Methods For Saving And Investing Money

Having a savings that you can depend upon during rocky times is an important step towards financial security. However, saving money is difficult for most people. Naturally, there may be some tough hurdles when committing to put $50 aside every month. For instance, if you’re up to your eyeballs in credit card debt, its tempting to use that $50 dollars to make a minimum payment or two. Or maybe while watching late night television, an infomercial comes on for an indestructible knife set for a limited-time price of $39.99. After spending most of the month’s savings, its easy to feel like there’s no point in saving $10. No matter how hard you try, it always seems like there’s a better way to use that $50 than to save it for use years later.

As long as that $50 is sitting there as a chunk of money, there will be the temptation to spend it on something that costs about $50. There is away to avoid this viscous cycle. If that money were to be broken down into smaller amounts, the impulse to spend it would subside.

So, if you were to save about a dollar or two day, how easy is it to put that money aside and forget about? It would be very easy. Here’s how to make saving money easier. Don’t put couple dollar bills aside everyday. Instead, keep all of your change from every transaction every day. At the end of every day, deposit that change into a bank account. This is where you have to be diligent in order for the strategy to work. Don’t spend that change on highway tolls, soda, or junk food. Use dollar bills instead. Toss the change in the cup holder in your car and leave it there until you get to the bank.

If you’re being consistent, you will being adding 1, 2, or sometimes 3 dollars into your account per day. How much are you going to miss that change? Chances are, you won’t miss it at all. At the end of the month you could have $50 dollars sitting in your bank account! If not, $30 or $40 is still great, because you won’t feel like you took $30 or $40 from your paycheck. Over a years time, you could save $600. Ten years from now, that’s $6,000.

Want more help saving your change? Bank of America has a great program called “Keep the Change”. In case you haven’t seen the commercials on television, here’s how it works. If you take your Keep the Change debit card into the store and use it to spend $9.75, Bank of America will round the charge amount up to the nearest dollar and take $10 out of your account. $9.75 will cover your purchase, the remaining $.25 will be sent to a savings account for you. Now you can save your change even when you don’t use cash. What’s even better is that for the first 3 months you are enrolled in Keep the Change, Bank of America will match the amount you save 100%, meaning your savings power gets doubled.

So now that you’ve begun saving, how do you start investing with $50 dollars per month. Do you have to wait a few years? Not at all…

Now the question is, what to do with that money. You could leave it in a savings account. Certainly, you should leave some of your money in a savings account. However, most savings accounts earn next to nothing in interest. Mutual funds might be a better bet return-wise, but it can be difficult getting into those without larger amounts of cash. If you want to make your savings start working for you right now, there are a couple of investment tools tailor-made for the small investor.

Sharebuilder is a internet stock brokerage for small investors. Here investors can set-up an account and buy stocks with very little money. How are they able to do this? Sharebuilder was the first to offer its clients an innovative stock purchasing feature. Instead of purchasing shares of stock for $20, $50, or $100 each, Sharebuilder allows account holders to buy parts of a share. For instance, if you see the Google’s stock is taking off, but $300 per share is way to much for you, you can decide you only want to buy $30 of Google’s stock. Now you own 1/10 of a share of Google. If Google’s share price goes up to $320 your partial share goes up 1/10 of that amount which puts you share value at $32.

Your shares will trade just like any others. If Google has a stock split, so will your shares. If a dividend is announced, your stock will get it’s fair share proportionate to the amount of shares you own. Sharebuilder even offers dividend reinvestment which is a great way for your portfolio to build upon itself. Many billing plans are offered to fit any trading style. The plans are mostly built around how often you plan on trading. Click this link to open an account right now.

A second investment option for your savings is the Forex market. While this market is not known as well as the stock market, there is still great earning potential here– as well as room for the little guy. The Forex market is where foreign currencies are exchanged. Every day economic data is being released (budget deficit, Gross Domestic Product, unemployment, etc.) Not only is this information being released in the U.S., but other countries are releasing their data as well. The better a country’s economy is doing the better their currency versus a poor performing economy.

Similar to buying a stock or mutual fund, a currency investor picks a currency they wish to buy, for instance the U.S. dollar. If the U.S. dollar were to be valued at 120 Japanese Yen in the morning when you entered the trade and then go up to 121 Japanese Yen by the afternoon, than you’ve just made 1 Japanese Yen. The broker will automatically convert that back into U.S. dollars when you exit the trade ( 1 Yen = .008 U.S. dollars). So to sum this up, your trade on which you spent only one dollar just made you $.008. Imagine if you spent $50. That would be $.40 or nearly a 1% return in a matter of hours.

It doesn’t stop there, however. Almost every forex broker offers clients leveraged margin accounts. With these accounts, the brokerage may offer you 50 to 1 buying power (sometime even 200 or 400 to 1). This means, if you invest $1, the brokerage will lend you their money for the life of the trade to make the amount invested equal $100. That means, your profit from the previous scenario would be $40.00 or a return of 80% Leverage is the biggest advantage of the Forex Market.

Just like the stock market, many Forex brokers set minimum open balances in the thousands of dollars. But is a brokerage that understands that small investors need a chance to get in the game as well. Here, the minimum opening balance is just $25

The Forex Market is unfamiliar to many, so here’s a quick recap:

The currency trading (FOREX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are banks, organizations, investors and private individuals, just like you. (click here to read full market background by Easy-Forex™).

Markets are places to trade goods, and the same goes with FOREX. The Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That’s all. The profit potential comes from the fluctuations (changes) in the currency exchange market. The nice thing about the FOREX market, is that regular daily fluctuations, say – around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). You cannot lose more than your “margin” (your initial investment). You may profit unlimited amounts, but you never lose more than what you initially risked. However, risk only what you can afford and is not vital for your well-being.

Here’s how to get started. Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading “margin” amount (credit cards are welcome, only by Easy-Forex™); start trading. You can monitor your trading online, from anywhere, anytime. You have full control to monitor status, check scenarios, change some terms in the deal, or close it. If you want to get on-line training, Register here (no obligation), Easy-Forex™ would be glad to guide you, every step of the way.

By now you’ve certainly realized there are very easy ways to start your journey to financial security. There no better feeling than knowing that if your main income were to suddenly stop, you would have a cushion to fall back on. You don’t need to wait for an inheritance, or a bonus, or the lottery. You can start right now. Go for it!

A Guide To Trading Currency

Trading is one of the vital parts of economy. Trading first came to use as soon as man started communication in prehistoric times. Trading became the prime facility of prehistoric people; they used to barter goods and services from each other. As time passed there came numerous changes in the trade system. Trading started to grow new branches like; State control trade; here the trading is centrally controlled by government planning. Laws regulating Trade and establishing a framework such as trade law, tariffs, support for intellectual property, opposition to dumping. Guild control trading; here the trade is controlled by private business associations holding either de facto or government-granted power to exclude new entrants. International trade; this is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP.

Currency trading is also one of the most vital parts of trading. A currency can be well defined as a unit of exchange; it facilitates the transfer of goods and services. It is a form of money, whereas money is defined as a medium of exchange. A currency zone is a country or region in which a specific currency is the dominant medium of exchange. Whereas there are exchange rates that facilitate trade between currency zones. With this exchange rate prices, currencies and the goods and services of individual currency zones can be exchanged against each other. Currency has been further classified into two types floating currency or the fixed currency. These are primarily based on their exchange rate regime. In common usage, currency sometimes refers to only paper money, as in “coins and currency”, but this is misleading. Coins and paper money are both forms of currency.

According to studies it has been found that in 1944, nations attempted to stabilize international currencies in the Bretton Woods Agreement. Later it was realized that speculation in national currencies contributed to destabilization. Nations started to agree to measures that caused restrictions in the flow of money from one country to another. Henceforth, all nations promised to try to maintain the value of their currency against the dollar. The value of dollar was estimated with certain amount of gold. However, the dramatic increase in world trade, beginning after World War II, led to staggering amounts of capital flowing globally.

Henceforth, the Foreign exchange rates became increasingly erratic. This consequently led the United States to go off the gold standard in 1971. This led the currency trading to take off, most of the currency traders estimated that the unregulated marketplace to be a budding source for potential profits. This led forth the forex marketplace as a developing force in the volatile world of foreign currency exchange or currency trading.

In finance an exchange rate means between two currencies specifies the worth of one currency in terms with the other country. The foreign exchange market is supposed to be one of the largest markets in the world. This estimate reaches to the height of about 2 trillion USD worth of currency to be exchanged almost every day.

Spot currency trading; refers to the current exchange rate, this option exists only because of willing buyers and willing sellers. In forex trading price has always been the overriding factor. Here, there is no central stock exchange or bank in which all the transactions take place. Rather, forex is an over-the-counter, or inter-bank, forum. Investors can easily conduct their business on the phone, computer, or Reuters, an electronic network. Whereas there is also the forward exchange rate which refers to an exchange rate that is quoted and traded on the same day, but the delivery and payment are specified on a future date.

There are certain principles that go along with the currency trade; foreign currencies are always traded in pairs, with the simultaneous purchase of one currency, and the sale of another. For instance, an investor might buy the Euro and sell yen. This would be expressed with the symbols for each nation and/or its currency: EUR/JPY. Most currency trading involves the major currencies of stable countries: the United States Dollar, British Pound, Japanese Yen, Australian Dollar, Canadian Dollar, Swiss Franc, and Euro.

There is no easy way in any trades; in the same way some points to be remembered for currency trading; there are many currency traders who prefer to trade on a certain pair of currency on a certain point of the day. The belief of these traders is that most of the other traders are also buying or selling the pair of currency at that same time. There may also be the possibility that major trading pits may also be working at the same point of the day. A major issue to be kept in mind is that the foreign exchange market can be very volatile and random. The other point to be kept in mind is that; currency may take a volatile trading nature at certain times. This means that you can minimize the amount of liquidity and volatility to hedge risk factors, heavy risk can lead to a potential profit.

The foreign exchange market follows from United States to Australia and New Zealand to the Far East, to Europe and at last to the United States again. Therefore, the foreign currency trading volume is well dependent on the open markets. Currency trading activity reaches its peak during the 1pm GMT to 4 pm GMT when the British, European and the US markets are open simultaneously. The other point to be kept in mind is; to know the technique to capture the volatility of certain pairs of currency. For this you can use the Bollinger Bands; this a tool used by technical analysts that quantifies the volatility of a certain currency pair. This tool can compare volatility and relative price levels at a certain period of time.

Just like the stock exchange, even currency has the potentiality to be made or lost on the foreign exchange market. This is normally done by investors and speculators who buy and sell currency at the right time. Currencies can be traded with certain norms at spot or at options in the foreign exchange markets. The spot market generally represents the current exchange rates, whereas options are derivatives of exchange rates.