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January 26th, 2012
Jobless Claims Back Below 400K - What the Marker Means

The initial jobless claims number for last week fell below the 400,000 mark for the first time in over a month. Why is the 400K jobless claims level important? And why...



January 25th, 2012
Cities suffer home price declines due to foreclosures

The S&P/Case-Shiller home price index for the month of October, released on December 27th, showed a surprise fall in home prices across many major cities in the country. The home prices...



January 24th, 2012
Food Stamp Nation - Ever Rising Food Stamp Usage and Growing SNAP Fraud

Food stamps or Supplemental Nutrition Assistance Program (SNAP) usage has grown nearly every month under the Obama administration, setting new records each progressive month. Latest reports state that over 46 million...



January 23rd, 2012
The Euro weakens against the Yen

The Euro weakened against major trading currencies, when Italy announced that it will auction 8.5 Billion Euros of its debt. Falling to a decade low, the 17 nation European trading currency...



January 22nd, 2012
Is Debt crisis an adding factor to the fall in World Economy?

The International Monetary Fund chief Christine Lagarde who was in Nigeria last week, spoke up her concern over the lack of co-operation between the European countries to solve the debt crisis....



January 21st, 2012
Sears Finds a Loophole: Laid Off Employees Among Illinois Residents to Foot The Bill For Recent Tax Breaks

Sears, one of the largest retailers in the United States, has decided to lay off thousands of workers due to slow holiday sales. This comes just weeks after they signed...



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Feature Articles


December 17th, 2011
Don't Worry, Be Happy: Personal Finance Tips That Work

Handling your own finances is a tricky subject for a lot of people. Although there are a lot of excuses that can be made, the reality is that each person...



December 14th, 2011
Panic in Europe - Should You Panic Too?

The headline news in Europe is the same as much of the industrialized world. The root cause of any disaster listed in a top ten financial news article is the financial...



December 11th, 2011
Stop Your Financial Fight With These Expert Tips!

Teaching your children about money is very important. Although it can seem like a challenge, it is something that needs to be done. Children are never too young to learn how...



December 8th, 2011
Check Out These Ideas For A Better Understanding Of Your Personal Finances

As you start out in managing your personal finances, take the time to go over these tips and learn more about what you can expect.

Buy your staples in bulk and save...



December 5th, 2011
The bad and not so bad the second mortgage loan dilema.

It may come to no shock to you that many people are underwater when it comes to their first mortgage on their home. But why most of the news only...



December 2nd, 2011
Making your Home Equity Loan Better

There are new ways to take care of your home equity loan much better. One of the ways is to pay the installment for your home equity on time. This will...



November 29th, 2011
Tax Treatment of REIT Investments

Real Estate Investment Trusts, or REITs, can be a profitable investment vehicle. A REIT owns real estate property and shares of the trust sell on the stock market like shares of...



November 26th, 2011
Invest Money to Make Money

"You have to spend money to make money" is common advice when it comes to getting ahead financially. Although this isn't universally true, investing money is a proven method for growing...



November 23rd, 2011
The Good and Bad of Credit Cards

According to the US Census Bureau, the number of credit card users increased by 45% between 1995 and 2006. This number continues to grow. Further, the average credit limit per user...



November 20th, 2011
Using Dollar Cost Averaging To Accumulate Wealth

The term dollar-cost averaging comes up about every day in the investing world. The sad thing is that most individual investors have no idea what this term means or what...



November 17th, 2011
Consigning Clothes: Five Steps to a Cleaner Closet and a Fatter Wallet

Are you looking for a way to make a few extra dollars? Consider selling your unwanted clothing at a consignment shop. With just a little effort, you can clean...



November 14th, 2011
In Canada, What Happens to Credit Card Debt When Someone Passes Away?

When you or a loved one passes on, does your credit card debt as well? Or does it get passed on to the survivors? While this may be one of the...



November 11th, 2011
5 Things You Need to Know About Retiring

Retiring?! Yes, retiring. It may seem eons away, but the decades tend to pick up speed as you go along, and you will be facing retirement sooner than you...



November 8th, 2011
The Benefits of Using Private Equity Financing

You're ready to expand your business, and you need capital. Should you get a traditional bank loan or use private equity financing? A traditional bank loan is a type of debt...



November 5th, 2011
Some Negative Effects of Raising the Minimum Wage

As of 2009, the federal minimum wage is $7.25 per hour. Each state can enact its own minimum wage laws that will supersede the federal minimum wage, but only if the...



November 2nd, 2011
CD Laddering: The Best of Both Worlds

For many years, CDs have been popular investments because of their straightforward terms and fixed rates of interest. While the interest on CDs is low compared with what you might earn...



October 30th, 2011
Can I get an auto loan with bad credit?

Is a poor credit rating stopping you from getting the car of your dreams? Are you tired of rejections for auto loans? Applying for a loan can be a stressful and...



October 27th, 2011
How to Understand the Market Value of Debt

The market value of debt is rarely known directly. This is because most debt is held by banks and firms on the books. This takes these out of the debt market...



October 24th, 2011
What should I consider when leasing a car?

Leasing a new car can seem confusing and intimidating. What should you consider before you sign the paperwork and commit yourself? A little preparation now could save you thousands...



October 21st, 2011
What to consider when choosing an auto loan.

You have found the car of your dreams, but what auto loan should you choose? Choosing the right auto loan can be a complicated and confusing process for borrowers.

There...



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Emergency Cash and Emergency Money Plans - Financial News, Explanations, Calculators and Cheat Sheets

Overview of Investing

Investments is a name common to many but relatively understood by few. Investments is the commitment of funds by either by an individual or a corporate in securities or financial instruments in order to maximize ones wealth in the form of interest and income.

There are different forms of investments but broadly they are divided into four broad categories.

Bank account savings - this is the easiest and the cheapest type of short of investments though the returns are low compared to other modes of investments it is a convenient as the investor can withdraw

Bank fixed term investments - this is a type of medium of investment where the investors invest for a fixed period of time and during this time they cannot withdraw the money. And in return the bank offer a higher interest rate than the current account

Bonds - it is a long time type of investments it is issued by government and for this reason returns are guarantee. It is the most secure kind of investments and most preferred by investors who are risk aversed. The money is invested for a period of time and paid back after maturity

Shares - this is the kind of investments that is known to most. You can invest in a company listed in the stock exchange or shares offered by rights issue there is no limitation of the number of companies that you can invest into. Your return in this investment is the dividends given from the profit made by the company. Price of shares are influenced by the forces of demand and supply in the market unfortunately this does not reflect the true and fair view of the company's financial status

Though investment is a good thing one should also not forget that it is a gamble and one can lose his investments.

The risks involved are:

Business risk - it is the loss of value of one's investments by competition, mismanagement by the board or financial insolvency

Valuation risk - this occur where investors have a lot of confidence in a company and the demands of its share push the prices of its shares into the ceiling therefore the company is operating in excess of its average earnings a opposite of the same can occur and cause good companies to sell below their real worth.

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