Financial Ratios and Statistics – FahStats

Archive for August, 2010

Many of us have dreams and plans relating to getting rich, however, many never work out their dreams and plans and many others who try end up making the wrong choices and investments. From the world of the wise, you are going to are going to discover that many people do not get rich by choice, and you may be one of them.Investing in Treasury bills is one of the quickest ways to get money from your government since they have a short maturity period. If you really want to get rich when you have little income on you, a treasury bill will be a good place to start with. As I have already mentioned, getting rich is a choice you can make and I really hope you reach the financial freedom you desire.Treasury bills are short term (1 year or less) debt instruments issued by the governments regularly to the investing public. They are normally issued with maturities of 3, 6 and 12 months, the central bank maintains a record of Treasury bills on a central depository system (CDS) which generates statements of the investors holdings.How to invest
? You must open up an account on the CDS by filling in the necessary forms with your central bank.
? Appoint a primary dealer of you choice.
? Participate in the auction.How much interest will you earn?The amount of interest you will earn depends on the price you pay for your Treasury bills. The lower the price you pay, the higher the interest you will earn. The interest you earn is calculated as:Interest earned = Maturity value- Cost of bidMy article Bonds and treasury bonds terminologies explains the common words used in bonds and Treasury bills market in case you may need to get more understanding of most of the technical terms used in this article.How will you gain?As with treasury bonds, you can also resell your Treasury bills holdings to another investor through your primary dealer. It is just like in the case of the share, you can resell your Treasury bills at a higher price than the one you bought at in order to make quick profits.When your treasury bond matures, the CDS will automatically credit your primary dealer who will in turn credit your account. You have to remember that when you are acquiring a treasury bill, you are actually lending your government; in return, the government will pay back your money with interest which will be capital gain.Treasury bonds encourages constructive savings which leads to constructive investments, many times, the interest you will receive from your bonds is always far higher from that you get from other financial institutions including banks.

Family budgeting is important for each and every member in the family. Budgeting is a plan of the income and expenses of the family and means making an estimation of monthly spending based on previous expenses and bills. Everyone needs to know what these are in order to keep within spending parameters.It is important that all family members are included in the process when completing your budget. In this way children learn basic financial skills, which is a great start for them in life. So many kids of today have not had any learning of basic money skills and this is your way of changing things for your family.Talk to your spouse and children about any budgetary limitations you are facing. Also let them know of financial goals you intend setting. By being totally honest about the bills and loans you have to pay, and your intention to save certain amounts of money for emergency funds or financial goals, you can help your family understand your collective financial situation. This in turn will allow them to change their view on purchases they make.When expenses are too high for the income received you can work out ways to reduce costs together, as a family. Make it fun and see who can come up with the best ideas. Let everyone take responsibility for helping to achieve family goals by reducing expenses. Allow each member their own ‘income’ and ask them to prepare their own mini budget to fit in with the family budget.Children want things just as adults do. They may want to go to the movies, buy a CD, or a new skateboard. When a child is too young to have a job, their parents often become their source of money for spending. It is important that you allow a certain amount of spending for your children in your budget.Putting money aside for your children when you do your family budgeting is a good idea, but it is important to make sure that they work for that money. Giving a child everything they desire may be an attractive idea in theory but it doesn’t teach them that a budget is essential to financial success.. Placing a small amount of money aside for your children’s allowance each month will give them a great head start for their own budgeting needs later in life.Setting aside regular time for your family budgeting is important. It is time for including everyone’s contributions to the household spending. Let them understand that budgeting is an effective and essential tool that is readily available to everyone. Make it work for you and your family.

Property taxes are decided collectively by school boards, town boards, legislators, and councils. The tax rate is set by collating the amount of funds an area needs. This is then divided that by the “total taxable” assessed value of the area. The tax an individual pays is computed by multiplying the tax rate by the assessed value of your property and then deducting any applicable exceptions. Property taxes are at an all time high. Studies indicate that they have increased more than 35% in five years.

Property is assessed by determining property costs in any given area. Property is valued by studying: the current sale price of properties in the area, costs to be incurred to replace the property, potential realization of property if it is rented, sold, or gifted, and the historical value of a property.

There are a few ways in which you could save on taxes:

1. Check if the state you reside in is offering any rebates. For example, a money back rebate, energy rebate, capping of taxes, or home owners rebate where under certain conditions you may be eligible to claim a rebate.

2. Ensure that the property is assessed right. This will ensure that you do not have to pay excess taxes. Assert your right to check you assessment report ensure that there are no miscalculations, mistakes, or assumptions. If in any doubt, do put in an appeal. According to statistics almost 50% of the cases win some relief.

3. Check all exemptions allowed according to the law.

4. Buy property jointly with a partner or family member. This way both owners become eligible for tax rebates.

5. Check if your assessment is in according to other properties in your neighborhood. Check with the assessment office or with your neighbors themselves. It helps to know applicable laws. Use the help of a real estate professional to put together a file of properties similar to yours that have a lower assessment. Or, use the bank’s appraisal to support your case. Be sure that the case you gather together is water tight.

6. Use a property consultant to help you save taxes. Some charge a flat fee while others just a percentage of what you save. A professional will check how assessment is done and also if there are any loop holes you can use.

7. There is strength in numbers. Get together with other owners who are also checking or fighting assessments. Check on the National Taxpayers Union Web site http://www.ntu.org for your rights.

8. Ask you home loan provider whether you are eligible for refund of property taxes paid. Some agreements have a provision for this. Many mortgages have automatic escrow of taxes.

9. Even before you buy a home find out what the property taxes are in the area and what have been the increases in tax rates.

10. Be sure to read through assessment and tax manuals published by your local authorities. These will give a clear idea of what are the parameters used and what you must do to reduce or pay the correct property taxes.

In order to be money smart you need to get the help of an efficient and dedicated accountant, plan your tax liabilities well, known thoroughly all aspects of Property Tax. If you are prudent, you can benefit by using ways and means to cut your tax burden and liabilities.