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If you’re a young person learning to invest, you might think that during a recession is a bad time to put your hard earned dollars into the stock market. However, according to the greatest investor that ever lived, Warren Buffett, right now is exactly when you should strike. When people are fearful, they tend to make irrational decisions and sell stocks at a price below fair value. If you have cash and time on your side, you can do yourself a great favour in picking blue chip stocks on firesale. However, how can one differentiate good stocks from bad ones? After all, even with so called blue chip stocks, the company can be poorly managed. Just look at all the big American banks in the recession that went bankrupt and were later sold off. If the so called experts in the area of finance could have gotten it so wrong, how can the general public do better at stock picking?

This is where common sense and a lack of ego come in. If you can’t describe in a few words what the company does, don’t invest in the company. It is as simple as that. People tend to think differently when they own shares and they don’t think like a business owner. However, being a shareholder, a business owner is exactly what you are no matter how few shares you own. Thinking about it this way, would you want to own a company that you know nothing about? Most people would say no.

Undoubtedly, buying stocks requires thorough investigation of the company in which you want to invest. Even for those who are very good at it like Warren Buffett can make mistakes. If you are queasy about investing in stocks or don’t have the time to do the research, Buffett actually recommends buying index funds or ETFs (exchange traded funds) that track the markets. Instead of having invested in specific companies, you will be investing in all the companies that make the market. Eventually, the markets will bounce back and by getting in right now when the price is low, you will be making money. After all, isn’t the way to make money to buy low and sell high?

will generally be turned off by the financial outlay. You will need to pay to get started, you will need to pay to start an account, you will need to pay commissions and you will need to keep in contact, and depending on where you live that contact could also cost you money in travel or telecommunications costs.

There is however an easier way. You can you start learning about stock trading online. Sounds to good to bed true? Well it’s not you can even learn about stocks for free on online stock trading websites. Websites like these have been set up to ease the first part of stock trading. Getting involved in stock trading online is daunting for everyone and having a bit of knowledge before you start is the best way to go. So what do you need to know?

If you have never had any contact with the stock market or stock trading you should start by learning about the basics.

You will need to know what investing actually is. Stock market trading / investing means buying something letting it change over a period of time and then selling it for hopefully a better price.

You need to learn from any source you can, at first it’s best that you start with free options like financial press and online stock information. Learn what stocks are on the market, what stocks are gaining and losing and what kind of industries you might be interested in.

You need to make sure that you have set your own levels and what you would be happy to lose. You should never trade with money you need right now. For instance don’t trade with the money you intend to use for your mortgage payment next week.

Never involve yourself with information providers that are not interested in following up on your queries. So if you send an email to an online stock adviser and they don’t get back to you, what makes you think they will contact you when your money is involved?

If you find yourself lost at this point, you need to enlist the help of a professional. Don’t however feel that you should stop your research and learning if you do.

If you are interested in learning about the Forex, you can start learning online today. All you need to do is follow the exchange rate of various currency’s for a little while and learn about what is pushing them by reading the news. Once you have learn about the Forex you can follow the previous steps with free online Forex learning sites. Forex is one of the best places to start when you have an interest in the market but you want to start with something that is fairly simple to follow.

For the past year we have all listened with growing concern to the repeated announcements about the crumbling of the mortgage marketplace. In the light of this crisis:

Recent statistics reveal that one in eight homeowners are currently behind on their mortgage payments. Countless homeowners are facing foreclosure. New loan modification programs are flooding all the media, including the Internet. Many of the advertised modification programs are applicable only to a small percentage of those needing help.
Options are often too confusing for the average homeowner to understand all the legal steps necessary for a successful modification without some counsel. Many financially-strapped households don’t know where to discover affordable and reliable help.

Good news

Even though many say the banking industry is in the worst position since the Great Depression, the good news is:

The government is offering financial incentives. The process of obtaining a loan modification has actually become easier in recent months.
As thousands of homeowners are searching for solutions to their financial woes, they become hopeful when they hear that they might qualify for a mortgage modification. However, some who have begun to investigate admit that the modification process is extremely intimidating and confusing.

What is a Mortgage Modification?

Contrary to what some might think, a mortgage modification is NOT a new loan, nor is it a refinance agreement. Instead, it is a whole new set of terms for an existing mortgage agreement. Such options may include augmented terms from the original loan that become the basis of an adaptation of the original mortgage.

This new concept has birthed a mushrooming industry that is offering varying levels of assistance. Because the mortgage modification industry is minimally regulated in most states, some dishonest firms have collected large fees from consumers who have received little or no help. Those who are already behind on their mortgage payments feel overwhelmed-they know they cannot afford to hire the services of a pricey law firm or spend thousands on a complicated process to alter their loan.

It is critical for those investigating a mortgage modification to:

have access to reliable information that explains the most recent changes enacted by Congress and the Obama administration know the significance of preparing their financial statements create a professional-sounding “hardship letter” that outlines the significant points of their unique situation
Is there inexpensive, reliable guidance available?

Careful homeowners who prefer to initiate a mortgage modification without a high-priced lawyer, would wisely seek an affordable, step-by-step outline to successfully guide them through the details of the process. The prospect of trying to guess what to say, and what not to say, to a lending institution can be overwhelming, especially when many hear about others who have tried, only to receive the disheartening report that their modification request was rejected. For many, a demoralizing foreclosure looms ahead.

There is good news! James Paris and Robert Yetman-editors of Christian Money.com have combined their many years of financial expertise to create the Mortgage Modification System to answer this critical need. Their thorough research of the “Obama Plan” has resulted in practical, up-to-date loan modification information that can help ease the tight budgets of 2009.

This kit provides homeowners with a step-by-step outline of the mortgage modification process and all of the forms and worksheets necessary to successfully renegotiate their loan. Included in this kit is a one-hour video that covers every detail of the process. The authors went so far as to include several scripts which outline exactly what the loan holder should say when calling their lender.

Money is known to be one of the major causes of tension in a relationship. So, try something new. Follow a few simple guidelines that can help you keep the fireworks in the relationship from exploding out of control.

1. Understand your Motivations and Goals

Traditionally individuals and couples will earn an income and automatically adjust their lifestyles to that income level. It’s nice to have the finer things in life such as home, new cars, vacations, etc. Very little thought, however, goes into motivations or values. It’s an important first step to understand what’s most important to you (your values) and from there you can set some specific financial goals.

Spending some time alone AND together and WRITING out your individual motivators (or values) and goals can be enlightening. Give it a try separately at first and then compare with your spouse or significant other. You’ll be well on your path to understanding each other better and set up for fruitful communications.

Once you’ve agreed on some goals, be realistic about the amount and timeframes. For example, if a goal is to buy your first home, calculate how long it will take you to save for a 30% down payment. Anything less than 30% down in this real estate market is very risky should you need to sell in the next few years.

2. Understand Your Current Financial Situation

Take some time to organize your records: Assets, Liabilities, and Income (ALI). Make a page for each ALI and list all the items in that group. For example, for the Assets group you would list home, cars, savings accounts, investments, and other major property items.

On the debt page, list all debts such as mortgage, car payments, outstanding credit card balances, student loans, etc. Do the same for all your sources of Income such as wages, alimony, child support, rental income, investments, etc.

Writing this all down will help you gain a big picture understanding your current situation. Once that is understood, you can work as a team to figure out how to achieve those financial goals you listed in step 1.

Remember, your financial information is your ALI!

3. Work Together as a Team

Work out your monthly budget as a team. Each of you will have a different value system or set of motivators that cause you to place emphasis on certain budget categories. Learn to work with each other and compromise where you disagree. Set up pre-set spending limits by budget category so that you are living within your means. When you disagree, you have your values and financial goals as your foundation. Keep coming back to revisit those. Make sure your spending plan supports those!

To help resolve conflicts, put in terms of “Needs vs Wants.” Once you think in those terms, many of your “wants” may need to be eliminated in order to achieve one of your financial goals. Remember, you based those on your life motivators or values, so those are much more important than some of your daily “wants,” i.e. a daily Starbucks budget category!

Set aside 30 minutes per month to work out your differences. Communicating your concerns lovingly and working through to the benefit of “one team” will help you maintain your financial goals and keep those fireworks going too!

4. Start Where You Are

Even if your financial picture looks grim, do not despair. Even if you are 50+, do not give up hope. You will probably live into your 80′s or 90′s, so there’s a lot of time to recover from past financial mistakes or just simply a late start. There’s a great book by Chris Gardner called “Start Where You Are.” If you need any inspiration at all, this book is a must read. Chris was a homeless single father of a small child and made a tremendous comeback to build a successful business. The book is full of inspiring techniques that will help you get started, no matter what your current situation is.

My advice is to start your financial plan within 24 hours of reading this. Studies show that a new thought, idea, or writing (such as this blog) should be implemented within 24 hours or the new thought, idea, or writing will NOT happen. So start planning now. Talk to your spouse or significant other today and encourage each other to take some ACTION.

5. It’s All About the LOVE!

Working together on your financial plan and making progress toward your life goals will bring harmony to your relationship. There’s nothing more comforting than knowing you are a blessing to someone else. When you put yourself on a mission to LOVE, you will be pleasantly surprised how good it will make YOU feel too!

As you work through your financial plan together and you start reaching those life goals, stretch yourself out – spread the LOVE even farther. What can you do to give back to the community, to your church, to your value system? When you start to think in terms of others and what life impact you can have on them, your own troubles start to disappear.

Give it a try…spread some LOVE today and make it a habit every day! You will be more than blessed in return.

When you are looking to make money in the shortest amount of time, and do not have a lot of money to do it with, you want to make small investments. Or, you may have a lot of money but are not yet familiar with the best investing techniques. A lot of profit can be gained from small investments as long as you follow some basic rules. Here are four of them for making small investments but getting great returns.

Take Time to Investigate

This should probably be your key factor when deciding where to invest your money. You do not want to jump too quickly into something until you are thoroughly satisfied that it is a good move. Some things that you will need to consider before you make that move are:

o What are the risks?

o What are the minimum and maximum possible results?

o What is the time frame for the desired results?

o Will this money be liquid later?

Answering some questions honestly may make you decide that it may not be that good of a move – or that it is an excellent move. A thorough investigation and a comparison with other possible investments will help you determine which one is the best one for you.

Know When to Jump

Experience will teach you when it is the best time to make your move. One thing that you don’t want to do, however, is to repeatedly hesitate on moving when everything indicates that it would be a good investment.

Unless you are willing to depart with your money, make sure that you always have a margin of safety on your assets, or else you may lose it all. This may tend to make you more hesitant, but it will also lead to wiser investments.

Diversify Your Assets

Whatever your reason for looking for small investments, you want to be sure that you do not put all your eggs in one basket. The reason is that it is much safer to diversify your assets across several markets using different instruments and levels of risk, than to possibly lose it all in one bold but possibly misguided shot. This kind of investing is not worth the risk and it will most likely cost you everything.

Balance your assets with different types of investments into bonds for the safest investment, mutual funds for good investments, and various types of stock for your highest yields. The highest yield investments are also the least safe investments, however. Any money that you cannot afford to lose should never be invested in high-risk categories.

Choose the Greatest Profit

Whenever you may find that you have more than one option for making a good small investment and all other factors being about equal, you should go with the one that has the greatest profit margin. Short-term investments will also provide you with quick profits and enable you to use your money again in another great deal. Investments that prevent your money from being liquid for a long time may not be a good idea, when you consider that many profitable small investments could also be short-term.

The sensible way to make money by investing money is to use a moderate to conservative investment strategy. Why did millions of Americans lose a large part of their life savings in 2008? They had an overly aggressive investment strategy. They had a large portion of their investment assets at risk in the stock market and many of them didn’t even know it.

I don’t care how old you are; keeping 80%, 90% or more of your investment assets in the U.S. stock market is too aggressive and too risky. Plus, it diminishes your flexibility and ability to take advantage of investment opportunities.

By early March of 2009, stocks had lost half their value in a little over a year. Had you been heavily invested in equities (stocks) throughout this period, what investment options did you have in the first half of 2009? You had two investment options, and both were negative.

First, you could sell stocks at a loss. Second, you could hold on and hope that the stock market came roaring back. Either way, you were in a losing position.

The stock market came back with a vengeance, up 50% in six months. Those who sold earlier and took big losses were not happy investors. Others who held on were still behind. If you had $10,000 in stocks and lost half you were left with $5000. Then when you gained 50%, you were only up to $7500.

Many investment companies and advisers recommend that younger people should be 80% to 90% invested in stocks (like in their 401k plan). I suggest investing money more conservatively, now matter what age you are.

For example, let’s say you want to be more conservative and make money investing with a lower-risk investment strategy. Keep about half of your investment assets in stocks and the other half in safer investment options like savings, money market securities and intermediate-term bonds.

Now, here’s the important (and somewhat scary) part. When the stock market takes a big hit (say 20%) … you move some safe money to stocks. The market goes even lower … you take advantage of the investment opportunities out there and move more money into stocks.

Now, the question is: as the stock market approaches a 50% drop from its high, what percent of your total investment assets are you willing to bet that the market (and the economy) will recover? If your answer is 80%, for example, make that your limit.

The simple truth of the matter is that when you invest in the U.S. stock market, you are betting that the USA will survive and prosper … no matter how bad things get. If you want more security than that as an investor looking for investment opportunities, invest in foreign stocks as well. That way you are betting on both the USA and modern civilization in general.

If the whole economic system we live in collapses … it won’t matter if you tried to make money by investing or not. When chaos rules (if it ever does again), it’s all over anyway.

Getting back to a positive note, if you have a more conservative investment strategy a bad stock market can spell INVESTMENT OPPORTUNITIES for you. You will have the flexibility to take advantage of the situation; and avoid the heavy loses no investor can afford to take.