In Plain English: What YOU Get From The Stimulus

Image by Steve Wampler via Flickr

Kiplinger.com has done a great piece:

• What The Stimulus Means For You (the article)
  

• What The Stimulus Means For You (the slideshow)

If you want to sift through all the chatter, and all the pros and cons - and especially all the political grandstanding - here is the plain English SHORT version of what is in this for YOU.

Each benefit is described in no more than a paragraph each. Want to hear the first line describing each benefit (their words):

• A bigger paycheck

• A bonus for retirees

• Relief from the AMT

• A tax break on new wheels

• A break on college tuition

• Lifeboats for the laid-off

It's worth reading, and watching. And it's definitely worth sharing! :)

Increase Your Earning Potential. And Have Fun Doing It!

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Tonight, I'm doing something different. I'm talking about increasing your earning potential And I'm telling you two personal stories to get the message across.

Take it from me. Do yourself a huge favor and sign up for a class. I heard that collective "Aargh!" :) No, you don't have to go back to school and read tons of books (although that's one of my favorite activities). What I am recommending is taking one of your personal favorite activities - could be a hobby or an interest - and getting some structured skill development in that area.

Let me tell you what I have done. I've decided to get serious about my hobbies. I've decided to do my own research, practice what I learn, and seek technical training in formal settings. A class is a great way to make new friends with like minded people with similar interests, and also learn a lot of information in an effective way. I'm investing in myself and having a ball doing so by turning a hobby into an potential source of income. Try it. It doesn't have to take up all your time, or replace your main source of income, but in these days of uncertainty, diversifying your skill set is a wise move. Invest in yourself, it's worth it.

Which hobbies did I get serious about?

Well, first, I decided to get serious about photography. What does this have to do with earning potential? Everything.

As it turns out, there are tons of opportunities, especially now with the World Wide Web, to earn a bit of extra income from photography. With a bit of research you can match your interest with a willing market of buyers. Don't believe me? Well, there's stock photos, there's submissions to local newspapers, there's also work as art etc. I went to a great exhibition last Sunday - Just Photographs - and WOW what amazing work by professionals. And some nice prices for the work too. I'm taking a class now and loving every second of it. I have learned so much from my classmates and my instructor. And I have met people who I share a common interest with. It's been awesome!

Second, I decided to get serious about blogging. What does this have to do with earning potential? Everything.

I've been blogging since late last year. I've moved from one blog to two blogs. I blog everyday now. I do tons of research on how to blog, best practices, and how to increase earning potential from blogging. It started as an vehicle of expression - I'm pretty opinionated if you couldn't tell :) But then I started these personal finance experiments to help others in this economic downturn. I knew my readers are looking for ways to earn more money. So when I learned that people make money from blogging, I've tried some of the monetization techniques to see if they work so I can tell my readers how to do it. It's just some ads, really. But there's a whole skill to doing just that effectively. If I get it right, I'll be sure to share.

Blogging - with or without monetization - is actually a real skill and a very hot trend. I can use blogging in my full time job, or call upon that skill one day if I wish to to earn some additional income. So, taking my own advice, I took a one day seminar today and learned a ton! Not only am I investing in myself, I'm doing something fun, I am making new friends who have similar interests. If you like writing and knowledge sharing, and you are comfortable with the Internet, social media and cyberspace, you might want to try this.

But hey, those are just my examples of how I am taking my hobbies and turning them into the potential to be much more.

What do you like to do? Teach? Write? Name it.

Who knows, not only will you be happier if you do more of those things that you like to do, they may just help to pay the bills! :)

Download Tax Software

Image via CrunchBase

FYI:

If you need some help with your taxes, now Amazon is offering Tax Software Downloads.

Need Some Help With Saving?

Image by Getty Images via Daylife

So often people tell me that they really understand the importance of saving, feel the need to save, want to save, but just cannot see where the money will come from. They look at their budgets and see fixed and/or rising expenses. And they see fixed and/or decreasing income.

Well, sometimes, it takes a second pair of eyes to see where the savings can come from.

If you are one of those people I described above, and if you feel comfortable in seeking help, talk to a friend or a professional who is not as personally committed to your expense categories as you may be. He or she may be able show you your expenses in another light. Or, you can read this great piece from from Kiplinger.com: Save $50 a day (and feel no pain).

• First of all, the article has tons of suggestions to save more than $50.
  

• Second, the article has sub-sections to "pay less " for banking and loans, health and insurance costs, utilities, food, transportation, investing costs, leisure, high tech and high fashion.

• Third, the article provides a link to actual stories of "super savers".

Now, you don't have to do all of these suggestions. Many of them may not work for you. But there are so many suggestions, it's likely that even one will work for you and adopting even one would be a start. And remember, everything you do not spend but save instead represents an opportunity to earn interest on that saving. :)

Words Of Wisdom

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I came across this gem today: 7 Keys to Financial Security from The Wisdom Journal.

It's a short piece that explains these 7 keys (their titles)

1. Live on less than you earn

2. Invest in your own stock

3. Insure yourself and your loved ones

4. Pay yourself first

5. Avoid borrowing money

6. Invest in boring things

7. Diversify, diversify, diversify

A worthwhile read!

A Clarification Worth Noting

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Ok, something came to my attention today and I think it merits a blog post. If you already know this, I apologize for boring you.

• Deposit-taking institutions are where you SAVE

• Technically, you INVEST with licensed securities dealers or in a business. Although the term "invest" is used with "alternative investments" and Ponzi schemes, they are completely different from licensed and regulated forms of investments.
  

• Deposit-taking institutions and licensed securities dealers are not the same. If you are unclear about what category a certain entity is, ask them or ask someone you trust

• Deposit-taking institutions have JDIC or FDIC insured deposits. What does that mean? That means that the institutions have paid a premium to the Government to insure your deposits. Deposit Insurance was introduced as a safety net measure - should the institution that has your deposits get into difficulties, the Government will ensure that you get back your deposit up to a certain limit. The FDIC has a limit of US$100,000 per depositor which was temporarily increased until December 31, 2009 to US$250,000 per depositor. The JDIC has a limit of J$600,000.
  

• Investments are risky and have no safety net. Some investments are riskier than others. Higher interest rates generally reflect higher risk premiums. Interest rates are determined by the base rate (determined by the Central Bank) plus a spread. If you notice, deposit-taking institutions have lower rates than all other "investment" entities - licensed or otherwise.

• Licensed securities dealers are licensed and regulated by the Government. That is why they are specifically called "licensed securities dealers"

• Licensed securities dealers do not offer insurance on your investments. Deposit insurance is for deposits in deposit-taking institutions. There are reasons why these terms are used.

• Investments in Government paper - any Government - are not equivalent to deposit insurance. Whether you make those investments through a money market fund, or buy Government paper directly, the fact is that investments operate differently from insurance. I have heard that people are of the view that since the Government has never defaulted - like Jamaica and the US - then that is the same as insurance. And therefore, the argument is that investments in Government paper is the same as saving. That is not true. Some could argue that Government paper is "as safe as saving", but it is technically not saving. Investments are not insured; savings are insured up to a limit. Deposit insurance exists for a certain purpose, and that purpose is specifically to provide a safety net for savings.
  

• Therefore, I urge you to think about your asset allocations. Save FIRST. Maximize the insured portion, even if you are not getting the high interest rates some other institutions are offering. Make sure you distinguish between deposit-taking and licensed securities dealers. When you have sufficient savings (insured), then think about how much you wish to invest, and what your risk/reward tolerance is.
  

Food For Thought

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A few weeks ago, the Jamaica Gleaner ran an excellent piece in Money Management: You are financially unprepared if....

I have found that some people have great intentions with regard to money management, but have not fully grasped the context of how the various pieces fit together. For example:

• So maybe they go looking for great deals, but charge purchases on credit cards and pay only the minimum until it is paid off. That defeats the purpose of money management.
  

• Others, have a difficult time prioritizing and saving a nest egg, because they see the "now" and not the "what if". That also defeats the purpose of money management

In this piece above stated, the author gives a great job of spelling out where people typically make the big mistakes, and her opinion of what you should do. I would not necessarily advocate every single one of her solutions concurrently, because it really depends on your personal circumstances. However, the basic arguments she makes are very sound.

A worthwhile read!

Brilliant Visual: How We Got Into This Global Mess

If you have been confused by the Credit Crisis, what it means, what is has to do with the average person, what CDOs are, what leverage did etc. then this is the answer for you.

Watch this video in two parts:

The Crisis of Credit Visualized: Part 1




The Crisis of Credit Visualized: Part 2

Save More: 20 Quick Tips

Image via Wikipedia

This is a dated article, but a gem.

Kiplinger: 20 Small Ways to Save Big

Very practical ideas and you don't have to even do all of them. Even one would be a start.

Plus the articles has tons of links you may find interesting.

An Emergency Fund - The Basics

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I came across this great article from Investopedia.com today: Build Yourself An Emergency Fund.

---

It starts:

"Unlike the luxuries that so many of us purchase with our credit cards, having an emergency fund is a necessity"(my emphasis).

---

It notes:

"If you are among the many investors who don't have a "rainy day" fund stashed away in case of emergencies, there's no time like the present to start saving " (my emphasis, but note the word SAVING)

---

It reemphasizes:

"The amount of money required to fund a proper emergency fund is certainly significant, but we live in uncertain times with uncertain economies. Corporate loyalty is a thing of the past and unemployment can happen unexpectedly, usually at the worst possible moment."

----

It's a short piece that covers:

• Why
• How much
• Techniques to get it started and build it

It is well worth your time to read it.

Better To Know

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Click this link for a text of the actual SEC Complaint against R. Allen Stanford et. al

Interesting Read.

Huffington Post: Sir R. Allen Stanford Charged by SEC for Multi-Billion Dollar Fraud.

Too Close To Home

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In keeping with my "buyer beware", "seek a second opinion", and "make sure you ask questions" comments, the below stated is an FYI:

Article from the Huffington Post: R. Allen Stanford Under Investigation By The SEC, FINRA and FBI.

And this from the Wall Street Journal: Stanford Depositors Flock to Antigua for Redemptions

Welcome To The Adjustment Club

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Many of us are used to a certain lifestyle. Quite frankly, we balk at the idea of certain products, services or even a change in the way we used to do things.

Generally, if one moves from limited resources to what some believe to be "unlimited" resources (although there is no such thing), it's so easy to adjust one's lifestyle from the "limited" to the "unlimited". Yet for some, it's not just hard, it's downright painful to adjust the other way - from what some thought was "unlimited" to moderation or budgeting.

Well, the world has changed. "Unlimited" does not exist. And "limited" is where it is at. So let me introduce you to the "Adjustment Club". Here's how it works.

First, all the people in the world are members. No one singled you out. The world underwent a radical shift. Like an earthquake, we are still feeling the aftershocks. Like a hurricane, some countries still continue to be hit, while others (like Jamaica) are feeling the outer bands hoping to be spared a direct hit. You get the picture. So we are all in this "Adjustment Club"

Second, we are all adjusting to the same relative place. That place is survival in the short term, and sustainability in the long term. As long as the markets remain volatile, and until the various global stimulus plans kick in all over the world to get the global economy growing again, all of us are living in a heightened state of uncertainty that was imposed on the majority of us. So, we are all heading to the same level of adjustment - survival in the short term, sustainability in the long term

Third, the amount of adjustment does depend on your particular circumstances. So, if you are super conservative like I am, I have relatively little adjustment to do. If you have always been seized with the importance of money management, then you have little adjustment to do. If you have always budgeted, and are fairly committed to your budget, then you have very little adjustments to do. However, if you are more of a risk taker, was never interested in money management, or have a generous budget for your expenses etc., you have more of an adjustment to do because you have to accept that all these factors are critical for the short term and the long term, and then you have to learn how to do them, and then you have to be committed to doing them. If money management and conservatism is not your thing, or does not come naturally to you, please remember that we are all in this adjustment club. It's just something we all must do.

Fourth, you can ease the pain of adjustment and speed up the time it takes to adjust. We know what the external environment is like, and how quickly things are changing. We know nothing is certain but uncertainty. To waste time being upset and frustrated about things you have no control over robs you of precious time to do more productive things to ease your adjustment.

A few adjustment basics:

• Priority 1: Develop a sizable Emergency Savings Fund (not with an Investment Product)

• Quickly develop a budget if you don't have one, and adjust your budget if you do have one. Be realistic - so reduce inflows and increase expenses for budgetary purposes. Don't forget contingencies. If budgeting is difficult for you, seek help if you need to.

• Commit to managing and reducing your expenses. What can you do with less of? What can you give up all together? All members of the Adjustment Club are sacrificing something. Some members are sacrificing much more than others. What are you willing to sacrifice?

• Avoid taking on debt if you can, manage what you have. If you can, pay down the higher interest rate debt first. But don't eliminate your savings or your retirement funds to pay down debt.
  

• Ensure you are as productive at work as you possibly can be. That way you are more likely to be viewed as a valuable member of the team which is likely to make management think twice if and when redundancies happen

• If you are made redundant, or volunteer for redundancies (like some programs offered by some companies), do not squander your redundancy payment. You do not know when you will have a steady flow of income again, and monthly obligations don't go on a holiday because you are unemployed. Take your redundancy payment and place it is a solid, conservative deposit-taking licensed JDIC insured (FDIC insured if you are in the US) financial institution - i.e. in a savings account not investment - until you find the best method to allocate it. It not not prudent to use all your redundancy for any investment - whether an investment product or a business. If you are being sold a financial product, and you are not sure if it is an investment, ask for clarification and get a second opinion. The absolute worst time to speculate or take risks is with your redundancy payment.
  

• Look for alternative means of supplementing your income - as long as it doesn't interfere with your full time job, conflict with your full time job, and importantly is not prohibited by your full time job. So perhaps you can tutor students, sell your amazing digital photographs, start a blog and monetize it etc. Your options depends on what talents, interests and skills you have.
  

Those are just a few ideas about the basics.

This is no time for any of us in the Adjustment Club to bury our heads in the sand.

It is time to make this adjustment as painless as possible. We didn't ask to be in the Adjustment Club, but here it is and it is not going away. So let's make the best of it.

There was a world before all the excess. It's not like we are adjusting to a completely different reality.

Likewise, there was a world of depression and war, and then war again. So it could be worse. Let's not help it get there. Like good club members, each of us needs to do our own adjustment, and help our fellow club members in theirs.

Same Blog, New Look!

The blog looks different, I know. That's deliberate. I did it for you, the readers.

All the original posts are there. A new one will be right here on this site by tonight

I did an overhaul so that the site is more user-friendly. I specifically targeted elimination of "unnecessary clutter"

It's a work in progress, so please do browse the site from time to time to see if I've added anything special. There will always be "Amazon Specials" which are special links to the particular page from Amazon.com. Those will change from time to time, depending on what Amazon.com is offering.

I've also added a Share This icon and link below each post. Click on it and you can choose how you would like to share with any or all 20 different social media outlets (Digg, Facebook etc). The words below the posts also work, but Share This has more options.

I've also added a slide show of my photographs from my photography class (just below the Bloomberg Channel). This has been one of my experiments, as many people turn their hobbies into means of making extra income. I just like taking pictures, but since I wanted to help many of my readers to find new ways to supplementing their income, I will do a series on photography. I've already promised a series on blogging, once the results of the income generation experiments come in. Perhaps you will be inspired to get more serious about your hobby - or start a hobby - and find the income earning potential therein :)

Hope you like the changes. Comments welcome! :)

Are You Ready For Hurricane ED?

Image by ((april)) via Flickr

Tonight is a "Jamaica" post. So, apologies to my overseas readers if you don't think it's relevant. It's about tips for surviving an economic downturn, so you might want to have a quick read.

This is what we are facing:

• job losses, wage freezes etc.
• accelerated depreciation that the country's leadership is now working to slow in a structured manner
• high interest rates
• electricity rates have been increased because of the accelerated depreciation
• the government is reported to be considering - I repeat, just reported to be considering because there is no decision or even confirmation that they are actually considering - increasing GCT and adding a gas tax, but considering coupling that with lowering income tax

Let me translate this:

• The light bill is going up - again. And oil prices are still low.

• Anything you normally buy is going up because we are an import economy - so between the depreciation and the high interest rates, businesses are passing on their increased costs to you. Don't get mad, that's what businesses do. And if they have higher costs, they have to pass on at least some portion of them.

• Other than inflation eating away at your hard earned money, your disposable income is going down if there are no or limited wage increases.

• In the midst of it all, no jobs are guaranteed.

• Taxes, albeit hypothetical, increase your costs - of gas and all consumables. But hopefully, you get more income if income taxes are reduced. But it would have to be a big enough reduction to cover the increased cost of living to really make a difference.
  

So, what am I doing? I'm hunkering down like we do during hurricane season. You know, you get a bulletin, it may not hit, but you have stocked up and locked up tight just in case.

Well, let's call this one Hurricane Economic Downturn (Hurricane ED for short). And Hurricane ED has taken the world by storm. Some countries are hurt more than others, and are still getting battered.

Despite what you may think, we haven't been hit yet; we're feeling the outer bands. Look around the world and you'll see that this is true. Now, we can be spared a direct hit. Or we can get a hit - direct or otherwise. But, like all hurricanes, if you are prepared, the more prepared you are, the quicker you can recover.

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My top three Hurricane ED Preparation and Survival Tips?

1. Save save save. Expenses are increasing outside of your control. Setting aside more money to be able to meet these expenses is the smartest thing you could do. Everybody should normally have an "Emergency Fund". This is a money management basic. If you don't have an "Emergency Fund", start one. If you do have an "Emergency Fund", pump it up.

2. Budget and stick to it. If you budget, look at it again. And be realistic with the expenses (they are going up) and your inflows (they are flat at best). Not only look at it in terms of cost increases, but look at what can be cut. You don't have to turn your life around in a panic, but remember we talked about seriously reducing electricity consumption, for example? Reducing Bills! - Electricity Bills! Phone Biils! Water Bills! That might be a good place to start.

3. Seriously evaluate debt before you take it on. This is important. General living expenses are going up. Taking on debt makes it even more difficult for you to meet expenses.

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Now, we know how to prepare for and ride through hurricanes. This is really not that different.

• We have to plan.
  
• We have to act.
  
• And we have to help each other.
  

We have done it time and time again.....and it's time to do it now.

4 Things You Must Know About Investing

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As promised, I am venturing into some investing basics.

But, wait, before you get excited, I have no hot stock tips.

In fact, that is exactly what this post is about - what you need to know before you listen to other people.

So, although these are just a few basics, here are 4 "must knows", in my humble opinion:

• Saving and Investing are two completely different concepts. Yes, I know I probably sound like a broken record, but after what has happened in the world - both close to home and abroad - I feel like this point must be made again and again: You must save, you do not have to invest. When you invest, you are taking a risk that you could lose your entire principal. That is the reality. And you take that risk in expectation of a higher return than you can get on money you save. On the other hand, when you save, a portion of your saving in a regulated licensed deposit-taking institution is insured to a limit. Some people use the terms "saving" and "investing" interchangeably but in reality they are not. Quick Tip: Given the proliferation of financial products and Ponzi schemes, make sure you get details of what happens to your principal. Just ask. These days, return of principal is just as, if not more important than return on principal.
  

• Your savings, obligations and age matter - a lot! In other words, don't invest until you have a comfortable cushion of savings. Experts say 3-36 months of salary. In this environment of uncertainty in the cost of living and job losses, 3 months worth of savings is far too low in my humble opinion. If you have high expenses and obligations, then you cannot afford to risk money that you could lose (remember, that is what an investment is). Finally, the older you get, the less risk you can afford to take. That makes sense because your potential working years are declining, and you are coming closer to retirement.

• Do not invest in things you do not understand. How many times have people tried to convince you of "a sure thing", and told you "here's a hot tip"? It may very well be, but if the person telling you cannot explain the investment and why it's such a "hot tip" or a "sure thing", then that's grounds to doubt it. And it would be prudent to understand what influences the investment - what external factors are likely to make the investment do well or do badly. No one is expecting you to be an expert, but it's your money - you should be able to evaluate if what the "expert" says makes sense.

• Know Yourself. Believe it or not, this is one of the most critical things about investing - knowing your own risk-tolerance. You may get a great tip, understand what the investment entails, understand that it's an investment (as opposed to savings), but it may just be too risky for you. On the other hand, remember that not all investments carry the same risk, and some - under the right circumstances once you have sufficient savings tucked away - may just be right for you.
  

Google Developing Service To Help You Track Your Electricity Consumption

Google is developing a service to help you track your electricity consumption. Read the Article at HuffingtonPost. Video included.

Since our bills in Jamaica are going up by 9% this month - as per this evening's news on Go Jamaica: Consumers To Pay More For Electricity, can someone tell me when this will be ready for use in Jamaica?

Remember this post? Reducing Bills! Electricity Bills, Phone Bills Water Bills! I guess my position as Electricity Police in my house just became permanent.

Quick Money Management Tips - Free Video Link Here

Cover via Amazon

When I started this blog, I recommended David Bach's Smart Women Finish Rich to get you started with making personal finance doable. It's very logical and straightforward.

He has other versions for couples etc., but substantially, the basics are the same. Another very popular one is Start Late Finish Rich. There is an Amazon search link to the right of this post. Just type in "David Bach" and see all the options.

Now, David Bach has a website where he shows all the clips where he appears on program such as Larry King Live, The Today Show, Regis and Kelly etc.

Here is the link.

Now these videos don't replace the book, in my opinion. But its a great way to get loads of quick and easy tips. Not only can you learn from him, you can learn from the other guests as well as the people who call in. Sometimes the programs he appears on cover job hunting etc, so this video link is a great resource.

Hope you learn something new! I did!

Coach Is In! Flying, That Is.

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I do a lot of reading. And article after article tells me "thrift is in", "recessionistas" are the former "fashionistas" etc.

So, I was getting the picture - people are saving and finding ways to make their dollars stretch without too much disruption to their lives. Recessionistas, after all are still fashionable - they just pay less. :)

Well, this article and slide show caught my eye. It seems that flying coach is "in".

See for yourself in this interesting piece from the Huffington Post: Flying Coach: Geithner Part of BigWig Trend.

We've Moved!

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In order to provide more targeted and useful information to you, my readers, the following changes have been made:

• Site rename: Financial Security: Tips + Tools
  

• Site URL: http://financialsecurity2009.blogspot.com

If you have subscribed by feed, please note that the old feeds will no longer work. Please resubscribe.

This will still be the place for tips and tools for earning, saving, budgeting, money management, personal finance etc. The content will not change, but become more focused to provide you with the most useful information possible.

Thanks for your patience!

Specials at Amazon.com - Grocery, etc.

Image by japi14 via Flickr

I've found some Amazon Specials in groceries. If you click on the blue links, you will get straight to the correct page.

Specific specials:

• Axe, Lipton, Slimfast and Other Unilever Brands: Save $25 on orders of $75 or more

• La Vazza Coffee: Save 15% (30% on Subscribe and Save Orders)

• Kitchens of India Meals: Save 30% (40% on Subscribe and Save Orders)

• Omron Health Monitors:Save $10 or more on pedometers, blood pressure monitors and more
  

You may want to see if there are any good deals for you!

And don't forget to see if you qualify for free shipping and other related savings associated with any purchase you may make!

Companies, Sectors, Trends and Strategies for 2009

Image by Getty Images via Daylife

A very good piece from Kilpinger on career trends for 2009.

In a very short article, it's packed with:

• Sectors
  
• Specific job functions
  
• General trends
  
• Companies likely to weather these challenging times
• Workplace strategies
  

A worthwhile read.

A Quick Way To Have More Money Immediately

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I came across this blog post, and I thought it was so powerful I decided to share the link rather than share the tip within in.

Kudos to the author. It's so simple but so true.

Read this short post: One Thing You Can Do Today That Will Put You In Better Financial Shape Tomorrow

Now maybe you can't go a whole day without spending, but trying giving up one item that you would normally buy regularly, if you can. It's a great way to start.

Everything you save and don't spend, you can earn interest on it. That's more money for you.

Everything you don't buy on credit, does not cost you interest on savings foregone and does not increase your costs by debt interest incurred. That's more money for you.

A Cautionary Note

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If you notice, there are Google ads on this site. My blogs never used to have any ads, but as part of my personal finance experiments, I have added them.

Why?

I blog because I love writing and sharing knowledge, and blogs without ads achieves that purpose. However, because I know that my readers are all looking for ways to earn some extra money and blogging can do that - especially when you learn the best practices - I added the Google ads so that the blogs were not only a hobby, but also a personal finance experiment.

The objective is to see if you could earn money doing this and how. This takes a lot of research, but there's not a lot you need to know to get started. My objective is to share that knowledge with readers in my "quick tips" style.

If it's successful, I'll say what did it. If it is not successful, I'll say why.

So far, both blogs - this one and Reasoning The Reasons - have earned money. Not much, but it actually works. And I'm learning more everyday. In addition to adding content, I tweak the blogs - features etc. - everyday to optimize it. And yes, how Google ads work is that when you click on an ad, there is a potential for any website with Google ads to earn money. Please note: I am neither encouraging or discouraging you do so.

Now, unlike all other content on the site, I cannot vouch for any of the sites listed as Google ads. The Amazon ads were placed there deliberately by me - and I can vouch those are legitimate links to the Amazon website. Some of the Google ads I recognize immediately, such as whenever there is a link to the New York Times. Evidently, that would be useful. Clearly that is a legitimate site.

However, not all the Google ads I recognize, and the Google ads change with every page refresh. Not all unrecognizable Google ad are scams, I've found some cool ones. Many legitimate and famous companies find Google ads to be effective marketing tools. BUT, some Google ads may be. That is not Google's intention, but it happens. If I find something I perceive to be a scam, I will block it as soon as I can find it.

Like everything in life, buyer beware. In fact, if you see information presented in a Google ad that you are unclear about, do some additional research. There is a Google search box at the top of this post. Don't believe everything you read; but equally don't avoid reading when you could learn something. Information is good, but what you do with that information is even more important.

Quick Tip: If someone asks for money to give you a job, make sure you do proper checking. According to an article in the Jamaica Gleaner on January 25, 2009 entitled SWINDLED! New breed of white collar thieves strike banks, it was reported that in 2007, Jamaicans lost J$80M paying people to place them in jobs. Now, the article did NOT say this was online or any form of online advertising - Google ads or otherwise. But, it is not impossible for such a solicitation to be made online.

The Easy Way to Make a Budget

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Remember, money management begins with a realistic assessment of your financial status. See my earlier post here: More Money - The Basics.

It's time to make sure your budget is realistic, and if you don't have a budget then you need to make one.

Budgeting and sticking to the budget is critical to money management. The most successful budget will be the one you make for yourself - only you know what you are realistically willing to do and not do. By all means, get advice. And another opinion of someone you trust is always helpful to give you ideas. But be honest with yourself about your priorities. After all, it is your money that you're spending.

If you are not familiar with budgeting software (are there are tons), start with Microsoft Excel. You are just entering what money comes in and what money goes out - categories and amounts. Excel makes it easy to increase and decrease numbers in each category to see how you can get a better result.

This is a great post I happened upon: How to Make a Budget in 10 Easy Steps

It's a worthwhile read on how to make a budget - easily!

FREE Online Personal Finance Courses

Image by Omega Man via Flickr

Check out this article in today's Wall Street Journal about the sharp increase in online personal finance courses: A Boost in Online Money Management.

What's the trend? People are arming themselves with knowledge to make informed decisions. Even if you use a financial adviser, it would be prudent to ensure that you have enough of your own knowledge to evaluate if his or her recommendations are appropriate for you, your particular financial situation, your goals, and your risk tolerance which determines not only investing, but also how much money you feel is a comfortable cushion of savings in the current environment.

There are many FREE and paid services you can enjoy from the comfort of your own home!

From the article: "Popular courses included those on reducing spending, and ways of saving and creating a priority spending plan. "

With a little due diligence to ensure the information is credible, do yourself a huge favor and check out some FREE or paid personal finance courses!

What's a small investment of your time if it saves or makes you money for your own financial security?