Finance System: January 2011

Wednesday, January 19, 2011

Global Finance Systems Broker Training Review

Global Finance has developed a broker training system that teaches the business owner how to make business loans between $25,000 to $3,000,000 and receive up to 15% commission. It is estimated that some 90% of all companies who apply for a loan will be turned down by this countries financially troubled banks and lending institutions. But there is a tremendous pool of private lenders who have liquid money to lend, but no way of connecting with those who need it.

This is where you, the prospective loan broker, comes in. Global claims they will teach you exactly everything you need to know to run your own home-based finance company. From working part-time to working full-time, they say they will tell you that making a Six-figure income is easily attainable. With a start-up cost of just under 20k, one must understand that this is not a franchise. This is a business opportunity where you will be paying for(and hoping for), Global's ongoing marketing training and support.

Now, the one thing that raises a red flag for me, is their statement that you'll be approved and accredited immediately with premium lenders upon completion of their training course. No waiting the 3 year period most states require in order for one to act as a licensed Loan Broker. But, even if this is truly the case, this business opportunity is still based upon a network marketing platform. The finance company owner, although receiving Global's continued marketing training, must still become proficient in the ever-changing techniques that network marketing and internet marketing require. You must be able to effectively "brand" yourself in order to insure success in these ever-changing and difficult economic times.

Global Finance and their Loan Broker Training System may very well be legit, and be as easy to complete as they profess, but one should definitely perform their due diligence, and research, to see if their claims are true. Whatever the case, this is a NEW age of home-based business entrepreneurship. There IS a new model for success in Business ownership and opportunity that has emerged, creating massive success for individuals every day.

Learn more about the power behind this business model by visiting Intermax2010.com.

Make Use of the Automated Bill Pay System of Your Personal Finance Software

With the internet explosion and the popularity of the online resources, many of the credit and debt settlement companies have grown into the internet. Online personal finance is a multi billion business every year. In the beginning this service was limited to helping small businesses in budgeting and calculating tax effectively. Later it grew to personal finance management for each person.

Thousands of online tools have been developed that helps each individual in their finance management. The best feature of the system is the facility providing automatic bill pay. This is very helpful as you need not always wait for your payment date and remember them manually. This can be of the great help. This helps an average person not to forget his bill pay dates in his busy life. You can specify which bill is required to be paid when in your online personal finance software. You can include your telephone bills, cable and internet charges, credit card payments etc in your finance tool.

The variable expenses can also be paid off easily with the options available in the system. This system also helps you be reducing the charges that may have to be paid as late fee. This is very significant as many of the people lose a huge amount like this as they pay the bills after the date of payment. This can be completely avoided.

So if you can learn to make use of the automated payment system in the online personal finance software, you have grown a very good lesson in finance management. This can make a huge difference in your finance management.

Credit Card Debt Settlement - A Legal Loophole in the Financial System

How do you feel if you can eliminate 50% of your debts without damaging your credit report and reporting it as a 'payment made in full'? I can imagine your response. You can either laugh in a sarcastic manner, or can be surprised or else can think that it is not going to work and it is another scam you have got caught to a fraudulent company. Well, I will not judge your response. The attitudes display your experience. However, you need to know that there are legitimate options available in the market.

The financial experts consider 'debt settlement program' to be a financial loophole because it helps the debtors to settle their debts for less than they owe without trying bankruptcy. This method safeguards the consumer against public aggression. The consumers are expected to meet two requirements in order to enjoy the benefits of this program. Firstly, the consumers should have more than $10 000 amount of outstanding balance in their accounts. Once this hurdle is passed, you can go to the second stage; that is, you should stop paying your minimum monthly payments and convince the creditor that you are on the verge of bankruptcy. In fact, you can use bankruptcy as a strategy to obtain a big discount. If a consumer files a bankruptcy case, it legally stops all the actions against the creditor. In simple terms, none of the creditors will be able to touch the debtor anymore. The Supreme Court accepts the fact that the debtor is financially disabled. The creditors' perspective is to make profits. Therefore, they do not like to eliminate debts 100% (this is what happens when a debtor files a bankruptcy case). Instead, they can recover at least half of their money through debt settlement programs. That is why they are willing to negotiate.

So why do not take advantage of this excuse? Knowing the advantages, what you should do is to locate a reliable debt settlement company. If you are confident to handle this negotiation session on your own, you can save more.

The Automated Bill Pay System of Your Personal Finance Software

With the sudden increase in the usage and popularity of the internet, most of the credit companies and debt settlement organizations have started using the internet as a medium to market themselves. The field of personal finance on the internet is a full-fledged multi billion business every annum. The personal finance in the initial stages was limited to offering tax calculations only. But now all the financial services like budgeting and personal finance management plans are available on the internet itself.

Hundreds of tools have been developed online to help the people to get their proper finance budget easily and make good finance plans for themselves. The best feature of personal finance management tool is the automated bill payment system. You can enter the details of all your monthly and weekly bills into this system and it will pay your bills automatically. So there is no more tension of forgetting your pay by dates for your bills. So you will make extra saving from the late fee that otherwise you will have to pay when you make your bill payments late.

The most significant factor of your automated bill pay system is that will have no worries regarding the bill payment. You can be completely free of any fear about not paying your bills on time. The automated system is capable of doing it all. The system will automatically pay your bills every month and you can surely have a stress free life full of enjoyment. Start using your automated bill pay system today.

Integrating Financial Education Into The Education System - Part 4

With financial mistakes continually repeating itself, many might wonder why this is the case. One reason I deem possible for this could be the fact that schools have not kept up with times, causing them to train out students who keep making these same mistakes. To help further enhance the quality of education, 1 more lesson should be included, apart from the other 6 which are already addressed in part 1 to 3.

Today, besides the 6 key concepts mentioned, I believe it is definitely an ever-green idea to teach students to know what asset is best for them. Schools should teach students the main asset classes available and provide analysis for these investments to allow an optimal and fruitful learning experience.

The below would be examples schools could adopt to analyze the different asset classes which are business, real estate, commodities and paper assets. We shall now plough through them one by one.

For business, schools could say that owning them gives investors benefits like tax advantages, leverage for them to increase cash flow and the ability to control their operations. However, the downside would include the fact that it needs good people, dynamic leadership skills and the presence of talents who are willing to work as a team.

For real estate, the benefits would be high returns because of leverage from using other people's money like those from the bank. Also, they give tax advantages like depreciation and provides steady cash flow. However, real estate is management intensive and illiquid. Here, because of its low liquidity, real estate should be taken as an asset investors must do extra due diligence for.

For commodities, the main benefit would be the fact that it provides sturdy protection against inflation as commodities tend to rise along with it. This would help investors profit even in tough times like high inflation which can destroy many lucrative investments. However, commodities have storage and security problems.

For paper assets like stocks, their main advantages lie in the ease of entry into market and the fact that it usually requires less money to get in when compared to other investments. However, because of its high liquidity, it can be volatile, causing people to lose money very easily. Also, given the fact that it is affected by wild market swings, they require continual monitoring and can thus be time-intensive.

After giving all these overviews, schools can then proceed to say that to succeed financially in life, students ought to study the asset class they are interested in and learn their language.

For example, in real estate, know terms like cap rate or NOI while for stocks, P/E or EBITA. This will help increase mastery of language used in the asset class, thus improving returns and reducing risk. Also, they can end with a final note that this can be achieved because the greatest asset is the human mind where students who master it can achieve anything in life.

In conclusion, I believe readers have gained another important lesson they ought to have obtained in school. Nevertheless, knowing it now will still give them an edge over majority who are currently in the dark.

Impact of Basel III on the Financial System

The global financial system created a vacuum of financial regulatory reform and transformation. With the growth in housing defaults and the impact of sub prime loans and CDOs on the economy, the international community focused on forming a united banking front / regulation. Defined as the Basel III accord, the system was first devised in 1988 by leading central bankers in the top 10 nations. The first step in the Basel Accord, this laid the groundwork and liquidity requirement for banking institutions in the largest nations. Sprung from the liquidation of a leading German Bank, the system was built to alleviate the pressures of one banking weakness on the entire system. Stipulating that international banking organisations were required to hold 8% liquidity with respect to the total assets on balance sheet, the reform brought about significant change in the13 member states who adopted it.

Basel II was the second round of regulatory reform on the banking industry. Designed in 2004, the accord focused on three main pillars of risk, which included credit, operational, and market/liquidity. Banks were categorised based on both Tier 1 and Tier 2 capital ratios and their propensity to possible liquidity crunches. Tier 1 capital is sometimes viewed as the key measure of a banks health, defining the overall degree of assets it has on the balance sheet (ie cash/ assets from earnings, common and preferential stock). Tier 2 capital on the other hand focuses on the other assets which could include hybrid investments, sub ordinate debt, and overall general provisioning.

The Basel III Accord has recently become a topic of hot debate as it provides a new bar for banking regulation and reform. Spurn from the recent credit crunch, the Basel III will look at a number of key measures to ensure the sustainability of the banking industry. These include:

Installation of a new measure of leverage control, which will maximum the risk both a bank or hedge fund will be able to take
Credit risk limitations. Organisations are limited to amount of credit they can borrow based on their assets. It will ensure that Banks and other financials do not take on too much risk.
Liquidity Ratio changes. To alleviate the possibility of a credit crunch, firms will now need to pledge a section of movable cash or credit to ensure borrowing or lending is not hindered.
Banks will be required to have a 4.5 percentage of common equity by 2015. This level will be extended to 7% past this date.

The new Basel III accord has come under scrutiny by leading economists, and industry analysts as being too restrictive. Economically, the debate over the how much of an impact the new Basel reform will have on both developed and emerging markets is leading to a significant divide between both corporations and regulators.

The Four Bucket Personal Finance System - The Simple Budgeting Alternative

The four bucket personal finance system is a simple and practical alternative to personal budgeting. Think about this: how many times have you heard the advice that you need to get on a budget to start managing your money better? How many times have you attempted this strategy, kept it up for a couple weeks and found that budgeting just does not apply to the dynamics of real-life? This is why more people are choosing the four bucket personal finance approach as a practical alternative to living by a complicated budgeting system.

The Four Bucket Personal Finance Approach
Picture your personal finances as four buckets sitting in front of you. On each of these buckets, there is a label which tells you what the money in that bucket is going to be used for:

1. Expenses

2. "Pay Yourself First"

3. Contributions

4. Reserve

That's the four simple personal finance categories. Your objective is to put a predetermined amount into each bucket whenever you are paid. A recommended allocation percentage is not more than 70% of disposable income for expenses, and 10% or more for each of the three remaining buckets. However, you can change the allocations according to your personal convictions for managing money, but an amount is to be put into each bucket each time you receive a paycheck.

An example, if your monthly living expenses are $2,800 and you are paid $1,000 a week, using the recommended allocations, $700 are for expenses, and $100 to each of the remaining buckets. The "Pay Yourself First" capital will be used exclusively to create new wealth. The reserve amount is used to build an emergency fund and funds for special events such as investing in personal business or education, and savings towards a family vacation or the purchase of something which would just add more enjoyment to your life

Finally, the amount in your contributions bucket can be used to purchase gifts for your friends or family members or to give to charitable causes.

Keeping it Simple

As you can see, the four bucket personal finance system is a simple alternative to budgeting which can easily fit within the context of your real-life. Making the management of your personal finances simple and practical will make it much easier for you to stick with it until you get the results you want. So if you are worn out with trying to live your life according to a personal budgeting system, try the four bucket personal finance approach instead.

Personal Finance - The Four Bucket System of Cashflow Control - Financial Freedom Made Simple

The four bucket personal finance system is the simplest way to control your cashflow and to begin building financial freedom. Many of us think that financial freedom is about having more money, and that certainly does help. However, it's not until we begin to control the money that we have now that we get on the path to achieving financial freedom. Otherwise, we'll make more and more money that we end up putting into a purse (or wallet) with holes in it. The problem is that many of us over complicate the task of controlling our cashflow, but the four bucket personal finance system makes it simple.

Here's how: Why Simplicity is the Key to HUGE Success

The most effective systems in the world, those which empower people to achieve success on a large scale, are never complicated...they are simple. However, they do require a lot of work and discipline, which is the reason why so many of us chase after complicated and crafty solutions which will help us achieve success with little or no effort. Just think about the last time you read an advice book about success and said to yourself: "Okay, I must not be getting the whole story because that just sounds too simple."

And off we go in search of something more sophisticated, which we think will get us there with a lot less work....in other words, the shortcut. What you'll find is that the moment you stop looking for shortcuts and agree to take the simple path of hard work, you start building momentum and moving towards your goal faster. You see, the shortcut is the longest and most disappointing route to take when it comes to your personal growth and achievement.

So let's look at the four bucket personal finance system and how it can make your journey towards financial freedom simple and rewarding.

What is the Four Bucket Personal Finance System?

The four bucket personal finance system divides your spending into four categories or "buckets" by which you prioritize your spending:
• Giving
• Investing
• Expenses
• Reserves (for future spending or emergencies)

Now, what makes all the difference in the effectiveness of the four bucket personal finance system is the priority of these four categories (this is where the hard work comes in). By putting expenses first, you can be assured that you'll always be living and working JUST to pay your expenses. However, if you make investing or giving a priority, you'll further increase your capacity to do both.

So no more shortcuts! You're making WAY too much work for yourself. Use the four bucket personal finance system and make your achievement of financial freedom a reality.

Canadian Financial System

In order to properly understand the system of Canadian finances, it is absolutely necessary to comprehend the nature of the Canadian tax system. Prior to World War I, the majority of government revenue originated in the form of taxes on imported and exported goods, known as tariffs; however, in order to fund the First World War, the government instituted a federal income tax, an idea that was originally meant to be temporary, and it has since evolved into a progressive tax system that, along with a sales tax, produces around 70 percent of the federal bureaucratic revenue. In addition to these federal taxes, every province institutes its own forms of income, property, and sales taxes, and the average middle class family with two children pays approximately 32 percent of its total income to the government, federal or provincial.

A report from the World Economic Forum in 2008 named the Canadian banks as the safest and most prolific banks in the world; though this is largely accredited to the early precedent of minimal government interference in the banks, the Canadian bureaucracy still lightly regulates nearly every aspect of the country's chartered banks to prevent economic meltdowns such as the recent U.S. subprime mortgage crisis. Of these banks, the Royal Bank of Canada is the largest and wealthiest, but banking is only one of this institution's multiple financial programs as it also offers investment and mortgage services. Founded in 1864 as the Merchants Bank, the firm slowly evolved and changed its name to the Royal Bank of Canada after receiving a federal charter, and, now with over 17 million clients worldwide, this bank offers various financial services to almost any Canadian who applies and many internationals.

When calculating total income for federal and provincial taxes, only half of the income earned from capital gains, as in dividends payed on investments, is accounted for. This lowered tax on dividends facilitates investments in real-estate, government and corporate bonds, and the stock market, and, in turn, it stimulates the economic prosperity of the entire nation. The Canadian economy continues to flourish because of their comparatively low tax burden, and the Toronto Stock Exchange, or TSX, is evidence of this. The TSX is the most extensive stock exchange in Canada, and it is the world leader in the trading of stock in companies that mine oil, natural gas, or other precious natural resources. This exchange currently has the eighth largest total market capitalization in the world, and it continues to grow with the increasing value of oil and natural gas in the international economy.

Conclusively, the system of Canadian finance offers multiple opportunities through investment and personal entrepreneurship because the tax system has been designed to facilitate these economic practices and, through this, stimulate the economy. Additionally, competent banking prevents the continuation of irresponsible practices, and it thereby creates a stable atmosphere for fiscal investment and nationwide growth.