Savvify

Does your budget have leaks?.. or would you rather not think about it.

Most people don’t realize how much money actually slips through their fingers in an average week. We are all working hard, trying to get somewhere and make a nice life, and in doing so, we don’t pay much attention to the nickels, dimes, quarters and more that are slipping through our hands every day.

You know the scenario, you basically get out of bed running before your feet hit the floor, and the change you plop down on the counter for that coffee you need to keep you going, doesn’t seem that big a price to pay, nor the vending machine in the afternoon at work, because you are tired, nor does the takeout pizza on the way home since you are too tired to make dinner. But it DOES matter.

Stop, for a few minutes and actually think about it. I am not suggesting that your life should consist of work and sleep and no fun, but if you could save even just a few dollars during the week, you would have that much more for the fun stuff on the weekends or weeknights, and even save some along the way.

A friend of mine told me, that she barely had enough money for her car payment, and yet she made good money. Other people in her pay range were doing not too bad, and yet she was having trouble. She figured she would turn her heat way down, and eat less food in order to save money. But in reality, she was a hard working woman, who put in many hours and just didn’t pay attention to the money she was spending in order to do those long days at work.

We actually sat down, and went through her average week day, and found that she stopped for a latte and natural muffin on the way to work. Cost $3.50. At lunch she visited the deli with other co-workers and spent $10.00 dollars on a vegetarian lunch. In the afternoon, she felt the slump, and would get a coffee and a chocolate bar from the vending machine, cost $4.00. On the way home, she always picked up the latest rag magazines (which she never had time to read, it was just habit) at a cost of $5.00.

So, in the course of one day, she was spending $22.50! In five days, that is $112.50! Times that by four, and there was her car payment. I could see her eyes widening every time we added a new expense. She just didn’t realize, her head was elsewhere and these were habits. She pulled money out of the cash machines and spent it.

Now, she gets up a bit early, puts on a pot of coffee, makes her lunch and snacks, but still buys her rag magazines, as this is a treat she really wants. She still saves a lot of money. I am not suggesting we all spend our cash like that. But really look at your daily habits and the spending, and see if you can cut something and you will be in control, and plugging the leaks in your budget, so it can be used for more fun stuff!.  click here for more great money saving tips that are painless.

Do you feel like you are spinning your wheels trying to make ends meet?

Most of us feel that way, and someone once told me that our working life is like a ferris wheel. The more seats we fill up (financial commitments) the faster the ferris wheel goes, and it then spins out of control.

If you feel that way, and don’t feel like you can make ends meet, and are considering a second job, why not invest in one afternoon with your bills, and you may find out that you do not need to go down that route.

After all if you have time to consider fitting in a part time job, then you have time to sit down for one afternoon with your bills and really look at them. That to me, was the hardest part, actually gathering everything up and laying it out on the table. But once you do it, you will at least know where you stand, good or bad.

A Financial Budget. We have all heard of the words, but the word budget tends to leave a bad taste in our mouths, is not talked about at parties, and has never been a really hot topic. But if you do one up that is fun, and includes entertainment and rewards, then you are more likely to stick to it, and better yet, if you even save a hundred dollars, then that is one hundred dollars you didn’t have to make at a second job.

1. Start with your cell phone, internet and cable. Are they all with the same company?.. If yes.. Phone them up and ask to be bundled into one bill. You will save a lot of money here, it may even be worth changing companies for this reason. Remember the company doesn’t always offer this, it is up to YOU to phone them and ask. Package deals with cell phones, internet and cable are much cheaper, plus it is only one bill.

2. Look closely at your credit card statements.. write down the interest rates. Phone the company with the lowest rate, and ask them to transfer your other balances to their card. Some credit companies will jump at the chance to pay off their competitors. If your credit limit is not high enough, as for an increase with the promise that you will cut up the other cards.

3. Watch your weekday spending.. you may think you are only spending change on coffee’s, muffins etc, but it adds up. If you make yourself a pot of coffee in the morning and make your lunch and snacks while it is brewing (you would only be in line at the coffee shop anyways) and you can save even five dollars a day, that is 25 dollars for a movie and fun on the weekend. Which would you rather do?. (and don’t say both!.. we are trying to save money here!)

If you can shave at least 10% off of your bills and spending, you will save money. Figure out how much you can save, and have your bank do an automatic transfer on pay day to a savings account. Now pat yourself on the back for a job well done, because you are now in control. more tips on keeping your money

Most people think that the foreign exchange market is a highly specialized market that requires some mumbo-jumbo. Actually, it is simply a wide-ranging buy and sell market in which the primary commodity on the block is money itself – of various currencies. Traders who do business in the forex market engage in the buying and selling currencies such as yen, dollars, euros, pounds, and other currencies of the world.
Due to the daily (sometimes hourly) fluctuations of several of the world’s currencies, the forex market has become a profitable venue for majority of currency speculators and traders. Currency fluctuations are directly tied to a country’s gross domestic product, inflation rate, political stability and employment rate among other factors. The basic principle of the forex market is to buy low and sell high – exactly the same as the stock market. You buy a particular currency when its values go down and sell it again the moment the value goes up!

A good case in point is the American dollar which is suffering from a very low value compared to the euro, the British pound and the Japanese yen. Most traders are buying the greenback as much as possible in the event that when it recovers its actual value, they can easily sell it off for a profit.
One important thing that ordinary people like you and me have to be aware of is that there is no literal buying and selling going on in the foreign exchange market! Every buy and sell transaction in the forex market is done through paper (no actual currency changes hands between traders) but the consequential profits and losses from the currency transactions are real.

Because of the unique transaction type (no physical exchange of commodities) in the forex market, they have what is termed margins or leverage. Quite simply, what this means is that a trader or investor does not have to actually put up the entire amount of the position he is taking. With a margin of 1% (the normal acceptable margin), a trader can put only $1,000 into it but you are actually getting $100,000 if you decide to acquire his position. Regardless if this is the case, if you do are not careful, wise and judicious in making your decisions you can very well easily multiple your losses in a single day alone!

The major reason that the forex market allows a 100:1 margin is because most of the world’s most actively traded currencies in the foreign exchange market do not fluctuate in value by more than 1% a day, sometimes it is even less.

Since fluctuation are relatively small, gains or losses on a $1,000 initial investment is almost imperceptible, however, by multiplying it by 100, the gains and losses become more pronounced in the forex market.

This implementation of the forex market rule has standardized the basic lot traders and investors can buy and sell – usually 100,000 (which of course actually will cost only 1,000). This is the lowest amount most traders handle during any particular trading day.

Know How to Forecast Forex Rates

Making a forecast on the various currencies in the foreign exchange markets is akin to making a weather forecast meaning there is no exact science on how to make a prediction on which direction the market will go at any given time of the trading day.

However there are traders and investors in the market who are more successful than their counterparts in making forex predictions.
Basically there are two approaches on how to make a forecast in the forex markets. The first one is by using technical analysis and the second one is by using fundamental analysis.

Technical Analysis

In the technical analysis method of predicting the market, the methodology is geared more on the close scrutiny past market behavior and using the data to predict the future. Just like people analysis which is based on what transpired before, most traders believe that past events in the market are a solid indicator of future events even in the forex market. People buy and sell commodities and in the forex market, since money is the commodity, they are no less affected by outside variables.

The fluidity of the forex market makes it an overwhelming task for any body (or even a group of individuals) to monitor closely each and every variable responsible for the market fluctuation of any given currency. The way to do a practical analysis therefore is to closely analyze the overall picture and correlate trends over an extended period of time.

Fundamental Analysis

On the other hand, if you are to use the fundamental analysis methodology to forecast forex markets, the procedure involved is more comprehensive, but it can also be more accurate. By using the fundamental methodology, all factors affecting the forex market are carefully studied and analyzed – political situations, government stability, social movements, and believe it or not, sometimes even the weather conditions.

All factors that affect any country’s economic stability are taken into consideration since the currency can ultimately be affected as well. A nation’s economy is in relation to its trading partners and the rest of the world dictate its currency’s exchange rates, and that’s what a fundamental analyst will use to make an educated guess regarding the forex market’s situation.

This necessitates having an in-depth knowledge of almost any information regarding a country’s political, social, economic, sometimes even religious conditions not to exclude the weather! If you are tracking the euro, it makes it even more difficult as there 27 member countries with 8 or 9 more waiting to be accepted in the union!

Although the amount of information necessary to be gathered is daunting, having all of them on hand makes it relatively easier to make a forex forecast.

The Best of Both Worlds

Successful traders in the currency market use a combination of both methodologies in order to have a more accurate prediction of the forex market. If you are planning to enter the forex market, then it is to your advantage to keep abreast of most economic, political, social and weather conditions of the country whose currency you are keen to speculate on. It pays to have all the necessary information on hand rather than be sorry after making a wrong decision because you did not have the correct data in the first place.

Because the world is such a big place and has several time zones, there are countries that have night time while the others are on day time! And because of this situation, the stock market and foreign exchange markets operate 24 hours a day in different parts of the world!

This means that at any given time, there are billions and billions of dollars and other major currencies exchanging hands in the market. This also provides money traders and players with a constant flow of information regarding the exchange rate of any currency at any given time. The situation is such that foreign exchange traders need a way to stay on top of breaking news regardless of the time since their business’ lifeblood depends on having the information on the latest exchange rates on time – all the time.

Thankfully, getting alerts on the forex market developments is not a big problem since these alerts are available from online foreign exchange dealers and brokers and other similar companies. With today’s technological advancement, a forex alert can either be in the form of an email message or text message sent directly to the subscriber’s cell phone or internet-capable handheld device.

Foreign exchange alert providers normally provide subscriber alerts in two methods. Some send out alerts every 24 hours (depending on where you are in your part of the world), complete with a summary of related information and developments in the market. While on the other hand there are those who send alerts only when something that affects the market transpires.

A word of advice though, you have to very careful in making a choice as to which foreign exchange provider you sign up with. Make sure they have been in the market longer enough (five years would be best) and that they have a good track record. Why? Because these forex alert providers use proprietary formula to determine what is critical or not! If you require more comprehensive alerts depending on your own particular set of variables, these providers may charge more money than the regular fees. And of course it’s still up to the individual trader to act on or disregard the information send to him in the alerts.

There are brokers however who do not charge fees for their forex alerts as this is included in their service, and may also include a wider alert program covering stocks, commodities and bonds.

It is ultimately up to you to determine what type of alerts you need get based on your requirements and whether you are a conventional trader or a risk taker.

Most traders swear on the positive advantages of forex alerts; however, it is always safe to be on the prudent side of the trading equation and spend the extra amount of time to do your own research on the conditions of the foreign exchange market as no system is perfect.

Receiving forex alerts may give you the necessary edge over other traders if you correlate them with your own private data.

Technological advances in various fields like computing, telephony, internet infrastructure and the convergence of world markets due to the World Wide Web has invaded even the sacrosanct halls of stock market and foreign exchange trading.

Of particular interest is the automated foreign exchange trading systems that most financial speculators are taking advantage of in order to be able to have their share of the hundred billion dollar pie that is the foreign exchange trading market all over the world!

With more powerful desktop processors available, software developers are now able to create cutting edge computer program dedicated to foreign exchange investments with the use of mathematical algorithms and fuzzy logic to determine the situations when to buy and sell currency – so advance is the development of these type of programs that they are also able execute the buy or sell orders for you! All you have to do is put in an initial investment into the account and the system will do all the necessary work for you. Literally a case of having your money working harder for you – since it goes on 24/7!

As risky as it may seem, automated currency trading is generally seen as safer than human trading due to a number of factors. Humans can commit mistakes, misinterpret data and charts due to lack of sleep, a misunderstanding with another driver at the traffic light or a domestic squabble. Variables that do not affect automated programs and the computers they run on.

Programs for automated foreign exchange trading have none of the human flaws very common among all individuals. These programs record every movement, no matter how small and compare them at fast speeds with other extraneous variables that may affect the market before making a decision to buy or sell.

The downside of putting your funds into an automated forex trading systems is the high cost of investment. Majority of brokers who have these programs require a minimum investment plus their fees for a prospective investor to use their automated system.

The common consensus among users of the automated trading system however is that even if the minimum investment amount plus the fees runs may run into hundreds of thousands of dollar, the advantages more than make up for the added cost. No training period is required as well as everything is automatic. The learning curve is not steep compared to manual trading.

The emergence of automated trading systems is most advantageous to companies and other institutions that want to broaden their trading horizons but do not have the time or manpower to devote to foreign exchange trading since a program handles all of the transactions then there is no need to assign a person to oversee the investments.

Purists however claim that since automated trading systems use technical data analysis and not fundamental analysis techniques there is no way that programs can factor in politics and environmental variables which may affect any particular currency. Despite this however, the system proves to be highly effective and accurate for investors.

Learning about the foreign exchange market need not be a difficult task to anybody who is interested enough. There are literally thousands of available resources, in the libraries and in the Internet when it comes to the subject of forex trading. There are also several online courses, tele-seminars and even individualized training a perspective student of the subject can avail of. However, there is no faster and better way to learn the ins and outs of the forex market than the old-fashioned way of learning – by reading a book.

However, this is easier said than done since forex books proliferate the marketplace and making a choice as to which one to buy in particular is a hit or miss affair!

Most new traders declare that buying a book is the best way to learn about force trading because it allows you to read and re-read passages as many times as may be necessary to fully grasp the concepts and principles involved. You can not do this in an online course, a seminar or a tele-seminar even which is why having your own forex bible has its definite advantages!

Which book then should you buy? Just like any other niche market, the forex trading niche has its own share of con artists and impostors. Do not fall for a book with a title that claims it can make you a pro in less than a day or that by reading the book you will know the secret to make millions in the forex market overnight. Be careful also if the book you are checking out claims that the forex market is not risky at all! Stay away from books and programs with out-of-this-world claims – if the claims are too good to be true, they really are and you should be careful!

The kind of book you need is informative, practical, with no fancy claims on the cover. Is the book being sold through the author’s website? If so, is he an authority on the subject? The best way to find out is to Google his name to determine his qualifications.

Do not be carried away by web based testimonials on the author’s website, the better testimonials are those from other sources other than his own! If what you are buying is an e-book, does the author have something to show for his accomplishments in the forex market?

Take note also of the book’s and sales letter’s presentation – are there any grammar and spelling errors? Is it professional looking?

In making a decision as to which book or e-book on forex trading to buy, use the preceding factors to guide you on your decision. There is a saying that goes, those who can do, do… those who can’t do, teach!

With this in mind, look for publications written by well-known authorities on the subject – those who actively trade and those who are considered as the best analysts around. You can even ask your stock broker to give you a friendly advice on the matter. There’s no harm in asking.