Financial Planning

People in Colorado are lucky in that they have a plethora of consumer credit counseling services available to them as an aid to getting their finances back on track. These services are needed now more than ever before. Credit card use – and abuse – is on the rise as people are depending more and more heavily on the cards in their possession.

Where once a credit card was used only in an emergency, or to finance a big or important purchase such as a set of living room furniture or a diamond engagement ring, today’s consumers are using their credit cards for their everyday living expenses such as a latte at Starbuck’s or a box set of “Get Smart” DVDs. It’s no wonder that so many people are finding themselves in financial trouble as they accumulate more and more debt.



Help Is Available

That’s where consumer credit counseling services come into the picture. Once consumers find out exactly what these companies can do for their financial problems, they are welcomed with open arms. People need someone to walk them through a solution to their problems. Many households are able to only pay the minimum balance due on their cards, and the high interest rates eat up most of that, leaving very little to go toward the principal. And, with the spending habits so many Americans have gotten themselves into, that minimum payment is almost like paying nothing at all.

Credit counseling services offer free consultation to harried Colorado consumers. Most will decide that debt consolidation is the solution for them, and with good reason. This option saves them money while at the same time, combining all of their credit card payments into one monthly payment that is almost always lower that the sum total of the bill amounts that they have been paying previously.

Colorado counselors can help their clients create a budget that is suitable for their household and their circumstances, teach them how to more efficiently manage their money, and prove to them that with a little diligence and care, they can take the reins and be in full control of their finances now and in the future.

If for some reason you are nervous about going into the offices of the credit counselors and discussing your personal business with a relative stranger, you have the privilege of telephone counseling. This is preferred by many people, especially busy business people, who are happy to discuss their finances on their lunch hour via the phone, instead of having to keep an after work appointment.

Colorado consumer credit counseling services have a goal to help the people of their state to learn about money management and how to best resolve their credit card woes. Financial difficulties have become a thing of the past for many families who have taken advantage of the marvelous services available to them.

Everyone seems to acknowledge the value of maths in our world today. Most would think that they are not mathematically inclined. However, one does not need to have full knowledge of all the theorems and be able to prove the result of a problem to be able to apply some of the concepts constructively. It would help if everyone has an understanding of how basic math can help you with your finances. Savings are as universal as math, particularly for retirement. How much you save shouldn’t be determined capriciously. Good application of mathematics can help you determine how much you should save over a period.

The value of money generally diminishes over time. This means that the absolute income you earn now would not have the same real value ten years from now. It’s a given that if you’re earning the same amount over a period of years, you’re facing a career crisis. So what is your income likely to be at retirement or in two years even? Leave the crystal ball for those who ride unicorns and get a basic calculator. Once you know your salary increase and your salary, you can figure out what your retirement or savings target is. Represent your salary increase as a common ratio.

For example if your salary increase is 5% per annum, enter 1.05 on your calculator. If you’re trying to determine what your income would be in ten years, evaluate the common ratio to the power of 10. In the example we are using, the factor you’ll get is 1.6289. Then multiply 1.6289 by your current income and you’ll see what the absolute value of your salary is likely to be given an annual increase of 5%. The result, assuming a current annual salary of $100,000.00 would be $162,890.00. This information can help you assess the worth of the annuities that you have invested in, since you would be able to put projected values in a proper context.

One can also acquire a financial calculator to project future values given the time, interest rate and payment. The financial calculator would also afford you the flexibility of changing the subject of the formula. In goal-setting for savings, it’s an invaluable tool in precisely determining your goal and can also assist in evaluation the real value of a savings plan by using a discounting factor for purchasing power depreciation. Investors should also be aware of the difference between nominal and effective rates. The financial calculator can work these out easily.

Most savings and investment plans would be quoted with the annualized effective rate. An effective annualized interest rate of 9% means that the interest at the end of a year would amount to exactly 9% of the principal if the principal is left to be compounded. An effective monthly rate of 9% would mean that the effective annualized rate is actually 9.38%. The monthly interest rate for an annualized yield of 9% would be 8.64%. This difference arises because of the principle of compound interest. The difference may seem insignificant but it’s useful when calculating the monetary value of the interest that will be disbursed from your account, particularly with larger sums of money.

You really can’t blame people for getting it all screwed up. They have been taught that way, and we are social animals and we learn from our environment-I mean, this is nature. However, it’s just numerically the case that they were born in that relationship, in that family, in that city, in that society. The truth is absolutely different.

What am I referring to? I am referring to how you’re taught and trained to get a job; taught, trained and educated to get a job.

And you’re taught, trained and educated that you can get a better job if you want to make more money and have more of the comforts of life, when in fact there isn’t a job that will ever do it for you. A job, which some people say is an acronym for “just over broke,” is, as a matter of fact, what most people are.

What are we talking about? This: it means being in business for yourself. But not just any business. Many business “owners” simply traded their job for a “pay yourself last” chain around their neck.. That could be worse than a job. You’ve got to get away from trading hours for dollars.

“Oh, this is a good job. It pays $20 an hour.” (Adjust this figure for your own location and time.)

You think so? Hey, on an eight-hour day that’s $160. Now, you can convert that to your own currency, but then by the time you pay 40-50% to the tax person, that ain’t a good job!

And what are you going to do? Are you going to put in a little bit of overtime? How much can you do, and how much do you want to do? You’ve got to think leverage. You’ve got to think multiplication.

What can you do, for instance, like a rock star or an information marketer, just once and have it sell over and over again? What can you create, in the Internet Age of course, that’s digital and when you sell it anywhere in the world, you’ve still got it and you can sell it again?

Think multiplication, think leverage, think like a business owner. Think, what can you leverage?

You can be sure that Henry Ford, had he stayed an employee instead of employing thousands and thousands… You can be sure that Andrew Carnegie, had he stayed an employee instead of employing thousands and thousands… Neither would never have found the leverage and gone on to the great wealth and benefit they brought to the world.

It is no discredit to be an employee if you’re getting educated, getting motivated, determining the insight, creating a strategy to get out of it. Think leverage. Think multiplication. Think, what can you do once-design a system, patent something, copyright something-then have it sell forever or a long time? What can you get other people’s money to do for you?

Think, think, think like a businessperson. Financial literacy comes into the life of every person who achieves success. No, you don’t have to keep the books. No, you don’t have to do all the micro-managing… But you’ve got to be involved. The business depends on the direction and the energy that you give it. That being the case, jump in!

Tree limbs, shrubs, holes in the ground and trees cavities are among some of the natural places for birds to nest. But when these locations are not available, having bird house can be a good nesting place.

A plain bird house will be the best choice for attracting birds. Avoid adding a perch beneath the entrance, this will only give predators a place attack. Also choose the proper size entrance hole for the variety of bird you are trying to attract.

Research and learn about the birds in your area before buying or building a bird houses. Be aware of the birds needs, different variety of birds will require a certain size and style of bird house.

By knowing what type of birds are in your area you will be able to buy or build the right bird house that will meet their needs. Using cedar lumber will be a great choice of wood to build a bird house. This type of wood doesn’t need painting or staining.

The size, style and size of the entrance hole will be determined by the type of bird you are trying to attract. Different birds will have different bird house needs. Find out the needs of the birds you are trying to attract by doing some research.

Having a perch might seem like a good idea, but it is not necessary. In fact a perch will give predators a place to wait for the birds to come out.

Choose the location carefully. You don’t want a place with to much human activity, but you will still want a location were you can observe and enjoy the bird activity. Also keep in mind how weather and predators will be affected by the location you choose. The most common places is hanging them on trees or mounting them to post. The ideal height is usually three to ten feet.

You will also want to provide water and food for the birds. Giving birds food, especially in the winter when food is hard to come by, is a must for attracting birds to your property. Birds will also need water for drinking and bathing, placing a shallow container with water will be ideal.

Learn about the different kinds of birds in your area. By doing some research you will be able to build the proper bird house and provide them with the right type of food. There are many websites that have lots of information on birds and plans for building bird houses.

Investing money, can be a daunting process. The advice I give here about compounding should be taken in the right light. You know, I know, we all know that compounding makes wealth. Banks and institutional investments can bring a steady, safe and reliable return. But 6% as nice and passive as it is won’t make you wealthy if you are starting out with a few thousand dollars. Diversifying is the key.

For example, say you had $5000 to start with. The majority of it you would put into a safe, institutional investment and watch it grow over decades. You will be rich if you have all that time to wait, but it is a slow steady process, that takes 40 or 50 years to mature.

A part of the $5000, say $500 of it, you would invest in a little more higher risk but a little more lucrative return. If institutional investments offer a safe single digit compounder, this $500 you would place in something a little more lucrative.

With all investment, even the institutional money investments, there is risk that you will never see the money again. As small and remote as it is, I don’t think anyone can deny, that a bank CAN collapse. Or war break out or any number of things could happen over 4 or 5 decades that could wipe your fund clean. This is highly unlikely but it is true to say that even institutional investment vehicles have some small factor of risk.

Generally the higher the return the more risky it is. But there is risk and there is risk. Often the safest place for a high risk investment is in your own hands. Controlling the process, what ever it is you choose. every step of the way.

The problem with investment, is you lose control of your money. The best thing about investment is that it is passive and you lose control of your own money. So it is a double edged sword. By diversifying and leaving a fraction of the capital you have allocated for high risk investment, you solve this problem.