Financial Strategies

Financial Strategies For Shopping – Policy Amidst Financial Crises

Global economies are being constantly faced by new financial obstacles that make investing harder to do. Car insurance in its simplest sense is an investment. Getting insured has become more and more difficult to get and maintain in these financially trying times. Policy shoppers are pushed to trading off more comprehensive coverage package for a lesser one with lower premium rate. On the other hand, companies are becoming less lenient in giving discounts and packages just to make their ends meet with their means. These dilemmas have been constantly impeding both companies and consumers.

Being able to secure a car policy gives the policy holder the advantage of having a safety net in case things go wrong. Unfortunately, the constant increasing premium rates in the business make policy holders pessimistic in the whole system. Fortunately there are financial strategies that anyone can use to be able to maintain a good policy without having to pay much. There are four main financial strategies that you can use to enable yourself to break the financial storm, these are:

Always go for higher deductibles because they have lower premium rates.
Know and assess the coverage package that you will need.
Be vigilant in spotting discounts and rebates.
Know and understand the premium rate computation in relation with risk management.

Being responsible enough as a driver can get you cheap auto insurance with good coverage package. Provided that you can see yourself with a small chance of becoming involved in an accident can let you enjoy lower premium rates. Safe drivers can opt to purchase car insurance policies with low premium rates but with less coverage and compensation plans. In doing so, you should be vigilant enough not to get a policy with too low premium so that you can still enjoy leeway just in case that you will be involved in an accident.

Knowing and assessing the coverage package that you need allow you to get rid of the dead weight in your policy. Coverage should always coincide with the coverage ground of the policy. There are cases where policy holders are paying for coverage packages that are inapplicable to their needs. Avoiding this will not only save dollars; it will also allow you to save for something else.

Discounts and rebates can let you have the cheapest car insurance without giving up important parts of the coverage package. Spotting these financial rewards can let you have your dream policy for just a fraction of the price. Lastly, being knowledgeable on how companies compute for the premium rate will allow you to make the necessary adjustments to make companies charge you less.

Three World Financial Crises

Three World Financial Crises: A Full Account

To understand the financial crises that the world has been going through you need to understand what money is, so I start there. I go on to examine how banks lend and borrow money. Then I look at the crucial part played by the ‘bond market’ which is used by governments and companies to raise the money to cover their expenditure. After that, I explain the financial relationship between a Government which has to spend and raise money and their Central Bank which helps them to do it. Finally I look at how the economic climate changes and why the world has been experiencing a series of financial crises.

Money, Currencies, Exchange Rates

Money is denoted in currencies which are controlled by their governments. In the US it is the dollar; in the eurozone of 17 governments it is the euro; in China it is the rimini; in the UK it is the pound. The euro is an anomaly since it is not controlled by a single government (more about that later).

Within a country (or zone in the case of the euro) there is a knowable amount of money in circulation. The amount depends on the definition of money that is used. ‘M0’ is the narrowest of the several definitions: it is the total amount of the particular currency in notes and coins that is owned by all persons and entities, whether in their wallets or in their safes, including, in the UK, the safes of banks. Other definitions include forms of money such as deposits in bank current accounts, deposits in savings accounts with banks or other institutions, and term deposits, only repayable on a specified date.

Money in a particular currency is a commodity (like copper, wheat, oil, gold) which can be bought or sold with another currency at a rate determined by the market. As with any commodity, the price is higher if you are buying than if you are selling. Thus a bank might quote an exchange rate of 1.6 US$/GBPound for buying dollars with pounds and 1.5 US$/GBPound for selling dollars in return for pounds.

The existence of money and money markets makes trading in goods and services easy and leads to increase in wealth for individuals and nations. Without money there would be a brake on transactions. For example, a bricklayer who wanted to buy a pair of shoes would have to find a shoe maker who wanted some bricks laid (the process called barter). If they cannot find one another they are both the poorer. Because money exists, the bricklayer can earn money laying bricks for anyone and buy goods and services from anybody who has got what he wants.

Lending, Borrowing, Commercial Banks

Once money is accepted as payment for goods and services, individuals start to accumulate bank notes and coins. They need a bank to keep it safe until they are ready to make use of it. Some owners of money have more money than they need while others have less. So it becomes useful for pairs of individuals to agree that one should lend money to the other. Just as money lubricates the exchange of goods and services between buyers and sellers, so banks lubricate the use of money, bringing together lenders and borrowers. The lender usually requires the borrower to pay back a greater sum than they have borrowed, the extra being the ‘interest’.

Commercial banks offer safe keeping to holders of money. The Bank opens a ‘current account’ for the owner of the money and agrees to repay it on demand. It also offers the account holder facilities for making and receiving payments to and from third parties by such means as cheques, standing orders, direct debits and internet transactions. As the Bank gathers more depositors and the total sum of the deposits increases, the Bank finds itself in possession of large quantities of money sitting in its vaults doing nothing. This money does not belong to the Bank and, in principle, it is repayable to the depositors instantly on demand. In practice, the daily demand for repayment is a small fraction of the total. The Bank is providing a service to depositors for which it is not being paid unless it finds ways of making a profit from this service. There are several such ways:

– charge depositors for running their current accounts

– offer depositors temporary loans (overdrafts) on which the bank charges interest

– lend some of the idle money of its depositors to third parties and charge interest

But there is another important way for banks to make a profit by lubricating the use of money:

– first borrow money from other parties for an agreed period for which the Bank will pay the lender interest; for example, through deposit and term deposit accounts

– then use the money that they have borrowed by offering loans to others at a higher rate of interest than that which they are paying to the parties from whom they have borrowed.

There have been times when banks have been careless and greedy in using the money of their depositors. Rumour spreads that a bank may have difficulty in repaying deposits on demand. There is a ‘run’ on t

Foreclosure Defense During Financial Crises

Foreclosure Defense During Financial Crises

Whether the economy is doing well or poorly, Americans go through financial crises all the time. You never know when something will happen to you or your family, such as a death or job loss, that is out of your immediate control and that you cannot predict. Therefore, if something happens and it becomes very difficult to continue making payments on your mortgage, you could face the possible foreclosure of your home.

When Does Foreclosure Happen?

When the company that issued your mortgage loan does not receive sufficient payment, they can choose to try to confiscate your home. If successful, the company could then sell your house at auction in order to try to gain back as much money as possible on their investment. This can be very frustrating and stressful for homeowners like you who work so hard to pay and upkeep their homes.

Thankfully, there are options available for you if you want to try and prevent your lending company from repossessing your family’s home. If you are able to show that you didn’t make payments because of a considerable, unexpected hardship, you may be able to stop foreclosure. These hardships could be:

Debilitating Injury
Loss of a Job
Required Military Service

If you are in one of these situations, or another devastating financial situation, you deserve to have a chance to keep the home that you have worked so hard for. While there is no guarantee that you will be able to keep your home, an experienced foreclosure defense attorney can increase your chances of avoiding foreclosure and staying in your home.

Understanding Dollar

Understanding ‘Dollar – Rupee Relation’ Amidst Current Financial Crises

About ‘Exchange Rate’ of a currency:

The exchange rate of the currency of a country in relation to the currency of another country depends on the comparative trade advantages and economic strengths of the countries. If one US dollar is equal to 45 rupees, it simply means that in the US, if a dollar fetches 45 oranges while in India, a rupee would fetch only one orange of equivalent size and quality.

Just like any other commodity, the currency of any economy is based on dynamics of supply and demand, and its value depends on trading in currency exchanges all over the world. Higher the demand for a currency on an exchange, the stronger it becomes and vice versa. However, for currencies like INR which are not traded on exchanges, the value depends on capital inflows in the country.

Appreciation & Depreciation of currency:

A currency appreciates means its value has increased in relation to another currency. A currency depreciates means its value has decreased in relation to another currency. Eg. If 1 $ costs Rs 45 and if it now costs Rs 44, this means rupee has appreciated in its value (i.e. instead of Rs 45 you will get 1 $ in Rs 44, this also means the dollar has weakened). Similarly, if 1 $ costs Rs 45 and if it now costs Rs 46, this means rupee has depreciated in its value (i.e. instead of Rs 45 you will get 1 $ in Rs 46, this also means the dollar has strengthened).

Why do currency values fluctuate?

There are many participants in any foreign exchange market. These entities — like banks, corporations, brokers, even individuals — buy and sell currencies everyday.

Here too the universal economic law of demand and supply is applicable: when there are more buyers for a currency than sellers, its exchange rate rises. Similarly, when there are more sellers of a particular currency than buyers, its exchange rate will fall. This does not mean people no longer want money; it only means that people prefer to keep their wealth in some other form or another currency.

Scenario before occurrence of the current financial crises:

We were witnessing a surge of dollar-inflows into India due reasons like strong economic fundamentals and favourable business atmosphere, etc. These dollar inflows can be in the form of Foreign Direct Investment, portfolio inflows (foreign investment in equity), External Commercial Borrowings by Indian companies abroad,

remittances to India by Non-Resident Indians. Since the Indian economy and the Indian stock markets have been on a roll, the capital inflows to India has been pretty strong which has primarily led to the appreciation in value of rupee. This huge influx caused a significant demand – supply gap between the dollar and the rupee. Going by the laws of demand & supply, the rate of the rupee vis-à-vis the dollar, rises.

Due to this exporters were placed at a disadvantage with a rising rupee, since the dollar became weaker. Thus a dollar which fetched Rs. 48 about two years ago today fetched only Rs. 44 eating into the profit margins of exporters (since they earned less on their exports).
At the same time, importers benefit (since they need to pay less for their imports), but our economy was at a stage where we first needed to build our dollar reserves to meet our import payments and so the exporters’ woes were needed to be tackled first.

The Reserve Bank of India (RBI), as the central bank of India, which oversees the foreign exchange (forex) management of this country quite often intervened to ensure that the rupee was adequately propped at a particular rate. This was done to ensure that there are no sudden currency shocks, to protect exporters and importers and above all, to ensure the feeling of ‘national pride,’ which is attached to a stable and healthy currency.

When the RBI intervened to keep the rupee at some weak value, it had to buy the dollar inflows from exporters, from NRIs, from foreign direct investors, from companies that borrow abroad. In any case the sellers of dollars need rupees to conduct their businesses here. The RBI buys or sells dollars via state-run banks to prevent excessive volatility in the forex market and avoid any sharp appreciation or depreciation in the currency. When the RBI purchases foreign currency inflows, the domestic monetary base or money supply or both rises since for every dollar the RBI buys from the market, an equivalent amount of rupees gets injected into the system, adding to excess money in the system or the liquidity overhang. When the RBI buys dollars, it pays for them using freshly printed rupee notes. This leads to greater money supply, higher credit growth and inflation.

And precisely, here comes the catche. As RBI sells more rupees, the money supply increases which means too much money chasing same (or less) number of goods, thereby leading to inflation. So in effect one act of RBI creates another problem. In other words, when the RBI buys dollars

Financial Crises is Coming

The Financial Crises is Coming?

We see it on every T.V. news broadcast. Read about it daily in the newspapers and magazines. Hear it on the radio station. The internet is buzzing with the implications of financial crises. The media is doing all they can to scare the Hell out of everyone. The slowing economy, the rising costs of food, gas, heat, housing. Companies laying long and short term employee’s off in an effort to reduce costs. Cut backs on advertising, benefits, customer service in order to lower overhead. Banks are going broke, homes are being forclosed on, the stock markets worldwide have fallen to record lows, the recession and on and on. The media wants to make sure we all know how terrible this financial crises is! We need to cut back, conserve more, drive less, do less. Learn how to struggle and be miserable just like everyone else. The news on almost every broadcast has a segment on all of the ways you can cut back, do less, get by, reduce, reuse, recycle and “go green”.

If you’re like me, you’re probably sitting there thinking, wait a minute! If someone is already struggling even after cutting back, reducing spending, conserving wherever possible and are still finding themselves in their own financial crises. It’s not the time to cut back, doing less by hiding your head in the sand until it’s all over. Blaming the government, the economy, your location, your boss, your job, your spouse for your situation. It’s time to take responsibility and action towards your financial crises and do something about it now! There’s always something that can be done. Be part of the solution, not part of the problem!

The truth is, this ” Financial Crises ” is creating a huge gap in the economy. As more companies cut back, the products and services that people need a want is creating a screaming opportunity for new businesses to step in and fill the void. More people are staying home in an effort to cut back and are turning to the internet for their products, services, entertainment and information. Have you noticed yet, any new websites that are offering these products and services? People just like you are realizing that they can work from the comfort of home, on their computers, earning 5-6 figure monthly incomes. While gaining back their time and real freedom. Internet marketing, online business and affiliate marketing will create more millionaires in the next few months and years than at any other time in history! Someone always prospers even during a financial crises. Why can’t you?

But before we get you all excited about solving your financial crises I’m sure you have some questions like I did. What if I don’t have any experience, no products or service to offer, no website, not much money, no customers? None of that matters! You can start from scratch today and in a very short time be earning money on the internet by promoting someone else’s product or service. It’s the fastest way I know of to start your business online. It’s called Affiliate Marketing. Do you have a product or service in mind? What’s you’re favorite hobby, passion or desire? What if you could turn it into a business? Chances are someone has already created a product for it and you can simply promote it to other people with your same interests and be paid for it. You now have your own business working part time from home and working on eliminating your financial crises.

Believe me when I tell you that I have spent many $1’000’s and wasted 100’s of hours of time and effort on get rich quick products and programs being offered on the internet. Trying to avoid my own financial crises after losing my job. Only to end up more frustrated, tired, broke and confused than when I started. Some of you have probably experienced that also.Well a guy I’d never even heard of before called me on the phone!( Remember, this is a guy that does internet marketing.) He asked me if I was done screwing around wasting time and money and ready to get serious? Turns out this guy has made as much as $2 million in a year doing affiliate marketing. He led me through a few simple steps and strategies on the phone allowing me to ask questions so everything was clear to me. He didn’t send me to some Q.& A. page somewhere that has none of the real answers that we need. And he continued working with me every week on the phone until I got it! You can find out about him on my website.

Now I do work from home a few hours a day and enjoy a fantastic lifestyle! On my site we review the products we feel are the best ones for people just getting started or needing guidance. These guys are actively involved as affiliate marketers and willing to teach you how they make it all work. Let somebody help you who knows what you need to do! Does it cost anything? Yes, of course it does. Nothing in life is free! But the R.O.I. is well worth the price! You’ll shorten your learning curve from months and years down to days and weeks. Learning to create income on demand.

Stop waitin