Cash Investment Archives!!!

In the last article I explained the reasons for saving small amounts of money over a long period of time. I showed how this is extremely important in achieving personal financial freedom and how it is clearly not something that we can just choose to ignore.

This article is intended to show how personal financial freedom can easily be achieved for anyone who has time and small amounts of savings overtime. It shows how starting immediately with small amounts of money can help you to have millions of dollars in the future.

If I told someone that all they had to do to achieve financial freedom was start with $20,000 and have about 30 years they would almost surely not believe me. I am here to tell you all that this is indeed true. This is a very basic personal financial advising tip that all people should know about. The ultimate key to financial freedom is time and money.

The idea that I am explaining is called the power of compounding interest. You can find many good examples explaining the concept of the power compounding interest but most fail to provide simple examples that readers can easily relate too.

Example:

There are two 18 year old guys that are about to graduate from high school. Upon graduation they will both be receiving a gift from their parents.

Jim will be getting $20,000 from his parents and putting it in a savings account and John will be getting $20,000 and putting it into a mutual fund. Jim’s parents have also decided to deposit another $20,000 into his savings account each year until he retires.

In both situations the children have agreed to not spend their graduation gifts until they retire.

Of course it sounds like John got the shaft and Jim has an amazing deal right? Wrong! Think again! I will explain below.

For this example we will be assuming that Jim’s saving account earns 3% per year and John will earn 10% per year through his mutual fund.

After getting their gifts Jim and John decide that they will compare the values of their accounts at each 10 year high school reunion and then at retirement. The results are listed below.

At the 10 year reunion, Jim and John compare their accounts. John’s account is now valued at just over $54,000 and Jim’s account is valued at just over $232,000.

At the 20 year reunion, Jim and John once again compared accounts. John’s account is now valued at just over $146,000 and Jim’s account is valued at just over $547,000.

At the 30 year reunion Jim and John compared account for a third time. John’s account is now valued at just over $396,000 and Jim’s account is valued at just over $977,000. Of course John still feels like Jim got a better deal.

John and Jim both decide to retire at 68 years of age and at this time they get together again to compared accounts. John’s account is now valued at $2,907,398 and Jim’s account is valued at $2,314,612.

John’s parents gave only $20,000 while Jim’s gave exactly $1,000,000 and in the end John has more money. This happened because of the power of compounding interest. John only ended up with more money because he was making 10% per year for a long period of time while Jim was only earning 3% per year. This is an excellent example that shows how taking control of your personal finances today and beginning to save can help you to achieve financial freedom.

Jim is happy to take $2.3 million dollars but does not realize that if he would have had his money in a mutual fund at 10% instead of his 3% savings account he would have had over $28 million at retirement.

Please follow these simple personal finance tips and get started on your way to financial freedom.

By: Jesse Chettle

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If you are an insurance agent that is looking for insurance leads, more than likely you are looking for policies in the area of auto, home owners, or life insurance. It makes the most sense because this is where the higher commission is.

Due to the fact that most business insurance customers are seeking insurance policies for start up businesses where the premiums are not all that high, the business insurance lead is not highly sought after by insurance professionals.

Also, for these same reasons the customer in need of business insurance has trouble finding someone to fill their business insurance policy for them.

Here is something for Insurance agents to consider when it comes to working with business insurance leads.

If you take the time to help a customer out with their business insurance needs and take the time to build a relationship with them, in no small way will they be overly appreciative of the fact that you took the time to help them.

Remember, you are with them in the beginning and you are a major component for helping them get their fledgling business off the ground. The trust and loyalty they will have in you is second to none.

Because of the relationship and the trust you have built with this customer they will be more than likely, and more than happy to do all of their personal insurance business with you. Which of course leads to life insurance, car insurance, home owners insurance, etc.

Or, at the very least you will have their ear when it comes time to explaining your products and services and the savings that you can offer them.

Also important is finding the right insurance lead company to work with.

Look for the insurance lead companies that sell fresh, real time business insurance leads, and one with which you can start out with a low minimum deposit.

This concept has been tested and has worked for many insurance agents so it may be something you want to consider.

So the next time you find a break in your day or an opening on your calendar, invest in a handful of business insurance leads and see if you can build a relationship with a small business customer.

By: Jay Conners

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The goal of both debt settlement and debt consolidation is to lower your debt. Debt settlement companies negotiate with your creditors to sometimes reduce the amount of your unsecured debt. There will be a fee associated with the program that equates to roughly 1% of the interest that you will pay if you continue to pay the creditors directly.

Debt settlement can reduce your debt 40% to 60%. A debt settlement program can also cut our payments by 40% in most cases making it easier to cope with your monthly budget. In most cases for a consumer in a debt settlement program they are typically debt free within 2-3 years that can be about half the time it would take in a Consumer Credit Counseling Program or a conventional debt consolidation loan.

Debt consolidation pays off your high interest debts with a low interest loan. Home equity loans provide the lowest rates, but after stretching out the loan over 20 years the 6% interest refinance winds up costing the same amount as a 21% interest credit card. A conventional bank loan will not pay off the debts but rather transfer the debt from one institution to another. This action appears to banks and mortgage companies as a last ditch effort on a consumers part to try and rectify a sinking situation. Many mortgage companies see debt consolidation loans as a sign of stress in your financial situation making it difficult for them to extend you credit in the future.

Credit Score Implication

Reducing your debts through debt settlement is a method to get out of debt in a short period of time relative to your credit history. You credit score will drop, making you ineligible for prime lending situations. You can apply for sub-prime credit after a year however the goal of a debt settlement program is to get out of debt not to create new ones.

Taking out a loan to consolidate your debt will have a major impact on your credit. Since your debt isn’t actually decreasing, you will be negatively hit on your credit for opening another account making your overall situation more overextended. Most debt consolidation loans are issued with the assumption that the problem debt will be paid off and then the accounts closed. However 98% of consumers that get a debt consolidation loan do not close the problem accounts but rather make things worse by incurring new debt on the paid off accounts. Now the consumer is faced with the debt consolidation loan in addition to the new debt on the other accounts that were previously paid off.

Financial Choices

No one financial choice will fit everyone’s needs. While debt settlement will have an affect on your credit report, additional loans may be too expensive. In extreme cases, debt settlement can help to avoid bankruptcy and costly debt consolidation loans. Many debts settlement companies report that about 50% of the debt that their clients put into the program is debt from a prior debt consolidation loan.

By: Roger Brown

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Debt Consolidation