1 money wise

You have homeowners insurance, so you think you are covered no matter what happens, right?  That is not always true.  Take a good look at your policy and you will see that flooding is not included.  Unless you made special arrangements for flood insurance your homeowner’s insurance policy will not cover damage due to flooding.

Additionally, for many people flood insurance is not even an option.  If this is your situation then you may need to do some digging to see what you can do to protect your home.

For qualified individuals you can get a federal flood insurance that is in addition to your current policy.  It will help insure you against flood damage and is your only option.

There are many tidbits of advice out there about how to choose a company to invest in.  You will hear a range of things about how to choose the best stock, but in the end it is your risk to take when you invest so you have to seek out the best advice that will allow you to make the best investment choices.

The following are some great things to keep in mind when choosing stocks:

- Look for a stable company.  You want to invest in a company that is on good financial ground and that has a good future forecast.

- Look for a company that can grow and prosper.  You want to invest in a company that will be around for a while and that will continue to improve their profits and success.

- Look for a company that has good management and corporate structure.  You need to know that the right people are leading the company in the right direction.

There are two basic types of stocks – common and preferred.  Common stock is the most commonly purchased stock.  Preferred stock, however, offers some extra benefits.

Common stock gives you partial ownership in the company and entitlement to a percentage of their profits.  You get the right to vote for members of the board.  Common stock usually brings in the most profit over time.  However, common stock also comes with a high risk because if the company fails then you lose all your investment.

Preferred Stock also offers you a part in ownership of the company.  You do not usually get voting rights.  You do get a guarantee dividend that is set.  You also have less risk if the company fails because you are one of the first paid off during liquidation.

Besides these two different types of stock, you also have stocks with different classes.  The different classes of stock represent the different voting rights attached to that stock.

Hi, just wanted to say Merry Christmas to all our readers!

Have a great and blessed Christmas!

Any investment you make is risky.  You should understand that no matter what you are putting your money into there is a risk that you will lose that money.  With that in mind, though, you should also know the different types of risk so that you can choose to invest your money in the best way with the least risk.

Inflation – The risk of inflation is when the money you invest decreases in value over time due to inflation.

Declining Value – Just as with inflation, there is a risk that your investment will decline in value and you will end up having to sell at a lower price than what you purchased it for.

Default Risk – There is always a chance that the other party in the investment will not live up to your expectations or their obligations and you will lose your money all together.

Liquidity – There is a chance that you may not be able to sell what you have invested in when you need to get the cash for it.

If you are considering investing in stocks then there are some basic terms that you should familiarize yourself with.  The following outlines some terms you should know before you get into the stock market.

Share – A share of stock is a unit of ownership in a company.  Besides profiting from your share you also get some say so in the running of the company.  You have the right to vote on board members and some other matters.

Limited Liability – When you buy a share of stock you do not take on all the company’s liability.  You are not liable under lawsuits or other actions.

Common Stock – The majority of sticks purchased offers the most rights.

Preferred Stock – Has fewer rights than common stock, but offers dividends.

There are many different terms that you will hear when you start working with stocks, but these are the basics that it helps to know before you start putting your money down.

ATM’s are helpful and they are popular.  They also pose a huge safety risk.  Many crimes involving ATM’s have caused people to lose money, security and faith in using ATM’s.  Understanding some basics of ATM safety will help to ensure that you do not fall victim to someone trying to cause you trouble at the ATM.

When you choose an ATM to use you should either use one at a bank or business during daytime hours or that is inside the store area.  If you must use an outdoor ATM be sure to use one in a populated area that is well lit.  You want to avoid being trapped at a hidden ATM where someone could easily come up behind you.
You should also be careful about using an ATM when others are around.  If you feel that someone is too close or that they are watching you then you should find another ATM to use.

You should always try to be safe and keep alert about people around you and your surroundings when using the ATM.  Stay safe and be smart so you can avoid become a crime victim.

Budgeting software can really help you to keep your finances in order.  However, if you do not choose the right budgeting software then you will probably not find it very helpful.  That is why it is important to choose the right budgeting software.

You want to choose software that is easy to use.  You should be able to understand the features and understand how to perform the different functions without a lot of hassle.  Look for something that is specifically marketed as user friendly.  These programs will usually be simple and straightforward in operation.

You also want to make sure that the software has all the features that you need.  If you need to manage your banking then make sure it has a banking feature.  If you need to manage loans then check for that feature.

Getting good budgeting software will really help to ensure that you use it and that will go along way towards keeping you on the right financial track.

It can actually be a bit difficult to know when your finances are in such bad shape that you need some outside help. Many times people let their finances get too far out of control before they ask for help and then their only option is filing bankruptcy.

Before you get that far in debt you need to recognize some of the signs that you are getting into trouble and should seek help from a professional before you do end up in bankruptcy court.

Do you often only pay the minimum amount due on credit card bills?

This is a sure sign you will end up in trouble. You should be paying more than the minimum most of the time.  You need to be paying down the interest and the balance and making the minimum payment will not do that.

Do you run out of money each month and end up having to borrow money or get a loan to pay bills?

You should have a budget in place that prevents you from not being able to meet your expenses.  If you are borrowing money or paying late fees you need to do something about it because you are just wasting money.

Is your debt on the back burner because you just do not have the extra money to put towards it?

Ignoring your debt is bad.  It will not go away.  Instead it will get bigger.

If you see any of these problems in your finances then it may be time to consult a professional who can help you establish a budget and set up a good payback schedule for debt.

In this part of the two part series on how to save money on your regular bills we will talk about another big expense – electric.  Some people may be using electric for heat as well, so the tips from part one will help you to cut your electric bill a little and this section will give you even more tips.

One of the biggest energy wasters are electronics.  You probably are not even aware that they are slowly using electricity day in and day out even if they are turned off.  Your computer, for example, uses energy whenever you do not have it completely shut down.  A screen saver or even an energy saver mode still uses electric.  If you simply shut down your computer when not in use you will see the savings add up.

Another great waster of energy is all those gadgets you have that display the time.  A DVD player, coffee maker and anything else that displays the time or has anything on it that is lit even when it is turned off is using energy.  You can save money by unplugging these items.  You probably do not even use the clock on them so why waste the money to keep it lit up?

Doing little things can really help you to cut your costs.  Just simple steps here and there will add up to some big savings.