Abundant Web Cash

What Is The Significance Of A Jobless Recovery?

2009-10-10T05:09:00.000-07:00

We have heard so much from the media that the long-awaited economic recovery is on the way, or just around the corner. We have also been told that this recovery is going to be a jobless recovery. So, what is the significance of a jobless recovery?

A jobless recovery is a hoax. It is like window shopping: you can see an array of everything you want but cannot afford to buy; it whets your appetite, but cannot satisfy you.

So, what does "jobless" mean?

Typically, new businesses create new jobs. But in this economic environment, especially when credit is tight (the Federal Reserve wants the banks to lend, but the banks don't want to lend, and people cannot afford to borrow), there are hardly any new businesses, and hence no new jobs created.

Typically, big businesses add new jobs when the economy grows and expands. Over the past decades, big businesses had expanded too much. In this economic environment, they cut back on their jobs.

Economic recovery requires: creating new jobs, and reducing, if not stopping, cutback on jobs. But both are not happening, and will not happen any time soon.

Let's look at the present scenario.

Over the past two years, we have lost over 7 million jobs, instead of creating 1.5 million new jobs each year. On top of that, no significant new jobs have been created over the same period. The bad news is that the cutback on jobs is still continuing, and may continue for some time into the future. Recently, the head of the IMF said that unemployment might peak out in eight to twelve months. Even if this optimistic forecast were true, many jobs will have been lost by then. Instead of adding new jobs, job loss may continue for a while. So, in the next five years or so, the economy might be 10 million jobs short.

The US economy is consumer-based. That is, it depends on consumer spending. If consumers are out of jobs, where on earth do they get the money from to spend and support the economic growth needed for the recovery. Without jobs, they not only cut down on their spending but also default on their car payments, credit card payments, and mortgage payments. The economic outlook is depressing. Joblessness does not bode well for the economy from any angle.

So, what does a jobless recovery mean?

It means the US government is going to continue to pump money into the financial system to bail out banks and corporations, to give incentives to consumers. But robbing Peter to pay Paul doesn't bring about any economic recovery. Over decades, bubbles after bubbles have been inflated, and now is the time for deflation and paying off debts. Unfortunately, nobody wants this to happen, and the US government is doing everything to stop this from happening.

Learn How to Survive and Thrive in a Recession.

Visit my Smart Money Management.

Stephen Lau

Why The Economic Recovery Will Not Be Sustainable

2009-09-11T17:01:00.000-07:00

Recently, signs of recovery of the world economy seem to be surfacing, and investors in the stock market are once again looking forward to another bull market. Such optimism has been engenered by the majority of polls. Even the President of the United States thinks Ben Bernanke is a hero who has saved the world economy from a crisis. In addition, Tim Geithner recently said that governments worldwide are "commited to an unprecedented program of policies to restore growth and reform the international financial system ....The financial system is showing signs of repair. Growth is now underway." Seemingly, everyone has painted a rosy picture of the economic recovery.

Investing in Gold

Undoubtedly, governments worldwide are pulling out all the stops to stimulate economic growth and recovery. But try as they may, no recovery is going to happen anytime soon. There are several reasons why the economic recovery will not be sustainable:

1. The US dollar is weakening. Cheng Siwei of China bluntly told the press that if the United States kept printing money to buy bonds, it would lead to inflation, and after a year or two the US dollar would fall hard, if not collapse. It was a clear warning from the Chinese government that it would not watch the demise of the US dollar without taking some drastic measures, one of which is that China is going to issue bonds of its own in yuan currency. This is China's most recent move to challenge the US dollar. This move to protect its dollar asset does not bode well for long-term economic recovery. In other words, the Chinese government will sell its $2 trillion dollar asset as soon as an opportunity arises.

2. The key indicators of real economic growth are negative. Unemployment, for example, is still rising. Economists would argue that the job number will always lag behind economic growth. How could the economy be growing if fewer people are earning money? According to The New York Times, it could be a "jobless recovery." If that is the case, the recovery will not be sustainable over the long haul.

3. The US economy is based on consumer spending. Consumer spending is more than 30 percent down from a year ago. Many consumers are over their heads in debt, and they need to pay off their debt before they can spend again.

4. Currently, most stocks are still trading at nearly 20 times earnings with yield as low as 3 percent. In other words, the bear market is far from over. If stock prices don't go up, they will go down. Without a booming stock market, where will be the booming economy?

5. Despite all the stimulus plans, credit is contracting, not expanding as the government would like to see. Consumers are not borrowing, because they do not have means, and banks are not lending, because of the high risk involved. Credit crunching means more savings and fewer sales, and fewer sales would mean fewer jobs. It is a vicious cycle created by debt and decades of reckless spending. With foreclosures still escalating, do you think the debt situation will improve or reverse anytime soon? Now is the time to profit from foreclosures.

6. The last straw that breaks the camel's back will probably be inflation. The Federal Reserve is not going to balance the budget. Most probably it will continue to print more money for more bailouts and bankruptcies. The inevitable result is inflation. To curb inflation, the Federal Reserve will have to tighten monetary policy soon - this is a tall order, because if it tightens too fast and too much, it will abort the economic recovery, but if loosens too much and too long, it will let inflation run wild. It is a no-win situation for the Federal Reserve.

Whichever way you look at the economic scenario, it is not promising for any recovery anytime soon. The root of the problem is that everybody wants a quick fix to avoid a depression at any cost. Maybe a deep depression is what we need for the ultimate economic recovery, which has everything to do with debt.

Learn How to Survive and Thrive In A recession.

Visit my web page: Smart Money to get your resources for surviving in these tough times.

Stephen Lau

Should You Have More Than One Credit Card?

2008-08-06T07:03:00.000-07:00

Many people have more than one credit cards; it is not uncommon for people to have several credit cards. This is partly due to the bombardment of credit card companies. This seems like easy credit. But users beware! The deathtrap is right around the corner.

If you don’t know how to manage your finance, in particular your credit cards, one credit card is bad enough, and several credit cards may swiftly put you into a never-ending credit card nightmare.

If you are waiting for the mail to deliver you an invitation to transfer your current credit card debt to a low introductory rate for a short period offered by another credit, you are already in hot water. After the low introductory rate – usually 2.9 to 4.9% APR (annual percentage rate) – for three to six months, you will be back square one – which is the existing high interest rate. Worse, with the temporary financial relief, you might spend more, ending up in a larger credit card debt. Don’t try to pay off one credit card debt with another credit card transfer – it is like robbing Peter to pay Paul.

Another worse scenario, you may resort to paying one credit card debt by charging it to one of the other credit cards that you have. You may do it by obtaining a cash advance, putting it into your checking account, and then using it to pay the other credit card.

Understandably, we are living in desperate economical times, and many people simply resort to any means just to survive, and getting into credit card debt is like getting into quicksand – it sucks you in deeper and deeper.

Use a debit card. Or simply spend less!

Use your Smart Credit Cards.

Stephen Lau

Smart Momey Management Resources

Managing Your Time Is Managing Your Debt

2008-07-31T19:12:00.000-07:00

Use your time productively to become debt free.

To become debt free, you must understand your responsibility of productivity. Always approach life and work with the right attitude. Go an extra mile to take the initiative to do the things that you may consider finding someone else to do. In our society, many simply lack the initiative to put themselves to work. Don’t go through life looking for handouts. Instead, have the attitude of the ant: it works without respite and without supervision. Be a self-motivated worker! Without self-motivation, success in life would always seem out of reach.

Being debt free requires you to work industriously and to utilize your time gainfully.

Time is your tool. Time is a gift evenly distributed to all. You may be blessed with more or less gifts than others, but all of us have the same 24 hours a day. If you are blessed with more gifts, more will be expected of you. God is a provider of life and a giver of time. Be a good steward of your time. Your time is limited. Time means a lot to you. Time is a priceless commodity. You are responsible for your own time management. Time is your tool to get yourself out of debt. Time becomes an asset only if you utilize it to make money to get yourself out of debt, instead of getting yourself into deeper debt. Make good use of your time day in and day out.
You may have the problem of having not enough time, but real the problem is how you use your allotted time to achieve financial freedom.

You will never be able to reduce your debt without a plan or a road map. You must be able to access and measure your debt reduction progress. You must plan to manage your money to provide benefits for the present as well as the future. And that requires good time management.

Managing your time is managing your debt.

Stephen Lau

http://www.stephenlau.name

How to End the Never-ending Credit Card Debt

2008-07-24T13:49:00.000-07:00

How long does it take to pay off a credit card debt? Does your credit card debt seem an unending nightmare?

Well, to give you some perspective: if your credit card debt is, say, $5,000 (which is a fair amount to many people), and you pay only the monthly minimum, it would take more than 25 years to pay off your credit card debt, if the APR (Annual percentage rate) is only 12.9 percent. Most credit cards charge a fixed interest rate, which is the APR divided by 12 months. That is, if your fixed interest rate is 18 percent, you will be charged 1.5 percent of the outstanding amount per month. If the APR is 21 percent for the same amount of $5,000, it would take more than 85 years to pay off your credit card debt.

So to end the never-ending credit card debt, you must know and understand the financial implications of the APR of your credit card. Obviously, the lower the APR, the lower the interest payments become.

The second consideration is that the higher the monthly payments, the sooner you will get out of the credit card debt.

The ideal situation to get you out of your credit card debt is: the lower APR combined with the higher monthly payments.

With the above in mind, here are some strategies to reduce your credit card debt:

• Go to a bank or a lending institution to get a loan with a fixed interest rate for 5 years to pay off your credit card debt. This strategy could reduce 15 to 20 years off the time it would otherwise take to pay off your credit card debt.

• If you cannot obtain a loan to pay off your credit card debt, then try to increase your monthly payments. Always pay more, if possible. This will reduce the payment period considerably - just like getting a bank loan.

• Pay off the credit card with the highest APR first. If all your credit cards have the same APR, then pay off the one with the largest balance.

• Stop using your credit cards. Stop incurring extra charges, such as over-the-credit-limit, or late payment. Don’t use them for convenience; instead, only use them for emergencies.

Go to Smart Credit Cards to choose a smart credit card that will become an asset, not a liability, to your personal finance.

Stephen Lau

Smart Money Management Resources

Smart Credit Card Management and Good Spending Habits

2008-07-14T17:19:00.000-07:00

Nowadays nearly everybody has one or more credit cards. Credit cards offer much convenience. Credit cards are an asset when you have good spending habits. Good spending habits mean you plan your expenses in advance, and you stick to your budget no matter what. Smart credit card management and good spending habits go hand in hand.

Pay your credit card bills on time.

Avoid unnecessary charges and fees, wherever possible.

Understand how finance charges are calculated to save your money.

Pay attention to any Notice of Change in Terms arriving with your monthly statement, and read it carefully.

Read your monthly statement carefully. Contact the card issuer immediately when you notice any discrepancy or incorrect charges.

If you pay your credit card bill by check, make sure it will not bounce, or you may be charged a returned check fee.

When you apply for a credit card, find out if the card issuer will charge a fee every time you check your balance through the customer toll free number. If there is a charge, check your balance online instead.

When you apply for a credit card, read carefully the terms and conditions that come with the offer; especially, watch out for teaser rates (extremely low introductory rates for a short period only).

If necessary, use a secured credit card to establish or rebuild your credit record.

Above all, smart credit card management requires selection of a smart credit card.

Stephen Lau
Smart Credit Smart Money

Why Do You Need Credit Cards?

2008-07-01T15:58:00.000-07:00

Everybody needs a credit card - a smart credit card at that.

A credit card has been touted as a "never-empty wallet." Or, does it really get you into debt?

If you use your credit cards to your benefits, and if you know how to exercise your legal rights, then the use of credit cards is indeed an asset, rather than a liability.

A credit card provides you with personal safety. You need not carry a lot of cash with you, and so there is less chance of being mugged or losing your money. As for airport security, you will receive less hassle than you would otherwise if you were to pay for you plane ticket with a check or cash.

Using credit cards will make your life simpler: you need not go to the bank or an ATM to get cash whenever you need it. If you use a premium card, you can get in your monthly statement an organized summary of all your purchases, including your spending pattern.

Using your credit cards may give you freebies, such as cash or gas rebates, discount purchases, free gifts, and free airline mileage.

Ever since the introduction of credit cards before the onset of World War I, smart consumers have benefited from using their credit cards. Learn how to reap benefits from smart credit cards.

Stephen Lau

Develop Good Spending Habits

2008-06-23T08:44:00.000-07:00

Good spending habits are acquired and learned.

Plan your expenses in advance. For example, if you go grocery shopping, make a list of what you need and look for them in the appropriate shelves. Don't browse the supermarket.

Stick to your budget, no matter what. Anniversaries, birthdays, showers, weddings, and special events may take a toll on your strained finances. Plan your budget and stick to it.

Develop good personal spending habits by putting roadblocks along your spending path, such as buying only what you need, not what you want, or cutting down spending on things for leisure or your hobby. Stop spending on any extra or paraphernalia in life. Ask yourself if your really need it, if it is worth the money, and, most importantly, if you can afford it.

It is sad but true that if your budget is limited, you will have to be more picky in your choice of spending. Changing your spending habits will change your financial future, which begins now with your good spending habits.

Thrifty Living shows you how to track your spending, create a budget so that you can live with thrifty living and save for the future.

Stephen lau

http://www.stephenlau.name

Online Money-Making Opportunity

2008-06-19T15:07:00.000-07:00

Money means different things to different people. Different things are important to different people when it comes to happiness in life. Money may not make you happy, but you do need money to survive, and knowing that you can make money may also give a sense of satisfaction to some people.

Making money online is a smart way of making money. One of the most common ways is to develop and focus on one lead product to sell on the Internet - an infoproduct, which is an e-book selling an idea or some expertise you are familiar with.

Instead of selling for other people's products, you develop and sell your own product!

Your Step-by-Step Guide to Success on the Internet shows you exactly how anyone can develop an infoproduct and sell it online.

This amazing e-book shows you in detail making money online:

* how to choose a profitable subject for an e-book

* how to write an e-book

* how to publish it

* how to advertise and promote your infoproduct

* how to let others sell your infoproduct for you

* how to develop back-end products to complement your lead product

* how to generate a residue income from the e-book.

This e-book has everything, including website design, marketing, and tons of free downloads for your ultimate success in making money online.

Stephen Lau

http://www.stephenlau.name

Making Money Online

2008-06-15T07:25:00.000-07:00

There are many money-making opportunities on the Internet: some work for others, but not for you; some don't work at all; and some are just scams. If you are looking for an opportunity to make some good money on the Internet, here is the program: Three Hours Profit.

The program has the following features:

It is based on a simple concept – anybody can do it. It takes into consideration that many of us are no rocket scientists.

The work you put into it will determine the amount of money you will make - this is fair enough. There is no free lunch! If you are thinking of get-rich-quick, forget it!

It provides you with not only the tools, but every instruction or script to help you succeed – if you succeed, they also make money out of your success. This is enough incentive to make the program work for you as well as for them. They literally show you every avenue to succeed. You need time and effort. If you think you have both, then this is it!

Don’t listen to me: listen to the audio; and study the program carefully. For more information, go to Three Hours Profit.

Stephen Lau
http://www.stephenlau.name

New Online Advertising Concept That Pays You

2008-06-09T04:59:00.000-07:00

Make money while you enjoy the web. Now you can do that by looking at others’ websites, blogs, and emails. But you may not want to do that because you may not enjoy the web.

NOW you can go to your favorite websites and search engines – you make money while you enjoy the web.

The new online advertising concept of revenue-sharing actually pays you for enjoying the web.

This is how it works: you see ads everywhere on the Internet, but these advertisers don’t pay you for your web presence; however, in this innovative online advertising, ads appear on the web, not based on search words but on the demographics of web surfers. In other words, say, if you are a teenager in a certain country, you will be exposed to ads targeting YOU. Make no mistake about it: you personal information will never be shared. What is shared is just the advertising dollars.

You have FREE media download, emails in different languages, search engine, social networking, anti-virus software, etc. It’s like having MSN at your fingertips, but with a twist – you GET PAID. They want you to use their FREE FEATURES, and in order to entice you, they PAY YOU - it's just that simple!

This innovative concept of online advertising based on shared revenue is worth exploring. For more information, go to: http://www.abundantwebcash.com.

It’s still in its pre-launch stage. But don't wait, join it for FREE before anyone else does, and maximize your potential profits.

Stephen Lau
http://www.stephenlau.name

Wasteful Spending Often Reflects Bad Financial Decisions

2008-06-03T18:07:00.000-07:00

Good money management is spending wisely, watching every dime spent and knowing for what it was spent on.

Wasteful spending often reflects bad financial decisions. It is your responsibility of “no waste” in your money management to keep you debt free. If you demonstrate impulsive buying with God’s resources entrusted to you, you may also make reckless financial decisions in your life. Disciplined spending mirrors prudent financial decisions.

Do you realize that you may have wasteful spending even on good purchases? Just take a look at what you may have accumulated in your attic, garage, or basement – miscellaneous paraphernalia that you neither need nor use. These “clutters” distract you from focusing on what is important in life, leading to bad decisions. That’s why you need not only to get rid of the clutters in your life but also to avoid acquiring more clutters as a result of wasteful spending.

Most “how to get organized” books don't help you get rid of your clutter; they only tell you how to fit more stuff into less space! And that's not what clutter-clearing is about. You need to get rid of the clutters before you "get organized." Otherwise what you end up with is a lot of very organized clutters. Learn how to get your life clutter free forever – which means no more wasteful spending.

Stephen Lau
http://www.stephenlau.name

The Real Value of Money

2008-05-29T18:25:00.000-07:00

In the past, people could enjoy the blessings of life without spending real money. Nowadays, we think that to enjoy life, we must have real money.

Life is all about living – it comes with some hard work and simple integrity. If life is all about living, then it is not about regrets and dreams. Regrets look back at the past; dreams look forward to the future. Unfortunately, both are not within our control. If the value of money is based on accumulation of wealth or the acquisition of material things, then living indeed becomes a labyrinth of regrets and dreams – regrets over wrong investment decisions, and dreams of great fortune.

The real value of money is integrity. This is an important quality that can influence your value of money, in particular, your financial decisions. Integrity is to value what life has to offer and not the things purchased with money. Life has a great to offer, and some of the best things in life are free, such as your ability to think, to reason, to learn, and to remember. Remember, money is a means to an end, never an end in itself. This is the real value of money.

Why is integrity important in terms of money?

If a financial problem arises, your integrity will play a critical role. Instead of reacting to the problem due to the flawed value of money, integrity will demand you not to leave it to chance. Integrity will demand you not to ignore the problem. Integrity will demand you come up with a plan, a budget, and action steps to deal with the financial crisis.

Integrity is one of the core values in life. Do not compromise it under any financial situation. If you do, you will be distorting the real value of money.

Stephen Lau

http://www.stephenlau.name

http://www.smartcreditsmartmoney.com

Why Pay Cash?

2008-05-22T18:38:00.000-07:00

The American society does not promote paying cash. That explains why many people lease cars, electronics, and just about anything. That also explains why so many people are debt-ridden.

I remember when I first came to the United States some two decades ago, I was told not to pay cash for any purchase, or else I would never be able to establish my personal credit rating. This is the characteristic of the American culture: promoting buying on credit and debt.

If you buy into this absurd notion that paying cash is bad, you are in fact buying into a lifetime of debt. Of course, this is your choice: after all, this is a free country.

Just remember this: “The borrower is slave to the lender.” Proverbs 22: 7.

For one reason, if you do not have the cash to buy something, maybe you shouldn’t buy it in the first place. Do not lead a lifestyle of debt by anticipating what you will get. Instead of delayed gratification, it becomes anticipatory buying. The only legitimate reason for carrying a credit card is that you don’t want to carry too much cash with you. Or maybe another reason is that you may want to manage your finance by using different credit cards for different expenses. However, if for any reason, you carry a balance on your credit cards, you maybe heading towards a lifestyle of debt, which is easy to get into but difficult to get out of.

Why pay cash?

If you do not have the cash right now, you may make an extra effort to save towards getting what you want to purchase.

Delayed gratification often gives you more time for second thoughts – you may decide against the purchase. That may save you a lot of money!

Delayed gratification may also give you more opportunity to get what you want at a much better price, or more ammunition to negotiate with the vendor. If you pay cash, the vendor may not push the sale so much, knowing that without an easy financing, there will be less profit from your purchase. Remember, the vendor has much to benefit from easy financing as opposed to paying cash: the vendor benefits at your expense.

Paying cash is good because it saves you from debt. If paying cash is debt free, then why do we have corporate debt? Well, corporate debt may not be such a good idea after all because it encourages buying when no cash is available, and any economic downturn may jeopardize the corporate investment. If corporate debt is good, why is Microsoft debt free?

The bottom line is: no cash, no purchase; no cash, no investment. Don’t buy into the notion that the investment is an opportunity of a lifetime, or that some debt is good. All debt is bad. Even a 3-year mortgage may be bad for you. For example, if you have problems making your monthly payments, most probably you have taken up a mortgage larger than you can afford, and that may become a bad debt, leading to foreclosure.

Stephen Lau

http://www.smartcreditsmartmoney.com

http://www.abundantwebcash.com

How God May Help You Save Money

2008-05-11T07:18:00.000-07:00

Money is important. It means different things to different people. Different things are important to different people when it comes to money and happiness in life. Money may or may not bring happiness to you. But we can’t do without money. We all need money for different purposes.

If you need money, then you need to save. But how can you save if you don’t have much money to begin with or you’re living from paycheck to paycheck every month?

God may help you save your money if you apply the Biblical principles of saving.

The first Biblical principle of saving is gratitude. Be grateful of what you have, and stop complaining of your lack! Learn to live on a dime.

God may have given you less than others, but everything is relative. Presently, you may be struggling from paycheck to paycheck; you may be working hard, and still you can hardly keep your head above water.

"You plant much but harvest little. You have scarcely enough to eat or drink and not enough clothes to keep you warm. Your income disappears, as though you were putting it into pockets filled with holes." Haggai 1:6

Yes, your pockets may seem to be filled with holes. Nonetheless, be grateful! Instead of whining, put your time and effort on saving to live a debt-free lifestyle. Learn to live on a dime. Choose a credit card that helps you save. Look for a money-making opportunity.

The second Biblical principle of saving is sharing what you have with others. Yes, the more you give, the more you will receive. It is not the other way around: receiving more before giving more.

”’Bring all the tithes into the storehouse so that there will be food enough in my Temple; if you do so, I will open up the windows of heaven for you and pour out a blessing so great you won't have room enough to take it in! Try it! Let me prove it to you. . . . ,' says the Lord Almighty.’" Malachi 3:10-11

This leads to the third Biblical principle of saving: God owns it all. Whatever you have is not yours, but God’s. You are just a steward of God’s money. Once you understand this principle, you will be careful with your money – you will not spend it on yourself. However, to start saving, you must PAY YOURSELF FIRST. No matter how small your income may be, set aside a small sum each month before you pay others or your bills. If you diligently and truthfully apply the Biblical principles, God will make your both ends meet. Just trust Him!

Stephen Lau

http://www.smartcreditsmartmoney.co m