October 24th, 2008 | Posted in Save Money
Today, escalating prices are draining family budgets. The cost of energy is soaring and there is little that you can do about it, but there are some ways you can save energy, and save money at the same time. Here are 5-step energy saving tips for you to save 10% of your home electricity bill.
Step 1 – The air-conditioner uses the bulk of the electricity in a home. A fan uses less than 1/10th the electricity used by an air-conditioner! Use a fan instead of an air-conditioner to keep cool. Save about $70 a month or about $820 a year*.
- Did You Know? You can use three fans to keep cool and you would be using only about a quarter of the electricity used by an air-conditioner!
Step 2 – The lower the temperature setting, the more energy used by your air-conditioner. If you use an air-conditioner, set the temperature at 25oC or higher. For every degree raised, save about $25 a year*.
- Did You Know? The energy consumption by the air-conditioning unit increases with the difference between the room and outdoor temperatures.
Continue reading »
October 22nd, 2008 | Posted in Investment
We all know the principle of coumpound interest i.e. when interest that you earn begins to earn interest as well.
In investment, the returns that you earn on your investments can also be put to work to earn more returns. This is called the power of compounding.
With the power of compounding, your money can really grow very fast and you can double your money at a faster rate. You do not need to be a mathematics wizard to understand the power of compounding.
One of the ways to illustrate the power of compounding is something developed by mathematicians call “The Rule of 72″. Here is how the rule works. Continue reading »
October 16th, 2008 | Posted in Investment
Dollar cost averaging is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Many successful investors already practice without realizing it. If you participate in a regular savings plan, you are already using this tool. Many others could save themselves alot of time, effort and money by beginning such a plan. Dollar cost averaging can lower an investor’s cost of investment and reduce his risk of investing at the top of a market cycle.
The beauty of dollar cost averaging is that you buy more shares when prices are low and fewer shares when prices are higher. The result is an average cost that is better than trying to time the market with your investments.
What is Dollar Cost Averaging?
Instead of investing all his money at one go, the investor gradually builds up a position by purchasing smaller amounts over a period of time. This spreads the average cost over the period, therefore providing a buffer against market volatility.
In order to begin a dollar cost averaging plan, you must do three things: Continue reading »
October 10th, 2008 | Posted in Laugh
A lot of people are probably worried about the current financial crisis. Let’s take a break and have some fun…
read on…
It was autumn, and the Red Indians asked their New Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn’t tell what the weather was going to be.
Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared.
But also being a practical leader, after several days he got an idea. He went to the phone booth, called the National Weather Service and asked ‘Is the coming winter going to be cold?’
‘It looks like this winter is going to be quite cold indeed,’ the weather man Responded.
So the Chief went back to his people and told them to collect even more wood. A week later, he called the National Weather Service again. ‘Is it going to be a very cold winter?’
‘Yes,’ the man at National Weather Service again replied, ‘It’s definitely going to be a very cold winter.’
The Chief again went back to his people and ordered them to collect every scrap of wood they could find. Two weeks later, he called the National Weather Service again. ‘Are you absolutely sure that the winter is going to be very cold?’
‘Absolutely,’ The Man replied. ‘It’s going to be one of the coldest winters ever.’
‘How can you be so sure?’ the Chief asked.
The weatherman replied, ‘The Red Indians are collecting wood like Crazy.’
This is how Stock Markets work!!!
October 9th, 2008 | Posted in Save Money
The current challenge faced by many people around the world is their expanding car fuel costs. Due to the rising global crude oil prices, it is inevitable that local fuel prices will rise as well. Because our vehicles are highly dependent on fossil fuel, the additional cost incurred to run a car is quite substantial. Here are the 28 fuel saving tips for car owner to help you minimize the burning hole in your pocket.
- Slow down – just follow the speed limit.
- Accelerate moderately.
- Avoid extremely high speeds.
- Don’t brake hard.
- Maintaining a constant speed.
- Turn off air conditioner – (only applicable at night).
- Keep windows closed at high speed (of course with air-con on).
- Set air conditioners to auto if available.
Continue reading »
October 5th, 2008 | Posted in Investment
Everyone has different investment needs and goals that they set for themselves.
Your attitude to risk will determine the types of investments that suit your needs, as will your objectives and the time frame you intend to invest for. Are you looking to get an income from your investment or are you looking to achieve greater growth? There are investments to suit almost every investment objective.
When deciding on how and what to invest in, you need consider your personal investment objectives, financial situation and particular needs. No one solution fits all needs. But where do you begin? The following three-step process can help you consider some of the important factors as a starting point. Continue reading »
September 30th, 2008 | Posted in Investment
A flurry of activities continues in the financial sector, with the US financial index tanking about 14% over the past two weeks (in USD terms, as at 17 September). We saw the US government placing Freddie Mac and Fannie Mae under conservatorship, Lehman Brothers (Lehman) filing for bankruptcy, Merrill Lynch (Merrill) being bought over by Bank of America (BoA) and the near collapse of American International Group (AIG). What can investors possibly make out of the recent financial turmoil? Can any opportunities be found amidst this crisis?
The article reviews the happenings over the past two weeks and provides an update on the price to book (PB) ratio of these financials.
8 September
US Government takes over Fannie Mae and Freddie Mac
Increased mortgage defaults threatened the solvency of these two institutions as Fannie Mae and Freddie Mac were operating with capital ratios (capital divided by risk adjusted assets) that were much lower than the banks. The US government decided to intervene with a four-part plan Continue reading »
September 27th, 2008 | Posted in Investment
With the turmoil in investment markets over the course of 2008, many investors will be asking “when will it all end?” of “when will we see the return to more stable markets?”
Back in November 2007, the Australian All Ordinaries Index peaked at 6873 points. At the time of writing this article, it is at 5091 points, almost the lowest point in the current cycle. Many headlines will be screaming out the news that the share-market has “crashed” or “plummeted” by 26% since last November! Very emotive sentiments.
If you had invested in the All Ordinaries Index back in November 2007 and sold your investment now, Continue reading »
September 25th, 2008 | Posted in Investment
Investing successfully in the share market requires patience, clear goals, a long-term view and sound financial advice. When markets are volatile, it can be easy to forget the basics and make hasty decisions you may regret later.
This article aims to give you a better understanding of how share markets work, help you put the current market volatility into perspective and make sound decisions about your investments.
Rule 1 – Diversify your portfolio
Through diversification you can spread tour investments so that they do not always move in the same way at the same time. This means that while one investment might be losing value, it could be counter-balanced by another that is gaining.
There are a number of different ways you can diversify your portfolio:
- Asset classes – the main asset classes are: cash, fixed interest property and shares.
- Market Sector – you could spread shares across different industries: resources, banking, industrial, agricultural, pharmaceuticals, leisure – various industries perform differently under the same conditions.
- Fund managers – different fund managers have different investment styles that can produce different results during various cycles of the market.
- Geographic – by investing in different countries around the world you can take advantage of the varying economic conditions.
Rule 2 – Appreciate the value of compounding
Compounding can be the investor’s best friend. Simply put, Continue reading »
September 24th, 2008 | Posted in Investment
With all the turmoil in investment markets over recent months many investors will be asking if they have done the right thing by investing in shares, property or managed funds. Let’s consider two fundamentals of investing.
Understand Investment Cycles:
Investment markets move in cycles. They go up, they go down, and they may run flat for a period of time. But if we look at the long-term performance of investment markets, they have historically trended up.
The secret to successful investing is to adopt a “counter-cyclical” approach. Continue reading »
