The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.
On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.
Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.
Forex - Art or Science
Each trade is an independent event. The market does not remember if you lost or made dollars the last time you traded.
Trading is not a science. You can’t do X and get Y every time. It is as much an art as it is anything else. There is no magic formula. Trading is all about probability. It is the art of correctly applying a set of carefully thought out rules and allocating the probability of that event to result in success. The way you approach the market psychologically has as much to do with your success as any trading plan.
Risk management is crucial if you want to have any hope of becoming a successful trader. An adequately funded account is necessary - not only to be able to take the trades you want, but also so you don’t feel every trade is a live or die situation.
The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams.
Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing
Trading is not a science. You can’t do X and get Y every time. It is as much an art as it is anything else. There is no magic formula. Trading is all about probability. It is the art of correctly applying a set of carefully thought out rules and allocating the probability of that event to result in success. The way you approach the market psychologically has as much to do with your success as any trading plan.
Risk management is crucial if you want to have any hope of becoming a successful trader. An adequately funded account is necessary - not only to be able to take the trades you want, but also so you don’t feel every trade is a live or die situation.
The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams.
Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing
Forex Metal
The Tight spreads must start from 2 pips. Many currency pairs to choose from - perfect opportunity for those who like cross-currency trading.
FX is the biggest financial market in the World, with so many participants it is also the most liquid market open 24 hours a day 6 days a week. Unlike with stock exchanges, you do not need to wait for the FX market to open. It is open 24 hours, at any time during the day there would be a live trading taking place in one of the major financial centers. This allows traders to quickly respond to news and events that may affect the currency rates.
You can trade Forex-mini contracts starting with $500 or you can trade $100,000 contracts with 100:1 leverage, which means that you need to use only small amounts of money to trade large contracts. You have access to live quotes and rates and your orders are executed instantly. Your account can be denominated in USD or EUR.
Supported Languages:English, Russian
WebSite Languages:Arabic, Chinese, English, German, Russian
Markets except Forex:spotFX, forwards, gold and silver, futures, warrants
Supported Services:forums, manuals, newsletter, online, phone, chat Foundation
Year:2005 Forex Foundation Year: 20
FX is the biggest financial market in the World, with so many participants it is also the most liquid market open 24 hours a day 6 days a week. Unlike with stock exchanges, you do not need to wait for the FX market to open. It is open 24 hours, at any time during the day there would be a live trading taking place in one of the major financial centers. This allows traders to quickly respond to news and events that may affect the currency rates.
You can trade Forex-mini contracts starting with $500 or you can trade $100,000 contracts with 100:1 leverage, which means that you need to use only small amounts of money to trade large contracts. You have access to live quotes and rates and your orders are executed instantly. Your account can be denominated in USD or EUR.
Supported Languages:English, Russian
WebSite Languages:Arabic, Chinese, English, German, Russian
Markets except Forex:spotFX, forwards, gold and silver, futures, warrants
Supported Services:forums, manuals, newsletter, online, phone, chat Foundation
Year:2005 Forex Foundation Year: 20
Forex Trading & Forex Options
Forex Robot:
Forex option trading has emerged as an alternative investment vehicle for many traders and investors. Forex trading produces both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.
Most forex options trading are conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.
Forex Option:
Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."
The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.
Forex option trading has emerged as an alternative investment vehicle for many traders and investors. Forex trading produces both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.
Most forex options trading are conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.
Forex Option:
Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."
The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.
Forex Traders become Bankrupt
Nearly 90% of the traders lose their account and 10% of traders always lead to bankruptcy. This may make you shock. Yes, 10% people lead to bankruptcy.
What is the reason for this failure? It is not because of their ignorance. in fact most traders have an above average IQ and are above average in most categories such as education and income. So why do they fail?
The main reason for this failure is the Lack of trading education:
To succeed in the Forex market you have to thoroughly educate yourself in all aspects of your chosen profession. It means Educating in the correct risk management techniques relative to your account size.
Common Misconceptions of New Traders
The new traders think they can trade consistently with 79% accuracy. They think they can turn $1000 into $100,000 in six months. The new traders think that they can predict turning points in their given markets to within minutes. They assume that they can buy a system that is 100% accurate.
What’s the reason that so many new traders believe that trading is an easy way to make big profits? Propaganda!
Don’t get me wrong, there is good stuff out there but the vast majority is not worth the price you pay.
What is the reason for this failure? It is not because of their ignorance. in fact most traders have an above average IQ and are above average in most categories such as education and income. So why do they fail?
The main reason for this failure is the Lack of trading education:
To succeed in the Forex market you have to thoroughly educate yourself in all aspects of your chosen profession. It means Educating in the correct risk management techniques relative to your account size.
Common Misconceptions of New Traders
The new traders think they can trade consistently with 79% accuracy. They think they can turn $1000 into $100,000 in six months. The new traders think that they can predict turning points in their given markets to within minutes. They assume that they can buy a system that is 100% accurate.
What’s the reason that so many new traders believe that trading is an easy way to make big profits? Propaganda!
Don’t get me wrong, there is good stuff out there but the vast majority is not worth the price you pay.
Risk in Forex-Buying and selling
High level profits can be obtained by doing Forex trading. But at the same time one could face heavy loss if he is involved in Forex without proper guidance and experience.
So for doing Forex you have to get guidance from the experienced people and gather relevant information as much as you can. There are number of courses conducted using free demo accounts to let first time traders experience the Forex market without risk.
Never, equate your success or failure in the markets with who you are as a person!
Buying and Selling of Forex:
If you want to open a position (i.e.: place an order to sell – to make a profit if the exchange rate falls) you have to choose the amount (i.e.: 100.000 EURUSD) from the drop down menu on the platform and then click the mouse on the sell currency button: SELL (if you want to place an order to buy, you should act in reverse).
It is more important to familiarize yourselves with this market’s characteristics and unique attributes. The Forex market allows traders to buy and sell distinct currency pairs.
No commission is charged per trade, the broker is compensated through the buy and sell price differential – commonly known as the “spread”. Below are a few guidelines to start trading with Advanced Currency Markets – your gateway to the largest and most liquid market on earth.
So for doing Forex you have to get guidance from the experienced people and gather relevant information as much as you can. There are number of courses conducted using free demo accounts to let first time traders experience the Forex market without risk.
Never, equate your success or failure in the markets with who you are as a person!
Buying and Selling of Forex:
If you want to open a position (i.e.: place an order to sell – to make a profit if the exchange rate falls) you have to choose the amount (i.e.: 100.000 EURUSD) from the drop down menu on the platform and then click the mouse on the sell currency button: SELL (if you want to place an order to buy, you should act in reverse).
It is more important to familiarize yourselves with this market’s characteristics and unique attributes. The Forex market allows traders to buy and sell distinct currency pairs.
No commission is charged per trade, the broker is compensated through the buy and sell price differential – commonly known as the “spread”. Below are a few guidelines to start trading with Advanced Currency Markets – your gateway to the largest and most liquid market on earth.
Forex Currency
In Forex trading currency is mainly used as the medium of exchange mostly paper money. The currency is transmitted from one person to another person as a medium of exchange. In Forex you have to be up to date with the each country’s currency and their status in the market. This plays a major role of gain or loss in trading. Therefore currency plays a major role in the Forex trading.
The foreign exchange market is where currency trading takes place. The foreign exchange currency market evolved in 1970’s when world over countries switched to floating exchange rate, which remained fixed as per the Bretton Woods system till 1971.
Today, the FX market is one of the largest and most liquid financial markets in the world and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing.
The foreign exchange market is where currency trading takes place. The foreign exchange currency market evolved in 1970’s when world over countries switched to floating exchange rate, which remained fixed as per the Bretton Woods system till 1971.
Today, the FX market is one of the largest and most liquid financial markets in the world and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing.
Forex Benefits
Forex market involves large number of participants. Billions and billions of money is transmitted each and every day. All the transactions are conducted within seconds, based on the following online quotes. The transaction and the Forex trading takes place 24 hours a day, 7 days a week. It can be accessed easily from your system or laptop.
The only thing he will need to extra pay is the difference between buying and selling prices. A trader is his own boss he can open a position for any period of time he wants without any fees attached yet, one of the greatest Forex benefits is that a trader has an opportunity to profit much more than he originally invested.
The only thing he will need to extra pay is the difference between buying and selling prices. A trader is his own boss he can open a position for any period of time he wants without any fees attached yet, one of the greatest Forex benefits is that a trader has an opportunity to profit much more than he originally invested.
Choosing the best Forex Trading System
Once the assignment of Forex trader is gambling on FOREX exchange rates other (FOREX pairs up / down movement), the following is to exhibit realized to gain faultless profit:
FOREX pairs pricing mechanism.
Factors imparting improvement / decline to FOREX rates.
Wherefore, what are the factors?
Forex rate depends largely on the profit-loss curve. Scanty demand brings about decline in a certain currency rate. Each globe market is afire to converse or share limited amount of something among those desirous to obtain it most of all.
The important note one should note is one should clearly note what is obvious by stock, futures, bonds, FOREX and options markets. The role of fundamental analysis for FOREX market is readily apparent.The country’s enthusiasm rate, since the higher the rate, the greater symbol of investors is eager to effect into the country’s economy and ergo into national currency strength.
The traders must clearly watch the rate of breakthrough in savant fiction which may differ persistently from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country’s economic fundamental data, viz. by tracking the factors reflective of the country’s economy individuality.
The country’s gold and currency reserve assets are given as follows.
Variation dynamics network, balances of payment, trade report, state ration, gross maid product (GDP), etc.
Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)
FOREX pairs pricing mechanism.
Factors imparting improvement / decline to FOREX rates.
Wherefore, what are the factors?
Forex rate depends largely on the profit-loss curve. Scanty demand brings about decline in a certain currency rate. Each globe market is afire to converse or share limited amount of something among those desirous to obtain it most of all.
The important note one should note is one should clearly note what is obvious by stock, futures, bonds, FOREX and options markets. The role of fundamental analysis for FOREX market is readily apparent.The country’s enthusiasm rate, since the higher the rate, the greater symbol of investors is eager to effect into the country’s economy and ergo into national currency strength.
The traders must clearly watch the rate of breakthrough in savant fiction which may differ persistently from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the country’s economic fundamental data, viz. by tracking the factors reflective of the country’s economy individuality.
The country’s gold and currency reserve assets are given as follows.
Variation dynamics network, balances of payment, trade report, state ration, gross maid product (GDP), etc.
Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)
Forex
FX market trading is the trading of money and global currencies Most of the nations participate in the foreign exchange market. It is where currency is traded and it is completely based on the live value of that currency. There are some currencies that aren’t worth a great deal. That currency will not be bought and sold hard. Forex trading takes place daily. The most amazing fact is that every day almost two trillion dollars is traded. This is because the currency is worth more additional agents and bankers are going to select to invest in that market. Consider how many millions it takes to make a trillion and now think about how this is done each day. If you are looking for an ever earning project, then Forex is the best option available in the today’s market.
Forex Market is the place where Currency trading takes place and this takes place world wide. Each country’s currency is indicated by a three letter unique word. For example, the United Stated dollar is USD, the British pound is the GBP Japanese and the Euro is the EUR. You can choose your trading currency according to your wish. If you are new to the Forex Market you can choose a Forex broker who clearly explains the currency status.
The trades occur each and every day and its end finally with the Dollars and Pounds. Time zone plays a major role in this market because one country closes the market and the other country opens its market and this shows the variation in time zone and its importance. The trades occur every second and every minute all through the day.
Market moving plays a major role in this process and the process is explained as the follows. The transaction will be like EURzzz/USDzzz. The three z’s represent the percentages of trading for the percentage of the transaction.
One should read and understand the Forex statement and other information to understand the best transaction to learn all the symbols and information of the country before starting the trading.
Forex Market is the place where Currency trading takes place and this takes place world wide. Each country’s currency is indicated by a three letter unique word. For example, the United Stated dollar is USD, the British pound is the GBP Japanese and the Euro is the EUR. You can choose your trading currency according to your wish. If you are new to the Forex Market you can choose a Forex broker who clearly explains the currency status.
The trades occur each and every day and its end finally with the Dollars and Pounds. Time zone plays a major role in this market because one country closes the market and the other country opens its market and this shows the variation in time zone and its importance. The trades occur every second and every minute all through the day.
Market moving plays a major role in this process and the process is explained as the follows. The transaction will be like EURzzz/USDzzz. The three z’s represent the percentages of trading for the percentage of the transaction.
One should read and understand the Forex statement and other information to understand the best transaction to learn all the symbols and information of the country before starting the trading.
Get started in Forex
Are you interested in Forex trading and you don’t have a plan and idea of doing it? Do you know the importance of Forex, the amount of cash flown through the trading, but lacking in the knowledge of how to do trading?
It is very simple to start Forex trading online. But maintaining the profit for a long time is the only great issue here. Statistical review stats that nearly 91% of people suffer the loss in trading and only a mere 9% people make a huge gain in it. Well, every job costs you a few ups and downs. Before getting into trading take a view on the following precautions. Consider your trading well before you make them. Each defective trade, even if it is released quickly, drains equity.
Mismanagement of money:
A bad trade can wipe out a year's patient; therefore an intelligent trading is more important. Never make a high risk trading even it gains more profit at the starting.
Lack of knowledge:
Education and proper knowledge is a most important thing for those are in the beginner level of trading Note one thing clearly successful traders are not by born, but they have made by their experience. The difference between success and failure in the Forex market largely depends on knowledge and education. For the beginning trader, a good education is essential before investing in the changes.
Attend programs in Forex:
At the starting get a demo account. Attend programs and live projects before getting in to real Forex market. Trading on the foreign exchange market provides unique opportunities for profit, but it is also very risky. Start trading when you feel comfortable and invest on the trading once you feel that you are going on the right path.
It is very simple to start Forex trading online. But maintaining the profit for a long time is the only great issue here. Statistical review stats that nearly 91% of people suffer the loss in trading and only a mere 9% people make a huge gain in it. Well, every job costs you a few ups and downs. Before getting into trading take a view on the following precautions. Consider your trading well before you make them. Each defective trade, even if it is released quickly, drains equity.
Mismanagement of money:
A bad trade can wipe out a year's patient; therefore an intelligent trading is more important. Never make a high risk trading even it gains more profit at the starting.
Lack of knowledge:
Education and proper knowledge is a most important thing for those are in the beginner level of trading Note one thing clearly successful traders are not by born, but they have made by their experience. The difference between success and failure in the Forex market largely depends on knowledge and education. For the beginning trader, a good education is essential before investing in the changes.
Attend programs in Forex:
At the starting get a demo account. Attend programs and live projects before getting in to real Forex market. Trading on the foreign exchange market provides unique opportunities for profit, but it is also very risky. Start trading when you feel comfortable and invest on the trading once you feel that you are going on the right path.
Save Money on Credit Cards, Phone...
DEBT - How to Avoid, Get Out, and Stay Out
So many of us spend more than we earn each month. Our lifestyles are beyond our means. And we are in total, 100% denial of this fact. We are clueless and stupid. No disrespect intended.
How much money that is spent each month should be based upon income, not on what is wanted or desired or anything else that one's Id has a hankering for. We are humans and we are adults - we must rise above this lack of self-control.
It's time to grow up and be a responsible adult that makes smart decisions. Time to put on your big girl panties or big boy boxers!
First of all, destroy every single credit card and ship them back to the banks, asking that your accounts be closed immediately. Don't give me any whining or I'll get out the world's smallest violin and play "My Heart Bleeds For You."
You are allowed to have only one phone. If you have a cell phone, cancel your landline completely. Now contact your cell phone provider and get into the cheapest package you can. Get rid of texting. A call is cheaper than a text. Texting is for teenagers - it's like passing notes in class.
* Drop all memberships - the gym, the museum, clubs, everything!
* Stop paying people to do things you can do yourself - manicures, lawn mowing, cleaning service.
* Stop eating out at restaurants, clubs and bars, and going to movies, plays and concerts...at least for the next 2 months to see how able you are at meeting your "needs."
Now let's look at your income because that's our starting point for figuring out what you can spend.
What is your gross (before tax) income per month?
Figure out 10% and tag it for retirement. This can be a 401K, an IRA or savings account or combination of the three. Just make sure you are saving 10% every month for when you are old and gray. This is NOT vacation or fun money! You must put this much away every month or you will be living in a cardboard box and visiting soup kitchens during your golden years.
Figure out 25% and tag it for housing. This is the MAXIMUM that you should be spending to put a roof over your head. Homeowners should count mortages/equity loans. Renters need to count their rent. Add in any association fees. If this monthly amount is under 25% then do a happy dance because you'll need this extra cushion to help you out in the next step. If it is above the 25% limit, then refinance your mortgage or MOVE SOMEWHERE CHEAPER!
Figure out 35% and tag it for housing + long term loans. Use the money you figured out in the previous step and add to it: homeowner/renter insurance (calcuate a monthly average), private mortgage insurance (PMI), car payments, car insurance, student loans, personal loans, property taxes (figure out a monthly average).
If you are under the 35%, good for you! If you are over the 35% limit, then you need to reduce one of the variables: Move somewhere that doesn't have association fees or has lower property taxes. If your loan balance is 80% or less of the original loan amount, you can get out of the PMI by writing to the lien holder. Trade your car in for one that'll give you lower monthly payments and cheaper insurance or even go for a motorcycle. See about refinancing your student loans. Sometimes Bank of Dad comes in handy. Make up a contract that details monthly payments and penalties for late payments and be faithful in your payments! Never send in nothing. Always send something no matter how sad your excuse is. I don't want to see the two of you on Judge Judy!
Some people like to bring in room mates to help out with income. That's a nice idea but remember that room mates come and go. Those times between an old and new room mate are going to be tight. If there's a falling out or something unforseen comes, you may not receive that last month's rent or a 30 day notice. Don't put yourself in this position. It's a vulnerable place to be. Be a roomer rather than the main person on the lease.
Now on to the subject of food. In the beginning, allow yourself to eat out only once a month and it has to be somewhere cheap. It'll be painful, but you'll get used to it. I promise. One idea for you - dump your change into a jar at the end of every day. After the end of each month, however much change you have dictates how much you can spend eating out. Here's another idea - invite friends over. You treat to pizza (using your accumulated change), one friend brings drinks, another brings salad, and another brings dessert. Make it once a month get-together.
At home you need to buy the basic ingredients and make your own meals. No boxed, ready to cook meals. One of my pet peeves is boxed macaroni and cheese meals. OMG - it is so cheap to buy your own macaroni and use some Cheese Wiz or cubes from a block of cheese you cut up yourself.
Do not be brand loyal! Become a Benedict Arnold and hold your head up high! Use coupons but beware - some brands are still more expensive even with the coupon applied. Don't get tricked.
For fruits, get fresh or canned. You have your favorites so buy the one that's the cheapest per pound that week. Applesauce is cheaper than fresh apples per serving. If canned or jarred fruit goes on sale, buy a bunch of it.
Go frozen with veggies. Canned is high in salt has has a funny metallic taste. Frozen veggies are just as nutritious as fresh but cheaper. Again, compare your favorites and buy whichever one is the cheapest per pound. Get the size of bag that's the best price per pound. It's not always the largest bag.
Meat is a touchy subject. The cheapest meats are usually high in fat and bad for you. You don't want to be eating high fat meat every day! Try to get low fat, healthier cuts of meat but only eat meat three times a week. Figure on a quarter pound of meat (or less) per person. Avoid super size servings. On the other days, eat macaroni, spaghetti or soup. Soup is real cheap.
Forget about buying snacks, desserts and booze. Maybe allow yourself one big bag of pretzels per week. They are cheap, low in fat, and tasty.
About paying your bills - always pay the full amount requested on items that can be taken away from you like your home, utilities and car. Then pay the minimum on your other monthly payments.
Clothes - never pay full price. Wait for sales. Ask yourself whether you need it or want it. Replacing worn out sneakers is a need. Wanting shoes to match an outfit is a want. Thrift shops are misunderstood. If you take the time, you can find nice clothes that fit properly. Don't settle for clothes that are ill-fitting, stained or in bad repair. Be patient and picky. No one will ever know if you do this right.
Decorating - don't do it right now.
Go through the above crash diet on spending for at least 2 months to see just how much money you have left over for "wants." Write down every expenditure to give yourself an idea of just how much you can spend on stuff, movies, eating out and such. Write down how much money you will allow for fun or shopping each month.
If you want to buy something big, like a couch, you need to start saving and pay for it in full with cash. This is how Ross Perot worked his way up. Seriously!
How much money that is spent each month should be based upon income, not on what is wanted or desired or anything else that one's Id has a hankering for. We are humans and we are adults - we must rise above this lack of self-control.It's time to grow up and be a responsible adult that makes smart decisions. Time to put on your big girl panties or big boy boxers!
First of all, destroy every single credit card and ship them back to the banks, asking that your accounts be closed immediately. Don't give me any whining or I'll get out the world's smallest violin and play "My Heart Bleeds For You."
You are allowed to have only one phone. If you have a cell phone, cancel your landline completely. Now contact your cell phone provider and get into the cheapest package you can. Get rid of texting. A call is cheaper than a text. Texting is for teenagers - it's like passing notes in class.
* Drop all memberships - the gym, the museum, clubs, everything!
* Stop paying people to do things you can do yourself - manicures, lawn mowing, cleaning service.
* Stop eating out at restaurants, clubs and bars, and going to movies, plays and concerts...at least for the next 2 months to see how able you are at meeting your "needs."
Now let's look at your income because that's our starting point for figuring out what you can spend.
What is your gross (before tax) income per month?
Figure out 10% and tag it for retirement. This can be a 401K, an IRA or savings account or combination of the three. Just make sure you are saving 10% every month for when you are old and gray. This is NOT vacation or fun money! You must put this much away every month or you will be living in a cardboard box and visiting soup kitchens during your golden years.
Figure out 25% and tag it for housing. This is the MAXIMUM that you should be spending to put a roof over your head. Homeowners should count mortages/equity loans. Renters need to count their rent. Add in any association fees. If this monthly amount is under 25% then do a happy dance because you'll need this extra cushion to help you out in the next step. If it is above the 25% limit, then refinance your mortgage or MOVE SOMEWHERE CHEAPER!
Figure out 35% and tag it for housing + long term loans. Use the money you figured out in the previous step and add to it: homeowner/renter insurance (calcuate a monthly average), private mortgage insurance (PMI), car payments, car insurance, student loans, personal loans, property taxes (figure out a monthly average).
If you are under the 35%, good for you! If you are over the 35% limit, then you need to reduce one of the variables: Move somewhere that doesn't have association fees or has lower property taxes. If your loan balance is 80% or less of the original loan amount, you can get out of the PMI by writing to the lien holder. Trade your car in for one that'll give you lower monthly payments and cheaper insurance or even go for a motorcycle. See about refinancing your student loans. Sometimes Bank of Dad comes in handy. Make up a contract that details monthly payments and penalties for late payments and be faithful in your payments! Never send in nothing. Always send something no matter how sad your excuse is. I don't want to see the two of you on Judge Judy!
Some people like to bring in room mates to help out with income. That's a nice idea but remember that room mates come and go. Those times between an old and new room mate are going to be tight. If there's a falling out or something unforseen comes, you may not receive that last month's rent or a 30 day notice. Don't put yourself in this position. It's a vulnerable place to be. Be a roomer rather than the main person on the lease.
Now on to the subject of food. In the beginning, allow yourself to eat out only once a month and it has to be somewhere cheap. It'll be painful, but you'll get used to it. I promise. One idea for you - dump your change into a jar at the end of every day. After the end of each month, however much change you have dictates how much you can spend eating out. Here's another idea - invite friends over. You treat to pizza (using your accumulated change), one friend brings drinks, another brings salad, and another brings dessert. Make it once a month get-together.
At home you need to buy the basic ingredients and make your own meals. No boxed, ready to cook meals. One of my pet peeves is boxed macaroni and cheese meals. OMG - it is so cheap to buy your own macaroni and use some Cheese Wiz or cubes from a block of cheese you cut up yourself.
Do not be brand loyal! Become a Benedict Arnold and hold your head up high! Use coupons but beware - some brands are still more expensive even with the coupon applied. Don't get tricked.
For fruits, get fresh or canned. You have your favorites so buy the one that's the cheapest per pound that week. Applesauce is cheaper than fresh apples per serving. If canned or jarred fruit goes on sale, buy a bunch of it.Go frozen with veggies. Canned is high in salt has has a funny metallic taste. Frozen veggies are just as nutritious as fresh but cheaper. Again, compare your favorites and buy whichever one is the cheapest per pound. Get the size of bag that's the best price per pound. It's not always the largest bag.
Meat is a touchy subject. The cheapest meats are usually high in fat and bad for you. You don't want to be eating high fat meat every day! Try to get low fat, healthier cuts of meat but only eat meat three times a week. Figure on a quarter pound of meat (or less) per person. Avoid super size servings. On the other days, eat macaroni, spaghetti or soup. Soup is real cheap.
Forget about buying snacks, desserts and booze. Maybe allow yourself one big bag of pretzels per week. They are cheap, low in fat, and tasty.
About paying your bills - always pay the full amount requested on items that can be taken away from you like your home, utilities and car. Then pay the minimum on your other monthly payments.
Clothes - never pay full price. Wait for sales. Ask yourself whether you need it or want it. Replacing worn out sneakers is a need. Wanting shoes to match an outfit is a want. Thrift shops are misunderstood. If you take the time, you can find nice clothes that fit properly. Don't settle for clothes that are ill-fitting, stained or in bad repair. Be patient and picky. No one will ever know if you do this right.
Decorating - don't do it right now.
Go through the above crash diet on spending for at least 2 months to see just how much money you have left over for "wants." Write down every expenditure to give yourself an idea of just how much you can spend on stuff, movies, eating out and such. Write down how much money you will allow for fun or shopping each month.
If you want to buy something big, like a couch, you need to start saving and pay for it in full with cash. This is how Ross Perot worked his way up. Seriously!
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