2010 February | Mortgage Info Today Blog

Different Paths You Can Take Toward Financial Independence

Posted by Home Morgage | Personal Finance | Friday 26 February 2010 9:18 am

Financial independence is a term typically used to describe a state where you have sufficient assets to live a certain lifestyle indefinitely without having to work or be employed. Whether your income is derived from interest on savings, investment income, real estate income or something else, it really doesn’t matter. The key is that you’re financially independent. What an incredible goal. Financial independence or financial freedom is something most everyone would admit to desiring. The question becomes how to reach this level of independence. Let’s look at the various paths one might take.

Path #1 – Extreme Frugality

While many would say they would love to not have to work anymore, most would refuse to downsize their current standard of living. Some people, however, are more than willing to trade a standard of living for the ability to be financially independent.

The extreme frugal crowd will typically implement a bare bones lifestyle so that they can sock away massive amounts of money while working. Then, when they have enough money to be able to live on interest from such a sum of money, they simply stop working but keep the frugal lifestyle. After all, they’re already used to it.

Path #2 – Entrepreneurship

This is probably one of the more common approaches to financial freedom. Starting a successful business is a great way to achieve significant levels of wealth and/or financial independence. With that said, most businesses don’t reach such a level, but I would guess that the majority of people who are financially independent actually took the entrepreneurial route.

In a difficult economy with fewer business prospects and tighter lending standards, being an entrepreneur is not easy. The brightest opportunities lay in businesses that innovate and find new methods or technologies to solve problems.

Path #3 – The Successful Investor

The last path to financial independence that I’d like to look at is the concept of generating large investment returns over time. If you work hard at your investing skills and contribute significant portions of your income toward an investment portfolio, you can grow a large portfolio of sound investments over time.

While most people will dismiss the idea of beating the market or trying to do anything other than passive, diversified investing, there are plenty of examples of people beating the market. The key thing to understand is that you don’t have to beat the market by 20 percentage points to grow a portfolio. Beating the market by even a couple percentage points on average will result in massive growth for a portfolio. Obviously, this is easier said than done, but there are ways to hone your investing skills over time so that you can do your best to increase your rate of return.

A large investment portfolio built over years of work and contributions can easily result in financial independence. Many people live off the dividend income from their investments. While you’re building your portfolio, be sure to reinvest dividends in an effort to grow the overall portfolio.

Other Paths

Other routes to financial independence might include real estate or maybe working at a start-up company that hits it big. Do you have any other suggestions or paths to financial independence that you might be pursuing? Add your feedback and comments!

Update Your Resume Even If You Have A Job

Posted by Home Morgage | Personal Finance | Thursday 25 February 2010 9:18 am

Although I am fairly young, this is the most difficult job market that I can remember or can even imagine. Everyone I speak with seems to have some level of job insecurity. During tough economic times in the past, there were always a few professions that were “safe”: medicine, law, government, etc. These days however, it seems that no one can avoid the potential risk of losing his or her job. What makes this sentiment even more challenging is the fact that there is a serious lack of available quality employment available should you need to find work. Having said that, it is very important to prepare for the worst, however unlikely that scenario may seem.

Photo by kafka4prez via Flickr

I know that when I am not seeking new employment, I rarely think about my resume, much less editing it — I only think about my resume when I need it most. This is that exact mentality that gets people into trouble. It is imperative that all working professionals keep their resume and cover letter in tip-top shape. This way, if and when the bad news comes, you will be ready to begin your new search the following day instead of spending a week or two just getting ready to do that exact chore.

Your Resume

Not only should you add the responsibilities and achievements you have from your current position, you should also do some research to improve the the language, the key phrases, the description and focus of your work, and how it will be viewed by the hiring managers.

For inspiration and ideas on where to start, see: www.bestsampleresume.com. This site offers many great sample resumes to learn from and use as the backbone of your improved resume.

Note: Remember to keep your resume to one typed page with emphasis on your most recent jobs and how the skills that you have will translate into success at your new position.

You Cover Letter

In some instances, your cover letter may be considered more important to hiring managers than your actual resume. This is what the hiring company sees first and it provides them a glimpse of what they will find in your resume. In your cover letter, you should highlight the key points of your resume and give a convincing argument as to why you should be considered for the position in which you are applying. Keep your focus on the skills the hiring company is seeking to fill the position and how your skills will translate into success for that position.

By keeping your resume and cover letter up to date and polished, you are giving yourself a head start should you need to find new work or if a better opportunity comes along. If you should need to make use of these documents and they are not current, you may find yourself making panicked and unimpressive changes which will serve you no justice when presenting them to hiring companies.

So take the time now to thoughtfully spruce them up, so when the time comes, you’ll be ready to go!

Would You Use Real Money to Buy Virtual Products?

Posted by Home Morgage | Personal Finance | Wednesday 24 February 2010 9:18 am

I recently read an article in The New York Times (hat tip for bringing it to my attention: MAPping Company Success) about the increasing trend of using real money to pay for virtual goods. The article also addresses the rise of credit, via a company called Kwedit.com, to pay for virtual purchases online. This article got me thinking about how we use money.

Photo by Ivan Walsh via Flickr

Paying Real Money for Virtual Goods

We live in a society now that pays real money to purchase virtual goods. (The nature of our fiat monetary system, and whether it constitutes “real” money is a subject for another time; for this discussion, we’ll just accept that it is real.)

According to Inside Network, a research firm quoted in the article, last year people paid $1.03 billion for products that don’t exist outside of the virtual world. These are products like the magical armor my brother-in-law pays $10 for in his MMO so that his avatar can be better protected when he goes on raids, and the pet food and accessories that can be bought in kids’ online worlds to help them care for their furry virtual friends.

In Second Life, there is even an exchange rate between Linden dollars and U.S. dollars. You can use U.S. dollars to “buy” Linden dollars in order to make purchases in Second Life (you can also buy gold to make purchases in a variety of MMOs). You can even convert your Linden dollars — money you might have earned from a virtual store, selling virtual products — into U.S. dollars. Of course, it takes a lot of Linden dollars to equal one U.S. dollar. But the fact remains: The virtual economy is expanding.

But would you pay real money to buy something that doesn’t actually exist in the real world? The only thing you get out of this type activity is the feeling of enjoyment. And that is the point. The New York Times article explains the purpose of these games:

Systems like these — known in the industry as nurturing games — are built to require regular investments of time and, for fullest enjoyment, money. … They feature living digital property — the crops in FarmVille or the fish in Happy Aquarium — that can die without care and feeding.

If you become attached to the game, and want to excel, and want to experience more, you have to spend money. Personally, I wouldn’t spend money on virtual goods that I couldn’t hold in my hand. But is it any different than spending money on the fleeting enjoyment of good meal at a restaurant, or the relaxation and well-being that evaporates two hours after a massage? As long as you live within your means, and are using the money from your entertainment budget, is it really hurting anything?

Using Kwedit for Virtual Goods and Services

Another item featured in this article is the fact that it is possible, in some online worlds and games, to use credit. Kwedit.com provides a “Kwedit Promise” that you can make use of to buy virtual goods and services. You can fulfill your obligation by using a credit or debit card later, or by sending payment in a special envelope. The point, of course, is that you can instantly get what you want in the game, without interrupting play in order to get it.

And now, through a deal with 7-11, you can actually print out a barcode and take it to the convenience store to pay. This new method actually makes it possible for children to make a “Kwedit Promise” and then fulfill it without parental involvement. They can just schlep down to the 7-11 with their allowance and fulfill their Kwedit obligation.

Of course, Kwedit can’t really enforce these payments in the real world; it’s not like this is real credit. And Kwedit offers its own scoring formula, so that users start out with a low limit, only able to get a few dollars. As they make payments, though, they can have access to more Kwedit. I can see some of the value in such an arrangement, since it has the potential, to a certain degree, to teach children about responsible credit use. They learn that if they don’t meet their obligations, they will be limited as to what they can do in the game.

But it also perpetuates the idea of easy money and instant gratification. It’s easy to get Kwedit, easy to charge, and kids don’t have to save up to buy anything in the game. Plus, they are using real money to buy virtual goods. And who’s to say that something like Kwedit won’t someday be used as part of your credit profile? After all, lenders are already beginning to look at Twitter and Facebook for clues about your financial habits. Perhaps someday the real money you spend in the virtual world will come back to haunt you in the real world.

What do you think? Would you spend money on virtual items? And is Kwedit a good idea?

The Secret To Spending Less Than You Earn

Posted by Home Morgage | Personal Finance | Tuesday 23 February 2010 9:18 am

If you read enough personal finance blogs, you’ll see a common theme and the number one answer to your financial dilemma — “Spend Less than You Earn”. Unfortunately, it’s easier said than done, otherwise, we wouldn’t have this rampant debt problem in our society. Fortunately, I went through this myself, and over the years, I’ve learned a few tricks that might help you.

Photo by Mil8 via Flickr

The secret to spending less than you earn

Step #1 You Must Know Your Income

I find it amazing the number of people who call the Dave Ramsey show who cannot immediately say how much they make annually. Actually, I used to find it amazing until I found myself in the same category.

This step is especially hard for people who run a small business, have multiple income streams, or whose pay fluctuates in any way. Nevertheless, you cannot spend less than you earn if you don’t know what you earn.

Step #2: You Must Establish a Spending Plan (also known as a Budget)

Once you know your income you should remember you cannot spend more than this number.

Some people budget and account weekly, others monthly, and some quarterly. The important thing is that you do keep a budget. If you are new to budgeting here is a list of suggested budget categories as well as a guide on how to make a budget.

Step #3 Put a System in Place to Minimize the Accounting Work

The accounting responsibilities will successfully kill any budget. Make it simple. To start with I suggest you start using the cash budget envelope system.

Now the only rule is that you do not spend more money than you have in your envelope. Always be sure your budget is doing it’s job.

Step #4 Review the Budget, Income, and Spending — Fix Any Issues

You might find that it is hard to make your budget work. There are two common reasons.

You regular expenses are too high. These are set amounts every month and include things like insurance, cable, phones, internet, and electricity. If you have cut your spending down and still have trouble spending less than you earn, you will need to cut some of these services – phone, cable, and/or internet.
Your income is too low You could make extra money on Ebay, Craigslist, or even a garage sale. These short term solutions should give you time to look for another part time job or make money from home. You could even consider a small business with a low start up cost. Here is 9 weird ways to make extra money.

Once you have found the balance between your income and your expenses you are now in a position to spend less than you earn.

Anyone out there spend less than you earn? What are your tips, ideas, or suggestions?

The One Reason Why You Need A Risk Management Plan

Posted by Home Morgage | Personal Finance | Monday 22 February 2010 9:18 am

Seems these days everyone has an opinion on how to make money in the stock market. Only now it’s not just the stock market, there is options, foreign exchange, commodities and bonds. And it’s no longer just investing or trading. There’s swing trading, position trading, income investing and dividend investing. Yet I’ve barely scratched the surface.

Yes indeed, there are many ways to make money in the markets. What most people don’t talk about, is that it’s even easier to lose money in the markets. Now here’s the real rub. Unlike John Meriwether, the infamous founder of Long Term Capital Management, chances are that you won’t get a second chance, let a lone a third one.

Photo by msjingles via Flickr

I’ll take a guess and say that you’ve got real capital in the game. It’s money you’ve worked hard for and is not easily replaced. I’ll also guess that it’s going to be a tough sell to go back to your spouse and say “Honey, I blew out our account.”

Small details, such as how to prevent losing too much money, are often overlooked in the rush to make the big bucks. After all, saying that you only lost one thousand dollars because of good risk management, doesn’t have a ring to it. Does it?

Good risk management is not about looking good. It’s not about feeling good. The one and only reason to practice risk management is to prevent you from suffering a serious blow to your capital.

Until recently, most people thought that diversification was the same as risk management. Unfortunately, the Great Deleveraging of 2008 proved otherwise. During this period the SPX fell 50%, and everything else crumbled with it. Virtually no asset class was spared from the carnage.

Those investors who did not practice good risk management suffered major damage to their portfolios. The sad part is that it didn’t have to happen. Here is how to prevent another major blow to your portfolio.

Establish a maximum loss for each and every trade or investment you make. When you reach that point, close out the trade. It’s that simple, yet it’s that hard. It’s hard because you have to admit you were wrong (at least in the short term) that your investment idea would be profitable.

Do you want to be right, or do you want to make money? For illustrative purposes, imagine that you had a trailing stop of 10% on each investment. In the spring of 2009 your portfolio would have been down 10% instead of the market’s 50%. Plus you would have a hoard of cash ready to buy stocks at bargain basement prices.

Naturally, you have to decide what loss level your comfortable with. But I think you get the point. Risk management doesn’t have to be complicated to be effective. You don’t need to be a genius, or have some special insight into the workings of the market. You don’t need to be able to predict what the market will do. You simply need to be able to admit that you were wrong about your opinion. That’s it.

If you don’t want to ever suffer a repeat of 2008, you need to practice risk management.

How to Die Young: Retire Early

Posted by Home Morgage | Personal Finance | Friday 19 February 2010 12:18 pm

We’ve all heard stories of guys who, after busting their hump for 40 years, kick the bucket at their retirement party or shortly thereafter. These stories scare the crap out of me and make me wonder about the idea of retirement, or on the flip side, working so hard to accomplish retirement. After all, what happens when we retire? For many, a whole lot of nothing. Maybe some games of bridge, golf, and laying on the beach, but doesn’t that get boring? Yes, and in fact, it might even bore you to death!

Photo by Ernst Moeksis via Flickr

Don’t believe me? Consider this:

In a study done by Shell Corporation a shocking discovery was made about the age of retirement when correlated with age of death. According to the article:

“People who retire at 55 are 89% more likely to die in the 10 years after retirement than those who retire at 65.”

Doesn’t that seem a bit backwards? So they found that the workers living to the age of 65 were 89% more likely to live 10 more years after retirement even though they were 10 years older than their early retirement counterparts. I find that to be completely shocking, I hope you would as well.

So what does this mean?

The only difference between the two groups was retirement from work. From this we could infer that work could be the reason we continue to live as long as we do because it gives us purpose. Many people who leave work aren’t really sure what to do with their days. I can relate as one of the worst months of my life was when I was unemployed, not because I didn’t know where money was coming from, but because I didn’t have anything to work towards. Even if you’re financially free at retirement, it doesn’t mean you’ll be living a fulfilling life.

Is work your purpose?
Without a purpose people tend to live shorter lives. This is simply because without purpose they will not have motivation to live. Sounds a bit morbid, but it’s true. When Dan Buettner discussed his research on centurions (those living to over the age of 100) as a TED presentation, he found that they were all able to tell him exactly what their purpose was. Ironic? I doubt it.

Is this purpose found through our work, or is it something that can be gained outside of employment? For many, work is their purpose, so through retiring from work they’re often retiring from their purpose.

From both the Shell survey and the TED video it would seem that if you want to live a full life, early retirement would not be the best option. However, working towards something related to your purpose your whole life may be your best bet at hitting the 100 year mark.

What do you think? Do you plan on retiring at or before 55?

What are your thoughts about early retirement?

Do you think the survey has any flaws?

Five Things That Are Acceptable To Spend Money On

Posted by Home Morgage | Personal Finance | Thursday 18 February 2010 9:18 am

We in the personal finance blogosphere love to fill the internet with ideas on how to save money and discuss everything under the sun that you should not spend money on. Well, today, I’d like to discuss a few things that I believe are acceptable purchases.

Photo by bfishadow via Flickr

1. Security

This is a topic that I think people begin to take more seriously when they start a family. I know I did. While you can definitely go overboard, generally, when it comes to the safety and security of your family, you should be willing to spend some money.

What exactly should you be spending money on with regards to security? First, I recommend a quality alarm system. On a day-to-day basis, an alarm system is a very cheap service and is very effective. Secondly, depending on your views and where you live, you may consider owning a firearm (be sure you do plenty of research and training if you consider purchasing a firearm). Third, you may consider a safe to store valuable items. If you are planning to store significantly valuable items, consider bolting it down or attaching it to your home somehow in order to prevent a thief from taking the entire safe.

Lastly, with the recent tragedy in Haiti, it has come to my attention that stocking basic supplies such as food and water is a wise strategy in the case of an emergency. An above average degree of self reliance and independence can be an additional layer of security that might be worthwhile to consider.

2. Education

Most people agree that investing yourself or investing in your education is a wise use of money. For the most part, I would agree, but I do think that some people waste money on continuing education for the sake of avoiding a job. I encourage you to make sure that your education will be applicable in getting a job or help you generate an income. Also, you should factor in debt levels if you are considering taking out a student loan.

Also, investing in education for your children is one of the best things you can do for your kids. As someone with young kids, I have been saving for college with one of the investment vehicles for my state, and putting aside some money to pay for a quality preschool.

3. A Good Suit

This is mostly for men obviously, but women can apply this to the appropriate option for them. A good suit is something that every man should own. A classic, traditional style that works in many circumstances is a wise investment. For example, can you wear your suit for a funeral, a wedding, a work presentation, a formal social gathering?

Owning a quality suit can assure you that you are prepared for an important meeting in your career or some other important gathering. Save a few hundred bucks and buy a quality suit that will last you for years. Then, be sure to take care of it.

4. Tools

When it comes to your home, it can get expensive to fix things and get things done. As such, it is a great investment to have some essential tools like a power drill, a set of screw drivers, a set of wrenches, pliers, etc. By having a standard set of tools to work with, you can be prepared to fix things yourself and save money in the long run. Furthermore, accomplishing things such as hanging pictures can be much easier if you have the basic tool set.

In just the last few months, I have saved several hundred dollars by fixing the garbage disposal myself and also doing a complete new install of a dead bolt lock on a door. I did both of these projects with basic tools that you could have for less than $100.

If you’re a newbie in this area, go to your area Home Depot or hardware store and talk to somebody who works there about the basic tools that every person should own. They will be able to assist you in picking out reasonably priced options that will last for years.

5. A Quality Computer

In the internet age, a quality computer is an important item to have. My home computer is a one-year old iMac. We use the computer for word processing, browsing the Internet, email, photo organization and home videos. I also own an Apple Time Machine for continuous data back up purposes.

An old, heavily used computer can sometimes become more of a headache than a useful machine. It’s important to keep your computer “clean” by not cluttering the system with questionable downloads and other files. By taking care of the computer, you can keep it running quick and reliably for years.

Do you have any items that you would add to this list that are appropriate things to spend money on?

How to Find College Financial Aid

Posted by Home Morgage | Personal Finance | Wednesday 17 February 2010 9:18 am

If you have kids, you probably know that only health care cost increases can compete with the inflation seen by education costs. This means that you are probably going to need to do what you can to help your child get the college financial aid that he or she needs. Even if you have been contributing to a 529 Plan or a Coverdell ESA, chances are that you might need a little more to help things along. Getting a job is always an option for college students, but there are other ways.

Here are some suggestions when it comes to finding college financial aid:

Photo by JonBon via Flickr

Fill out the FAFSA…Now!

The Free Application for Federal Student Aid is necessary if you want federal grants, certain types of state aid, access to work study programs and access to subsidized and unsubsidized federal student loans. The earlier you fill out the FAFSA, the better, since it’s s first-come, first-served process. So you should fill out the FAFSA as soon after January 1st as possible for the upcoming academic year.

This form has to be filled out every year to continue taking advantage of government financial aid programs. And remember: 529 and Coverdell assets are considered parental assets, and not student assets. Pell Grants and subsidized student loans are offered based on need, but if you don’t qualify for those, you might qualify for work study or unsubsidized loans at competitive rates.

Look for additional federal grants

The government has a web site aimed at student aid questions. On this site, you can also look for different types of special grants available. Two promising grants include the SMART grant for undergrads who are going into science and technology fields, and the Academic Competitiveness Grant, offering money to students who went through a rigorous high school track. Grants are great because you don’t have to pay them back. It’s free money that can help pay for your education.

Apply for as many scholarships as possible

Don’t shun scholarships just because they are for small amounts. The bottom line is that ten $1,000 scholarships add up to $10,000. That’s not too shabby. There a number of free web sites that can aid your search for scholarships you qualify for:

Many of these sites will send you alerts about scholarships of special interest to you. Check with your local Chamber of Commerce to see if any businesses sponsor students or provide scholarships. This is common for students planning to major in business fields.

It is also a good idea to contact your school’s financial aid office and ask about scholarship programs based on leadership, academics, athletics, financial need, specific courses of study and endowments. In some cases, individual departments offer book scholarships, teaching assistantships and other types of aid to their students. But you’ll never know if you don’t ask.

Be careful of where you borrow

As always, borrowing should be the last resort. Carefully choosing a school that provides a good education for your dollar can save you money. You don’t have to go to an expensive school to get a good education. So, if your savings, grants and scholarships don’t cover the cost of an expensive school, consider a less expensive school. If you still have a college funding gap, carefully consider where you get your loans. Your first choice should be federal loans — subsidized if possible. Nellie Mae and Sallie Mae offer insight into subsidized loan possibilities.

If you still have a funding gap after maxing out your federal student loans, you can look at sites like TuitionU that help you find private student loans from a community interested in students committed to success. There are also organizations like TERI that can help you get private students. But be aware that the interest rates are higher, and the credit requirements stricter. You are better off borrowing as little as possible, and trying to keep any borrowing you do limited federal loans.

Bottom line

Even though college is expensive, there are numerous sources for financial aid. Planning ahead and opening some sort of savings plan is your best option, as well as working toward qualifying for scholarships, but if you are down to the wire, you might have to borrow — and there are plenty of folks willing to lend money. Do your best to limit your student loans, though, using loans as a last resort after savings, grants and scholarships fall short.

5 Essential Investment Tasks To Complete This Month

Posted by Home Morgage | Personal Finance | Tuesday 16 February 2010 9:18 am

Investing works best if you set it and forget it. However, at least once a year every investor should set aside some time to review their investment activities from the previous year. February is a great time to do this investment review because if you wait too long you’ll find yourself in the thick of tax season.

Photo by kaolazymonkey via Flickr.

1. Review and Rebalance Your Asset Allocation

Most investors decide to have a certain percentage of their investments in bonds and a certain percent in stocks (via mutual funds or index funds).

However, over the course of the last year those asset allocations have naturally adjusted.

For example, if you want to have 60% bonds and 40% stocks then after this last year you might now have 65% bonds and 35% stocks. Simply sell enough bonds to rebalance your portfolio so it reflects your desired asset allocation.

At the same time you need to ask if you should be changing your asset allocation. The older you get the more conservatively you should invest.

This is not something that should be done every month, just once a year.

2. Shop around for a new online broker.

Online brokers often change their rules, fees, and policies. Just because your broker was the best last time you looked around does not mean they still are the best.

Take an hour and compare your fees, fund offerings, and customer service with other online brokers. Another option is to check out this list of best investment brokers. If the difference is significant consider making a change.

3. Change your automatic deduction amount.

Many people, myself included, promote the idea of doing your investing automatically. The nice thing about automatic investing is that it is easy to forget it. Using this system you simply dollar cost average all of your investments. The only problem is that at least once a year you want to remember. If you invest based on your income (15% of your take home pay, for example) then you need to adjust your withdrawal amount based on your new income. This is only necessary if your income has changed. Even if it is a small deduction, make the change because small investments over time could help you become a millionaire.

4. Review your fund performance.

Once again, the set-it-and-forget-it approach works. However, don’t forget it forever. If you own a fund that has consistently been underperforming the market you might consider dumping it. Don’t buy and sell based on the whims of the market, but you must occasionally review your fund performance. If a fund has consistently failed to match the market, sell it and replace it.

Here’s 5 Surefire Ways To Improve Your Investment Performance.

5. Track your progress.

I’m making the assumption that you have financial goals. If that is the case, this is a great time to see if you are on track. It may be that you have enough for retirement and can actually scale back on your investments, or it might be that you are far behind your projected path and you need to increase your investments. Either way, take some time this month to see where you are in relationship to your goals.

What other important investment actions would you suggest people review this month?

18 Business Tools and Tips for the Recent Grad

Posted by Home Morgage | Personal Finance | Monday 15 February 2010 9:18 am

There’s no shame in admitting it: It’s possible to make it through college and into the real world without having the first idea about investing, money management, or anything that deals even remotely with finances. But thanks to the growing number of Web sites and online tools devoted to fiscal responsibility, it’s easier than ever to jump right in and begin to control your spending, your debt, and your financial future.

Investing

SmartMoney.com: This site is part of the Wall Street Journal family, and provides detailed news and forecasts for the stock market. A great resource for those looking to learn more about market behavior and for people who’ve been investing for years.
InvestorGuide.com: Another great site that features Google-powered news on its home page as well as a “term of the day” feature to help educate readers. It also tracks hot stocks and major indices like the New York Stock Exchange and NASDAQ.
Securities and Exchange Commission: This federal agency is devoted to regulating the securities and stock industries, and its Web site has a collection of calculators that can help you calculate everything from retirement funds to college savings plans.
Investor’s Hub: An invaluable resource if you’re looking for a public company’s financial history. Its thriving community boasts almost 190,000 registered users.
Yahoo! Stock Screener: Yahoo’s screening program lets you select certain criteria for the stocks you want to track (e.g., price-earning ratios), with more than 150 criteria available to narrow the field and show you what you want to see. It’s a fantastic way to weed through the mountain of stock market data available and just get the info you need.

Debt

CNN Money: This division of the news site offers an easy calculator to help you figure out how long it will take you to get out of debt based on your monthly payments, interest rate, and other factors. If you’re feeling overwhelmed by your debt, this is a good place to start.
Pay Off Debt: Users of the iPhone or iPod Touch can pay $2.99 for this mobile app that tracks debt and offers a load of customizable options. You can sort debts by interest rate or balance, and you can also plan the date you’ll be debt-free as you make payments toward what you owe.
National Foundation for Credit Counseling: If you find your debts are becoming almost too much to handle, you might want to talk to a credit counselor to learn more about financially responsible practices and options including debt consolidation.
Mint.com: One of the best ways to keep debt from getting out of hand is to set a budget and live by it. Mint offers free online budgeting programs as well as a strong community of users providing help and advice. The site is a hit with critics as well.

Credit

AnnualCreditReport.com: The Fair Credit Reporting Act, originally passed in 1970, requires that American citizens be entitled to one free credit report every year. This site lets you file a request from each of the three big credit reporting agencies (Equifax, Experian, and TransUnion). If you want to keep your credit in check, the best way to start is to know your score.
Set up automatic payments with your creditors to ensure that your payments are always delivered on time. Late payments can negatively impact your credit score, which can make it difficult to get a loan down the road.
Always pay more than the minimum required amount. Even if it’s just a few dollars, you’ll be able to pay your debt down quicker if you put as much money as possible toward the total you owe.
FICO: FICO is a company whose credit score system is one of the most widely used in the world, and often the vital component of determining whether you’re a credit risk to lenders.

Home Ownership

FreddieMac.com: Its full title is the Federal Home Loan Mortgage Corporation, and it’s a government-sponsored agency designed to expand opportunities for home buyers and provide stability to the market. Their site offers a wealth of resources, including worksheets and calculators to help you understand the process of buying a home.
American Society of Home Inspectors: Before buying a home, it’s important to inspect it to find out any potential problem areas. There are many places to go for this, but the not-for-profit ASHI is a great option. They can check out your prospective home and let you know its strengths and weaknesses, which will better prepare you to pay a reasonable price and to understand any potential repairs you might have to make in the future.
LendingTree.com: This financial site covers a variety of topics, and they also have a great section devoted to mortgage calculation and home buying. It’s also a wonderful source of financial news.
HUD.gov: The U.S. Department of Housing and Urban Development has a nine-step plan for potential home buyers that walks you through every step of the process, from estimating costs to navigating the market. It’s a must-read for consumers.
Homeowner’s insurance: This is a necessity for home buyers because it offers protection against the loss of your possessions in the event of a robbery or disaster. You can also purchase additional policies for events like floods to make sure you’re protected against every possibility. Check with your insurance carrier to see what kind of homeowner policies they carry. (Here are State Farm, Allstate, and USAA, to name just a few.)

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