Turning Debt Into Wealth Tools
Author: Ryan
Turning debt into wealth is easy, right? It can be a lot easier if you have the right tools and the patience. Here are some of the tools the rich use to with their wealth creation:
Budgeting Tools: Yes, believe it or not, wealthy people budget. They may not budget the same way other people do, but they know exactly where there money is coming and exactly where it is going out. A simple monthly/daily spreadsheet will do the trick, or take a look at the Mint personal finance program will help you. However you do it, budgeting is an essential component to turning debt into wealth.
Books and Magazines: Wealthy people are always trying to become better. In order to do that, the rich are constantly tying to increase their IQ. Reading books on investing, self-improvement, money management and other areas of interest keep them inspired while learning new ways to create wealth and produce more income streams. Increase your understanding of personal finance, and you'll be leaps and bounds ahead of other people in turning your debt into wealth.
Friends: The rich know that becoming wealthy requires some friendships. You need people who are good money managers, people who can give sound tax advice, and people who have a vision. Friends and connections make the wealthy wealthier. Connect and surround yourself with people that have a wealthy mindset and you will naturally become that way yourself.
Earplugs: Rich people understand that investing is a long-term strategy that will produce great wealth over time. The day-to-day fluctuations in the market that the media focuses on has little relevance to the individual investor’s portfolio 10 years from now. Learn to avoid the noise, and stay focused on your plan to turn debt into wealth.
Automation: Millionaires are far too busy making money or enjoying life to have to worry about paying the bills, saving enough money and doing menial tasks like transferring funds to their brokerage account. Set up their bank accounts to automatically pay your bills and invest so you can put debt into wealth transformation on autopilot.
Article Source: www.articlesbase.com/personal-finance-articles/turning-debt-into-wealth-tools-407911.html
About the Author:
Learn more about how to become a millionaire and transform debt into wealth by visiting Millionaire Money Habits. A free report to teach you how to become rich is waiting for you.
Saturday, May 10, 2008
Discover how to develop a good budget.
Discover how to develop a good budget.
Author: www.articlesbase.com/authors/jomark3@verizon.net/25782.htm
A household budget is an important tool to make it easier to manage and control your family's finances. As with any important tool, you should have your budget writing. Many people say that they keep a budget in their head, but that never really works. Keeping your budget in a spreadsheet or written on paper is absolutely necessary if you really intend to use it. A comprehensive budget is an extremely important tool that allows you manage the family finances.
It is significant to keep a good attitude about your budget and do not view it negatively. Focus ion the advantages that it provides you with now and into the future. A well-designed budget should include money for entertainment as well as necessities. This goes a long way in allowing you to enjoy life as you save money while preventing you from living beyond your means.
When planning a budget it is important to consider all of the income and expenses within your household. Your budget should start as an outline to get a rough idea of what your expenses are. Make sure you include all of your expenses. If you stop on the way to work to buy coffee, include it in your budget outline. Don’t forget to add in an amount for savings each month. At this point, your budget is not set it in stone.
After you have included all of the information in your preliminary budget, go through it and determine what your totals are. Have you allocated enough to savings? Are there areas where you need to cut back or add in addition money? These are all questions that need to be answered before you finalize your budget. After you are satisfied with all of the numbers you have a completed budget.
The numbers you have in your budget are firm. Do not deviate from them. If you allocated 200 dollars for monthly entertainment and you blew the entire amount on the first Friday, too bad! You’ll have to watch TV, or read books for the rest of the month. But that is the value of a budget; it keeps you focused on the things that are important; like a comfortable retirement, or the kids’ college expenses. By planning your budget wisely, you can accomplish all of these things and still maintain a good quality of life.
Check out my newest ebook for the details on how to reduce expenses and put money in your pocket!
Article Source: http://www.articlesbase.com/personal-finance-articles/designing-a-good-budget-for-an-early-retirement-408949.html
About the Author:Put Money In Your Pocket.
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Monday, April 28, 2008
Developers avoiding responsobilities under affordable housing scheme
28 April 2008
Developers have paid €78m to avoid building social housing. By Juno McEnroe building firms have paid €78.6 million to avoid their responsibilities under the social and affordable housing scheme.
But home-seekers remain the real losers as city, county and town councils receive the payouts but do not re-invest the monies in social housing, say housing rights campaigners. More than 43,000 people are on council housing waiting lists — with many anxious to avail of affordable housing.
Under Part V of the Planning and Development Act 2000, developers were required to set aside 20% of their rezoned land for social or affordable housing. But contractors can skip their responsibility by availing of a buy-out loophole. However, housing support groups are concerned the builders’ opt-out payments could lead to young couples, in particular, continuing to struggle to get a house.
Many applicants, who could only afford a mortgage under the social and affordable scheme, are slipping further down council waiting lists. A breakdown by the Irish Examiner of the amounts reveals developers paid 31 county councils, five city councils and 22 town councils. Focus Ireland last night demanded councils stood up to developers and insist on homes being provided rather than cash". News from Irish Examiner
These housing schemes are created to help young families with children, to help firtst time buyers who want to own place of their own....So many of them will have to wait more... What is your opinion?
Developers have paid €78m to avoid building social housing. By Juno McEnroe building firms have paid €78.6 million to avoid their responsibilities under the social and affordable housing scheme.
But home-seekers remain the real losers as city, county and town councils receive the payouts but do not re-invest the monies in social housing, say housing rights campaigners. More than 43,000 people are on council housing waiting lists — with many anxious to avail of affordable housing.
Under Part V of the Planning and Development Act 2000, developers were required to set aside 20% of their rezoned land for social or affordable housing. But contractors can skip their responsibility by availing of a buy-out loophole. However, housing support groups are concerned the builders’ opt-out payments could lead to young couples, in particular, continuing to struggle to get a house.
Many applicants, who could only afford a mortgage under the social and affordable scheme, are slipping further down council waiting lists. A breakdown by the Irish Examiner of the amounts reveals developers paid 31 county councils, five city councils and 22 town councils. Focus Ireland last night demanded councils stood up to developers and insist on homes being provided rather than cash". News from Irish Examiner
These housing schemes are created to help young families with children, to help firtst time buyers who want to own place of their own....So many of them will have to wait more... What is your opinion?
Sunday, April 27, 2008
Three banks plan to raise mortgage rates.
Saturday, 26 April 2008 by RTE.ie
Three mortgage lenders have announced that they are independently raising their
mortgage interest rates. Ulster Bank, First Active and Permanent TSB have increased their standard variable rates by between 0.2% and 0.25%.
This increase will add an extra €40 a month to a mortgage of 250,000 over a 30 year term.
A spokesman for Permanent TSB, which is the largest mortgage provider in Ireland, said the change reflected the higher cost of money in international markets.
He said they had tried to avoid passing this increase on to customers until now, but had to do so at this time.
The Independent Mortgage Advisers Federation says consumers should now contact their bank to check what kind of mortgage they have.
The organisation is also raising concerns that other mortgage providers may also look at increasing their rates.For those who are with Ulster Bank, First Active and Permament TSB (variable rate) it's not very good news. It means you have to reconsider you budget, save or ....
What is your rate at the moment? As it was suggested try to move to fixed rate or tracker rate. It might save you few bobs.
Thursday, April 24, 2008
Bad news. Homeowners may start paying broker fee
May be or may be not? New homeowners may face broker fee.
Today RTE news published news that we might expect to pay fee to the broker.
"People hoping to take out mortgages will now face another charge if buying through a broker.
The Professional Insurance Brokers Association has announced that it is strongly considering introducing the burden on prospective new homeowners.
The announcement follows the decision by several banks and other lenders to cut back the commission they pay to brokers. Last year brokers were involved in 50% of mortgages taken out in Ireland.
PIBA Chairman Jack Fitzpatrick says that his 900 members are suffering the knock-on effects of volatility in the global markets affecting banks.
That volatility will have repercussions for customers using brokers to get mortgages.
In the last two weeks, seven banks have retuned their mortgage offering by putting rates up, putting loan to value up, saying they are pulling out of the broker channel, or cutting broker commission.
Yesterday AIB and EBS were the latest to make moves.
AIB said it is cutting the commission it pays to brokers to 0.5% of the mortgage amount drawn, down from 1%. It blames the continuing high cost of funds in the financial markets and the effect it is having on margins in its mortgage business".
So you might put some extra contingency for the mortgage fees. Be on safer side!
Today RTE news published news that we might expect to pay fee to the broker.
"People hoping to take out mortgages will now face another charge if buying through a broker.
The Professional Insurance Brokers Association has announced that it is strongly considering introducing the burden on prospective new homeowners.
The announcement follows the decision by several banks and other lenders to cut back the commission they pay to brokers. Last year brokers were involved in 50% of mortgages taken out in Ireland.
PIBA Chairman Jack Fitzpatrick says that his 900 members are suffering the knock-on effects of volatility in the global markets affecting banks.
That volatility will have repercussions for customers using brokers to get mortgages.
In the last two weeks, seven banks have retuned their mortgage offering by putting rates up, putting loan to value up, saying they are pulling out of the broker channel, or cutting broker commission.
Yesterday AIB and EBS were the latest to make moves.
AIB said it is cutting the commission it pays to brokers to 0.5% of the mortgage amount drawn, down from 1%. It blames the continuing high cost of funds in the financial markets and the effect it is having on margins in its mortgage business".
So you might put some extra contingency for the mortgage fees. Be on safer side!
Courtesy of RTE news.
Wednesday, April 23, 2008
Which documents do I need when applying for mortgage?
This is a list of documents you might need. Check this list and see if you have it.
1. Proof of identity (Passport ,driver’s license)
2. Utility bills with your name (ESB, phone bills and etc)
3. Recent P60 – very important document indeed.
4. Bank account statements (current account, saving account (with some savings is a big) plus credit cards bill or loan (please make it empty – get rid of debt)
5. Payslips (minimum 3). Some people tend to throw them - don’t.
6. If you are your own boss, have accountant’s certificate about your income for the last 3 years)
7. Salary certificate
From the personal experience, buy good size folder and keep everything in it. You don’t want to run around the house trying to find papers. Be organised. Make copies of everything.
1. Proof of identity (Passport ,driver’s license)
2. Utility bills with your name (ESB, phone bills and etc)
3. Recent P60 – very important document indeed.
4. Bank account statements (current account, saving account (with some savings is a big) plus credit cards bill or loan (please make it empty – get rid of debt)
5. Payslips (minimum 3). Some people tend to throw them - don’t.
6. If you are your own boss, have accountant’s certificate about your income for the last 3 years)
7. Salary certificate
From the personal experience, buy good size folder and keep everything in it. You don’t want to run around the house trying to find papers. Be organised. Make copies of everything.
Tuesday, April 22, 2008
Affordability index 2008
AFFORDABILITY INDEX
Good news for first-time buyers. Affordability Index shows that it's better to live in your own house then renting. It's because of the slowing prices and thanks to new mortgage interest relief from budget 2008.
I remember 2 years ago I couldn't dream about buying decent 1 bed apartment in the city centre, it was only in the commuter cities. Now everything is changing...
This improvement is due to continued decreases in house prices and follows the introduction of the new mortgage interest relief bands in Budget 2008.
"The PTSB/ESRI House Price Index has shown that house prices fell by a further 0.7 per cent in January this year, bringing the average house price for first-time buyers to 257,222 euros, compared to 279,399 euros in January last year, a decrease of 22,177 euros in the last twelve months. Although the rate of decline in house prices will slow throughout the year, it is expected that by December, house prices may have declined by as much as 5-10 per cent. This decline will bring the average price for a first-time buyer’s home to the region of 232,000 euros to 244,000 euros, once again improving affordability further for first-time buyers. House prices have decreased over the last year as demand for housing in the market has slowed. This is due to two key factors.
Firstly, increased levels of supply of housing. Over 80,000 new homes were completed in 2006 and 78,000 in 2007. With strong levels of supply, house prices started to slow as the market reached a state of equilibrium as shown in the chart above.
We estimate that between 45,000 to 50,000 houses will be completed in 2008, as supply continues to decrease in response to falling demand, and that in the years to come completion figures will average around this level.
Secondly, many first-time buyers (and other buyers) decided to step out of the market before the election as they waited for promised changes to stamp duty. With both of these factors causing house prices to decrease, affordability for first-time buyers has seen a strong improvement.
During 2007 we saw another factor come into play. Average rents increased by just over 11 per cent, this was mainly due to increases in demand as purchasers rented while they waited before purchasing their first home.
Central Statistic Office figures for February 2008 have shown that although rents continue to increase, they are doing so at a lower level than before, which would suggest that some buyers may already be returning to the market.
Finally mortgage interest rates also impact affordability for new buyers.
During the period from December 2005 to June 2007, the European Central Bank (ECB) increased lending rates eight times by 2.00 per cent in total. When ECB rates increase, so too do standard variable rates and tracker variable rates in Ireland. At the last increase in June the average standard variable in Ireland was 5.33 per cent. The average standard variable rate is now 5.39 per cent due to the impact of the credit crunch on the cost of money. We expect that during 2008 (more likely in the latter half of the year) that the European Central Bank will reduce rates by possibly 0.50 per cent. Should this happen, it is likely that it would be with two decreases of 0.25 per cent. Both of these decreases would further improve affordability for first-time buyers by reducing the monthly cost of a mortgage repayment.
In summary, we expect affordability to improve further for first-time buyers this year on the back of slowing house prices and expected decreases in mortgage interest rates. However all of the factors in the market combined should make it easier for first-time buyers to get onto the first step of that property ladder.
Buying is more cost effective in the medium term, writes Annette Hughes
Notwithstanding the improvement in housing affordability, the current uncertainty over the future prospects for house prices is generating a dilemma for potential first-time buyers, who are faced with the decision whether to buy or rent property at this time. We consider the choice faced by first-time buyers below. " To read more please CLICK HERE.
The latest EBS/DKM Affordability Index is published by Irish Property Buyer magazine and can be found at www.irishpropertybuyer.ie
Good news for first-time buyers. Affordability Index shows that it's better to live in your own house then renting. It's because of the slowing prices and thanks to new mortgage interest relief from budget 2008.
I remember 2 years ago I couldn't dream about buying decent 1 bed apartment in the city centre, it was only in the commuter cities. Now everything is changing...
This improvement is due to continued decreases in house prices and follows the introduction of the new mortgage interest relief bands in Budget 2008.
"The PTSB/ESRI House Price Index has shown that house prices fell by a further 0.7 per cent in January this year, bringing the average house price for first-time buyers to 257,222 euros, compared to 279,399 euros in January last year, a decrease of 22,177 euros in the last twelve months. Although the rate of decline in house prices will slow throughout the year, it is expected that by December, house prices may have declined by as much as 5-10 per cent. This decline will bring the average price for a first-time buyer’s home to the region of 232,000 euros to 244,000 euros, once again improving affordability further for first-time buyers. House prices have decreased over the last year as demand for housing in the market has slowed. This is due to two key factors.
Firstly, increased levels of supply of housing. Over 80,000 new homes were completed in 2006 and 78,000 in 2007. With strong levels of supply, house prices started to slow as the market reached a state of equilibrium as shown in the chart above.
We estimate that between 45,000 to 50,000 houses will be completed in 2008, as supply continues to decrease in response to falling demand, and that in the years to come completion figures will average around this level.
Secondly, many first-time buyers (and other buyers) decided to step out of the market before the election as they waited for promised changes to stamp duty. With both of these factors causing house prices to decrease, affordability for first-time buyers has seen a strong improvement.
During 2007 we saw another factor come into play. Average rents increased by just over 11 per cent, this was mainly due to increases in demand as purchasers rented while they waited before purchasing their first home.
Central Statistic Office figures for February 2008 have shown that although rents continue to increase, they are doing so at a lower level than before, which would suggest that some buyers may already be returning to the market.
Finally mortgage interest rates also impact affordability for new buyers.
During the period from December 2005 to June 2007, the European Central Bank (ECB) increased lending rates eight times by 2.00 per cent in total. When ECB rates increase, so too do standard variable rates and tracker variable rates in Ireland. At the last increase in June the average standard variable in Ireland was 5.33 per cent. The average standard variable rate is now 5.39 per cent due to the impact of the credit crunch on the cost of money. We expect that during 2008 (more likely in the latter half of the year) that the European Central Bank will reduce rates by possibly 0.50 per cent. Should this happen, it is likely that it would be with two decreases of 0.25 per cent. Both of these decreases would further improve affordability for first-time buyers by reducing the monthly cost of a mortgage repayment.
In summary, we expect affordability to improve further for first-time buyers this year on the back of slowing house prices and expected decreases in mortgage interest rates. However all of the factors in the market combined should make it easier for first-time buyers to get onto the first step of that property ladder.
Buying is more cost effective in the medium term, writes Annette Hughes
Notwithstanding the improvement in housing affordability, the current uncertainty over the future prospects for house prices is generating a dilemma for potential first-time buyers, who are faced with the decision whether to buy or rent property at this time. We consider the choice faced by first-time buyers below. " To read more please CLICK HERE.
The latest EBS/DKM Affordability Index is published by Irish Property Buyer magazine and can be found at www.irishpropertybuyer.ie
Monday, April 21, 2008
5 property questions for home buyers
5 questions you need to ask yourself when buying property in Ireland or anywhere else! Check out these 5 universal questions. This is your start...
- Where do you want to buy? Which city/county/area?
- How many bedrooms?
- What is your price range? Set up your minimum and maximum amount you can spend?
- What type of property you want? House/apartment/duplex/bungalow or site?
- Do you want new house or second hand?
After you have decided on your property description, go to property websites like MY HOME.IE or DAFT.IE ( those two were the most handiest) or call or e-mail to the property agents and let them know what you looking for. Check out for the agents located in the areas you think to buy. Talk to them, explain and call again after sometime to check.
Sunday, April 20, 2008
Welcome to online Irish home buyers guide
Welcome to my Irish home buyers guide.
Not so long ago me and my other part decided that it's time to climb on Irish property ladder.
So from where do we start? My best help was Irish Financial Regulator website. Remember this ad?
Please note that I don't try to promote companies I mention on my blog. I just try to make it easy buying property!
I don't know what a tracker mortgage is? Is the best bit... but so true because so many people don't know the answer to this question!
Not so long ago me and my other part decided that it's time to climb on Irish property ladder.
So from where do we start? My best help was Irish Financial Regulator website. Remember this ad?
Please note that I don't try to promote companies I mention on my blog. I just try to make it easy buying property!
I don't know what a tracker mortgage is? Is the best bit... but so true because so many people don't know the answer to this question!
So my best advise is to download and print out MORTGAGES MADE EASY PDF presented by Financial regulator. That was my best advisers at the start ...everything explained in simple language no jargon. Have a look! It's worth your time!
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