Beautiful Light

(Financial business coach) Parents Should Pass On Effective Money Management Skills To Their Kids

By MIKE SELVON

 Every caring parent wants to be able to give the world to their kids and do all in their power to make sure they are set on a course for a great life in every way. One of the best and most important things a parent can do that will be enormously helpful to their children at every stage of their lives is to give them money management tips and teach them sound money management principles.

Often, when parents endeavor to give their kids a good childhood filled with all of the wonderful, educational and interesting toys and games that are popular, it can actually backfire in terms of teaching children responsibility with money. During the formative years, if children are often given $20 toys without understanding personal finance money management, soon their “toys” turn into $20,000 cars when they reach adulthood.

There are many parents who seem willing and almost eager to help their offspring out with the various financial challenges and crises that they encounter, even far into their adult years. However, these well-meaning parents also need to take pains to be sure that they do not overextend themselves and end up causing financial problems and stress for themselves and that they plan for proper money management to carry them through their retirement years.

Parents can help their children learn about personal financial goals and money management principles at any time. While it is always best to start early in life to learn about managing their finances, about how to prioritize their purchases, how to balance their needs versus their wants, and how to stay within their budgets, these are all financial concepts that people can learn about any point in time.

Parents who are too lenient early on and who lavish too many gifts and goodies on their young children can still get things back on course by simply saying no when the requests continue past the age when they should stop.

While it can be difficult, and even traumatic for both the parent and the child, when a parent starts putting limits on the financial help they will offer to their children, in the long run it is best for both parties. The offspring will gain a sense of self-assurance and self-confidence as they take their personal financial management seriously and begin to handle their own financial emergencies, as well as their own financial self-indulgences.

At the same time, parents will feel that their children will be able to get along without them long after they are gone. They will not be worrying about how in the world their progeny will deal with finances as they themselves move toward the retirement years. Starting a money management plan early is always the best approach, but it is never too late to learn personal financial management principles and skills.

Educate yourself about money management from Mike Selvon portal. We appreciate your feedback and welcome your comments at our financial money management blog.

Your Source For Business Coaching And Financial Mentoring

The Fall of the Owner Builder Construction Loan
By Chris Esposito

 Owner builder construction loans have not been immune from the pains within the mortgage industry over the last couple of years. In fact, there have recently been some major changes within the world of owner builder construction financing that are worth examining. It’s time to take stock and fully assess your current options for the new realities of today’s market.

Over the last couple of years, as liquid capital has been evaporating from the pool of mortgage financing around the nation, owner builder construction loans have been morphed and altered dramatically. If you built your own home a few years ago, you probably wouldn’t even recognize the form and structure of the owner builder loan today. Simply put, there’s a new reality for owner builder construction. If you want to build your own home, then you need to understand the options currently available for financing and assess the advantages and disadvantages to determine if being an owner builder is right for you.

The latest change in owner builder financing occurred when MidCountry Bank decided to indefinitely suspend the origination of any new construction loans. MidCountry was one of the last bastions of nationwide lending for owner builders, and this recent shake-up means that you must now look upon this specialized financing in a whole new light.

When nationwide financing was available, guidelines and rates and terms for owner builder loans were more or less uniform from state to state. If you were building your home in Maine, your cousin in Arizona could basically expect to receive the same guidelines to build his house. In addition, nationwide lending meant owner builder programs were much easier to find. In other words, it was much simpler to find a bank that provided loans nationwide than it was to deal with a multitude of local banks that may or may not provide construction lending at all.

The good news, however, is that there are still owner builder loans available around the country. With tightening capital, lenders have been forced to scale back guidelines and increase costs of specialized products.

Nowadays, you may find that the lender requires a small down payment, as opposed to financing every penny of the costs to build, including closing costs in the past. Or, you may find that the requirements to qualify for an owner builder loan have grown stricter. For example, guidelines nowadays will most surely address specific details, such as the sale of the borrower’s current residence or the review of actual bids and estimates.

Despite the tightening of the guidelines, owner builder construction will still provide the same basic benefits that should make the program well worth your time and effort. You will still be able to manage the construction of your new home without having to hire a general contractor. This means you will still earn a large amount of instant sweat equity by cutting out the costs of a GC, and you will still be able to manage the process yourself to ensure the home is built exactly to your own specifications.

Most owner builders will save anywhere from 20% to 35% during construction. If you look at the big picture, these overall savings make owner builder construction still worth your time and effort, despite the increase in financing costs around the country for these specialized loan programs.

So, as much as things have changed, the basics are still the same. If you want to be an owner builder, take a deep breath and always look at the big picture. It helps if you work with someone who knows the financing options and has been through many projects before. Even in today’s financing market, an owner builder construction loan doesn’t have to be overly complicated. But, you will need to understand the current options available.

Chris Esposito specializes in owner builder construction loans, providing financing through the Owner Builder 101 program. If you would like to learn more about building your own home without the costs of a GC, visit www.OwnerBuilder101.com, or call (877) 876-3688.

Smart Tips & Tricks For Getting Out Of Debt
By Adir Le

 In these hard economic times debt problems abound. It is important to know that even if you feel like the world is falling in on you and you feel alone in your struggle, you’re not. Millions of Americans are facing debt concerns and while it may be a long hard road to stability, it is a road that you can navigate. There are maps you can follow and ones you can create that will lead you to the light at the end of the debt tunnel. By coming to this website, you are already headed in the right direction.

Where does the money go?

You know you’re in debt but do you know how to break the cycle of overspending? The first step towards stability is making a comprehensive budget of your monthly spending. Start with your major, necessary expenses like your mortgage, insurance, loans, car payments, etc. Once you have the heavy lifting accounted for, it’s time to get honest. Where else is your money going? Daily latte trips? Weekly trips to the movies? Dinners out? Write it all down and don’t fib. You’ll only be hurting yourself further. Do this for a month and keep a financial diary. Keep all your receipts during the month to hold yourself even more accountable. Now that you have a further understanding on where your money is going, you’ll have a better idea on where you can curb your spending habits and allocate your monies to the major expenses. You’re building a bridge of understanding. The more you understand that the little spending habits add up in a big way, the more willing you will be to making small sacrifices that will add up quickly as well.

High-Interest? High Priority

Now that you’ve identified where all your money is going, it is time to identify where your highest-rate debt lies. Which loans, credit cards, etc., have the highest interest rates? Tackle these debt suckers first. While your mortgage may look like a bigger expense, its interest rate is usually lower than the other high interest rates of credit cards, for example. So as not to feel overwhelmed, rank your debt from higher interest rate to lowest and make those the priority for whittling down their balance. Be aware of the trap of paying only the minimum on credit cards. Often times your minimum balance will barely cover the interest and instead of paying off your principal, you’ll end up paying thousands to the credit card companies.

Ask for Help

These are just the beginning steps to understanding your debt. Being aware of your spending habits and creating a budget to pay off high-interest debts are important to help you realize that being debt-free is an attainable goal. But you don’t have to do it alone. Reputable debt counseling services are worth your time. Receiving professional help in sorting out your financial woes can help take the stress down a notch. Don’t be afraid to ask for help. Finding out ways to consolidate your debt and solid advice on managing your finances can be invaluable on this road to recovery.

Adir Le. writes personal finance articles for the newsletter of the book Debt Cures They Don’t Want You To Know About. He also writes for 3 other online magazines, and just started his own blog about Debt Cures.

Friday, November 21st, 2008 at 5:05 am and is filed under finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.