Federal Reserve bumps up discount rate
Feb 19, 2010     post this at del.icio.uspost this at Diggpost this at Technoratipost this at Furlpost this at Yahoo! my web.

The U.S. Federal Reserve decided Thursday to boost the rate American banks pay for emergency loans.

The action by the American central bank is part of a broader move to pull back the extraordinary aid it provided to fight the worst financial and economic crisis since the 1930s.

The move won’t directly affect borrowing costs for millions of Americans. But with the worst of the financial crisis over, it brings the Fed’s main crisis lending program closer to normal.

The Fed will bump up the so-called “discount” lending rate by one-quarter point to 0.75 percent. The increase takes effect Friday.

The central bank said the action should not be viewed as a signal that it will soon boost interest rates for consumers and businesses. The Fed repeated its pledge to keep interest rates at “exceptionally low” levels for an “extended period.” Record-low borrowing costs of near zero are still needed to foster the recovery, it said.

The economy is growing again, and financial conditions have improved. But U.S. unemployment is still near double digits, and demand for loans remains weak. Many ordinary Americans and small businesses have found it difficult to borrow.

When credit virtually shut down in the U.S. in 2008, banks had nowhere to go except the Fed to borrow. Banks can now more easily tap private lending sources than they could then. As a result, the Fed feels comfortable boosting the rate banks pay on emergency loans.
Financial conditions improve

Because financial conditions have improved, the Fed also said Thursday it will shorten the length of emergency loans drawn from its emergency lending program. They will go back to overnight loans, effective March 18.

Earlier this month, the Fed shut down a handful of programs to help banks and other companies get access to credit.

Like those program shut down, the action announced Thursday is “intended as a further normalization of the Federal Reserve’s lending facilities,” the Fed explained.

“The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or monetary policy,” the Fed said.

Comment

---

Modern Ways of Saving Money: 4 Tricks that Can Make You Rich
Jan 07, 2010     post this at del.icio.uspost this at Diggpost this at Technoratipost this at Furlpost this at Yahoo! my web.

Saving has always been a way of life for people who believed on its power. These people know that they have to save more money in order to create a more established future.

However, as time goes by, more and more people find it hard to save money. They contend that saving is no longer a way of life but a resolution that they have to strictly adhere to just to salt away some amount of money.

Some people even insist that it is no longer possible for a person to save more money because most of them are already living paycheck to paycheck. With all the high-prices of commodities these days, saving more money is no longer workable.

But the point is that people can indeed save more.

How? Here is a list of some modern ways that will let you save more money:

1. Save some percentage from your salary

Most money-savers automatically take at least 30% from their salary and save them into their savings account. The basic concept here is that most of us spend whatever amount we have on our paycheck, and maybe even more. If you are able to limit that amount, your expenses will unexplainably get smaller.

2. Pay everything in cash

Credit cards had always been a way of life for most consumers. The problem is that they become so comfortable with it that they tend to spend everything on credit. In fact, statistics show that the average family has an average outstanding balance on their credit cards amounting to $7,000. And they even pay almost $1,000 in each year just on the interest charges alone.

Hence, because of this comfortable shopping, they forget to keep track of their expenses and accumulate more payables than what they can afford to pay.

3. Set goals

Create goals that you really want and not be fickle-minded about it. If there’s a certain amount involved, be specific with the amount, like saying “I will save $5,000 in a year and not around $5,000.”

Try to set your goals based on your priorities. Have a period for every goal.

4. Check your company’s retirement plan

With your employer plan such as the 401(k) or the 403(b), you can definitely save more money for the future. Here, your company will deduct a percentage of your salary from each paycheck and invest the amount in your choice of instruments—mainly mutual funds.

The bottom line is that saving is not just a way of life or a resolution. It’s the ultimate gratification that you get as a fruit of your labor.

Comment

---

Importance of Saving: Saving the best for last
Dec 31, 2009     post this at del.icio.uspost this at Diggpost this at Technoratipost this at Furlpost this at Yahoo! my web.

The value of money cannot be underestimated. In a recent national survey, more than 96% Americans agreed that early monetary savings would help one achieve a fruitful and stable life.

Saving is a way of insulating oneself from the many symptoms of health and natural adversity. While an average youth of yesteryear’s thinks more about short-term financial goals such as purchasing a new pair of signature shoes, owning a new jet ski or a brand new car, statistics show that more and more are starting to realize the importance of keeping a personal savings.

Long terms goals are described as goals that have a lasting effect should a person’s present actions be religiously maintained.

The following statements are outlined to provide information and tips on how you can start up your money-saving gimmicks and ensure a happy and financially stable future and list the reasons as to why saving money should occupy a greater place in our list of priorities in life.

Reasons for Saving:

  • Saving for your Future and Present Needs – Saving today will provide you with flexible financial resources in the future.

Keeping at least 20% of your monthly earnings while using the other for your household, personal and unexpected expenses will surely play a big part in your pursuit for a stable future.

  • Saving for an Investment Need – Savings can also be a source of your future capital for engaging in business enterprises.

It will provide you more opportunity for venturing on your unexplored talents and earn you a huge potential in increasing your money exponentially.

  • Saving for your Retirement – More than 23% of today’s elderly were shown to have failed in one instance in their lives, to save and strategically used their money for preparing their way to retirement. As a result, these folks extend their entire retirement career working on an equally satisfying job that pays them enough to cover their basic expenses.

Keys to Fulfilling your Saving Goals:

No matter how good our intentions and objectives for saving are, we should also take note that goals can fall and touched the following baselines or characteristics.

Ø Attainability – Goals should be something attainable and one which can be achieved without you doing something extraordinary or illegal. A little amount of patience and hard work are key.

Ø Consistency – Changing your goals from time to time due to incidents that may arise in the near future are sure ways to deterring your intention to save.

While we need to focus on the present incidents, we also need to take hold of our original intention and continue until you have gained enough leads to get it.

Comment

---

Effective Money Saving Tips
Dec 30, 2009     post this at del.icio.uspost this at Diggpost this at Technoratipost this at Furlpost this at Yahoo! my web.

Saving is your best defense against bankruptcy. It insulates you from possible financial loss and gives you the ability to expand your finances and create a money-generating business machine that will help you earn extra.

Your potential to flexing your base income is augmented in ways that is not confined within the walls of basic employment. You can start up your own business, use it for loan purposes and earn interest on them while being used, among others.

But the basics of it all lies in saving – spending less than what you earn and keep something enough for future use and for unforeseen circumstances.

This article provides you with ways on how you can effectively maximize your financial resources and helps you manage your money by developing correct habits and outlook suitable for your goal.

  • Wants and Needs – You buy items because you need them. A need is something you cannot take away from a person for these things are vital to his or her very existence and without them, they are categorically considered poor or deprived.

Food, shelter, clothing and transportation are the primary examples. In a modern world, car and phone gadgets are a necessary part of a busy working individual. However, unless you are receiving more than $10,000 per month, you basically won’t need to have a $40,000 to $50,000 luxury vehicle.

The same is true for your telephone media. Having your own cellular phone is necessary but keeping up with the latest model or buying the all the latest releases are not practical and earns you more points on plunging into a staggering financial downfall.

  • Less Is best – Extravagance is the rule of the kings. While we sometimes need to afford a little affluence in terms of the food we eat, the body pampering devices and accessories, such as clothes and body-relaxing services, we also need to consider that these types of activities should only be reserved for special occasions and for cases when you have some excess left in your household budget.
  • Spend Less; Save More – Spending more than what you earn or produce is a bad habit that most people get used to doing everyday.
    Allocate a special percentage of your earnings to go into your savings accounts while spending the rest for your day-to-day expenses.
    Unexpected charges, such as the visitation of your relatives or a house party due to a certain celebration will be there to stay so you need not make some leeway budget on them and save them should situation not arise.

Comment

---

We are Family: Budget Tips for Today’s Familial Ties
Dec 27, 2009     post this at del.icio.uspost this at Diggpost this at Technoratipost this at Furlpost this at Yahoo! my web.

If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help of your family in making your budget work.

Create a family budget vision. Talk to your spouse and children about whatever budgetary constraints you are facing, or whatever financial goals you intend to set. By being completely honest about the bills and loans you have to pay, or your intention to save a certain amount of money for a family emergency fund (or a college fund, for that matter), you can help your family understand better your collective financial situation. This will allow them to change their perspective on purchases they make, and will help you make sure that whatever money crunching strategies you utilize won’t be counteracted by a subsequent spree by your teen.

Another good technique is to create a list of usual expenditures per member of your family. Together, identify which items you can do away with in order to save up some extra money from your monthly income. By doing this altogether, you are making your family participate better and see the contributions they can make into making your family’s finances better.

Should your child have the habit of continuously asking for money for minor and oftentimes unnecessary purchases, you can let your children learn to manage their own week’s allowance. With their limited money to budget, they will realize the value of money.

Put a cap on the amount of expenditures you make in a week. The best way to do this is set aside a fixed amount of cash that you will spend for a week. By putting this limitation on your spending, you are forced to prioritize spending on the most essential over other things.

Make it easy for your family to save more. How often do you eat out? Most family budgets are blown over because of the frequency of dining out and the accompanying exorbitant expense of that activity. Eating at home will reduce your expenses, not to mention allow for your family to bond over cooking at home. Do you spend on routine purchases like coffee and newspapers? Cut back on the latte and the paper, and put aside the amount you would otherwise spend. Your family’s collective saving will surprise you.

Lastly, don’t be afraid to create a most efficient driving route, as well as grouping together activities into one car trip. This way, you can save a lot on time and even on gasoline and car expenses.

Comment

---

Older Posts

Subscribe to RSS

Featured Sites:

Archives: