Laugh Out Loud

This is laugh out loud funny....

Milton Friedman: Role of Gold

Take a look, this is just one part of many. I will keep posting as I find them.

Building a Monthly Budget

Raise your hand out there if you haven't heard this in your lifetime; create a personal budget. All of you? Not surprised, it is standard advice and a lot say it, more attempt it, but only a few succeed.

Personal budgets are easy to create, but keeping them and getting control over personal finances is the key. Building a personal budget that works, requires the individual to make honest assessment about their financial standing and maintain discipline.

The honesty part comes in expenses, not the ones documented on a monthly bill, but the impulse expenses, the budget busting expenses. Avoid creating a budget which grossly underestimates the impulse expenses such as food and gas. These costs are high, so be honest.

Next get all family members involved in the process of building a budget. If one member is not on board, the budget is instantly busted. Sit down as a family and develop a doable budget.

Like expenses, be honest about income. The idea of a budget is to have more coming in than going out, so avoid hiding money. Like all expenses, make sure all income is accounted for.

Keep multiple copies of the budget each month in sight of everyone. Allow spaces for expenses and income to be listed and work to make sure everyone is record spending. This is especially crucial for the first few months, providing real data and allowing for any adjustments to the budget.

Give the budget at least 3 months before declaring it a failure or success. Economics is fluid, especially expenses which can go up or down very rapidly. Keep good records and after three months make any changes to the budget or completely disregard it.

Getting Mortgage Assistance

No segment of the economy has suffered more than real estate. The collapse in the housing market has left home owners staggered and searching for mortgage assistance. For those in this unfortunate situation, seek out help before it is too late and foreclosure becomes the only option.

Start with opening up the lines of communication between you and the bank. Start with letting them know there is a problem and see what can be done. There are times when a bank may offer loan modification, lowering the interest rates. However, it is rare that a bank agrees to any such plan.

Contact an attorney ASAP, if the bank is not willing to talk. Attorneys are fluent in banking language, often resulting in better results. Precede with this caution: Use an attorney to gain mortgage assistance when all other areas have come up empty.

It was your tax money so use it, the stimulus package. There are options in this plan that can help homeowners, so call the local representative or senator. They have some ideas for mortgage assistance.

Make an appointment with a mortgage counselor and or organization. There are many non-profit organizations offering charitable work for those in need. Many times they can at least offer some basic options.

Using Silver to Protect Against Inflation

Silver is the common investor's gold. Unlike gold, it is cheap and available, but like gold, silver bullion is a great option for any investor. As the U.S. Dollar continues to face pressure from mass printing and scared investors, silver continues to grow as an inflation protector.

Inflation is the investors enemy and protector against is critical. Silver bullion is a great option for doing this. It has tangible value, it is easily purchased and relatively cheap. So start planning silver investing now.

Seek reliable, trustworthy dealer. There are many options for silver dealers around the nation and likely one near you. If not, do an Internet search and research the dealers found on Google. Talk to them about investment ideas and concerns over
inflation.

Take a percentage of money used for investing and funnel it into silver. Many financial gurus are now saying up to 20 percent of a portfolio should be in silver or gold.

Sit down with a financial adviser, educated in the commodity trade. This can be a challenge as many advisers will push towards the stock market, but in these troubled times, paper can become worthless overnight.

Start with the American Silver Eagle. It is a great looking coin and holds value well, making it a great starting point.

Ayn Rand Part III: The Final

This the final part of the Ayn Rand interview with Mike Wallace.

Building a Budget

We hear it all the time; build a budget. Easy to say and perhaps even easy to do, but keeping a budget is very difficult. Personal finance requires two things, honesty and discipline. Building a personal budget that works, requires the individual to be honest about their spending and remain disciplined at all times. Doing these two things will help lead to personal finance freedom.

Step number one with any budget is to be honest about personal expenses and income. Avoid building a budget that underestimates expenses, specially food and gas. These two areas are often much higher than most people realize. Sit down and figure out exactly how much gas and groceries cost each month.

Make the budget building a group process. All family members must be committed to the process and bring some ideas about spending. This will allow for a true picture of family expenses.

Make sure all income is listed for in the budget. Any extra money that comes in must go into the budget, instead of being used as mad money or for reckless spending. In other words, don't hide money. Like all expenses, make sure all income is accounted for.

Place different copies around the house so everyone can see it. Create a spot were spending and income can listed daily or weekly. This is especially crucial for the first few months, providing real data and allowing for any adjustments to the budget.

Allow the budget 3 months to for either success or failure. Economics is fluid, so getting a real picture requires a large sample. Keep good records and after a three months make any changes to the budget or completely disregard it.

More Ayn Rand

Part II of the Interview:

Protecting Against Inflation

Inflation, it is seemingly looming and investors everywhere are trying to protect against inflation. As the recession continues, the nation continues to print out money in hopes of paying off the deficit. This will eventually drive the value of the dollar down and inflation upward. There are ways to protect against this.

1.Look at investing into something called TIPS or Treasury Protected Securities. TIPS are adjusted to protect against inflation by using the Consumer Price Index (CPI), which signals the cost of living. This critical, protecting from prices raising faster than the interest on the investment.

2.get into I series saving bonds. The I series, like the TIPS were created to protect against inflation. They are compounded semiannually and come in $50, $100, $500, $1000, $5,000 and $10,000

3.3.Switch from individual stocks to ETF's. These are similar to stocks but are essentially a collection of stocks, bonds and other investment tools. They normally are based on one segment of the economy such as financial, commodities etc.


4.4. Gold, gold and more gold. Head straight for precious metals, because unlike paper money they have real value. Precious metal value is not based on government or the impressions investors may have of economy.

Ayn Rand

Ms. Rand's words have never been more true! Although this is not directly related to investing, I believe it is important that all investor learn the benefits of a free market and how to protect it. There are things I do not agree on Ms. Rand, most particular her views on God, but honestly that is about it. I encourage everyone to listen and read her words.

How to Sell Gold at High Price

Gold is a great investment in these more than uncertain economic times. The reason being is that gold will maintain a tangible value, regardless of how bad or good the economy is. The problem is when and where to sell gold and cash in on some profits.

Here are few steps that help:
1. The ease of selling gold starts with buying gold. Yes, sounds strange but it is really easy after reading. Purchase gold that is clearly marked with grade and weight. The best way to do this is to purchase coins minted by government mints such as the American Gold Eagles and Gold Maple Leaf. Clearly marked coins lets any potential buyer know exactly what they are getting.

2. Be ready to fight for the best price. There isn't a gold investor unaware of the spot gold price, but most dealers often ignore it when the price is high. Be your best advocate and work the best deal possible. This means education and being armed with knowledge to argue why gold prices will remain high.

3. Sell gold on eBay or other Internet sites. Set up an account and start selling gold online. This can be a tremendous success, but remember the auction system is a pure free market tool and anything can happen, from auction to auction.

4. Build a relationship with a few dealers. Comfort is found in being familiar, so work on relationships with a number of dealers. Building trust will also eliminate the time needed to sell gold and the process of getting the price. Never underestimate the value of time.