Top 30 All-Time Personal Finance Posts (Part 3)

21. Why You Should Keep Your Credit Cards

Are you thinking of cancelling your credit cards for good? Before you do, consider the following:


22. 7 More Effective Ways to Save Money

What are the children asking from Santa Claus this year? Here are the answers:

A job for their mom or dad. Money for the heating bill. Food or a place to live. Maybe gloves or boots.

Time is so bad that children don’t ask for things for themselves. It boils down to the fact that we really need to save for a rainy day. Here are more ways to save effectively:

23.  How Many Bank Accounts do You Need to Manage Your Personal Finance? 

One of the aims of personal finance is to control your spending according to your budget. It is also part of your financial plan to save sufficiently.  An effective way to achieve your goals in these two areas is to maintain three separate bank accounts.

24. Malaysia’s Credit Rating and Ringgit Foreign Exchange Rates

According to Standard & Poor, the long-term local-currency rating for Malaysia was cut to A from A+, with a stable outlook, while the foreign-currency rating was affirmed at A-. The downgrade has impacted negatively the exchange rate against other major currencies. 

A weak Ringgit stimulates expert but discourages import. It will cost you more when your children are studying abroad or when you purchase items online at Amazon.    

25.  Can You Choose Wisely Between Savings and Debt Settlement?

You are in debt and you also want to save for a rainy day. What do you do? If your income is comfortable enough to cover savings and settling debt, it is good to do both at the same time -reduce your debt and build up your nest egg. What if your fund is limited and you have to make a choice? I would suggest you pay off your debt first. The reasons are not hard to find:

26. Tortoise’s Way of Making Money

You must have heard about the story of the race between a hare and a tortoise and eventually the tortoise won the race slowly but steadily. Similarly, you can’t get rich quickly in investment. Making money is for the long-haul:

27. 10 Tips to Avoid a Default on a Car Loan and Bankruptcy

According to a news item in The Star, there were more than 500 bankruptcy cases every month due to failure of people to service loans for their hire-purchase of motor vehicles during the past five months this year. How can you prevent such a thing from happening to you? 

28. Wisely Selecting a Savings Account

In mid-November, Charles wrote a fantastic post addressing how to decide between paying down debt or saving. His bottom line: your debt interest rate will always be higher than your savings account APY, so pay down your debt.

But, what if your debt is under control? Below I highlight some key metrics to analyze when selecting a savings account, in addition to showcasing some of the best savings accounts on the market! 

29. What an Emergency Fund Can do for Your Car Loans and Credit Card Debts

Your current earning may be good enough for you to qualify for a car loan or get your credit cards. However, it is not good enough when you are unemployed. You need an emergency fund.    

30.  Effective Ways to Avoid Credit Card Debt

The most important thing about credit cards is your mindset. When you have a credit card, what is in your mind? Are you going to entertain yourself and your friends with the card or to buy things you want on credit? Stop thinking about the word credit and treat your credit card like cash. Take advantage of your credit card for the following purposes only:

Top 5 Things to Do In Life

Our biggest regrets are not for the things we have done but for the things we haven't done. 
~ Chad Michael Murray

Nurse reveals the top 5 regrets people make on their deathbed is a touching account of those who are about to die and confess their regret for what they did not do in their life. It is never too late to learn from their mistakes and do the right things in life:

1.      Do what you want to do: Avoid people who give you negative feedbacks to discourage you from going after your dreams. Accepting challenges is an effective way to grow in life. Live your dreams and live your life. You will regret it later because you fail to achieve what you want dearly in life.

The great pleasure in life is doing what people say you cannot do. ~ Walter Bagehot  

2.      Do not neglect your family: The key is a balanced life. You can work hard and smart but at the end of the day, your family still comes first. Spend quality time with spouse and children. The money will not buy you the harmony of family life because your presence is more important than anything else.

 A man should never neglect his family for business. ~Walt Disney

3.      Express your feelings: You never know how soon is too late. Express your love to your loved ones. Say thank you to people who serve you. Write an appreciation letter to someone who has supported you. Be grateful to your employer for giving you a job you like and enjoy. Count your blessings and express your kind thoughts.

Life is very short and what we have to do must be done in the now. ~ Audre Lorde

4.      Be happy: Do remember that happiness is a choice. You will regret in life when you keep postponing your happiness to a future date that never arrives. Live in the moment, enjoy what you do every day and fill your life with happiness. 

The purpose of our lives is to be happy. ~Dalai Lama

5.      Be connected: The most important thing is to pay attention to. Find out what is happening in other people’s life and express your concern. Always call and stay in touch. Meet from time to time to catch up with each other and celebrate the success and mourn their losses of those in your circle.

I do believe we're all connected. I do believe in positive energy. I do believe in the power of prayer. I do believe in putting good out into the world. And I believe in taking care of each other. ~Harvey Fierstein

The fear of death follows from the fear of life. A man who lives fully is prepared to die at any time. ~Mark Twain

5 Free and Easy Ways to Promote Your Blog Posts

When you have posted a new article, it is just the beginning of your daily work. The next 5 steps are important to broadcast to the world of your new post or else nobody will know it because there are close to 182 million blogs in the blogosphere, according to Blogpulse. These 5 free and easy steps will be effective to send traffic to your site. It will only take you 10 to 15 minute to do No. 1 to No. 3.   

1.      Pingfm: I go to Pingfm to notify all social networking sites at once when I have posted a new post on my blog. Among the sites are Twitter, Facebook, MySpace, LinkedIn, FriendFeed and Delicious. All those who are connected with me will get to know my new post. They can click the link and be directed to my site to read my post.

2.      Blog carnival: Next, I join relevant blog carnivals with the new article. When your article is accepted by the host of the carnival, your article link is listed together with others in a carnival post. The regular readers of the host’s blog will follow the link and go to your site.  

3.      Google+: At the moment, Google + is not listed in Pingfm, so I do it manually and ping my new post at Google+. Those who have added me in their circles will be notified of my new post.

4.      RSS: It is done automatically by FeedBurner when you have set up the feed at your site. Your RSS readers will be able to read the full feed when your post is live. They are able to read your post without going to your site, but they are your loyal followers. They may recommend their friends to visit your site.     

5.      Email: It is also handled automatically by FeedBurner when there is a form at your site to subscribe to your blog posts. Email Subscribers will just open their mail to read your new post. They may not go to your site, but your post can go viral when they like it and redirect to their friends. It will prompt their friends to visit your site.

When you promote your blog posts, you are also promoting your website to be more authoritative, influential and popular.

·         Technorati: Current links that you have created when your posts are accepted in blog carnivals are valuable for your Technorati Authority and its ranking.  The more links mean higher ranking for your blog.

·         PageRank: When your posts are popular and other authoritative sites are linking to you, it will be a boost to your PageRank.

·         Traffic Rank: More people reading your posts mean more traffic to your site. When your site is active you will achieve better Alexa ranking.

·         Klout: When more people respond, share and act upon your content, you will be getting more influential as indicated by your Klout score. 

·         Social outlets: Are you getting more followers? Do they “like” your posts? You will attract more people to connect with you when what you have written are what they are looking for.

You don’t have to pay a single cent to promote your blog posts. Are you doing it?

Top 30 All-Time Personal Finance Posts (Part 2)

11. Do You Know Your Bank Balance?

Have you ever issued bounce checks? Do you know your available bank balance before you issue a check? Do you maintain a daily record of your banking transactions? The only way to have a trouble-free relationship with your bank is to keep your bank accounts in order. The only way to do it is to keep your own record and reconcile with the monthly bank statements. Here are the things that you can do so that you are in control of your own bank accounts:


12. 10 Effective Ways to Save Money

The time to save is now. When a dog gets a bone, he doesn't go out and make a down payment on a bigger bone. He buries the one he's got. ~Will Rogers

What are smart and effective ways to save money? I can think of the following:


13. Credit Cards and Young People

According to a report from Credit Counseling and Debt Management Agency of Bank Negara Malaysia or The Central Bank of Malaysia, among the cardholders below the age of 30, 50% of them are unable to settle their credit card debt and they have to declare bankruptcy. In the survey, among the delinquent cardholders, 22% cannot properly manage their personal finance and another 27% cannot control the use of their credit cards.

What can young people, especially fresh graduate, do to manage their personal finance? Here are some useful tips


14. 7 Things to Do Before You Retire

Preparation for old age should begin not later than one's teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement. ~ Arthur E. Morgan

It is reported that the average lifespan of Malaysian is about 75 years. When you retire at age 55 there is still 20 years ahead of you to live. What should you do before you retire so that you are financially independent during your golden years?

15. Effective Shopping Reduces Expenses

Whoever said money can't buy happiness simply didn't know where to go shopping.  ~ Bo Derek

Beware of little expenses; a small leak will sink a great ship ~ Benjamin Franklin

Grocery shopping is fun in the cool comfort of the mall. You can make shopping more pleasurable by adopting the following strategies to get what you want and worth every cent of your money.


16. 10 Bad Habits to Avoid and Reduce Your Expenses

Do you have these bad habits which are not only a drain of your financial resources but they are also detrimental to you good health?


17. How Safe is Your Money in the Bank

In Malaysia, there is a system established by the Government to protect depositors against the loss of their insured deposits placed with member institutions in the event the member institution fails. It is administered by Perbadanan Insurans Deposit Malaysia (PIDM) and brought into effect in September 2005.

All types of depositors, whether businesses or individuals are protected. The maximum limit of coverage is RM250,000 per depositor per member institution.

Your deposit with member banks are covered automatically and it is free. When you have one million Ringgit you can deposit with four different banks and not four different branches of the same bank at RM250,000 each to get effective cover.  

Your money may be safe in the bank but is it productive? There are two factors to consider:

18. 10 Money Matters to Teach Your Children

We, as parents, have made many gains and losses in personal finance. It is our duty to share what we know so that our children can take advantage of the knowledge to invest wisely and also to avoid the pitfalls. I think the following are the 10 most important things our children should know and follow faithfully. 


19. 8 Reasons Why You Have Unmanageable Debts

The following are the reasons why people seek help from Credit Counseling and Debt Management Agency of Bank Negara in Malaysia:


20. Effective ways to avoid debt


According to the general manager (operations), Azman Hasim, of Bank Negara Malaysia’s Credit Counseling and Debt Management, there are three reasons why people over borrowed – greed, lifestyle and unavoidable circumstances. How do you take steps to avoid unmanageable debts?

5 Credit Card Travel Benefits You Get For Free

This is a guest post by Mike. He ranks and reviews travel credit cards on CreditCardForum, which is a site he started 4 years ago.

Rewards are not the only benefits you get with credit cards. Many of them include free travel perks, too. What follows are 5 of my favorite – and no matter where you live in the world – there is a good chance you will find cards in your country which offer these benefits.
 
1. Flight Delay Insurance

There’s nothing worse than being stuck in an airport, right? Well, if you paid for your flight using a credit card with flight delay insurance, then the experience might not be so bad. Why? Because the card issuer will pay for dining, refreshments, and even hotel accommodations if your flight is delayed long enough.

For example, on the no annual fee Maybankard 2 Platinum card, here’s how it works:

As you see, the benefits can start after your flight has been delayed by at least 4 hours. In the United States (where I live) this benefit is not as generous – usually, the minimum delay must be 6 or 12 hours.

2. Lost Luggage

If you paid for the flight using your credit card and your checked luggage is lost, then you might be able to get reimbursed for it. However, the way this policy works can vary greatly. Some (like the card mentioned above) will only pay for “emergency purchases of clothing and requisites” which are made within 4 days of the incident.

In the U.S. it’s usually structured a bit differently. For example, the benefit on the ThankYou Premier card from Citi will reimburse you for the lost items. When and how you spend that money is totally at your discretion.

3. Travel Accident Insurance

This benefit sounds generous when you first read about it because it typically offers up to $1,000,000 (or RM) in coverage. However, there are a lot of rules and exclusions with it.

First of all, it only covers you during eligible Common Carrier travel. If you’re not familiar with that term, you can read about it here.
 
So if your plane crashes and you die or lose an arm, leg, etc. then they might pay out the money (either to you or your beneficiary). But any travel accidents that are not related to your Common Carrier travel will not be covered. For example, if during the trip you fall down a flight of stairs at your hotel, that is not eligible.
 
Many regular and travel credit cards include this benefit. The chances that you will ever use it are quite slim, but in the event of a plane or train crash, it is assuring to know that you (or your family) may be compensated.

4. Airport Lounge Access

The private VIP airport lounges are a great place to relax while you are waiting for your flight. They offer comfortable seating, TV, internet, food, and even drinks.

Normally to get access to these airport lounges, you have to be flying first-class with an affiliated airline or be willing to pay for admission. However, some of the premium credit cards on the market provide access for free.

The most well-known cards that include this benefit are the American Express Platinum. I wrote a review here for the U.S. version and the Malaysian version operates in a very similar manner; free access to the Plaza Premium Lounge at LCCT, KLIA, and Senai Johor Airport. You can read about this benefit on the American Express Platinum website.

5. Travel Discount Programs

Many travel rewards credit cards will give you discounts at affiliated airlines, hotels, and car rental agencies.

For example, the Citibank Premier Miles Card (MY) will give you a 10% discount off the best available rate at any Fairmont Hotel/Resort in the world. If you are a golfer, you can get a discount on green fees; 50% off at 3 golf clubs in Malaysia, 30% offer at over 300 clubs worldwide. 

Meanwhile over in the US, the Citi ThankYou Premier card (which I mentioned in benefit #2) will give you a free companion airfare once per year and a 15% discount on all other airfare.

Conclusion?

Next time you are planning a vacation, check with your credit card company to see what kinds of benefits they provide. Since the above perks (and others) do not cost you anything extra, you might as well take advantage of them if you already have their card.

7 Effective Ways to Increase Your Earning Power

The debt crisis in Europe is looming large. It impacts negatively all nations around the world. When a nation is affected, individuals are also worried about their job. Instead of dwelling and magnifying the problem which may not happen, you might as well focus your energy on increasing your earning potential.  Here are some productive ways to enhance your earning power: 

1.       Marketable Skills: The most important thing is your skills. Do you possess skills that are in demand right now? Be an expert in a relevant field to differential yourself from others. I am 63 yet I am employed full-time doing finance and accounting work. Besides that, I speak three languages.  My financial skills are essential in any business and knowing a few languages is an advantage in a multi-racial society. More importantly, your skills must be able to translate into more revenue for the company or getting a higher profit. It is the performance that counts.  

2.       Social skills: It is about networking and getting to know more people. The only way is to reach out. You may have the skills, but getting to know the right person may land you in another higher-paying job. 

3.       Soft skills: You may possess the right skills, but if you do not work with the right soft skills, your earning power may be curtailed. Soft skills are your attitude at work. Do you love your work? Are you enthusiastic at work? Do you work with confidence? Are you organized? Do you get things done and meet deadlines? Are you likable? Can you easily get what you want like a pay raise when you ask for it?  

4.       People skills: Another important skill is getting work done through others. You can’t do everything by yourself. You have to delegate in order to be productive. Pay attention to other people so that others will do work willingly and wholeheartedly for you.

5.       A part-time job: A part-time job is not just working part-time. It is a springboard leading to a business of your own to increase your earnings tremendously. Identify the marketable skills in your hobbies and develop slowly into a full-time income. Writing is another skill of mine. I am writing articles part-time on my blog. My aim is to earn a full-time income by blogging. 

6.       Continue to educate yourself: Another vital skill is learning to learn. There is a deluge of information and we have to select what is relevant because we want to apply what we have learnt and been more productive. So, update your skills and learn other suitable skills too. Never stop reading. If you can get an online degree to get a better position with better pay, do it.

7.       Change: Be ready for the next move, be prepared to change job. It is another way to gain more experience and better pay. Stepping out of your comfort zone is risky. But if you don’t make a move, there will be no progress.

What else can you do to increase your earning power?

5 Effective Ways to Face the Challenges of 2012

According to a report by the World Bank,  the world economy has entered a dangerous period. Some of the financial turmoil in Europe has spread to developing and other high-income countries, which until earlier had been unaffected. This contagion has pushed up borrowing costs in many parts of the world, and pushed down stock markets, while capital flows to developing countries have fallen sharply. Europe appears to have entered a recession. At the same time, growth in several major developing countries (Brazil, India and, to a lesser extent, Russia, South Africa and Turkey) is significantly slower than it was earlier in the recovery, mainly reflecting policy tightening initiated in late 2010 and early 2011 in order to combat rising inflationary pressures. As a result, and despite a strengthening of activity in the United States and Japan, global growth and world trade have slowed sharply.

The economic outlook in 2012 is gloom and doom and to make matter worse it is predicted that the world will end on December 21, 2012.

How do you cope with such a depressing and volatile situation which is looming large? There are 5 effective ways to deal with it:

1.      Stay positive: It means you will deal with such harsh situation confidently. You will resolve and determine to overcome the difficulties that lie ahead of you no matter what. It is wise not to worry too much of the future but to focus on what you can do now to soften the blow of the bleak economic outlook.  Be courageous to persevere and continue to do the right things.

2.      Harness your strengths: Pay attention to your strengths and sharpen your skills. Continue to develop and excel in what you do best. This is one effective way to be outstanding and ahead of others.

Our studies indicate that people who do have the opportunity to focus on their strengths every day are six times as likely to be engaged in their jobs and more than three times as likely to report having an excellent quality of life in general.  ~Tom Rath and Markus Buckingham

3.      Meeting challenges: Be prepared to accept and overcome a tough time in advance. Be resourceful and creative and be ready to turn the situation to your advantage.   

Tough Times Never Last But Tough People Do.   ~ Dr Robert Schuller

4.      Plan ahead and get organized: In a turbulent time, it is wise to stay cool, calm and collected. To do that you need to plan ahead and be organized.  Know what to do on a daily basis and stay focused to do the tasks at hand.  

Planning is bringing the future into the present so that you can do something about it now. ~Alan Lakein

5.      Stay sharp, alert and energetic: To be on top of thing is to stay physically and mentally fit. Exercise daily, eat nutritiously, sleep sufficiently and drink water through the day. This is the way to stay fresh, alert and full of energy to face problems in life.

What else can you do to meet the challenging time ahead of us?