Explain Finances

Choosing Your Credit Card

As you probably already know, there are many credit cards out there. The one you choose however, should reflect your lifestyle and your ideal spending amounts. If you are looking for the best possible deal and the best company for your credit card, youll obviously need to look around at what you have to choose from and what works best for you.

The first thing youll need to decide when choosing your credit card, is why you need one in the first place. Some people choose to get a credit card for cash flow purposes. With a credit card, you can make purchases and buy things, leaving your paycheck or other source of income in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill.

Others will choose to get a credit card and use it for instant cash purposes. This way, they can use their credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is why you want a credit card, you should look for one that has the lowest rate possible for instant cash transactions.

With a credit card, youll also need to think about the payments. Youll need to decide if you want to pay the balance in full each month, or only the required amount. When you select your credit card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new credit cards and new holders. Some will offer you truly amazing deals, especially if you have good credit.

Another important area to look at when choosing your credit card is the incentives. There are several cards out there that will give you incentives, such as reward points and even cash back with purchases that you can use towards paying back what you owe. There are several incentives out there with credit cards, all you have to do is look around and compare.

The key area youll need to look at and compare is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the incentive period runs out. APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. The lower APR rate you get, the better off youll be.

Another concern with choosing your credit card is the minimum payment amount. Most minimum payment balances will start around 3%, although some can be lower while others tend to be quite a bit higher. The interest free period is a concern as well, as you will obviously want to choose the longest period that you can keep the payments down.

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. Credit cards are great to have, although they can lead to a downfall if you dont choose them carefully. If you put some time and research into choosing your credit card, youll find the best one for you. As long as you take care of your credit card and pay the bill on time, youll help raise your credit and eventually be able to purchase even bigger things - such as a car or even a house.

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Who’s Who In The Stock Market Business

Since its inception, the stock market had always been the backbone of one’s economic status. It is a continuous indicator whether the economy is stable or deflating.

Thus, many people believe that in stock market, money, luck, and skill is the name of the game. And there are just a number of people who are so good at playing in the stock market that they seem to rule the world. They are considered as the “who’s who in the stock market business.”

To know them, here are the top of the well-known key players in the stock market business.

1. Warren Edward Buffett

His hometown is Omaha, Nebraska. He is the owner of the Berkshire Hathaway. He literally started from scratch because he was just a newspaper boy then. But his prowess in the world of investing already started when he was just 13 years old when he had claimed a $35 deduction for bicycle. He has a lot of stocks including MidAmerican Energy Holdings, Geico, General Re, Fruit of the Loom, American Express, Coca-Cola, Gillette, Well Fargo, and many more.

2. William Gates

His company is Software Microsoft. His hometown is Medina, Washington and he is a Harvard drop out. But despite that fact, William Gates is a multibillionaire.

The best thing about him? He sells 20 million shares every quarter and eventually reinvest through the Cascade Investment. He has big stakes in Republic Services, Berkshire Hathaway, Canadian National Railway, and Philanthropy among others. He’s a great player in stock market business and best of all, he has been investing in his own stock ever since.

3. Prince Alwaleed Bin Talal Alsaud

He is acclaimed as one of the richest people in the world, according to Forbes.com. He was born in Saudi Arabia but is presently residing in the United States.

He believed that people who do not know how to speak English and is completely Internet illiterate is an outcast in the real world.

Financially, he has different stocks and shares in local, regional, and international scene. His financial strength is based on a long-term commitment, even if the tides are way down.

These are just three of the world-renowned people in the stock market business. All they did was they dreamed, pursued, and survived and they made it to the “who’s who of the stock market business” list. Not surprising for people who really worked hard.

The bottom line is that: people who know the business should love the business in order to stay.

Addicts in the Stock Market

What makes gambling so addictive? Easy. Quick and easy profits.

What makes the stock market addicting? Easy. See answer above.

Although stock trading and gambling have as many disparities as they have commonalities, the comparison is entirely legitimate. Both deal with playing with money and both deal with risks. Both also have hope and fear components which often lead to addiction.

According to Paul Ashe, president of the National Council on Problem Gambling, the most gambling performed in the world is performed in the stock markets.

The active investor’s addiction to trading is as strong as any form of addiction. Like gambling, active investing can be extraordinarily exciting for investors who, in turn, get carried away by winning.

Even medical studies confirm the release of the chemical, dopamine, when presented with the opportunity of a rising stock. The powerful allure of monetary rewards leads to the overwhelming urge of trading stocks.

It has been shown through brain imaging studies that the human brain treats the prospect of big profits the same way as the addictive nature of gambling, alcohol, drugs and other addictions.

So what specifically makes stock trading addicting? The reasons may actually be a lot more and may differ from person to person but the following can be considered true with most cases.

a.) Control. Investors appreciate the control they have over their situation and the freedom of making decisions for themselves in terms of trading and buying stocks.
b.) Excitement. Like gambling, trading provides a certain level of excitement by making decisions and risks for the sake of a good return in investment. The more risk they take, the bigger potential for profit, the greater excitement it gives.
c.) Easy return of profit. Casino gambling, lottery, raffle draws provide people a quick and easy way of earning money with minimal effort. This is true for stock trading as well.
d.) Game. Active investors see trading as a game. It has entertainment value, a means of passing time, and the component of winning and losing.
e.) Perpetuation. The problem with addictions such as gambling and active trading is the pitfall of perpetuation. As investors earn more profit with every stock trade, the more they are encouraged to continue trading, and at times investing more and more money. And with every loss, there is the desire to reverse the loss by intensifying their trading.

Investing via the stock market is a good way to grow your finances. But this should be coupled with the responsibility of keeping yourself in check before you cross the line into addiction.

“Low Interest Rates = Bigger Savings”

When choosing a credit card, the interest rate should be the first thing to consider. Low interest rates only mean one thing: more savings! The bigger the balance of the account, the bigger sum of money will be saved. As more money gets saved, more money gets stored and more interests will roll in the bank account.

Other credit cards companies have reasonable interest rates and offers more like giving the percentage of money back. The more money spent on credit, more money will be returned to the cards user. Most credit cards use 5% on special purchases and 1% on regular purchases.

Some banks give Reward Points. These Reward Points accumulate as the credit card is used and it may be exchanged for certain items catalogued by the bank. Points may be exchanged for microwaves, cell phones, televisions and the like. This is yet another great feature to be considered when looking for a card.

A number of major banks offer low interest rates. A few major banks would be: Citibank, American express and JP Morgan Chase. These banks are known to give 0% introductory APR (Annual Percentage Rate) for 12 months. Most of these cards offer no annual rates.

Here are some credit cards with low interest rates:

Citi Dividend Platinum Select Card (Citibank):
-it features 0% APR (Annual Percentage Rate) for 12 months
-it rewards the user. The more this card is used, the bigger the rewards.
-earn 5% return from expenses in supermarkets, drug stores and gas stations.
-earn 1% return from other expenses.

Citi Premier Pass Card (Citibank):
-0% introductory APR.
-get points by flying. Every mile gets you a point.

American Express Blue Card (American Express):
-3.99% fixed interest rate.
-0% introductory APR for 15 months.

Chase Cash Plus Visa (JP Morgan Chase):
-0% interest rate for 12 months.
-has other cash back promos.

Chase Flexible Rewards Platinum Visa Card (JP Morgan Chase):
-0% introductory APR for 12 months.
-a dollar spent equals a point.
-no annual fee.

Pulaski Bank Visa Master Card:
-0% on balance transfers for 5 months
-6.99% fixed rate
-$35 annual fee

Discover Card:
-0% APR for the first 10 months.
-$0 annual fee.
-9.99% fixed interest rate.

These cards have the lowest interest rates in the credit card market today. These cards do not only offer low rates, but they also give certain rewards for the frequent users of the card.

“The Card Apart”

Southwest Airlines, one of the biggest international airlines, goes hand-in-hand with Chase, a big credit card company, to produce: Southwest Airlines Rapid Rewards Visa Card.

Southwest Airlines is known for their Rapid Rewards. Unlike most airline companies, count the roundtrips made and not the miles of every trip. Only eight roundtrips are required to be able to avail of rewards. This concept was combined with their credit cards so that the people may enjoy their services more.

Chase Credit Cards operates under Bank One and First USA brands and offers cards that are flexible, trusted and superb customer service.

Southwest Airlines together with Chase, produced two types of credit cards: Southwest Airlines Rapid Rewards Visa Signature Card and Southwest Airlines Rapid Rewards Visa Business Card.

Southwest Airlines Rapid Rewards Visa Business Card:

This is the card recommended for small businesses. It is ideal, because it can separate the personal expenses from the expenses of the business. Every time this card is used, the user has a chance to win a roundtrip Award.

Reward Dollars may be earned in all purchases.

-two Reward Dollars may be earned by spending $1 on Southwest Airlines.
-one Reward Dollar may be earned by spending $1 on all other types of purchases.

This will also entitle the applicant to an internet account that may be used to maintain and organize the expenses of the business. With the online help, quarterly reviews may be seen and reports may be downloaded by the card holder.

This card also gives up to a $100,000 limit even for small businesses. Grace periods are offered for easier pay.

This card also boasts low annual fee. It only has an annual fee of $59 dollars and is relatively less than other companies that go from $60 - $100.

Rewards are easily earned, because a reward may already be cashed in when the expenses reach $19,200. That is pretty low, compared to the $25,000 minimum of other card companies.

Additional cards do not have a fee, but a minimum amount is needed for it to be availed.

Southwest Airlines Rapid Rewards Visa Signature Card:

The Southwest Airlines Rapid Rewards Visa Signature Card offers all the Visa Business Card offers and more.

It does not have a credit limit. Also, it does not have a limit when accumulating Award points by using the card.

It offers zero liability on unauthorized purchases. In addition to that, it has purchase security, travel and emergency assistance and other offers from Visa.

Additional Benefits:

Get four (4) bonus credit cards upon purchase.

Learn the Art of Timing Stock Market Investments

A stock is simply a form of a person’s ownership and claims in an incorporated company. A person who owns stocks in a company has a claim on its properties and profits. He also takes part in decision making. As he buys more and more shares in that particular company’s stocks, his ownership stake increases and becomes greater.

Timing stock market investments affects the value of the stocks that are bought or sold in the market. Market timing affects the profit returns of a buyer or a seller in the stock market. It is also a method of strategic importance in the stock market. Market timing is attributed to logic and can become an acquired skill. It is a skill that can be an asset to a person who participates in the market, whether as an investor, or as a stock broker who knows how to play with stock market timing.

Market timing determines whether a stock seller or a buyer will benefit monetarily or otherwise from his purchases or sales. Most stock holders hold their stocks up and wait for the value to increase. When the value of these stocks increase in the market, this is the time when they plan to sell because it is at this time that profits are projected to be high.

However, peaks and lows in the stock markets are unpredictable and irrational. But this does not mean that timing stock market investments is not good. It is not advisable to ignore the times when there is significant undervaluation and overvaluation in the stock market. This is the importance of timing stock market investments. To buy stocks which are guaranteed to peak while they are still selling low; and to sell high value stocks which are expected to fall. If an investor ignores these important market movements, then he is bound to lose instead of gaining huge profits from overvaluation in the stock market.

Timing stock market investments can also be compared to stock picking, and the two concepts can go hand in hand. Stock picking is also an important skill and like market timing, one that can be done using logic and reasoning.

If a stock market buyer or seller is an expert at timing stock market investments and stock picking, he must focus on sourcing stocks which are guaranteed to outperform. He must also find corporations with competitive advantages, sustainable growth, and important values for these companies are guaranteed to have more stability and therefore, profit.