the survival skills that will save you time, money and heartache during your divorce.For your free Secrets of Divorce newsletter go to http://www.divorcesurvivalskills.com  Source: www.isnare.com Permanent Link: http://www.isnare.com/?aid=91006&ca=Womens+Interest

3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days

“What can you do to increase that set of three numbers on your credit report that can be so important with your financing?”

I came across this question as I was surfing discussion groups the other day. Check out my answer:

Dear Friend,

Here are 3 steps I used to take my credit score from 592 (horrible credit) to 762 (perfect credit) almost overnight.
If you’re interested in improving your credit rating quickly, you’ll find this story helpful:

In 1995 I made a decision that would ruin my perfect credit history. I quit my salary job to become an insurance salesman.
The job paid commission only. Within a few months I lost everything - house, car, credit rating and my self respect.

By the end of 1996 I was living with my mom, all my credit accounts were severely past due, and I was paying 22%
interest on a broke-down green Geo Storm…I was a real loser.

Then, in 1997, I became a banker. I didn’t know it at the time, but this would turn out to be the break I needed to eliminate my
credit problems forever.

During my seven years as a banker, I came across several legal and highly effective ways to improve my credit rating.
As a result, I was able to increase my credit scores by an average of 170 points.

Here’s what I did:

Step #1:
After spending hundreds of dollars on credit repair services that didn’t work, I found out how to get negative accounts removed
on my own.

Basically, I wrote letters to the collection agencies requesting proof that the accounts were mine. 89% of the time they had
no proof that the bad accounts belonged to me. So I was able to get them deleted from my credit file.

Step #2:
I opened new accounts with high credit limits and kept the balances low.

I discovered that if you keep your available credit limits high and only use 10% to 30% of the credit you have available, your
credit score will improve dramatically.

Step #3:
Next, I added accounts with years of perfect payment history to my credit file. This step took my credit score from 647 to 762.

While you can certainly add seasoned accounts to your credit file for free, there are companies that claim they can do it for
a fee.

The problem is, they charge between $2,000 and $2,500 per account. If you want a 700+ credit score you’ll need 3 to 4 of
these accounts. That equates to a cost of $6,000 to $10,000.

(You can conduct a search on your favorite search engine for companies that offer this service.)

While there are several highly effective steps you can take to increase your credit scores by as much as 200 points, these
are the main ones…And here’s the good news: Each step can be completed in less than 30 days.

By Hartley W. Pinn, Jr, CEO, http://www.AtBalanceCreditRepair.com. Revealing the insider credit secrets you can use to increase your credit scores by up to 200 Points. For more information please visit: http://www.AtBalanceCreditRepair.com/credit/8

Bankruptcy vs. Credit Counseling: What Should I Do?

Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.

Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that is tailored to your specific needs and goals. Credit counseling agencies often provide services for free and will help to educate you about how to avoid financial problems in the future by offering debt management classes or seminars. They do not erase your debt. Instead they work with you to budget money so that you can pay off the debt often times by debt consolidation. Collection will continue while using a credit counselor, however, in most cases companies who are owed money will try and work with you to help you payoff your loans. Credit counseling services often help you to reestablish credit after the loans are paid.

Bankruptcy is very different. It will completely clear your debt in most cases and you will no longer be hassled by collection agencies and their attorneys. There are two kinds of bankruptcy; the one that is right for you will depend on your situation. When filing Chapter 13 bankruptcy you are able to keep property that is mortgaged such as your house or car and are expected to repay debts in three to five years. Under Chapter 7 bankruptcy, you must give up all property and assets that you own. There are exceptions in some states for items such as work tools and household furnishings. Bankruptcy will certainly clear your debts and stop foreclosures and wage garnishments, however, you will be unable to establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling.

Take time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long run. Most people feel much better about themselves when they can pay off their debt and become educated about how to stay out of debt rather than filing bankruptcy.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit counseling information that you can research in your pajamas on his website.

Seven Investment Terms Everyone Should Know

For those who have never given their financial future a second thought, the term “Financial Planning” could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in the financial business. Before you consult a financial planner it is wise to become familiar with some of the terminology that you are likely to hear from him or her.

* Mutual Fund-An investment made with money that is collected by individuals with an investment goal in mind. The mutual fund is handled primarily buy a person known as the fund manager. Mutual funds are easy and cost efficient, since you are not responsible for making the decision as to where to invest the money.

* Asset Allocation Fund-A mutual fund that incorporates several types of investments such as stocks, bonds, real estate, and foreign stocks. These are typically for the small investors who want to invest in a variety of funds in order to maintain a constant return.

* Risk-Return Trade-Off-This is the amount of money that you can stand to lose versus the amount of money you are willing to invest. Investments that are low-risk often have low payoffs, while investments that are high risk usually have higher payoffs. When investing money you must determine the amount of money you can lose before determining how much money you will invest and where you will invest it.

* Compounding-Money made from an investment that will then be reinvested into the same or another investment to generate its own earnings.

* Bonds-Money that is loaned to a company or the government at a specified interest rate. The company will usually give some kind of document that states the amount loaned and the agreed upon interest rate and the total amount that will be repaid at a specific time or “maturity date”.

* Stocks-Pieces of a company that are for sale. One would buy stocks from a company at a given price in hopes that the company would gain a significant amount of money and that they would be able to sell the stocks at a higher price.

* Money Market Funds-Money invested in debt by a mutual fund. The goal is to obtain money from interest to the debt. The benefit of the Money Market Account is that they offer very low investments of less than $1.00.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.

The Benefits of Laddering Your CD Investments

If you’ve decided to stock some money away in a certificate of deposit, why not reap the highest benefit over time by laddering your CD investments? What’s a CD latter? I’m glad you asked.

A CD ladder is made up by purchasing several CD’s at one time with different maturity dates. One example of a CD ladder is to have maturity dates of one year, two year, three year, four year, and a five year CD. These five investments make up the rungs of your CD ladder with one certificate maturing every year for the next five years.

For example, let’s say you had $10,000.00 to invest. You would buy 5 CD’s for $2,000 each with each one invested for one year more than the first. So you’d have a $2,000 CD maturing in one year, another in two years, and so on up to the last one which matures in five years. Every year for the next five years one of your CD matures and earns you interest on your $2000 principal.

When your certificate of deposit matures, you roll it over into another CD. The best strategy is to purchase a new CD at the longest term, which in our example above would be five years. This strategy allows you to take advantage of the higher rates normally associated with longer-term CDs while maintaining more frequent access to part of your funds.

Another advantage to laddering your CD’s is that over time it evens out the high and low interest rate cycles. Some years interest rates will be high, other years the rates will be lower. Currently banks are paying some of the highest CD rates we’ve seen in the last decade.

Before deciding on laddering your CD’s, make sure you can afford to do without that money for a period of time. You’ll pay a penalty for withdrawing your funds before your CD reaches maturity.

Also, don’t get stuck on the idea that you have to invest in a 5-year ladder. You may be more comfortable with a three year ladder based on your financial needs. Or you may want to try a ladder with a 3 month, a 6 month, a 12 month, and a 24 month maturity.

The benefits of laddering your CD investment is that you lower your risk of losing money when rates are low, increase your returns when rates are high, and still have access to a portion of your money should you need it for an emergency.

© 2005, http://www.yourfreecreditreportnow.com Author: James H. Dimmitt. James is editor of “TO YOUR CREDIT”, a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book “IDENTITY THEFT- How To Avoid Becoming the Next Victim!” and other money-saving bonuses by visiting http://www.yourfreecreditreportnow.com

Value Investing

By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investor typically selects stocks with lower than average price-to-book or price-to-earning ratios. Of course, it is not nearly this simple. Value investing is the corner stone of long-term growth. Those who practice it survive the ups and downs of the market and are more likely to emerge wealthy than those who ride the market, in principle, due to the higher quality of the companies falling under the prerequisites of the value investor. Value investing is essentially concerned with getting the most profit at the lowest cost. The basis of value is profit. Value investing is an investment style which favors good stocks at great prices over great stocks at good prices. Value investor extraordinaire Warren Buffett has used this style to become a billionaire.

It’s important to keep in mind that value investing is not concerned with how much the price of a stock has risen or fallen necessarily, but rather what is the “intrinsic” or inherent value of the stock, and is it currently trading below that price, i.e. at a discount to it’s intrinsic value. The important point here is that when looking at stocks that are trading at or above their intrinsic value, the only hope for gaining value is based on future events, since the stock price already represents what the company is worth. However, when dealing with stocks that are undervalued, or available at a discount, unforeseen events are unimportant in that without any new earnings or additional profits, the shares are already “poised” to return to that inherent value which they have.

The question now, of course, is “why would stock prices not always reflect the true value of the company and the intrinsic value of its shares?” In short, value investors believe that share prices are frequently wrong as indicators of the underlying value of the company and its shares. The efficient market theory suggests that share prices always reflect all available information about a company, and value investors refute this with the idea that investment opportunities are created by disagreements between the actual stock prices, and the calculated intrinsic value of those stocks.

Finding Value Stocks

Value investing is based on the answers to two simple questions:

1. What is the actual value of this company?

2. Can its shares be purchased for less than the actual (intrinsic) value?

Clearly, the important point here is, “how is the intrinsic value accurately determined?” An important point is that companies may be undervalued and overvalued regardless of what the overall markets are doing. Every investor should be aware of and prepared for the inherent market volatility, and the simple fact that stock prices will fluctuate, sometimes quite significantly. Benjamin Graham has often said that if investors cannot be prepared to accept a 50% decline in value without becoming riddled with panic, then investing may not be for them…or rather, successful investing, as it often takes significant losses in a particular security before gains are made, due to the idea that value investors do not try to time the market, and are focused on the underlying fundamentals of the companies. Furthermore, the quality of the companies targeted by the value investors’ screening methods should be, over the long term, less volatile and susceptible to market “panic” than the average stock.

This is also a two way road of sorts. On one hand, there is no sense in worrying about depressions, upturns, and recoveries due to the underlying quality of the value investments. On the other hand, investments should only be made in companies which can flourish and do well in any market environment. Doing solid investment research and making equally solid investment decisions will take investors much further than trying to forecast the markets.

How Many Different Stocks?

In terms of diversification, there are many discrepancies over exactly how many different stocks a solid portfolio should be made up of. My personal view is that there should not be as many stock as normally make up a mutual fund. Many will disagree with this, but what it’s worth, I think that owning a portfolio of 100, 200, or even more companies not only serves to limit risk, but it really limits the possibility for reward as well. Also, as Warren Buffett has said many times, the more companies you own, the less you know about each one.

As I write this, there are 42 stocks in our recommended portfolio. This number may very well grow in the coming months, as it may decrease in number, but one thing to keep in mind is, out of the thousands of companies available for purchase, only a very small percentage meet the stringent requirements of the diligent value investor. This is both a blessing and a curse. Very often, there is simply nothing to buy, and this is fine. The trap to avoid falling into is to lower your requirements for a stock when there simply isn’t anything meeting the normal requirements. This is how many an investor has fallen into making poor investment decisions, putting money into companies not really adequate for their respective portfolio, and it will certainly have a long term effect on gains.

About the author: David Pakman has been writing about politics and investing for years now, and runs the websites www.heartheissues.com and http://pakman.thevividedge.com.

How to Attain Your Dreams on a Single Income

If you recently became a single parent and see your dreams being washed away because you feel all alone, you aren’t alone. There are single parents that face future endeavors alone like dating again, living on one income, and buying the home they’ve always imagined. It is possible to do things on your own, be successful, and enjoy every bit of getting to where you want to be in life.

Being a single parent can be an everyday struggle but don’t feel you have to give up your goals in life just because you are on your own. At some point in life, people think about moving whether it is into an apartment, condo, or type of house. With raising children you usually need a little more space than living alone so a house is an ideal spot for many families either single parent families or both parent families. Don’t feel as a single parent that you wont be able to afford a house on your own. Here are a few guidelines to get you started on fulfilling your dreams.

Mortgage Lenders 3 Preferred Tests to Use to Determine House Budget

First you need to figure out how much money you can spend on a house. Look for prices of houses two and a half times your annual income. Mortgage lenders normally use these three tests so they make a good starting point to follow:

Test 1: The monthly house payment, including property taxes and insurance should not exceed 26 percent of your gross monthly income.

Test 2: All monthly debt payments plus the house payment should be no more than 38 percent of your gross monthly income.

Test 3: As the homebuyer you should have two to three months worth of paychecks in an emergency fund.

Lets look at an example to get a better understanding. Let’s assume your annual income is $26,000. This would qualify you for approximately a $60,000 mortgage. The monthly principal and interest payment would add up to about $400 a month; taxes and insurance would then add up to another $100 to $150, depending on the area. Lastly if you put less than 20 percent down, you’ll have to pay private mortgage insurance as well, making your total monthly payment come out to be around $575.

Your Cash Flow

Once you figure out how much of a mortgage you can qualify for your next step is to know your own cash flow. It’s up to you to make sure you can make the monthly house payment, pay for child care and still look out for your long-term goals such as your retirement fund and your children’s education. Be sure to track your spending for several months so you’ll know how much you can spend on a house that really fits into your budget.

Houses don’t come cheap and you’ll have to figure the next expense, which is figuring in your taxes. Houses are often known as great tax breaks because mortgage interest and property taxes are deductible, but that is true only if you itemize.

Save!

Of course you are going to want to make sure to save wisely. Let’s assume you find the house of your dreams and it just so happens to be a $64,000 house. You figure that you can put 5 percent down, or $3,200. With closing costs and not washing out your emergency fund, you’ll need to save about $5,000. If you invest $100 a month in a conservative no-load mutual fund, you should reach your goal of $5,000 goal in five years.

So if you need to start saving up money to be able to afford a house, with a five-year timeframe, the best place to invest the money is in a mutual fund within a Roth IRA. Usually after five years, first-time homebuyers can pull out all their initial investments plus all the earnings of up to $10,000 tax-free.

Alternatives to Single Mother’s Dream

Be sure to consider all alternatives. Five years may be too long to wait or $64,000 may or may not buy the house you’ve always dreamed of having. If you simply can’t afford a house in the desired time you might like to consider other ways to obtain a home such as buying a home along with another family member or someone you can trust. You then could divide all costs, childcare, and chores that come with owning a home.

Take advantage of any tax breaks. If you are filing as the head of the household, claiming childcare expenses and the $500 tax credit for each child under the age of 17, you can save up to hundreds of dollars off your federal tax bill. With the assumed income bracket of $26,000 used before, it will make you eligible for an $850 earned income credit. Keep in mind this is one of the few times the IRS will pay you.

Last but not least keep in mind funding for your retirement.

With these guidelines in mind and examples given of how much money you need having a certain income, you can achieve purchasing the home you’ve always dreamed of. Stay motivated, don’t lose hope and you and your children will live the dream you’ve always dreamed of having, your very own home!

Kathryn Spencer specializes in household budgeting tips and has long authored educational and support pieces for women and single mothers. Kathryn is a contributing author and editor to a variety of international and domestic web sites, and free newsletters. Kathryn lives in the southeastern United States with her two children Dylan and Kalie.

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The Single Parent Strategy For Financing College

Beth found herself in a hopeless situation. She was divorced, sole provider of her family, and the mother of three little kids. Although she was determined to make it, every step she took ultimately meant trouble. Beth knew that a college education would afford her with more opportunities. She didn’t have the money. She wondered if her life would change.

I. Impossible Dream
Are you pursuing your own dreams or the pipe dreams of someone else? Do you want a college education but it appears impossible? Do you feel it is already too late? If you answer “yes,” this report can assist you in fulfilling your dreams by completing college. As a personal coach and online advisor to families, I frequently get questions from single parents on paying for college. However, it is really more than getting the money. How does a single parent get the emotional and physical support to completing college? The college experience is a challenge in itself; single parents also have to consider their children and in many cases, working a day job to make ends meet.

This article provides single parents with a proven method of getting financial and emotional support for obtaining a college degree. This strategy will be helpful to most individuals. However, if you want more details, I highly recommend you review my special books for a more comprehensive analysis. I have spent countless hours reading books, searching websites, and reviewing past advice to clients to provide my readers with credible solutions to paying for college. Let’s explore this matter closer.

II. The Financial Aid Mystery
Understanding the process of federal financial aid can appear like a jig saw puzzle. The first step for most federal financial assistance begins with the Free Application for Federal Student Aid (FAFSA) available at your local college or high school. You can apply online at http://www.fafsa.ed.gov. You should complete this form even if you feel you don’t meet the financial need required based on your income.

III. The Single Parent Strategy
To be successful in obtaining free money, single parents need to develop a strategy. However, the problem is that many single parents get discouraged in the face of their hectic life and the additional stress of embarking on a college education. If a person had his or her own personal planner, life would flow a lot easier! In the absence of this assistant, having a strategy for college becomes even more crucial. After conducting extensive research and providing personal coaching, I have come up with a simple strategy for addressing these problems:

- Check out http://www.fastweb.com to set up a profile for possible scholarships.
- Contact your potential online college or a local college in your area for financial aid advice.
- Check out the latest college scholarship books at your library.
- Check out more non-traditional colleges. Go to Jonnie’s Distance Learning Website: www.geocities.com/liu_jonathan/dluniv.html.
- Submit at least 100 scholarship applications.
- Write a letter or call local community groups in your area and ask them about scholarships.
- Write a letter or call local community groups in your area and ask them about scholarships.
- Be persistent and patient.

IV. The Path Forward
Paying for college is possible for the single parent if he or she is committed to his or her goals. The process of attending college is not an easy one. However, you have determined that you need additional education to improve the quality of your life for yourself and your child or children. This is one of the biggest decisions that you will make. With my approach you have a simple strategy for success. Do you have the energy and the desire? This is the critical question you must ponder now. Start today and improve the quality of your life.

About the Author: Daryl Green, a Generation Xer, investigates societal issues facing everyday Americans. He is a nationally recognized lecturer and author in the Knoxville community. Get a copy of his e-book, 101+ Ways for Paying for Single Parent’s College, at http://www.lulu.com or contact him at http://www.darylgreen.org