Showing posts with label Money. Show all posts

Tuesday, April 24, 2018

The Future of Work: Is being a writer (artist, musician, creative) an impractical career?

In a writers group on Facebook, a young writer asked (edited):

How do you respond to family members saying that being a writer is impractical?

This is a great question. When I was going to college I stopped pursuing music and theater because it didn't seem to lead to a "practical career". I got bogged down in other things and eventually dropped out (after six years and 78 units). But times are changing and we're in a new type of revolution.

So, what do you think?

What is the future of work? How would you respond?

What is impractical, what does that even mean?

First, you reply:

You said 'impractical' when I think you meant 'I'm Practical'.

The root of Impractical is Practical, or to be "not-practical". The word practical is derived from the root word PRACTICE.

practicale "of or pertaining to matters of practice; applied,"

All careers require a great deal of practice, hard work, study of the chosen field, and many small wins before the big wins. Ask anyone who has a modicum of success "climbing the corporate latter" for an honest appraisal of how successful they've become, how successful they feel, and how much work it took to get where they got. You'll find that the effort they put into that career could have been better spent building a career with purpose and meaning.

As such, there is nothing MORE practical than writing, it is the basic cornerstone of society. Marketing, ad copy, news articles, "how to guides", books, movie scripts, and on and on it goes. Writing is everywhere. Try driving five blocks without seeing writing, I dare you. Did you think that writing just appears magically out of thin air? How much writing is in an App? How many Apps are there? Nothing is accomplished without the written word, ask a lawyer.

Someone is being paid to write all of those things.

I'll let that just sink in for a moment.

Writing Is A Cutting Edge Career

Second, the industrial age is not just over... It is DEAD!

For thousands of years, mankind subsisted from his or her chosen craft.

Bakers, Smiths, Farmers, Scribes... These are some of the oldest professions. The industrial age took people out of locales and threw them like sardines into cities with factories and assembly lines. From the late 1800s to the early 2000s you could "get a job" and retire there.

The days of "get a good job and retire" are over! Truck drivers, delivery drivers, doctors, bookkeepers, and more come into my office all the time and tell me that they were moved from "employee" to "contractor" overnight. They now have to file their own LLCs, get EINs, and start a business to support the job they used to have... doing the same work.

Craft Beers. Craftsy. Etsy. Farmers Markets. Farm-to-Table Restaurants. Handmade Items. Small and Local is taking over every facet of your life while you weren't paying attention.

The industrial revolution was more like an industrial pause button.We left small, local, handcrafted, but now we're back with a vengeance. The Maker Movement has returned us to our roots.

The Industrial Revolution allowed for the Information Age which then provided the Maker Movement with a vehicle that could return us to those age-old roots.

We are never going back to "working for the man" again as a society. This is my guess (and other's guess it too), more than 50% of the population will be self-employed within twenty years.

Being a writer (artist, musician, creative) has never been more practical. You just tell them:

I'm just ahead of the curve. I've never been more practical.

Shalom: Live Long and Prosper!

Darrell Wolfe (DG Wolfe)

Storyteller | Writer | Thinker | Consultant @ DarrellWolfe.com

Written April 24, 2018 by Darrell G Wolfe

Answers, Business, Craft, Creatives, Finances, Maker, Money, Writing No comments

Sunday, February 11, 2018

Debt Disputes: What to do with collections, charge-offs, and unknown items on your credit report.

Quite often, over the years, I've worked with people who had old items on their credit reports. Sometimes they don't even know what the items are for. Other times they disagree with the legitimacy of the report, or the reason the company says they still owe money.

The following is my advice for any such individuals. Take it for what it is. I'm not an "expert" but I've been a loan officer for over 12 years and I've seen quite a bit.

Step One: Debt Validation Letter
Step 2.1: Debt Validated/Settle
Step 2.2: Debt Not Validated/Still Not Removed.

Step One: Debt Validation Letter

See TheBalance.com , I borrowed their letter and made it better. Here's my revised template:

Date

Your Name
Address
City, State Zip

Debt Collector’s Name
Address
City, State Zip

Re: [insert account number]

This letter is sent in response to an item showing on my credit report. I am requesting that you provide validation of this debt. A validation of this debt includes a signed copy of the contract, statements, and notices.

If you are unable to comply with a debt validation, you are required to remove this debt from my credit reports. Please provide me a letter confirming this was completed.

If you do not comply with this request, I will may seek remediation through filing a complaint with the Consumer Financial Protection Bureau (CFPB) and/or the Idaho Attorney General’s Office (ID AG). Civil and criminal claims may also be pursued.

Sincerely,

Your Name

CC: ID AG
CC: CFPB

********

Step 2.1: Debt Validated/Settle

If they validate the debt, and you are satisfied that you owe it. Work on settling the debt for less than you owe.

Sample Lump Sum Debt Settlement Offer Letter::

Date

Acct Number: [insert account number]
Credit Card Company Name
Company’s Address
City, State and ZIP Code

Re: Requesting Payoff of my Credit Account

Dear [insert company name]:

This letter serves as my official offer to pay my past due balance of [insert type of product] with your company [list the name of the card company, account number Account Number]. As you are aware, I am unable to pay the full balance, however, I am able, at this point in time, to gather an amount that I believe will be an agreeable payoff amount.

I would like to request that if I pay the amount of [insert total amount here], my account will be considered paid in full.

If this is agreed upon, I would also request the following:

My account be closed and no further interest or penalty charges would be applied.

A written confirmation of your agreement to this proposal be sent to my address below.

After agreeing to this proposal and receipt of your written confirmation, I will pay the amount of LUMP SUM AMOUNT via certified check within 10 days of receiving your letter.

After you receive and post the payment, I request the following:

An official letter indicating that my account is closed and my balance is $0.

The account status as reported to the Credit Reporting Agencies be “CLOSED BY REQUEST OF CARDHOLDER” or “PAID IN FULL”

Thank you for your prompt attention to this matter. If you would like to discuss this further, please contact me by mail at the address below, by phone at the telephone number, or by email.

I look forward to resolving this matter.

Sincerely,

Your Signature
Your Typed Name
Phone
Email
Address
City, State and ZIP Code

Step 2.2: Debt Not Validated/Still Not Removed.

If they do not validate the debt, or they do and you are not satisfied with the outcome, you may file a complete. The two best resources are the CFPB and ID AG.

Consumer Financial Protection Bureau (CFPB)
File A Complaint: Here

The Idaho Attorney General’s Office (ID AG)
File A Claim: Here

Office of the Attorney General
700 W. Jefferson Street
P.O. Box 83720
Boise, ID 83720-0010
Phone (208) 334-2400
Fax (208) 854-8071

Darrell G. Wolfe

Storyteller | Writer | Thinker | Consultant | Multipotentialite

Written February 11, 2018 by Darrell G Wolfe

Money No comments

Saturday, February 10, 2018

Debt Disputes: What to do with collections, charge-offs, and unknown items on your credit report.

The following is my advice for any such individuals. Take it for what it is. I'm not an "expert" but I've been a loan officer for over 12 years and I've seen quite a bit.

Step One: Debt Validation Letter
Step 2.1: Debt Validated/Settle
Step 2.2: Debt Not Validated/Still Not Removed.

Step One: Debt Validation Letter

********

Step 2.1: Debt Validated/Settle

If they validate the debt, and you are satisfied that you owe it. Work on settling the debt for less than you owe.

Step 2.2: Debt Not Validated/Still Not Removed.

Darrell G. Wolfe

Storyteller | Writer | Thinker | Consultant | Multipotentialite

Written February 10, 2018 by Darrell G Wolfe

Credit, Debt, Finances, Money No comments

Sunday, May 8, 2016

Car Buying | The secrets of Service Warranties & Manufacturer Warranties

Spanish Coches Vintage Dealership

Paying for Repairs & Maintenance

The problem with owning and buying cars (also applies to houses, appliances, etc)... is that they break down. Whether the car is new or used, there will be repairs eventually. Even paying for maintenance (tires, oil changes, timing belts, water pumps, etc.) can be costly.

So how are you paying for all of those repairs?

The Best Option: Cash

In a perfect world you would be that you have a significant savings, and you pay cash for all of these things. It's not as hard as it sounds. Just don't act like the costs above are a surprise. They WILL come up, just plan on that now.

Start making payments of any amount toward those costs now, into a savings account labeled "Car Fund". Whether you pay $5, $25, or $100 per month into the Car Fund, you will be prepared for most repairs before they come up.

Repair Insurance: Service Warranties

What many people realize is that they have failed to save in the past (for whatever reason) and may fail to do so in the future. These people opt to pre-pay for potential repairs. The primary difference between "Insurance" and "Warranty" is that Insurance is typically paid for monthly, and a warranty is a one time purchase of a specific amount of money, for a specific amount of potential reward.

As with any insurance company the corporation you purchase the warranty from is betting you wont' need it or use it. You will pay $X dollars betting they will pay $X+, they are betting they will pay $X-.

Cost

The average cost of a Service Warranty purchased as an Aftermarket Product from an auto dealership will be between $1,500 - $3,000. They are hoping that the total cost of any repairs they pay for you will not be more than that.

You should check to see what the lifetime payout cap is, if you buy a Service Warranty for $3,000, but the company will only pay $4,000 over the life of the warranty, you did not benefit from the purchase.

Exclusions

There are many exclusions often included with a warranty.

Most are "Powertrain" only. The Powertrain is your Engine and Transmission (internal components only). That means something inside the device has to break before you are covered. Items attached (alternator, air conditioner) do not count, and are not covered.

You could get Bumper to Bumper, but even then you need to read the list of items covered. They may cover the break calipers in case of breakage, but not brake pads or rotors.

No two warranties are the same, read, read, read, read them before you buy. Do not be surprised when you pay for $3,000 Service Warranty and then have a repair cost is does not cover (which is common).

Other Products

Manufacturer Warranties

A Manufacturer Warranty typically covers most major components for the first number of miles and years. One of the best I've ever seen was Hyundai, who claimed a 100,000 miles/ 10 year warranty. But Last I heard it was non-transferable. That means, if you buy the car used at 5 years, you don't get the other five. You have to be the original new owner to use their warranty. Other's are transferable, so do your research.

Tire and Wheel

This essentially covers tire rotations, tires replacements, and even wheel replacements for a number of years, miles, or both. This can be a good coverage, but Discount Tires offers an equal protection for far less on their new tires.

Windshield Repair

This replaces your windshield if you have damage. Honestly, this is kind of a waste of money. If you have full coverage insurance, which I do even on my $2,000 cash cars, windshield replacement is usually built in. When it's not, it's available as a rider for cheap. Just get this through your insurance company.

Care Programs

This one is interesting. Think "Oil Changes", but it can encompass more. Imagine you could just pre-buy all your oil changes for five years. That's a weight off the shoulders of people living from day to day, with little savings.

Additional Costs

With any of these additional programs you purchase, you are adding a balance to your loan (assuming you are financing the car). ANY balance you add, will cost you interest on that balance over time. So you are not just paying $3,000 for a service warranty, or $800 for Care Program, you are paying interest on that over five years (or your term) also.

Therefore, as I said in the start, it's better that you run the Dave Ramsey plan and pay cash. Save for expenses. See my STORE for suggestions on books from Dave Ramsey.

The Insider

The Insider is a BIG fan of Dave Ramsey:

Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!

Listen to The Dave Ramsey Show (HERE)

Or by his most popular book: (HERE) The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

Written May 08, 2016 by Darrell G Wolfe

Money No comments

Saturday, May 7, 2016

HELP Overdraft Fees! | The secret to never paying another overdraft fee for the rest of your life!

Per Help!!

What if you are a chronic over-drafter, and you can't make heads or tails of your account, and you just want to "Keep It Simple Stupid"?

Some people can separate and compartmentalize their finances easily.

Some have no idea what they pay each month.

Others are 6 months behind before they know how late they really are (this one would be me...).

You don’t have to be a strict budgeter but you do have to have guidelines and principles you live by.

If you are behind, or you feel lost in financial windfall, don’t worry you are not alone.

Many people who have long degrees after their name get lost when dealing with money.

It’s among the most important practical skills most people could learn, but many don’t know where to start. We will examine a few things you can try if you are buried and don’t know how to get out.

Nothing comes fast and easy, but with some good information and willingness to try new things you can start your journey to a better place, one step at a time.

~Time for a Do Over~

If you find your life in chaos and you can’t tell where your money is or is not going then you may want to start by starting over.

Calling it a do over is just fine.

In fact, if you have an account that is often overdrawn, you may even want to consider closing it and starting a new account number so that you can start your new register skills at square one.

In addition, if there were automatic payments causing the overdrafts they will cease because that account is closed and they will not have your new account number. Don’t give it to them either. Pay them in cash, with online bill pay, or money orders.

If you deal often with overdrafts you should not give your card or account number to any merchants for payments, even one-time payments.

Often they will start drafting automatically again once they have your new information, even if you told them not to. Don’t put yourself in that situation. If they demand auto pay, set up a new account number separately just for auto pays and another for your main bills and spending.

~The Cash Method (Dave's Envelope System)~

The easiest budget is to take out cash, envelopes, and an inexpensive notebook.

On each envelope write a category (gas, rent, groceries, bills, etc…). You can even keep a separate envelope for each bill.

For each envelope you will have a separate notebook or section of a notebook.

Some people even write their balances straight on the envelope and subtract as they go right on the envelope itself.

Whatever works for you is the best way.

Try it different ways until you find what works.

Tag each notebook section or envelope with a separate label and write on the first page the name of the category and balance (amount in envelope).

In this example you will see “Bills” on the envelope.

The deductions are taken each day.

This person turned those cash deductions either into money orders, or made payments at local stores. In many cases you can pay an electric bill at the local grocery store customer service desk, or other partner business.

Each time you make a withdrawal from the envelope you write down the date and amount and reason.

As you get comfortable with this cash method you can eventually combine the envelopes of various categories into one envelope. Then have one notebook for your cash. Then mark in that notebook the date, money, and category and in the separate category notebook you write the date, money, reason (specific).

This whole process isn’t necessary forever, only until you have a firm, comfortable, grasp on where your money is going and you are disciplined to spend the right amount at the right places.

You should plan your monthly budget out to include everything from bills to fun.

If you don't plan in the fun, you will do it anyway.

You must plan fun or you will binge-spend causing more money to go to that than you would want which would take away from the money that should go to other things.

~Bill Pay and Money Orders~

Once you really get this down your ready to put all that money into an account.

Start with money orders or Bill Pay and don’t use an ATM/Check Card until you’re thoroughly sure that you are ready.

Piece by piece you add services the bank offers.

Stay away from credit cards unless and until you can honestly call yourself disciplined to pay them in full each month.

Once you're sure you can use a credit card to your advantage, you could pay everything with the credit card and get one with a great rewards program.

Make sure to pay it off in full every month never carry a balance on a credit card.

They may offer amazing deals with 0% APR for 6 months. But what you don’t know is that if the card isn’t paid off within 6 months many companies will back date that interest to day one.

Think of credit cards as a convenience tool, like a check or debit card. You don’t use a credit card unless you have the money to pay it off. Credit cards can be useful because errors caused by merchants or fraud through use of the card won’t affect your cash balances in your checking account directly, where as they will if you had used your debit card. Think of your debit card and credit cards as the same or similar tools.

~The Multiple Account Method~

I prefer having separate accounts for separate purposes.

Much like an electronic version of the envelopes.

I have one account for just bills.
Another for spending money.
Another for tithe and offering.
Another budgeted for the kids.
You could also use one for business purposes, budgeting play money, gas money, or hobby money... you get the idea.

Any time you need to allocate funds for a special purpose a separate account could be useful, as long as you keep track of what is what.

I have my direct deposit split into each account automatically. Tithe then is as simple as going online and sending that payment from that account twice a month.

I have a little extra put in there to save for special offerings or things God may want me to do for Him; such as buying someone a hamburger or a new car.

I know my money is His, so I plan for Him to ask me for its use to further His kingdom.

~The Computer Method~

Quicken is among the most popular budgeting programs available. I strongly recommend using a computer based program to act as your electronic register. It helps ensure you are not making mathematical errors in the record keeping process. If all you have is pen, paper, and calculator you may forget where you left off, or hit the wrong button. If you miss tally the total and don’t see it, you risk overdraft.

This will help you gain better control and efficiency over your finances.

Microsoft Office Excel is the least expensive way to keep a balance on the computer.

If you can’t afford Microsoft Office on your computer do a Google search for “Open Office”. Download that and use their “Calc” program, it is their version of Excel. It is a free open source program that does most of the basic things Microsoft Office does. Google Spreadsheets is free now too.

OpenOffice also has within their Office Suite a free version of PowerPoint, Word, and other programs. It’s not pretty, it doesn’t do everything, and you’ll still wish you had Microsoft Office, but it gets the job done in this case if you don’t have Microsoft Office or choose not to spend your money on it at this time.

~Using Excel~

Just start columns for each thing you need to track.

Typically you only need:

Date,
Transaction,
Amount,
Balance,
and Total.

To add it all up at the top of the column over the dollar figure just use the sum formula[1]. The letter shows the vertical column and the number shows the horizontal row of the cell you are talking about.

To see a running balance along the side after each transaction just add the cell above to the cell new cell. In this example cell “D6” is 100 plus cell “C7” which is -850.

You must use the negative in front of all subtractions to make this method work. It is among the simpler ways to format your sheet.

Excel Examples

~Co-Accounting~

If you are married, or otherwise responsible for the bills and income of more than one equally involved person, communication is key. You must find a way to keep the lines of communication open and this way all parties involved are aware of the state of the accounts.

Almost without exception one person is a natural saver the other is a natural spender. If one person does all the banking there is bound to be tension.

The banker of the family is likely to feel all the pressure of the bills and the rest of the family will go on oblivious to the situation and pressure the banker to lighten up because they want to spend the bill money on fun and food. If the banker of the family were to become in any way unable to participate, even if they are organized, the other person will be lost when bills are due.

Although we’re still working on improving, my wife and I came up with a few ideas that have helped over the years.

One of the best, since she is better organized and we are both busy, is that she gives the bills to me with instructions on who to pay and how much.

Then can I pay them with our online Bill Pay service.

This way we both know what bills we’re paying and the best part is that it opens the door of communication about finances. (I've done a horrible job at working with her on this, but when we do it, it works).

[1] Example of sum formula “=SUM(C6:C13)” and “=D6+C7”

The Insider

The Insider is a BIG fan of Dave Ramsey:

Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!

Listen to The Dave Ramsey Show (HERE)

Or by his most popular book: (HERE) The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

Written May 07, 2016 by Darrell G Wolfe

Money No comments

The Dreaded Register | Preventing overdrafts, by actually knowing your balance... the real balance.

Heartlover1717 Check Register...

You CAN avoid ever paying an overdraft fee, for the rest of your life... with this easy step:

If you are not one to understand detailed facts let me just head off all I’m about to say with one simple rule to avoid overdrafts for the rest of your life.

The bottom line is this: keep a separate written record and don’t spend more than you have.

Now for those who need more let’s take a deeper look at that statement.

~Record~

A separate written record is one in which you write everything down from the largest payment to the smallest cup of soda. Using your online banking, as great a tool as it is does not excuse you from keeping a record separate from the bank. You can use paper and pen, or a software program like Quicken, or even build your own excel sheet. If you do use Quicken I don’t advise downloading your history, input all the data manually.

Downloading data can make it harder to catch fraudulent transactions. More than one person has called their bank about a small transaction only to find out it’s been coming out for two years or more without their knowledge.

However you do it, you must track the transactions going in and out of your account separate from the bank. This is the only way to know for sure that no fraud is going on and find out what your balance is.

The bank doesn't know your balance.

There are many reasons why your real balance may not be the same as the balance showing online.

Online (or at the ATM, 800 Number, or any other bank record) only reflects that which the bank has received not everything you have done. Even card transactions do not always come through right away.

I actually heard someone once say totally serious:

“How could I be overdrawn? I still have checks.”

This is a humorous but true example of a total lack of understanding how money and math works. This person should not have a bank account, or even handle money. They should have someone take care of things for them.

~How?~

Keeping a record does take work. One of the first things you must understand; just because you deposit a check into the bank doesn’t mean it’s available to use.

Checks usually have to post to the account before you can use them. Also, checks may have holds placed on them, or even be returned as no good. If you have any doubt that the check you put in is good, wait a full three weeks before using the funds.

That is how long it can take for a bank to find out that the check was no good (Yes even in 2011). That being said the first step, assuming that you start with a zero balance, is to input your deposits. You should not spend what you do not have.

~Available Balance~

What is my ledger balance VS my available balance?

When items post the result is a balance of some kind. This is called your “Ledger Balance” also known as your balance as of the last business day. It is the ending balance including everything that has officially posted but not the balance including any pending transactions (those that have not yet posted).

Your available balance is the Ledger Balance adding/subtracting anything showing as pending. As we said with checks there are instances where a deposit that is pending is not part of the available balance either. Unless the deposit was electronic it won’t usually be available until it has posted.

There are also lots of ways for your card transactions to not always show as pending all the time. Sometimes transactions especially card transactions may double or triple pend, pend for wrong amounts (more or less), pend for several days, then disappear and post at a later date.

Therefore always check your balance on a separate written record where you write everything down and add and subtract as you go. Not only is this a good idea, you are required to according to the bank in your disclosures. Calling for your balance, going online, ATM, or in any other way contacting your bank for your balance is not a replacement for a written record. If you contact the bank for your balance assume it’s wrong!

Always look to your own records for up to date information. If you don’t know your balance without contacting the bank, than no-one does especially the bank.

~Fees~

Overdraft fees are awful, high, outrageous, expensive, and… well you get the point. You know they are awful. I once had one item go through my account and cause several items to post into overdraft causing, more items to post into a negative balance and so forth. I paid over $450 just in fees that one month. I don’t know about you, but I didn’t have $450 to spend on fees, so it put me behind months.

Do you know who was to blame for that overdraft causing $450 in fees though? The Bank? The President? The Congress? No. It was me. I set up the payment and agreed to have it auto deducted. I failed to account for it in my balancing. I did it, knowing full well the fees that could come if the balance was not there for it when it came. Therefore I am the only person to blame. The sooner you get a hold of that reality the sooner you can take action to prevent another fee on your account.

~Winds of Change~

On July 21st of 2010 a banking regulation was signed into law by president Obama. It is called the Dodd-Frank Wall Street Reform and Consumer Protection Act[1]. Immediately following this acts’ passing banks were limited to how many overdraft fees could be charged per day and how they could approve and post items that could cause fees. Each bank drafted new policies around this regulation. Those two changes were only the beginning. As of the beginning of 2011 there are still 900 laws that still haven’t been written from the stipulations of that act. The financial picture is changing. Banks are being restricted and so are the free services. What does this mean to you and your overdrafts? It may be a small bit harder to get a fee, but a great deal harder to ask the bank to reverse it.

~Accounting 101~

The only sure fire way to avoid an overdraft fee is… drum roll please… to not overdraw. I know, magic right? Allow me to review accounting 101. Anyone can do this.

The correct way to use your account is to make a deposit (or add money) to your account. Then make withdrawals less than or equal to the amount deposited including any fees or charges.

So now the balance is $36.50. However in the real world most people don’t do things the way they are supposed to. The banks post items according to regulations. Your bank isn't making these rules, people in the Federal and State Governments are.

Even different states may do things differently. Generally what happens is someone gets to the point above and then writes a check on Thursday expecting that the check won’t come through until the direct deposit comes in Friday.

Usually this works but since companies have so many convenient electronic ways of clearing checks it could come in on Thursday.

This causes an overdraft.

Some banks can take your check, and clear your other bank on the same day. So you now understand how this happens.

What if you are already in the middle of this?

What if you are overdrawn so often you can’t see how to get out of the cycle?

What do you do now if you are overdrawn right now?

Turn to the next chapter for help.

[1] http://en.wikipedia.org

The Insider

The Insider is a BIG fan of Dave Ramsey:

Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!

Listen to The Dave Ramsey Show (HERE)

Or by his most popular book: (HERE) The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

Written May 07, 2016 by Darrell G Wolfe

Money No comments

INVESTMENTS | What you really need to know about Stocks, Bonds, & Mutual Funds... Oh My!

Celestine Chua What the Rich Invests In “The rich invest in time, the poor invest in money.” ~ Warren Buffett

In addition to Savings and CD’s, financial institutions also offer investment products.

There are 3 basic products investment firms offer. There are many more products than these; however these are the three most common types.

Other investment products usually take more experience and money. There are many books written on these, and as I am not a licensed investment specialist, I will sum up the basics.

If you find this area interesting I encourage you to look into it more on your own. I would start by reading anything by Dave Ramsey[1].

The 3 basic areas are:

Stocks
Bonds
Mutual Funds.

~Stocks~

Stocks are partial ownership in a company. You earn money two ways:

A. The company pays you when it makes profit; this pay is called a dividend. This could be higher or lower than standard interest.

B. You can sell stocks at a price higher than you paid for them. You buy a share at $6 and sell at $8 you make $2.

The more shares you buy the more dividends are paid to you and the more you make when selling them. Stocks are the more risky investment because you can also buy a share for $20 and see the value drop to $6. You only really lose money if the company goes out of business or if you sell your shares when the value of your shares is low. Otherwise, if you wait long enough the value will go back up eventually, as long as it is a good company.

~Bonds~

Bonds are loans. Basically you lend money to companies (or the government) and the company (or government) pays you back plus interest.

It’s like you become the bank. The longer the bond is kept the more you earn. The bonds risk is limited by the ability of the institution to pay you back. You can buy from the Federal Government, State Governments, and even private companies. Obviously a relatively shaky company is much more risky then the federal or state government when it comes to the ability of that bond to be paid back to you.

~Mutual Funds~

Mutual Funds are a combination of investments. These make the most sense for most people.

A mutual fund is where an investor buys many products which vary in type and degree of risk. The funds adviser then sells a share of that group of products. This is called a Mutual Fund. These funds may include CD’s, Stocks, Bonds, and other investments.

There are different risk levels and therefore some are more stable while others have higher return potential.

~Starting Out~

These products and much more are offered through investment firms. The easiest way to get started investing is to either meet with an adviser, also known as a consultant, or do some research and start trading on your own.

You could meet with a financial consultant to review your opportunities. A meeting with an adviser usually requires that you have at least $500 – $1000 that you are willing, even if not yet committed, to invest, but not always.

Another way to start your investing would be to open an online trading account and play with stocks on your own.

If you’re just starting out you could buy one or two shares at a time, just to see where it goes. It’s like playing a strategy game at that point. As you get used to how things work you can put more money into it. I really enjoy penny stocks (Stocks Valued for less than $1 per share). It’s an easy way to put just a few dollars, $10-$20, into the market and watch it grow or shrink without really risking anything important.

~Playing it Safe~

You should always keep in mind that the money you invest in non-FDIC products can lose value or even be lost.

However, that money can also earn you a lot more returns than a simple savings account.

Use money you are willing to loose.

This sounds like a silly thing to say.

Why would I want to lose money?

It is a silly thing to say.

Then again you spend money on games, TV, Movies or other entertainment without any monetary return all the time. You do this because there is a return of enjoyment.

Consider this your entertainment money. So you aren't losing money you are spending it. I say anything I would spend on disposable products can also be trading money. If you can spend $25, $100, or even a $1000 to eat or watch movies or go on trips then you can spend it to trade.

Especially when you’re first starting out consider trading money as your excess money. Don’t use the money that you’ve saved to live on or that 6-9 month income money. You can, however, budget in trading money to your savings plan, just like you budget in play money. By taking a few dollars here or there and putting them aside to trade you can start playing with the market while you’re building your savings.

Again this should only be money your willing to spend, just as if you had bought food or fun with it. Consider playing the market like playing an arcade game. You may win coins back, or it may eat your coins. It can be fun even just to buy one share to watch and track it. No emotional based decisions here. You buy shares based on good research and a lot of prayer.

The good news is that investment firms can often help you with more secure products if you’re not ready for the market yet. Many can help you buy FDIC and non-FDIC CD’s, called “brokered CD’s”. They either base these CD’s on various market factors or buy them from other banks.

By buying FDIC CD’s through investment firms you can often obtain better rates of return than just using the bank down the street. The investment firm researches the best rates at all banks large and small. By having them buy more CD’s through several smaller banks you can spread your FDIC coverage. Since all are maintained and managed by one institution and one investment adviser, you have the benefit of more earning power without having to drive yourself to multiple institutions.

That is the quickest run down I can give you about investments. You can learn more with a little research, I recommend starting with any materials by Dave Ramsey. He has a special suggestion, putting all of your investment money into four types of funds. More on there (HERE).

Dave feels more secure with Mutual Funds than I do. Then again, I have a negative outlook on the future of the USA, whereas, he feels things will continue to be the same in 10-20 years.

For the money I do invest, I use his four fund approach (HERE).

Ultimately remember these points about investing:

Investments CAN lose money…
Do not buy anything until you have prayed it through thoroughly! Make sure that God said: “Yes!”
Consider that your money should be working for you, not you working for your money.

*Given the changes occurring in the world today, it could also be wise to seek other things to invest in.

Property, Gold, Silver, Farm/Produce production, and other things of tangible value.

When the markets do someday collapse and the world goes through change having debt free commodities that are innately valuable, such as those used in the barter days I spoke of in the beginning of this book (HERE), could be a great thing to have on hand.

Gold and Silver, if just bought for value should be bought in bulk sizes. However if bought for the potential of trading in a pinch should be bought in small sizes such as 1/4 or even 1/8 of an ounce.