Saving Money - The Magic 20 Percent

Written by Emmanuel Mendonca

Continued from page 1

Savings – Seeingrepparttar Big Picture

If you could save 20 percent of your salary each month, imagine what that would mean in real financial terms. For example, if you earn 2000 dollars per month and you saved 20 percent or 400 dollars out of every pay cheque, after 12 months you will have saved 4800 dollars! Regularly saving this amount of money would give yourepparttar 148538 financial freedom to take advantage of more of life’s opportunities. You could planrepparttar 148539 special holiday you have always wanted to go on, buyrepparttar 148540 car that you have been dreaming about for years, or help put a child through college. When it comes to life’s challenges, having a lump sum put away could help you pay for private medical care or deal with an expensive plumbing problem inrepparttar 148541 home, all without having to turn torepparttar 148542 bank for a loan and getting into debt.

How Can it Be Done?

As we have already seen, knowing exactly where your money is going isrepparttar 148543 starting point. Next, start thinking aboutrepparttar 148544 big things you could achieve with some money inrepparttar 148545 bank. Some people compensate themselves for not having what they really want, by making many frequent small purchases and getting a temporary “feel good” sensation afterwards. Rather than satisfying yourself with small purchases, such as new clothes and CDs every week or always buyingrepparttar 148546 latest mobile phone, think about how much more satisfying it would be to save up and buy or do something special, which you previously thought was out of your reach, but is achievable with a little effort.

Emmanuel Mendonca is the webmaster and publisher of Debt Genius at - a free source of information and advice on debt consolidation, getting out of debt and on saving money.

Five Myths About Inflation

Written by William Cate

Continued from page 1

Myth #3 Governments arerepparttar sole source of inflation.

Governments inflate their currencies. However, they aren'trepparttar 148537 sole source of inflation. In fact, they aren'trepparttar 148538 primary source of inflation. Credit is a more potent factor in supplying cash to consumers to buy products, thereby adding to demand and this price appreciation. Beyond credit, there are assorted financial instruments that add worthless paper torepparttar 148539 economic system. The most dangerous of these paper instruments are derivatives. The economic force that overcamerepparttar 148540 Dark Ages was lending. The lenders increasedrepparttar 148541 money supply and allowed city entrepreneurs to go into business and sell more products and services. The Renaissance resulted and evolved intorepparttar 148542 Industrial Revolution. Byrepparttar 148543 19th Century, we sawrepparttar 148544 rise of Western Technological Society. After WWII,repparttar 148545 Bank of America introduced plastic money. Byrepparttar 148546 way, plastic has no more intrinsic value than paper or gold, butrepparttar 148547 public readily accepted it. Visa's success meantrepparttar 148548 introduction of Mastercard andrepparttar 148549 American Express card. Today, we have as much plastic money as paper money inrepparttar 148550 world. Also, inflation isrepparttar 148551 result of supply and demand. The reason that oil is $60/barrel relates torepparttar 148552 fact that demand for oil has radically increased inrepparttar 148553 past decade in places likerepparttar 148554 People's Republic of China and India. Meanwhile, known reserves appear relatively fixed and are expected to decline inrepparttar 148555 next decade. The result is higher gas prices. Prior to being caught inrepparttar 148556 supply/demand vise, oil prices moved up more slowly thanrepparttar 148557 overall U.S. inflation rate.

#4 Inflation will destroyrepparttar 148558 World Economy.

Inflation will eventually lead to a financial crisis. There is alwaysrepparttar 148559 risk thatrepparttar 148560 public will lose confidence inrepparttar 148561 U.S. Dollar. An inflationary financial crisis is unlikely to lead to an economic crisis. The Government is well aware ofrepparttar 148562 risks of continue inflation and would quickly move to avert a Depression. The Underground Economy is growing and a collapse ofrepparttar 148563 Dollar would send millions of Americans into it. In fact,repparttar 148564 Underground Economy is a greater risk to Washington thanrepparttar 148565 potential thatrepparttar 148566 public will realizerepparttar 148567 dollar is intrinsically worthless. As withrepparttar 148568 Continental and Greenback dollars,repparttar 148569 Government would issue a new currency. Since it's inrepparttar 148570 public interest to not ask too many questions aboutrepparttar 148571 new currency's intrinsic value, this currency would be quickly accepted andrepparttar 148572 inflationary game could be started again.

#5 Invest Conservatively During Inflationary Periods.

You can't beatrepparttar 148573 system by acceptingrepparttar 148574 financial illusion that more dollars that buy less are a safe investment. You need to find relatively low risk investments that pay well enough to offset inflation and give you a net gain in buying power. I'm aware of one and I'm sure there are many more. Takerepparttar 148575 time to get pastrepparttar 148576 hype and find these investments.

If you can pay your debts until there is an inflationary crisis, you will be a winner inrepparttar 148577 inflationary game. The winners ofrepparttar 148578 Weimar Republic hyperinflation after WWI were those who borrowed Marks and repaid them whenrepparttar 148579 mark was worth nothing. The problem is maintaining your debt load until everyone agrees thatrepparttar 148580 paper dollar is worthless. Borrowing is financially beneficial. Too much borrowing can be fatal to your short-term future.

In our world, nothing is as it seems. Look beyondrepparttar 148581 puppet show and find reality. If you fail to do so, you could find yourself and your family dinning in a soup kitchen in a few years.

He has been the Managing Director of Beowulf Investments [] since 1981 and is the Executive Director of the Global Village Investment Club []

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