Healthy Financial Habits

You may have noticed that our staff here at Healthy Financial Habits have lately been following the price of gold closely. It is difficult news to ignore when the price of gold rising so rapidly. In fact gold prices have climbed 7% in the first half of this month alone.  Gold has increased in value over 25% so far this year. It is no wonder why the subject of gold is getting so much attention today.

The trend continued today as gold surpassed the previous record set on Wednesday of $1119.00. In the early morning hours gold jumped to a new high of $1123.40.  Factors such as India’s purchase of 200 metric tons of gold from the International monetary fund last week and the falling value of the dollar have been named as reasons for the increase.

At this point the rising price of gold seems to be unstoppable. Many analysts are in disbelief that gold prices have climbed so high and have held up for so long.  So how high will gold go?  Analysts from around the world have weighed in and most can agree that prices are going to remain high or climb even higher.

Goldman Sachs predicted on Wednesday that gold will reach $1,200 an ounce by the end of the year.

Jim Rogers of Singapore based Rogers holding believes that gold will reach a high of around $2,000 an ounce as it did back in 1980. (adjusted to todays dollar)

Ellison Chu from the Standard bank of Asia believes that the price will remain around 4 digits.

David Levenstine an investment adviser believes that the price will reach around $1,300 per ounce due falling value of the dollar and inflation.

No one really knows with 100% accuracy what direction gold prices area headed. My personal beliefs are that as long as the United States government continues to increase their debit the dollar will fall and the value of gold will rise. Many investors realize this and are buying up gold.

Before you convert you cash to gold you might want to consider this:  Gold reached $850.00 an ounce in 1980. If you turned your cash in then you would have had to wait 28 years later for gold prices to reach $850.00 an ounce once again.  I suppose the real question is do you expect to dollar to recover soon?

Stay up to date with the latest news on gold and other commodities by visiting Healthy Financial Habits daily. Our knowledgeable staff is dedicated to delivering fast and accurate news that can be a useful tool while planning your financial future.

Greg Jackson

If you are searching for a way to earn a little extra cash then selling used cars may interest you.

It doesn’t require that you know the ins and outs of the used car business however; It does require a little research.

If you are not very knowledgeable when it comes to automobiles then it may be a good idea to grab a friend who is mechanically inclined.

Here’s how it’s done in 10 easy steps:

1.               Come up with capital. For starters $1,000 – $2,000 will be sufficient. If you don’t have extra cash laying around then apply for a 0% credit card then take a cash advance. If credit cards are not an option then borrow money from a friend or family member.

2.               Find automobile auctions in your area. This can be a difficult task because there are so many individuals out there that want to sell you a list of auctions. You can find all the information online for free if you are willing to spend the time and search. Once you have selected a particular auction find out whether or not it is an absolute auction. By definition an absolute auction is where property is sold to the highest bidder with no required minimum amount. You only want to attend absolute auctions.

3.               Attend the auction. Most auctions allow you to inspect vehicles before you bid on them. Be sure to thoroughly inspect each vehicle and take note of damages or areas of concern and basic information such as year, make model, mileage etc. Do not consider bidding on a vehicle that you don’t feel 100% comfortable with.

4.               Purchase a current edition Kelly Blue Book prior to attending the auction. Once you have hand picked the vehicles that you are interested in then look up the book value and write it down next to the vehicle notes.

5.               I have used the following formula for years and have successfully doubled my money many times:

Book value / 2 – $300.

For example A 2002 Chevy Malibu has a private party book value of Approx $2,600 (good condition). I have found on average that you will spend $300 in taxes, battery, small repairs etc. Using the formula $2,600/ 2 – $300 = $1,000. This means that if you were to pay $1,000 for this particular vehicle and spend $300 to get it ready to sell and sold it for $2,600 then you would have doubled your investment. Your max bid should not exceed $1,000.

6.               Once you bid on a vehicle and win then its time to take the vehicle home and inspect for any necessary repairs. Repair anything small  that may immediately deter potential buyers. For example if the carpet has a lot of stains then you may want to consider purchasing new floor mats.

7.               Clean the vehicle inside and out and take pictures. Perform a detailed cleaning. A coat of wax is easy and gives a better first impression.

8.               List your vehicle on classified websites sites such as Craigslist. Craigslist of not only free but also very effective.

9.               Be prepared to answer questions that potential buyers may have such as mileage, damages, power accessories etc.

10.             Once you have some who wants to purchase your vehicle then its time to seal the deal. Create a bill of sale, sign the title over and have it notarized by a public notary.

Here are a few vehicle buying tips:

-          Never engage in a bidding war with another individual. Only bid up to your max amount as described above

-          Never purchase a vehicle that you are unsure about

-          Avoid vehicles that have been wrecked or have a salvage title

-          Always choose a vehicle with a good paint job. Nothing sells a vehicle better than a shiny paint

-          Always check all your fluids to ensure they are not mixed or contaminated. This could result in costly repairs.

-          If necessary you may want to resort to paid advertising sites such as Auto Trader

For more ideas and information on how to make money be sure to check back with Healthy Financial Habits. As always we are dedicated to helping you form wealth accumulating habits.

Author: Greg Jackson

This time last week Healthy Financial Habits reported that gold reached an all time high when it broke $1077 an ounce. Gold is back in the news once again this week. This time it has climbed to over $1,100 per ounce yesterday breaking yet another record.

As faith in the US currency weakens the price of gold increases. Another recent contributing factor to the rise in gold prices comes from India’s acquisition of 200 metric tons of gold from the international monetary fund last week at a cost of $6.7 billion dollars. When investors see this it creates a higher demand for gold.

Gold has been in the spot light for several years now as it stretches off the charts.  Just over 10 years ago you could purchase an ounce of gold for $252.80. Today it has nearly quadrupled on value and as the economy weakens the price of gold is not expected to drop off anytime soon.

Analyst from around the world can agree that gold prices are not even close to topping out. Jim Rogers, chairman of Singapore based Rogers Holdings believes that we should expect gold to reach at least $2,000 an ounce in the future. He bases this off of the historical high in 1980 adjusted to today dollar.

Ellison Chu from the standard bank of Asia believes that the value of gold will maintain in the four digit range due to a steady increase in demand for the shining metal. Chu believes that India’s purchase last week will have a psychological effect on investor. The purchase of 200 metric tons leads investors to believe that other central banks will follow.

Purchasing gold now is an excellent way to hedge against inflation. Gold prices are on the rise and will continue to rise as the value of the dollar falls. I believe that right now is still a good time to purchase gold. As always you want to consult with your financial adviser before making any investment decisions.

For the latest news in investing be sure to bookmark www.healthyfinancialhabits.com. We strive to keep you up to date on the latest investment tools and strategies.

Author: Greg Jackson

In the midst of the green movement Discover has come out with the Discover More Biodegradable credit card. The card comes with an introductory rate of 0% for six months where it adjusts between 11.99% and 18.99%. The card also has 0% on balance transfers for the first six months. In addition there are many ways that you can earn cash back.  This card also offers double cash back when used with specific discover card partners.

This may sound like an ordinary card however, perhaps the most unique feature of this card is its earth friendliness. After it has reached expiration it can be shredded and returned to earth within 5 years. It was created by a company called BIOPVC who says that one of the key elements of this card is an additive that is used in the production of the card. The additive acts as an attractant to microorganisms which destroy the card withing in 5 years leaving only non toxic vinyl chloride.

As for the credit card industry discover is taking the lead when it comes to going green. There is an estimated 1.5 billion credit cards being used just in the United States. If  you were to stack all of these cards they would reach a highth equivlent to 13 Mt. Everest.

Owning a biodegradable credit card may only be a small movement when it comes reducing your carbon footprint but putting this card in your wallet takes minimum effort and enable you to take part in the green movement. Although the rates that Discover is offering on this particular card are not the best it does have come with a nice rewards package.

Please return to Healthy Financial Habits to assist you in making personal financial decisions. Our goal is to keep you updated with the latest news and strategies that enable you to make great financial decisions.

Author: Mike Smitt

Gold hits record high today

Most of us can remember when the price of gold reached $1,000 an ounce. Shortly afterwards the advertisements came along. “As the value of the dollar decreases…” Now there are places popping up everywhere willing to pay “top dollar” for your old gold jewelry.

Since breaking $1,000, gold has steadily been on the rise. The price of gold rose to $1077.80 per ounce today creating a new all-time high. This increase in price is partially a result of the International Monetary Fund who sold India 200 metric tons of the metal at a cost of $6.7 billion dollars.  This sale is part of the International Monetary Funds plan to sell off 400 metric tons of its supply.

Another factor contributing to the rise in the price of gold comes from Barrick Gold Corps buyback last month of 1 million ounces of gold in its hedge books.

When gold is sold in such large quantities it has an effect on the price because of less gold entering the open market.

Gold is an excellent hedge against inflation. As the value of the dollar drops gold increases in value. Adding gold to your portfolio today would be a wise investment decision.