Explain Finances

You, the Dummy, and the Stock Market

Ok, so you want to dabble in the stock market. Unfortunately, you don’t know how and where to begin. So what do you do?

Well, the first relevant thing to do is ask the basic question of what is a stock and its significance.

A stock symbolizes ownership of a company. Some view stock as certificates. So the more stocks a person owns of a particular company, the more of the company they own. And the more the company they own, the bigger the influence they have in running the company. This is called equity investment.

The next thing to do is familiarize yourself with financial terms such as ‘price-earnings ratio’, ‘margin’, ‘option’, earnings per share’ and leverage’.

Then, it’s on to knowing where and how to actually buy stocks.

There are two ways to buy stocks:

1. brokerage service
2. online exchanges (e.g. banks)

Exchanges are services that allow investors to access stocks all over the world. Here, they can buy and sell stocks without the need for a broker. Certain banks allow you to set up your own stock portfolio and buy and sell stocks online using the money you have in these banks.

Brokerage services are rendered by brokers. These middlemen do all the work for you. They research the stock market, give advice, and buy and sell stocks according to the wishes of their clients. These brokers earn a commission from the stocks bought or sold.

Once you have chosen how to buy and sell stocks, the next thing to do is to open an account. As stated earlier, exchanges allow you to monitor and control your stock portfolio personally. If you choose to enter the stock trade with a bank, then ask your bank the specifics of setting up your own account.

If you choose to trade stocks via a broker, find a reputable broker and ask them to open and manage an account for you.

After you have successfully set up an account, it’s time to study the stock market and plan your strategy: will you be conservative in investing your money? Or will you be aggressive? Are you in it for the long term? Or are you a day trader?

After you have identified your plan, it’s time to do some research on the stocks offered in the market. Having a broker will significantly make it easier for you as they will do the research and give you advice. But, it is still best to study the market yourself.

Be warned though, the stock market is volatile. Be prepared for a roller-coaster ride.

How to avail of Credit Card Point Redemption

I have a friend whos a frequent traveler whos most of the time always out of the United States. While hes always traveling, his purchases done in other countries are done over his credit cards. He prefers using his frequent traveler credit card in buying his plane tickets as these that allow him to accumulate travel air miles. Whenever he buys plane tickets, can always redeem his accumulated travel miles to avail of discounts on his plane ticket or if he has accumulated a lot of air miles already, he can use them in buying his plane tickets alone. He does have other credit cards that were offered to him from US merchant stores. The only problem he has is as hes always out in other countries, while hes able to use these credit cards, he may not be able to always to use his accumulated points from those merchant sponsored credit cards because he seldom goes to those stores anymore. In availing of credit card points other than air miles, are there other ways of redeeming them assuming that an individual may not be around all the time to shop back in the locally based stores that co-sponsored those credit cards?

The answer is yes. While an individual may be out of the country on business or leisure, the advantage provided by the internet has allowed consumers all around the world with much flexibility and benefits. Accumulated rewards points from credit cards offered by major US based merchant stores can also be redeemed online whenever he may make purchases over the internet. A person making a book purchase online using his credit card sold to him also by the same online book retailer hes buying the book purchase right now for example may redeem his rewards points in the form of redeemable gift checks that he can later use to buy other books and have them sent over to his house in the US or send as a gift to friends or loved ones.

In order determine the number of points a person has accumulated from his purchases from his credit cards that he can later on redeem for new gift items, appliances or even equivalent travel air miles, these can also be tracked and checked from the credit card companies websites. Credit card companies have their own hotline numbers for inquiries on redeemable rewards also. Its important to know the equivalent number of points that will be needed to redeem the equivalent items so that the credit card user may maximize the benefits and rewards that his credit can offer him on a longer-term basis.

High-low Numbers: Tips on Saving Money on Clothes

Are you craving for the newest designer clothes, a pretty tank top, and that pretty dress? All this fashion comes at a price you choose.

Buying clothes these days is always a choice between the designer-made outfit or those cheap but quality items that you could pull together and express your personality in many different ways.

Most experts contend that clothes can definitely make or break a person. They say that your personality is usually reflected on how you dress up. But it does not necessarily mean that good fashion would absolutely mean expensive clothes.

Hence, you can still make a remarkable fashion statement without having to spend hundreds or even thousands of dollars just for your clothes.

Here is a list of some money-saving tips when buying clothes that would turn other peoples heads to you but would not definitely break your wallet.

1. Do the math

Choosing fashionable clothes can be really tricky, not unless you know how to do the math! So before you buy three sets of clothes that would cost you hundreds of dollars, try to go for the budget-friendly dozen of items that you can even match alternatively.

The number of expensive items that your money can buy is definitely doubled or even tripled when you buy cheaper ones but can still make a good fashion statement.

2. Know what you want

Saving money is definitely based on knowing what you want whenever you spend your money on something. If you know what you want, this means that you have researched the item, have compared them with the other items, you will be able to come up with the lowest price of the product.

3. Drive your way to a thrift store

Usually, these thrift stores are non-profit organizations. This means that they are usually operating for charity. They give their proceeds to some charitable institutions.

Hence, the prices of the clothes being sold in the thrift store are absolutely cheaper than the ones being sold in the department store. So that would mean many savings for you.

Best of all, you do not only get to save more money, you get to do some charity work as well.

The bottom line here is that when shopping for clothes, do not shop for the brand name, shop for the quality.

Nowadays, you just have to be practical. Better spend your money on more important things than those designer clothes.

Know the Right Retirement Location for You

You might be overwhelmed by the number of retirement locations offered across the country. Each of which may provide everything you need or the best comfort and amenities you are looking for. You might be confused on which of the retirement locations you would like to spend your retirement age.

Make a checklist of the things you need to help you narrow down your choices. This will help you to not overlook the important things that you need to consider. First list the things that matter most to you and then follow the secondary things that you are looking for.

Determine the advantages you will get on every retirement location and if it can help you achieve the conveniences you are looking for in a community. A lot of retirement locations offer medical services, house and facility maintenance and leisure and sports. The cost of every house may also vary depending on the retirement location and therefore should be considered.

Determine your needs to make the choosing easier for you. Ask yourself if you would like to live independently or you would like the retirement community to provide for your meals and daily needs. Also, consider the type of faculties you need or the kind of houses you prefer. Make sure that you are aware of the services being offered by each community and what things you do not like.

Your retirement location should be aligned with your own lifestyle. It should not stop your lifestyle, instead help you express it. If you are the type of person who prefers bible studies, then choose a location that will provide bible sessions with the other members of the community. You should look for a community that will give access to your hobbies. If you love sports, the retirement community that you should choose should have the facilities for sports and leisure.

Find out if the location is accessible and close to hospitals and other establishments. Also, consider if the location is near your family. The place should be accessible so that your family can visit you from time to time.

Determining these factors will help you with the selection process and will save time and effort. Retirement is a time to enjoy and live your life to the fullest and therefore, the retirement location you choose should be the right one for you.

An Introductory Overview of Stock Market Investing

A Stock market is like a market place for businessmen. In a public market, goods are sold to the public. In a stock market however, stocks are sold to the public. Company stocks are sold in the form of shares. The more shares a person buys in a company, the higher his or her stocks are for that particular company.

The stock market consists of the primary market and the secondary market. Primary market is where companies raise finances for their operating expenses by selling shares to investors. The secondary are investors who buy and sell those shares to other investors. Their decisions are constantly based on changing market conditions.

A stock market is like an auction house. It is a systematic method of buying and selling. In a stock market though, it is a common sight to see people shouting and gesturing at one another.

The buying and selling of stocks begins in different places. If a person decides to purchase stocks in a particular company, a broker is contacted. This broker in turn takes the money of the investor and coordinates with a floor broker at the stock exchange. Usually a floor broker works for the broker or with the company selling the stocks.

At the stock exchange, floor brokers purchase the stock that the investor wants. When a deal is consummated, it is made known to a broker and the investor becomes a stockholder of the company.

That investor may decide to sell the stock. This is usually done when the price per share has gone up. This entails profit for the investor. For example, if a person bought 100 shares at $20.00 per share and the price increased to $25.00, selling those 100 shares results in $500.00 profit.

The economic principle of supply and demand is the driving force of the stock market. The number of shares of stocks that are open to the public dictates the supply and the number of shares that investors want affects the demand.

Movement of stocks in a certain market causes the constant changes in the prices of stocks.

For example, if most people believe that the economy is growing, they would buy more stocks. But if the economy is in a downfall, their tendency is to sell their stocks.

Many businessmen choose to make a long term investment in the stock market. There are instances where stocks decrease in value causing a stockholder to lose money. The stock market does not guarantee profit. The better a person is in reacting to the changes at the stock exchange; the better his chances are for profit.

Saving Money & Controlling Debt During the Holidays

With the hype that holidays usually bring, people always have the tendency to buy more and spend more without taking into account the consequences that their actions can bring.

Hence, it does not necessarily mean that because it is the holidays you have all the reason in this world to buy whatever you want and spend how much you want. Some people contend that it’s just once a year, so better give what you have.

The problem is that giving something just for the spirit of the holidays does not mean you have to spend gold. You can still give something that will be deeply appreciated without having to spend more money.

Here’s how:

1. Make a budget and stick to it

The problem with most people is that they find making a budget relatively easy but sticking to it is doubly hard. So what’s the point of making a budget when you do not know how to conform to what you have stated in there?

Making and using your budget should always go hand in hand. Therefore, when you make your budget this holiday season, it is best that you follow the things that are written in it so that you would be able to save more money.

2. Live within your means

Of course, everybody would want to give gifts because that is what the holiday season calls for. However, it does not necessarily mean that you have to spend more than what you can afford.

The trick to saving more money is to always live within your means. Spending more than what you can afford will definitely bring more problems than you can afford to solve.

3. Personalize it!

As they say, it is the thought that counts. Hence, there are no better ways to show how much you have thought of those people this holiday season than making personalized gifts.

4. Shop and compare

It really pays to shop around and doubly better when you compare prices. You will never know which items are better priced than the others are when you do not compare their values.

The point here is that you should not be confined to one shopping portal. Try to look for other items, usually in thrift stores and consignment shops, where you can find the best items at a lower price.

Indeed, shopping for the holidays can be fun, but you don’t have to be spendthrift. Nowadays, you really just have to be practical.