Archive for April, 2007

The 10 Lies you Should Tell your Wife/Girlfriend About Your Finances

Monday, April 23rd, 2007

Statue Is it cheating if you lie about where the money went? It depends. Let’s accept one fact: With money and relationships – especially marriage - there are lies. Most consultants will tell you that lies erode trust, compromise your integrity — and can make you (the liar) feel very, very bad. Point accepted. So if honesty is so important, why does survey after survey show that more than 50 percent of American adults in committed relationships lie about their finances to their partners? Let’s face it guys – lying is in!

Most men have learned from experience that it’s okay to keep financial secrets from your spouse, at least under certain circumstances. And why exactly should you sneak around? To keep the peace of course. You don’t want your wife or girlfriend to turn into a nag just because you indulged yourself a bit – it’s your money after all. Here are a few lies you could tell to hide the facts about your financial status.

1. Your salary: Does she need to know how much you earn? Absolutely not. We belong to an age and time when most people are independent and manage their own finances. And, well, you may love your woman but do you love her spending habits too? Think about it: If she is a spendthrift, you’ll soon be paying for her expensive habits and her defaulted credit cards. Do you really want to see your hard-earned money being used to pay for one more pair of shoes or designer bags? Almost anything goes to protect your money.

It’s best to quote a figure much lower than your actual salary. For instance, one man claimed to make $250,000, but actually makes $450,000. They live a fairly decent life and he’s got some money stashed away for a rainy day.

2. Bonus, raises: A relationship may be great for your heart, but it’s definitely not light on your purse. If your income is not phenomenal, you are already stretching yourself thin. So when you become part of a couple, you may find it even tougher to have some ‘me’ money. This kind of situation could be detrimental to your relationship because you begin to rue the fact that you need to spend so much. To keep this from happening, set some money aside for yourself.

For instance, you could overstate a charitable tax deduction, or pad your expenses to get some extra money. If your office gives you a bonus, you don’t need to put the entire amount into your joint account. Squirrel away some (or all) of this money for yourself.

3. Any personal accounts: Don’t keep any separate accounts? Poor you. Did you know that for ages, across countries and cultures, women have always been encouraged to hide money from their husbands? They even have names for this hidden stash — Jewish women call a furtive hoard a knipple, Caribbean women a sous-sous and Chinese women a hui. For generations, women have been told not to feel guilty about hiding their money. They’ve been told to raise some cash for a rainy day. Honestly, why should men be left behind?

A hidden account will help you save some money with which you can buy the things you’ve always wanted without dipping into the daily expenses. Of course, you must be careful your account isn’t discovered or your wife will think you are hedging your bets and safeguarding your individual interests over the interests of your relationship.

4. Debts: This is only for men whose debts are not in a very bad shape. First things first: get your debt situation back under control. While you are at it, you really don’t need to trouble your wife/girlfriend about the state of affairs, do you? If you are confident that you will be able to pay off your debts soon, then why should you lay your credit card statements open to scrutiny?

Man_1 However, there’s another side to this as well. Experts say that without complete financial disclosure, it can be difficult for you to create an effective long-term financial plan with your wife. If your debt is too high, it’s best to accept expert advice – you cannot have your wife knowing that you’ve lost your home after creditors come knocking on your door. In such a situation, it may be difficult, but being honest is the best.

5. True cost of holidays away from her: Fine, you want to spend some time out with the boys and your wife/girlfriend is quite supportive of your need. But will she be as supportive when she discovers that your week-long trip to Vegas cost you thousands of dollars? Now, if you really don’t want her to nag you to hell and back, it’s best you zip your lips. What you can do is save money for the trip – slowly and steadily. Once you have enough money, go on the trip. Or you could charge the expense to your credit card and ensure that you repay the sum as soon as possible.

6. Failed investments: Ever dealt in stocks, penny stocks or any other kind of investment? There are losses and gains in this business. Every investor knows that you cannot let the losses cow you down and prevent future investing. But does your wife or girlfriend know that. If your losses are not too high and you can recoup the amount on your next investment, don’t bother disclosing the fine details of your investment strategy.

However, if you have invested and lost big amounts meant for other purposes - like college savings for your children - it’s another story. Sean, a sales representative from Chicago, made a risky investment and lost the $30,000 he and his wife had saved up for their children’s college education. He tried to make up the money without telling his wife. Big mistake. It’s not easy to earn such a huge sum of money in a short time. In such cases, it is better to tell the truth than to let your wife/girlfriend discover it later.

7. Your Forex dealings: Foreign exchange is not something you can control beyond a certain point. A depreciation in the dollar could affect your profits or losses. You are probably just into forex and you may lose some money initially. You cannot be expected to explain the details of your dealings every time. It’s best to keep your losses to yourself. Of course, do go ahead and publicize your profits. This will increase your spouse’s confidence in your abilities. In due course, you can tell them about your losses as well.

8. Money spent on your children: It’s not easy to see eye to eye when it comes to finances. If you prefer saving to splurging and your wife thinks that a little enjoyment can do no harm, you are bound to have arguments. According to research, most arguments relate to the money you spend on your children. If you love to spend money on toys, gadgets or clothes for your children and your better half thinks it’s a waste, you’ve got a good fight coming on.

Why let them spoil a good and happy event? A few little white lies won’t harm anybody. If something costs $50, just peg it at $20 or lesser. Just ensure that you don’t make a habit of it or you’ll be deep in debt before you know it. Keep such purchases for special occasions and pay off your bills as early as possible.

9. Personal expenditure and hobbies: What do you do when you purchase something costly for yourself? Do you show your wife or girlfriend the price tag? Quote a lower figure? Or do you pretend not to have bought it at all? As long as you don’t tell them the actual price, you can do what you want. If you want to be honest, be prepared to fight with them over spending ‘that much money,’ or whether the spending was ‘necessary.’

While purchasing a ticket to the game is one thing, what happens if she tries to come in the way of your hobbies? Steve’s wife resented his comic book collection. She thought it was a waste of money and fought with him every time he bought a new book. Instead of trying to work out a solution with him, she began nagging him. Now Steve allocates a certain amount of money to himself at the beginning of every month to indulge in his hobby – money his wife doesn’t know about. This helps him keep the peace.

10. Lifestyle: Face the fact that in this country you are only as good as the lifestyle you depict. Don’t let your huge credit card bill, mortgages and other loans affect your quality of life. It is absolutely natural for a person to misrepresent his professional or financial success to family and friends.

Nowadays, many people think that it is more important to be flush than project an image. Maybe true. But if you are a business person, you probably know the importance of projecting a successful image to prospective clients. It helps you get more customers. Of course, this technique will only help if you don’t delude yourself about your true financial position.

Carnival of Long Term Investing #2

Monday, April 23rd, 2007

–By Sagar Satapathy

We are here with the second edition of the Carnival of Long Term Investing. All the posts we received are good, interesting and useful. Without further ado, let me take you through the featured posts on this week’s carnival.

Bryan Moore presents TheFinancialWhiz.Com: Utilizing Leveraged ETFs to Simulate the Performance of the S&P with Less Risk posted at TheFinancialWhiz.Com. This strategy involves a relatively new investment product to the market known as Ultra shares, which mimic the returns of the underlying index times two.

Wealth Building Lessons presents Investing In Japan posted at Wealth Building Lessons. Why it makes sense to invest in japan right now.

David presents Achieve Success with Your Investments posted at Worldwide Success. In order to be a successful investor you must follow certain principles that have proven to be effective for other investors. The Davis family is one of the most successful investment stories in American history, having accumulated a fortune of more than $2 billion over a period of 50 years.

The Skilled Investor presents No financial planning software and no investment growth calculator can predict the future (Part 1 of 2) posted at THE SKILLED INVESTOR Blog. The future is fundamentally unpredictable. The future of personal financial planning and investing is similarly unpredictable. Anyone claiming or implying that they can predict what will happen to investment returns in the securities markets in the future is just blowing smoke. If their predictive smoke claims to benefit you, then you should be suspicious.

WBL presents How To Invest In Real Estate posted at Wealth Building Lessons. Bread and butter properties are just your basic, no-frills 3 bedroom, 2 bath, 2 car garage homes which are usually around 1250-1500 sq ft. These properties will give you the best rent-to-mortgage ratio.

Market Poetry presents Now Is The Time To Trim! posted at Market Poetry. It’s an analytic poem. Read on…

Babak presents Bradley Turn Dates: Is the Stock Market in the Stars? posted at Trader’s Narrative. The Bradley model is a strange sort of stock market indicator. It was invented by Donald Bradley in 1948 as part of his book “Stock Market Prediction — The Planetary Barometer and How to Use It”.

Bryan Moore presents Stock Portfolio Strategy - Leveraged ETF and Fixed Income Model Portfolio posted at TheFinancialWhiz.Com. The portfolio strategy was developed around the use of the new leveraged ETFs (Exchange Traded Funds) that seek to double the daily performance of a particular index.

That concludes the second edition of the Carnival of Long Term Investing. Keep submitting your posts to the future editions of this carnival. A link back would be greatly appreciated.

Carnival of Economics and Global Trade #3

Wednesday, April 18th, 2007

–By Sagar Satapathy

Welcome to the third edition of the Carnival of Economics and Global Trade. Out of the 10 submissions, we have selected 6 submissions since they are relevant to economy, forex and global trade. Here are the gems in the order they were received.

WorldColleen presents day trading posted at GeekySpeaky.com. What IS forex trading? You’ve probably heard of day trading, where traders invest by buying and selling securities on the same day - you don’t hold on to anything long term) Forex trading is a very specialized form of day trading - there’s a potential for huge profits, but there’s also a potential for huge loss.

Praveen presents Constant Value Investing With Virtual Shares posted at My Simple Trading System. It is possible to boost the performance of Constant Value Investing by using virtual shares to magnify the buys and sells.

Adam presents New Media Economics posted at Sophistpundit. Blogging resembles investment in that the blogger invests time and energy in hopes of a return. Bloggers’ return on investment is readers.

Matthew Paulson presents Kiva: Loaning Money to Promote Business in the Third World posted at Getting Green. A lot of businesses in third world countries never make it off the ground because there is simply no capital for them to make use of to get started. It’s extremely difficult to open a business if you have no money to get started and you cannot borrow and money in order to get started, but a new non-profit organization might have an answer.

Reb Chaim HaQoton presents Wisdom in Money posted at Reb HaQoton. Monetary laws require the most amount of mental agility, for in other situations of halacha, such as the disqualifying blemishes on a ritual sacrifices, previous rulings which are similar to a situation at hand bear no relevance to the situation at hand, and one cannot use such an established precedent.

Tom Hanna presents Financial Roadmap April 16 to 20, 2007 posted at Financial Options. The week will be fairly flush with financial/economic data including information on the supply side of the new homes market, industrial production and manufacturing, retail sales, inventories, the leading index, investor confidence and retail price inflation. In international news, the Conference Board will report on the economies of Mexico, Spain and Germany and the Treasury Department will report on international capital flows. Plus all the usual weekly suspects – mortgage applications, jobless claims and petroleum inventories.

That concludes the third edition of the Carnival of Economics and Global Trade. Keep submitting your posts to the future editions of this carnival. Thank you for your continued support to promote this carnival on the web.

Carnival of Long Term Investing #1

Sunday, April 8th, 2007

–By Sagar Satapathy

Welcome to the first edition of the Carnival of Long Term Investing. It’s really great to see such a huge response to this carnival. In total, we received 25 posts out of which 19 posts managed to make the cut. Here are the posts in the order they were received.

THE LAUNDRY CAPITALIST presents "Volume is Vanity; Profit is Sanity" posted at THE LAUNDRY CAPITALIST. Every small business owner wants to grow, grow, grow! The phrase "Volume is vanity; profit is sanity" is one you may or may not have heard before, but it is a good reminder of why you are in business - it’s to make money!

David presents The Wisdom of Great Investors posted at Worldwide Success. If you want to be a good investor the best way to learn is to listen to the greatest investors of all times and to try to absorb some of their wisdom.

WBL presents Ben Stein’s Basic Rules of Retirement posted at Wealth Building Lessons. whats more long term than your retirement? here are some simple steps to make sure you don’t end up broke.

The Skilled Investor presents Financial advisor costs and the value of their investment strategies determine your return on investment from these investment advisor services posted at THE SKILLED INVESTOR Blog. Whether good or bad, financial advisors are expensive. If you need a financial advisor’s help and you carefully select a good financial advisor, the value of the personal finance and investment advice that you receive might easily repay the advisor cost. However, bad financial advisors can cost you dearly, though both high financial expenses and poor investment strategies.

Leon Gettler presents Dell’s accounting problems: the tip of the iceberg posted at Sox First. Dell’s accounting shenanigans are just the tip of the iceberg. Michael Dell has returned to take over the company he founded but the task ahead of him looks insurmountable. The stock is a better buy at $15-$17 than around the $23 range.

Babak presents Massive Liquidity Injection From Ending Of ‘Regulation T’ Margin Rules posted at Trader’s Narrative. Portfolio Margining is primarily motivated by the NYSE’s battle against an eroding market share in the international financial markets arena.

Rebecca Newburn presents Suze Orman Supports Financial Literacy for Women posted at Information Age Education. Suze Orman offers advice and a great deal to women (and men).

The Skilled Investor presents Never invest solely because of superior past mutual fund or ETF performance posted at THE SKILLED INVESTOR Blog. Superior past fund performance does NOT predict superior future performance. Only very poor past performance tends to be a slight predictor of more poor performance in the future, and excessive investment costs are the likely culprit.

Investments & Loans presents How to invest like Warren Buffet posted at Investments & Loans. Value investing essentially looks for stocks and investment options that are undervalued by the market.

David presents Compounding – Friend or Foe? posted at Worldwide Success. When it comes to money and being financially successful, one of the most important concepts you need to understand is compounding.

Steve Faber presents - Self Employed Retirement Savings - Your Options posted at Debt Free. If you’re self employed, setting up your retirement plan isn’t as easy as checking the right boxes when your HR rep gives you your retirement plan paperwork. Ultimately, though, it could be far more rewarding.

Silicon Valley Blogger presents Taking The Emotion Out Of Stock Investing posted at The Digerati Life. For my more discretionary investments, I tweak the strategy a little. For example, in this single stock scenario, I will decrease my trade amount when the price is higher. When the price goes down, I may double up.

Leon Gettler presents Is private equity bad for your job? It depends posted at Sox First. Private equity firms that take over companies and bring in new management teams are likely to cut jobs and depress employee’s wages. But where an existing management team takes a company into private equity, there are more jobs and less wages impact.

Tracy Coenen presents Usana executives lied on yesterday’s earnings call posted at FRAUDfiles. Giving investment analysts information on which to rely when making stock recommendations. The calls on which those pesky little guys over at the SEC insist you tell the truth.

Web Admin presents ETF’s - The Choice for Indexing posted at Stock-Net.com. Investors frequently choose to build or augment their portfolios with index funds. Once this decision is made, the next choice is deciding what vehicles should be used for index investing: Mutual Funds or ETF’s?

Babak presents A Trend Follower?s Dream: Mexican Stock Exchange posted at Trader’s Narrative. Until last year, Brazil (EWZ) was the strongest Latin market. Then it faltered and was overtaken by Mexico. Also notice how the relative strength of the Mexican market was extremely strong against the S&P 500. Even after each pullback the trend line of the relative strength was not broken. They were merely dips within a march upward.

Praveen presents My Simple Trading System: My Stock Trading System posted at My Simple Trading System. Praveen explains his complete trading system, which is based on constant value investing.

Bryan C. Fleming presents Saving Money: $704.51 in 14 Weeks posted at Online Savings Account. Bryan put $704.51 in his ING direct account since the beginning of the year. If the year goes well and he does not need to touch the money, he’ll have over $2600.00.

TJP presents Which Roth IRA Account Is Best for Your Retirement? posted at Investor Trip. The key to investing is long-term growth, so what could be better than opening a Roth IRA account for your retirement? Roth IRA accounts are simple wealth building tools that allow your earnings from annual contributions to grow tax-free.

That concludes the first edition of the Carnival of Long Term Investing. Keep submitting your good posts to the future editions of this carnival. I thank you all for your support and contribution to this carnival.

Carnival of Forex #2

Wednesday, April 4th, 2007

–By Sagar Satapathy

Welcome to the second edition of the Carnival of Forex. We received only 10 entries for this week’s carnival. However, only five of them managed to make the cut. Rest of the posts were not related to forex in any way. I hope to receive more useful, interesting posts on the future editions of this carnival. Here are the gems we have selected this week:

Anthony Samaha presents Commodities Currencies and their Top Superfluous Stubbornness posted at Forex Survivor Articles - The Neglected Essentials. Learn more about commodities currencies and their superfluous stubbornness.

David J Kosmider presents FOREX System Reviews posted at StockWeblog.com. David says, "we purchased several Forex trading systems and wrote reviews of them for people looking for a currency trading system".

Jimmy Atkinson presents The Demise of the Dollar posted at Forex Blog. Does the value of the United States Dollar concern you? Find out how recent trends have contributed to its decline. Countless geopolitical factors have had an effect.

Silicon Valley Blogger presents 5 Tips For Creating A Solid Investment Plan posted at The Digerati Life. Make your investment moves before any major market action takes place. It’s best to have a good plan on paper before executing it, and it’s best to execute it during a time when the market isn’t dancing around wildly.

OhCash presents 101 must know for FX currency trading posted at Business School. Being new to FOREX trading? Don’t worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go ‘live’ with real money.

With this, the Carnival of Forex is concluded. The next edition will be hosted here on 11 April 2007. I thank all for your continued support and contribution. Whenever you get time, consider giving a link back to this carnival post.