By categorising expenses and limiting spending, they argue, you can have enough left over every month to save money and grow rich.
The problem is that when you budget, you pay everyone else first - the landlord, the credit card companies, the phone company, and so on. So at the end of the month, you have nothing left to put in the bank. You promise yourself you’ll do better next month, but you never do. There are always unexpected bills to pay, unanticipated sales to take advantage of.
Budgeting doesn’t work. But there is something that does: putting some predetermined percentage of your income into a savings account each month before you pay any of your bills.
Think of yourself as a personal corporation and the money you save as your personal income. All the other money you spend on house and car payments and so forth are the expenses of your personal corporation. Only the portion that goes into a savings account is really yours.You might, for example, have a portion of your paycheque automatically deposited in your savings account each month - as soon as the check is deposited.
Pay yourself first by putting as much money as you can into a tax-deferred savings vehicle (like an RA).Do this for yoursef, you spouse, and children. Then pay the government next by creating a separate holding account into which you deposit a percentage of every fee that’s paid to you - the money that you going to owe in taxes. Then you pay your bills. Then you will realise that what you have left divided by the days in a month is adequate to cover expenses.
Friday, October 24, 2008
Thursday, October 23, 2008
Sir Isaac Newton knew about investing.
The bailout wasn't going to solve the world’s economic problems immediately, The approval was something that would bring about some sense of order.
Now what? Obviously the market isn’t going to fix itself - so where do we go from here? That is a good question. Only time will tell, but Sir Isaac Newton probably got it right with his first law of motion: An object in motion will stay in motion and an object at rest will stay at rest unless acted on by an unbalanced force.
At this point, the market is in motion… and that movement is on the downswing. The bailout could have been the opposing force to halt the downward motion, but now we will never know. This economic slowdown is far from over until an unbalanced force comes up.I believe that every individual can give the economy the drive it deserves to end the world crisis.
Now what? Obviously the market isn’t going to fix itself - so where do we go from here? That is a good question. Only time will tell, but Sir Isaac Newton probably got it right with his first law of motion: An object in motion will stay in motion and an object at rest will stay at rest unless acted on by an unbalanced force.
At this point, the market is in motion… and that movement is on the downswing. The bailout could have been the opposing force to halt the downward motion, but now we will never know. This economic slowdown is far from over until an unbalanced force comes up.I believe that every individual can give the economy the drive it deserves to end the world crisis.
Wednesday, October 22, 2008
The Window has four panes (quadrants) that divide your "personal awareness"
The lines dividing the four panes are like window shades that can move up and down or left and right as an interaction progresses.characteristics into Open, Hidden, Blind, and Unknown.
The "Open" Quadrant (upper-left)
In the Open quadrant of the Window go things that both you and your customer/prospect know about you.
In an online marketing context, when a new prospect "opts in" to your list, the window shade in this quadrant is practically closed, since there has been little information exchanged between the two of you. But as you build rapport with that prospect by using autoresponder sequences, blog posts, e-letter articles, teleseminars, and other marketing communications, the window shade starts opening and the Open quadrant gets bigger.
The "Blind" Quadrant (upper-right)
In the Blind quadrant go things that your prospect/customer knows about you (on a personal or professional level) that you are unaware of.
Let’s say you’re conducting a teleseminar and one of your callers hangs up in the middle because she has to pick up her kids from school. This information is in your Blind quadrant because she knows she’s hanging up the phone but you don’t.
If that same person calls you after the teleseminar and tells you she had to hang up before the call was over, the window shade in the Blind quadrant starts closing by moving to the right, which enlarges the Open quadrant.
The "Hidden" Quadrant (lower-left)
In the Hidden quadrant go things that you know about yourself or your marketing campaigns (in a business context) that your prospect/customer doesn’t know.
If, for example, you’ve intentionally withheld information about an upcoming marketing launch, this information is in the Hidden quadrant. But as soon as you inform your list about the details of that launch, you pull the window shade down, narrowing the Hidden quadrant and enlarging the Open quadrant.
Here’s the interesting part: As you get to know your prospects and customers better, it’s only natural for you to feel more comfortable about disclosing more intimate details about yourself, right? Well, in a Johari Window context, this process is called: "self-disclosure." In a marketing context, I call it "transparency."
Granted, it’s a little scary to be transparent with your prospects and customers the first time. But when you make a habit of it, you’ll discover that it’s the highest impact rapport "accelerator" of all marketing communication methods.
The "Unknown" Quadrant (lower-right)
In the Unknown quadrant are things that neither you nor your prospects/customers know about you or your business.
If you’ve ever done any public speaking, you know how much new information can be revealed to both you and your audience during the course of a typical Q&A session. An interactive situation like this almost always triggers personal growth.
In a Johari Window context, this process moves even more information into the Open quadrant, shrinking the Unknown quadrant. In a marketing context, interacting with your prospects/customers is a "win-win" situation.
So what’s your next step?
Building rapport with your customers/prospects - expanding the Open quadrant of your relationship - is like the game of chess: It’s easy to learn the basics, but it takes a lifetime to master.
But understand this: Once you start communicating with your prospects/customers - especially when you muster up the courage to be increasingly transparent with them - you’ll find that the majority of those relationships will become long-lasting and profitable.
The "Open" Quadrant (upper-left)
In the Open quadrant of the Window go things that both you and your customer/prospect know about you.
In an online marketing context, when a new prospect "opts in" to your list, the window shade in this quadrant is practically closed, since there has been little information exchanged between the two of you. But as you build rapport with that prospect by using autoresponder sequences, blog posts, e-letter articles, teleseminars, and other marketing communications, the window shade starts opening and the Open quadrant gets bigger.
The "Blind" Quadrant (upper-right)
In the Blind quadrant go things that your prospect/customer knows about you (on a personal or professional level) that you are unaware of.
Let’s say you’re conducting a teleseminar and one of your callers hangs up in the middle because she has to pick up her kids from school. This information is in your Blind quadrant because she knows she’s hanging up the phone but you don’t.
If that same person calls you after the teleseminar and tells you she had to hang up before the call was over, the window shade in the Blind quadrant starts closing by moving to the right, which enlarges the Open quadrant.
The "Hidden" Quadrant (lower-left)
In the Hidden quadrant go things that you know about yourself or your marketing campaigns (in a business context) that your prospect/customer doesn’t know.
If, for example, you’ve intentionally withheld information about an upcoming marketing launch, this information is in the Hidden quadrant. But as soon as you inform your list about the details of that launch, you pull the window shade down, narrowing the Hidden quadrant and enlarging the Open quadrant.
Here’s the interesting part: As you get to know your prospects and customers better, it’s only natural for you to feel more comfortable about disclosing more intimate details about yourself, right? Well, in a Johari Window context, this process is called: "self-disclosure." In a marketing context, I call it "transparency."
Granted, it’s a little scary to be transparent with your prospects and customers the first time. But when you make a habit of it, you’ll discover that it’s the highest impact rapport "accelerator" of all marketing communication methods.
The "Unknown" Quadrant (lower-right)
In the Unknown quadrant are things that neither you nor your prospects/customers know about you or your business.
If you’ve ever done any public speaking, you know how much new information can be revealed to both you and your audience during the course of a typical Q&A session. An interactive situation like this almost always triggers personal growth.
In a Johari Window context, this process moves even more information into the Open quadrant, shrinking the Unknown quadrant. In a marketing context, interacting with your prospects/customers is a "win-win" situation.
So what’s your next step?
Building rapport with your customers/prospects - expanding the Open quadrant of your relationship - is like the game of chess: It’s easy to learn the basics, but it takes a lifetime to master.
But understand this: Once you start communicating with your prospects/customers - especially when you muster up the courage to be increasingly transparent with them - you’ll find that the majority of those relationships will become long-lasting and profitable.
Thursday, October 16, 2008
crash course on Forex trading 101.
Step 1. Find a forex-trading house you can trust.
There are a number of currency trading houses you can use. We recommend F.X.C.M. which has its global headquarters in New York. It is a registered Futures Commission Merchant or F.C.M. that specialises solely in spot Forex trading. With over a million trades executed each month via their Trading Station, F.X.C.M. is the unrivalled leader in the online currency market.
Step 2. Take the plunge!
Open your first forex account and do your research
Opening an account is as easy as going to the F.X.C.M. website on www.fxcm.com and downloading the registration documents. You`ll need to fax these back to the F.X.C.M. head office in New York after which a dealer from the New York trading desk will contact you. After transferring cash overseas to the F.X.C.M. account you will be able to begin trading online. The trading platform can be downloaded from the website onto your desktop and with your login and password you can then trade. If you have any hassles there is a toll-free number to contact around the clock.
Then you need to decide what currency pair you want to trade and when you should buy or sell it. You only trade the four major currencies against the US dollar, namely: the Japanese yen, British pound, the euro and the Swiss franc. This is because they are the most active in terms of trading volume and they are also the cheapest to trade.
The US dollar alone accounts for 80-90% of all currency transactions. Trading currency is not like buying a share, it`s more like putting down a deposit and taking a view on whether a certain currency will weaken or strengthen against another. This deposit is referred to as a margin. If you are wrong, the loss will be taken from your deposit. If your prediction is correct your margin will be returned to you along with your profit from the trade. Due to certain built-in safety mechanisms, you can`t lose more than your margin. If the position goes completely wrong, your currency broker will close the position automatically preventing further losses.
Step 3. You wouldn`t buy a car without test-driving it first, so don`t go into forex trading blind either!
Changes in interest rates around the world and other economic data cause exchange rates to fluctuate violently, however the best way to trade currencies is technically. By this I mean making use of technical charts and various leading and lagging indicators to time your entry into the market. You will have to brush up on the interpretation of the various technical indicators, which you can do online, or with the help of any number of technical analysis books, available in your local bookstore. To be able to test your technical trading strategy you can open a mini-demo account with F.X.C.M. and trade online with fictitious money. The technical charts and indicators are available online via the trading station (www.fxcm.com) and are free of charge.
Step 4. Take a deep breath and make that trade!
A typical trade will be as follows: A quote on the euro/US dollar might be as follows:
Sell: 1.5560. Buy: 1.5564
This means that if you believe that the euro will strengthen against the US dollar you can buy the euro. In taking this view you are expecting the US dollar to weaken against the euro. You can buy one euro lot at 1.5564 and assuming you are correct and the euro does strengthen against the US dollar the quote may look as follows: Sell: 1.5643. Buy: 1.5647.
Step 5. Keep both eyes on your trade ? at all times!
Currency trading is a short-term exercise. When you execute a trade it is a position that is held normally for a few days, often sometimes even for a few hours. The reason for this is that when a position is taken one is geared.
There are a number of currency trading houses you can use. We recommend F.X.C.M. which has its global headquarters in New York. It is a registered Futures Commission Merchant or F.C.M. that specialises solely in spot Forex trading. With over a million trades executed each month via their Trading Station, F.X.C.M. is the unrivalled leader in the online currency market.
Step 2. Take the plunge!
Open your first forex account and do your research
Opening an account is as easy as going to the F.X.C.M. website on www.fxcm.com and downloading the registration documents. You`ll need to fax these back to the F.X.C.M. head office in New York after which a dealer from the New York trading desk will contact you. After transferring cash overseas to the F.X.C.M. account you will be able to begin trading online. The trading platform can be downloaded from the website onto your desktop and with your login and password you can then trade. If you have any hassles there is a toll-free number to contact around the clock.
Then you need to decide what currency pair you want to trade and when you should buy or sell it. You only trade the four major currencies against the US dollar, namely: the Japanese yen, British pound, the euro and the Swiss franc. This is because they are the most active in terms of trading volume and they are also the cheapest to trade.
The US dollar alone accounts for 80-90% of all currency transactions. Trading currency is not like buying a share, it`s more like putting down a deposit and taking a view on whether a certain currency will weaken or strengthen against another. This deposit is referred to as a margin. If you are wrong, the loss will be taken from your deposit. If your prediction is correct your margin will be returned to you along with your profit from the trade. Due to certain built-in safety mechanisms, you can`t lose more than your margin. If the position goes completely wrong, your currency broker will close the position automatically preventing further losses.
Step 3. You wouldn`t buy a car without test-driving it first, so don`t go into forex trading blind either!
Changes in interest rates around the world and other economic data cause exchange rates to fluctuate violently, however the best way to trade currencies is technically. By this I mean making use of technical charts and various leading and lagging indicators to time your entry into the market. You will have to brush up on the interpretation of the various technical indicators, which you can do online, or with the help of any number of technical analysis books, available in your local bookstore. To be able to test your technical trading strategy you can open a mini-demo account with F.X.C.M. and trade online with fictitious money. The technical charts and indicators are available online via the trading station (www.fxcm.com) and are free of charge.
Step 4. Take a deep breath and make that trade!
A typical trade will be as follows: A quote on the euro/US dollar might be as follows:
Sell: 1.5560. Buy: 1.5564
This means that if you believe that the euro will strengthen against the US dollar you can buy the euro. In taking this view you are expecting the US dollar to weaken against the euro. You can buy one euro lot at 1.5564 and assuming you are correct and the euro does strengthen against the US dollar the quote may look as follows: Sell: 1.5643. Buy: 1.5647.
Step 5. Keep both eyes on your trade ? at all times!
Currency trading is a short-term exercise. When you execute a trade it is a position that is held normally for a few days, often sometimes even for a few hours. The reason for this is that when a position is taken one is geared.
Smart Strategies for Simplifying your Life
Here are 6 simple tools to help you find bargain shares to invest in. Using nothing more than a daily newspaper and a pocket calculator, you can join the investment world`s sharpest minds in uncovering unloved shares, set to soar. You will need to look at the following key ratios to select the shares that are set to do well:
The first one you need to look at is the Dividend yield. A dividend is the money paid on each share from the company`s net profits. Small companies often don`t pay dividends ? they plough their profits back into growing their business. But if a large company doesn`t increase its dividend or cuts it, you can bet it needs the money simply to survive. As the share price falls though, the dividend yield (dividend compared against share price) will rise. This could make the stock a relative bargain.
The second and most important ratio is the Earnings per Share or E.P.S. It represents a company`s post-tax profits divided by the total number of shares in issue. Generally, an E.P.S. higher than the cash flow per share (shown on the cash-flow statement in the company`s annual report) indicates a company with strong value. A steadily rising E.P.S. indicates financial health and growth.
The next ratio is the Dividend Cover. This tells you whether a company can afford to pay its shareholders their dividend or not. Divide the E.P.S. by the dividend announced by the company. The result should be 1 or higher. If it`s less than 1, avoid it. The firm hasn`t got the cash to pay its dividend and is digging into cash reserves.
The fourth ratio is the Price-Earnings Ratio or P.E. It`s calculated by dividing the share price by the earnings per share. If you`re investing for the mid to long term, look for shares with a low P.E. compared with other firms in its sector. If you want a fast profit though, you could buy a stock with a high P.E. Although these shares are overvalued, the price will have upwards momentum. Investors who move quickly can make money. But you must sell the stock before it rebounds.
The next one is the Price/sales ratio or P.S.R. Use this ratio for new companies with fast growth, but no profits yet. Divide last year`s sales figure by the market value of a firm. Buy if a stock has a low P.S.R. compared to others within its sector ? especially if it`s less than one. For market leaders, the P.S.R. will be around 3 or 4.
The final ratio is the Return on capital employed or R.O.C.E. This measures management performance. The R.O.C.E. is calculated as profits before tax and interest on loan repayments, divided by capital employed. In sectors like retail, the share price will increase if there is a rising R.O.C.E. A company can improve its R.O.C.E. by buying back shares from the stock market. This can also improve its share price. Buybacks are a definite buy signal for you ? but you have to buy as soon as the buyback is announced to get the maximum financial gain.
The first one you need to look at is the Dividend yield. A dividend is the money paid on each share from the company`s net profits. Small companies often don`t pay dividends ? they plough their profits back into growing their business. But if a large company doesn`t increase its dividend or cuts it, you can bet it needs the money simply to survive. As the share price falls though, the dividend yield (dividend compared against share price) will rise. This could make the stock a relative bargain.
The second and most important ratio is the Earnings per Share or E.P.S. It represents a company`s post-tax profits divided by the total number of shares in issue. Generally, an E.P.S. higher than the cash flow per share (shown on the cash-flow statement in the company`s annual report) indicates a company with strong value. A steadily rising E.P.S. indicates financial health and growth.
The next ratio is the Dividend Cover. This tells you whether a company can afford to pay its shareholders their dividend or not. Divide the E.P.S. by the dividend announced by the company. The result should be 1 or higher. If it`s less than 1, avoid it. The firm hasn`t got the cash to pay its dividend and is digging into cash reserves.
The fourth ratio is the Price-Earnings Ratio or P.E. It`s calculated by dividing the share price by the earnings per share. If you`re investing for the mid to long term, look for shares with a low P.E. compared with other firms in its sector. If you want a fast profit though, you could buy a stock with a high P.E. Although these shares are overvalued, the price will have upwards momentum. Investors who move quickly can make money. But you must sell the stock before it rebounds.
The next one is the Price/sales ratio or P.S.R. Use this ratio for new companies with fast growth, but no profits yet. Divide last year`s sales figure by the market value of a firm. Buy if a stock has a low P.S.R. compared to others within its sector ? especially if it`s less than one. For market leaders, the P.S.R. will be around 3 or 4.
The final ratio is the Return on capital employed or R.O.C.E. This measures management performance. The R.O.C.E. is calculated as profits before tax and interest on loan repayments, divided by capital employed. In sectors like retail, the share price will increase if there is a rising R.O.C.E. A company can improve its R.O.C.E. by buying back shares from the stock market. This can also improve its share price. Buybacks are a definite buy signal for you ? but you have to buy as soon as the buyback is announced to get the maximum financial gain.
Advertising In Magazines
1.Very potential customer belongs to at least one business, professional, occupational or vocational niche AND has at least one interest on the side. And people pay infinitely more attention to what comes to them through those side windows than through their front doors.
2. The "small" magazines often have ridiculously cheap advertising rates. They cater to a small crowd with a narrow interest. They don’t attract any big, dumb, image advertisers and that forces them to keep their rates low. These magazines are analogous to what small towns were for Woolworths and what university-campus-adjacent locations were for Steers.
3. Some magazines may rent their subscriber lists. And even local marketers can benefit from the work they do by rounding up and identifying people with very, very, very specific interests.
4. Everybody - including you - stubbornly, incorrectly, insists and devoutly believes that they’re different. The miniature dog owner, for example, thinks his critter has nothing at all in common with a full-size dog. I laugh every time I open up one magazine for those of us in harness racing, and see a stupid company’s big, full-colour ad for a feed or vitamin or gadget with a picture of a thoroughbred horse in the ad.
2. The "small" magazines often have ridiculously cheap advertising rates. They cater to a small crowd with a narrow interest. They don’t attract any big, dumb, image advertisers and that forces them to keep their rates low. These magazines are analogous to what small towns were for Woolworths and what university-campus-adjacent locations were for Steers.
3. Some magazines may rent their subscriber lists. And even local marketers can benefit from the work they do by rounding up and identifying people with very, very, very specific interests.
4. Everybody - including you - stubbornly, incorrectly, insists and devoutly believes that they’re different. The miniature dog owner, for example, thinks his critter has nothing at all in common with a full-size dog. I laugh every time I open up one magazine for those of us in harness racing, and see a stupid company’s big, full-colour ad for a feed or vitamin or gadget with a picture of a thoroughbred horse in the ad.
Top-Earning Athletes In The World
When we looked at the highest-paid athletes in the world three years ago, Tiger Woods narrowly topped the list ahead of German Formula One legend Michael Schumacher. Today, Woods still sits on top--and no one is even close.
Tiger Woods left his competitors on the golf course gasping for air this year with seven victories in only 16 tournaments, including four wins in his last five events.
His scoring average of 67.8 was 1.5 strokes better than the second place finisher, Ernie Els. For perspective on how big a gap that is on the PGA Tour, 1.5 strokes was also the difference between No. 2 Els and the 88th-ranked player in scoring average.
But for all his domination on the links, Woods' prowess off the course might have been even more impressive.
Woods earned $100 million in the 12 month period ending June 2007. That is the most an athlete has ever made in one year. Woods banked $13 million in prize money and $87 million from endorsements and appearance fees. His take was more than twice the amount earned by the second highest-paid athlete, pugilist Oscar De La Hoya. The "Golden Boy" pocketed $43 million from his May fight with Floyd Mayweather Jr.
One big shift on this year's list is the presence of athletes from outside the U.S. Only three of the highest-paid athletes were from outside the U.S. in 2004. This year that numbered tripled to nine athletes, led by Finnish Formula One driver Kimi Raikkonen, who earned $40 million and ranked fourth overall.
Other international notables: British soccer star David Beckham, ranked sixth with $33 million; Brazil's Ronaldinho, tied for ninth with $31 million; Valentino Rossi, the Italian motorcycling champ, who raked in $30 million, placing him at No. 11; and Yao Ming, China's most famous export, who banked $26.3 million in the NBA. He was 17th overall.
Our list represents both the young and old. Tennis star Maria Sharapova can’t legally buy a drink at 20 years old, but she can certainly afford it on her $23 million income last year. Sharapova ranked 25th, and is the sole woman on the list (no women made the list in 2004).
On the other end of the spectrum is 78-year old golfing legend Arnold Palmer. Despite retiring from competitive golf last year, Palmer still earned $25 million from sponsors like Callaway, Rayovac and Rolex.
Woods doesn't show any sign of slowing down either. Off the course, he extended his contract with Nike (nyse: NKE - news - people ) at the end of last year. The Swoosh has been writing Woods his biggest paychecks since he turned pro in 1996 (a grand total of more than $150 million). The new deal should be worth more than $25 million a year for Woods, including royalties.
He recently signed a five-year deal with PepsiCo's (nyse: PEP - news - people ) Gatorade--it's valued at a reported $100 million, which would be by far the largest beverage deal ever for an athlete
.
On the course, Woods continues to out-drive his competitors in earnings. He just picked up $10 million for his retirement account by winning the PGA Tour's inaugural FedEx Cup. His career prize money stands at $77 million, 42% higher than second-ranked Vijay Singh, No. 18 on our list. Over the course of his career, Woods has earned $650 million in endorsements and prize money, and at this rate, should become the first athlete to cross the $1 billion threshold by 2010.
The minimum earnings to make our list of the 25 highest-paid athletes was $23 million this year, up from $19 million three years ago. These athletes earned $813 million cumulatively. Basketball was the best represented sport with seven NBA players making the cut, led by Los Angeles Laker Kobe Bryant, who earned $32.9 million and ranked seventh overall--just one spot ahead of his nemesis Shaquille O’Neal.
Despite its role as the richest U.S. sports league, only two NFL players made the cut: Leonard Davis from the Dallas Cowboys and the New Orleans Saints' Reggie Bush. Blame the league's strict salary cap, which keeps football stars from being paid as much as their counterparts in basketball and baseball--plus, those pesky helmets keep most NFL stars from being well recognized, except pitchman extraordinaire Peyton Manning, who just missed our list.
In Pictures: The 25 Top-Earning Athletes In The World
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