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:

1.       Interest on debt outpaces interest on savings: it does not matter it is a personal loan from a bank or your credit card debt because financial institutions have to make a living by charging more interest on a loan and paying less on customers’ savings. So, it is not prudent to save and build up more debt.

Interest on debts grow without rain.
-Yiddish Proverb

2.       Avoid getting into bankruptcy: As long as you are in debt and it does not matter how small the amount is when you do not do anything about it, the amount will snowball by accumulating interest on interest into an amount big enough for the bank to declare you a bankrupt. 

3.       Peace of mind: It is a good feeling to be free financially. Debt-free means stress-free and happy.

Homelife ceases to be free and beautiful as soon as it is founded on borrowing and debt. ~Henrik Ibsen

4.       Plus point for your creditworthiness: Clearing your outstanding sum, especially your credit card debt, as soon as possible is the way to improve your credit score.  It is also to demonstrate that you are a responsible person and you are creditworthy. It will be easier for you in the future to secure another loan.

5.       Save even more: As soon as your debt is fully settled, you can channel the same amount to your savings account and save even more.

 

Are you paying off your debt first?

7 Effective Ways to be Brain Healthy

The brain is a monstrous, beautiful mess. It's billions of nerve cells-called neurons-lie in a tangled web that displays cognitive powers far exceeding any of the silicon machines we have built to mimic it. ~ William F. Allman

 This is an extract from the book, Brain Longevity, authored by Dharma Singh Khalsa, M.D. with Cameron Stauth. I have summarized briefly here the 7 important areas to promote a healthy brain: 

1.      Nutrition: As fat and sugar are the average American’s diet, the intake of healthy food has declined. Therefore, Dharma recommends a low-fat diet, high in complex carbohydrates, with adequate protein. He also recommends multiple vitamin/mineral tablet (with magnesium, selenium and zinc), vitamins E, B complex, C, coenzyme Q-10, ginseng, ginkgo biloba, choline-rich lecithin, chlorophyll-based “green drink”. Omega-3 fatty acids are also recommended though it is not mentioned in the book.  Eat less processed foods and red meats and more fruits and vegetables. Sit down, eat slowly and enjoy eating.

2.      Connect: It is stated in the book that the physical effects of stress can be greatly reduced if a person has a social support system—friends or family. So, get connected and join groups and social organizations locally. Do not retire from life, but be more sociable and live life fully.

3.      Physically active: The simplest thing you can do is walk. Dancing is also good for you. One important thing is aerobic exercise; it is to feed the brain with the necessary blood and oxygen and promotes cognitive functions. Do you know why strokes occur? Strokes occur when the supply of blood to an area of the brain is shut off long enough to kill that area. Brain cells are very vulnerable to impaired circulation; they can survive for only one to two minutes without the oxygen and glucose that blood provides.

4.      Spirituality: Meditate, do yoga, Tai Chi, pray or attend regularly a formal place of worship to get peace of mind.

5.      Mental stimulation: Learn a new language, read and write daily, play board games, visit new places, listen to classical music and solve problems.

6.      Manage stress: Learn to relax and slow down. Be in control of your daily life by doing less. According to the book, cortisol is one of the hormones secreted by the adrenal glands. It’s secreted in response to stress. In moderate amounts, cortisol is not harmful. But when produced in excess, day after day—as a result of chronic, unrelenting stress—this hormone is so toxic to the brain that it kills and injures cells by the billions.

 One important brain chemical that is depleted by chronic stress is the stimulating neurotransmitter norepinephrine, which not only helps ‘cement” memory but is also vital in helping you to maintain a positive, happy mood. It is an essential ingredient in your brain’s “pleasure pathway”.

7.      Positive mental attitude: Your thoughts control your endocrine system, and your endocrine system controls your emotions. The endocrine system releases the hormones that excite or depress you, and make you happy, sad, or angry. Always think positively and send positive signals to your brain so that you will be cheerful.   

The brain is the man; its health is essential for normal living; its disorders are surely the most profound of human miseries, and its destruction annihilates a person humanly, however intact his body. ~ H. Chandler Elliott

What Are You Worrying About?

    

It makes no sense to worry about things you have no control over because there's nothing you can do about them, and why worry about things you do control? The activity of worrying keeps you immobilized. ~ Wayne Dyer

According to a news item, people are currently worrying the most about the following:

·         The economy

·         Job security

·         Debt

·         Work/life balance

·         The rising cost of food

1.       The economy: Business goes in a cycle. It is up and down all the way. While the future may look bleak, you have to have a positive outlook. Explore the opportunities that are available to you. What can you do with your strengths? Use your worrying energy to focus on things you can do to get you the desired results. You can’t change the things that are happening to you, but you can deal with them positively, constructively and productively. The most important thing is to take action.

2.        Job security: Your attitude at work decides how secure your job is. Are you competent and learning continuously at work? Are you happy to go to work? Do you work enthusiastically and energetically? Do you take pride in what you do? Do you care about your reputation? Can you be trusted?  Are you adaptable and flexible? More positive answers give you more security at work in good time and bad time.

3.       Debt: Don’t blame others or the economy for your debt. It is your own doing. The questions are: Do you live within your means?  Do you have an effective budget which includes an important item called savings? Do you live your own life or do you copy the lifestyle of others? Can you curb your wants in life? If you are now in debt, your top priority is to get out of it quickly. The longer you delay the more interest you will have to pay and the more difficult it is for you to be debt-free.

4.       Work/life balance: Your career is important, but do you plan your work and work your plan? It is to be productive without working overtime. Do remember that your family comes first. The key is a balanced life. Spending quality time at home means watching less TV and interacting more with your spouse and children. When you are at home, focus on the family and do the right things.

5.       The rising cost of food: The most effective way to beat food cost is to eat healthily. Eat out less especially at fast food outlets to avoid fat, sugar and salt. It is cheaper and healthier to eat at home and consume more fruits and vegetables and less meat. Drink more water instead of sugary drinks. Spend less, eat simple and be healthy.

When you are worrying, listen to this song:  Don’t Worry Be Happy 

Worry never robs tomorrow of its sorrow, it only saps today of its joy. ~ Leo Buscaglia

How Much Do You Spend on Blogging?

Blogging is a delight and a challenge for me. I do it every day. Blogging is my life and happiness and the best part is that I don’t have to spend much to go online. Let’s take a look at the various blogging activities and the amount that I have to spend. Please find out also how much you need to spend on each item:

 

1.      Blogging Platform: Blogger is free and it is one of the best five blogging platforms. Which platform do you use? I am fine with Blogger.

2.      Domain name: I have two blogs and I have registered for two domains www.allaboutlivingwithlife.blogspot.com and http://www.creditcardlighthouse.blogspot.com/ at $10 each per year.

3.      SEO: I don’t use any SEO software. I just write naturally for the readers and use simple words. It is not difficult to be on page 1 of Google search when your titles and the content are using common words.

4.      List building: I use FeedBurner to get email subscribers and I take advantage of MailChamp to communicate with my email subscribers. They are all free.

5.      Stats: Statcounter and Analytics are free to use and monitor your performance in the blogosphere. I use both to check the pulse of my blogs.

6.      Social networks: All social networking sites like Facebook, Twitter and LinkedIn are free to join. Be connected and promote your blogs.    

7.      Getting links: I don’t buy links and I get links via Blog Carnival. I submit my articles to carnival hosts and get relevant and valuable links on a regular basis.

8.      Notify your daily updates: When a new article is posted on my site, Ping.fm will ping social networking sites for me. It is free.

9.      Directories sites: It is free to submit your blogs to blog directories such as Blogtoplist, Blogged and Bloggers.com.

10.  Articles: I don’t engage ghostwriters or need to buy articles. I write my own articles every day, using my own ideas and employing my own style of writing.  

11.  Internet access: I have a package at US$45 per month with 24/7 access. It is inclusive of unlimited fixed-line calls nationwide.

All in all, in a year I spend only $560/=. I don’t sell anything directly so I don’t spend money on shopping cart software.  How about you? How much do you spend on blogging?

What Is the Granny Scam - How to Avoid it

This is a post by David Bakke, a writer for the Money Crashers personal finance blog. Money Crashers is a financial resource site and home of the top personal finance blogs list.

As soon as you learn about the latest scam and how to avoid it, another one is waiting just around the corner. Criminals are always coming up with new ways to try to steal your money. Though it's tough to spot every financial scam (including common Craigslist scams), it's important to watch out for yourself and for your older relatives, and keep yourself educated as best you can. The latest con, known as "the granny scam," specifically targets the unsuspecting elderly.

What Is the "Granny Scam?"

The granny scam targets older people, mostly grandparents, in an attempt to defraud them of their money. Instigators usually telephone their marks, claiming to be a grandson or other relative. They may claim one of a variety of things:

• They were just arrested
• They were in a car accident
• They were involved in some other serious medical emergency

Many times, crooks will claim that they've gotten into trouble abroad and are afraid to call their parents, asking to keep the request a secret. Next, the criminals coerce their prey into wiring them money to help them out of their situation. By the time the grandparent follows up, they learn that not only are their grandchildren safe and sound but also that their money is gone. To add insult to injury, some successful con artists will even call back after the scam works and double dip for more money. Some scammers are even using social networking sites to acquire information. It's not too difficult to get names, photos, and personal information, including the names of family members. Just as in instances of identity theft, criminals will use this data to their benefit, making their fraudulent claims sound credible.

How to Avoid Becoming a Victim

You don't need to be a senior citizen to be in danger. The swindlers are clever and can trick even the most vigilant people out there. But even if you think you're safe, make sure that your older relatives are informed. When a desperate call comes in, follow these steps:

1. Remain calm. A seasoned criminal will act frantic, trying to lead the grandparents into joining the panic. Swept up at the moment and worried for their young relative's well-being, a deceived victim will send the money without considering whether the claim is legitimate. It is crucial to remain calm, ignore the pleas for secrecy, and contact another family member as soon as possible to ensure that the emergency is real.
2. Ask specific questions. Now that you're calm enough to take control of the conversation, verify the identity of the caller by asking questions that only your grandchild or relative would know the answer to. Use obscure facts from that person’s life, such as the name of a family pet or where they went to grade school.
3. Get a contact number. Lastly, tell the person on the line that you will call them back. Simply ask for a contact number. This innocuous request is likely to throw a con artist off the normal script, usually ending the fraud attempt.

Final Thoughts

Criminals will try just about anything to separate you from your money, and the "granny scam" is one of many ways that these people target the elderly. If someone causes panic and attempts to reach into your pockets in the name of a family emergency, check out their story in full. Be 100% certain that you are actually dealing with one of your relatives before sending funds to anyone. Do you have additional tips for avoiding the granny scam? What other scams exist that target the elderly?

Related page:
Scams

10 Happy Ways to live life

“Do not take life too seriously. You will never get out of it alive.” 
― Elbert Hubbard

“Happiness is not a goal...it's a by-product of a life well-lived.” 
― Eleanor Roosevelt

Life is what you make out of it. When you think life is worth living, it is. When you think it is not, it is also true. Why not change your mindset and live a happy life?  Here are ten suggestions to uplift your mood and be merry every day:

1.       Enjoy the journey of life: You set goals and you are determined to reach for them. It is fine.  Do not celebrate only when you have realized your goals. The most important thing is to enjoy the journey while you are on your way.   Take delight in everything you do every day. Look at things optimistically, don’t worry, and be happy.

2.       Be in a holiday mood:  Be in the present, focus on what you do, be relaxed, and pay attention to the task at hand. Switch your daily mood to a holiday mood.

3.       Think positively: The most effective way to be happy is to think of happy thoughts and act cheerfully. Get up early and thanks God that you are given a new day to live life the way you want it to be. 

4.       Be physically active:  A happy life is about movement because inaction kills. You will be more energetic when you exercise every day. When you can walk, don’t use the lift or drive around. An active lifestyle is a healthy way to get more out of life.

5.       Simplify: The way to live life happily every day is to have few commitments and a shorter to-do list. Do only what is essential and be less stressful.

6.       Attack problems: There will be problems and they are not bad things. Problems jolt your mind and you will be creative and resourceful to overcome obstacles in life. Life would  be boring if there were no challenges  

7.       Take action: Get things done and be responsive. Happiness is to do what you need to do and do it now. You may know what to do to be happy but are you doing it every day?

8.       Explore: Learn new things, read books, be thirsty for new knowledge, exercise the mind, and stay mentally alert.

9.       Be kind to yourself: Don’t be angry, jealous, or resentful because you cannot have something that your neighbour has and you want o have and it is beyond your reach. Get peace of mind, appreciate what you have, and be contented. Don’t compare, live your own life.  A happy life is to have less, want less, and be debt-free.

10.   Go after your dreams: A happy life is going after what you are passionate about. Doing things that are truly meaningful to you. Wake up and get up every day enthusiastically because it is another brand new day to do what you like the most.  

Change your thinking and change the way you look at life. Think positively, act confidently and be happy. 

Life naturally evolves in the direction of happiness. We must constantly ask ourselves if what we are doing is going to make us, and those around us, happy. Because happiness is the ultimate goals.  It is the goal of all other goals. ~ Deepak Chopra

Top 3 Posts in October 2011

1. 7 Effective Ways to Work Productively and Grow

Without continual growth and progress, such words as improvement, achievement, and success have no meaning. ~Benjamin Franklin

Strength and growth come only through continuous effort and struggle. ~Napoleon Hill

All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work. ~Calvin Coolidge

2. 7 Effective Ways to Determine the Worth of a Stock

You have to look beyond the annual financial report of a company to decide the worth of a company‘s shares. The people behind the scene are pivotal in deciding the fate of an establishment. However, the people and the figures will give you a fair view of a company:


3. 10 Top Soft Skills for Career Success

According to Wikipedia Soft skills is a sociological term relating to a person's ”EQ” (Emotional Intelligence Quotient), the cluster of personality traits, social graces, communication, language, personal habits, friendliness, and optimism that characterize relationships with other people. Soft skills complement hard skills (part of a person's IQ), which are the occupational requirements of a job and many other activities.

Your technical skills will not guarantee success in the workplace. The most important things are your attitude, how you interact with others, the way you get things done and how you react to events. What are the most important soft skills? Check out the following: