Chuck Jaffe from MarketWatch labelled the Moneywayz.com home based business idea as his Stupid Investment of the Week. Not that it fits in to a normal idea of investing but it does when it comes to home based businesses.

If you're after more information about Moneywayz.com you won't find much on their website, unless of course you sign up and prepare yourself for an onslaught of possible spam.

What they do give the general curious public is a small window into the six areas of Moneywayz, including Shopwayz, Healthwayz, Taxwayz, Travelwayz and Mortgagewayz hoping that you will want to satisfy that curiousity by delving deeper into the site.

I'm always very guarded about companies that give little information while extracting all they need from you. It smells very Amway-ish. If a company and its service or products are good enough they don't need to hide anything to try and get you.

Chuck conducted some research into the company to find out what made them tick and whether the claims they were making had any substance. The system works via sellers (those who sign up) paying for the placement of adverts on websites and within traditional media. For every person who signs up as a result of the advert the seller retains a portion of the commission and for every person who signs up as a seller beneath you will add to your commission as well.

Moneywayz does offer a "money-back guarantee" (don't they all?), which allows you to get your money back if you don't break even within the first 12 months. But even with this guarantee you will still need to read the fineprint.

While he suggested that this made the deal risk-free, the truth is that Moneywayz only refunds the money paid for the initial business deal, and not the money the customer spends on ads and trying to attract customers. Even if you can get the initial monies back, there's a good chance that the losses will be significantly more than bargained for if you have tried and failed to build this into a business.

My review on this home based business: try finding something else!

Posted by Stuart at 7:07 AM | Permalink

Imagine paying a $20,000 debt in 5 years with only a $22,000 annual income. Apparently this is what Tawra Kellam did after seeing her mother raise two children as a single parent on less than $500 per month.

These two frugal champions have now published a book "Dining on a Dime Cook Book" and operate a highly regarded website www.livingonadime.com.

In this article, "Think thrifty: save yourself from spending" the writer explains some of their great tips on saving. Wise advice such as reducing the amount of drinks the families buy to cleaning up the kitchen in the morning which prevents your psyche from wimping out and ordering take-away at dinner. They're not coupon pushers and actually advise that these methods don't actually save your family money.

They recommend implementing one change at a time and being successful with that change before introducing another. These great tips could help your family back on the road to financial recovery.

Posted by Stuart at 7:21 AM | Permalink

Perhaps boom prices do bring out an element of stupidity in investors but I'm not sure one can count on this when offering an investment for sale.

The real estate in my local area is still booming and has been for the past 2 years with no sign of receding and prices have increased more than 40% annually. Even though it has been booming and demand is far outstripping supply it amazes me that some good quality homes take a long time to sell. I couldn't understand it until my neighbour decided to put his house on the market at a price that one would expect to achieve had they been living closer to the beach.

In fact, a house which has far more street appeal and would be on a par with my neighbours sold in less that a week for A$75K less than next doors is demanding. Does he think that investors are stupid? Obviously.

I would assume that even in a boom investors are not without their faculties and able to make sensible decisions. One would have to reason that if an investor bought this house at the advertised price, it would take him at least 12 months before he was able to break even on the investment. And investors know that if a boom has been occurring for more than 2 years it probably won't continue for another two.

I think boom prices just result in stupid sellers.

Posted by Stuart at 7:49 AM | Permalink

Is there anyone...anyone at all who is also more than mildly disturbed by rising fuel costs? Why is it that every time I drive past the service station the price for fuel has escalated quicker than my Adsense earnings. It is getting tougher and tougher to keep my car on the road and yet it seems that alternatives to the oil crisis are not being sourced. Why? Do I need to stop driving my car?

This article in the Patriot News highlighted the depth of the dilemma society is now facing.

Americans [Australians too] have begun to make lifestyle changes in order to maintain some sanity. Saving energy is one thing but to be forced to carpool/vanpool, walk to work or practice frugal driving habits because we can't afford gas is ridiculous.

I've thought about ways to beat rising fuel costs like cycling to work, car pooling with friends and I've even contemplated buying a scooter. But I can't help thinking that there's more that could be done by the power's that be.

One example is that in Australia our fuel is heavily taxed. I have no qualms with the excise going to fund better roads but I'm concerned that with the rising oil price these taxes will fund better surpluses instead.

I also wonder about mining companies who tap oil and leave it to sit. They do this to control supply therefore controlling prices as well. Rising fuel costs are not a problem to them, in fact it's what they are after.

So, while us humble day-to-day people struggle to fill our cars with fuel those who could do something about it won't. Why? Because they're greedy.

Posted by Stuart at 5:55 AM | Permalink | Comments (3)

I read and responded to a post at DINK's personal finance blog which discussed the issue of stock portfolio diversification or focused investing. It was a great post.

Since reading the article I've thought more about this whole notion of portfolio diversification. I was trained to think that stock diversity was almost 'Biblical' and anyone serious about investing would diversify their stock portfolio to somehow 'hedge' their bets. It makes an incredible amount of sense. Invest in stocks where losses can be offset against gains and vice versa and hopefully those gains will outweigh the losses and produce a reward.

One reader recommended the The 15-Stock Diversification Myth presented by Bill Bernstein as the most concise argument for stock portfolio diversification. This stance implied that focused investing was not the best way to manage a portfolio and that diversification was.

I would probably agree with the DINK's. However, in saying that, and as I responded to the post,

For one investor diversification will be the answer while for another focused investing will be what they're looking for.

It all depends upon the amount of risk you are willing to take with your investment.

Myself, I prefer the focused investing model because it's a no-holds-barred method that doesn't take prisoners. After reading some quick comments about the "Graham vs. Buffett" debate I found a comment made by Henry Lu which stated,

But a focused investing approach is not going to work without deep research into business.

Obviously! Diversification is about safety. Focused investing is about knowing what you're doing and why you're doing it and how you're going to do it. You don't have a safety net so you need to make sure your assumptions are right from the start.

It seems like a big gamble but it's an educated gamble.

Posted by Stuart at 10:03 PM | Permalink

Being a mum in the "Noughties" is probably one of the hardest jobs to maintain. The pressures have increased exponentially in the last two decades from what they would have been in the turn of the century. The pressures back then were just family related while today there are expectations for women to be all that and more. Society, and especially other working mums, expects them to do something more "worthwhile" than just being a mother and a wife.

Although I think this is dangerous territory I'm entering, I enter it because I feel it's necessary to explain. In our own home situation, my wife Debbie's role is what society labels a 'Stay-at-home-mum." She holds a degree in teaching and has experience in other paid work and while this has supplemented the family over the years we have never wanted to rely on it. Why - because her work is inferior to mine? Definitely not. We just believe that mum's need to be raising their children and that's a bigger job than trying to be a famous CEO of some multinational company.

However, the time has come when the last of our four children will be heading to school next year. This will free up a huge amount of time for Deb and she has already been making motions to do something more that will stimulate and grow her.

Doing something 'more' can mean varied things. For Deb this will probably mean more volunteer time to the causes that she believes in. For other 'Stay-at-home-mums' in the same situation it may be finding a part-time job where their career left off or even delving into the world of home based business ideas.

Daryl and Estraletta Green, decision coaches, have offered another alternative - the world of internet home based businesses. They recognise that the internet is an ever growing media source and that we live in the information age and have put together a list of the "Top Ten Internet Businesses for Working Moms."

While they have listed them, I plan to give each idea a few legs to run on and for readers of this post to think through some possible ideas. Here they are;

1. Business Consultant
   

   If your past career was in the business arena or you have been studying over the years and dabbled with some commerce then being an internet business consultant may be an option. This is probably the hardest area to invest your time and expect a reward if you have limited experience. Many businesses are looking for specific consultancy advice and if you have the skills then the internet may link you up with these.

   If you want to start in this arena, the best place to begin would be to start dialoguing in business forums. Offering your advice for free, in the beginning, would soon kick-start you new internet business. As people begin to appreciate your business advice doors will begin to open and businesses will head towards yours.
   



2. Business Network Organiser
   

   An internet business idea which doesn't require any specific knowledge per se would be the area of network organising. Businesses often want to share information and glean ideas from similar businesses but don't know how, or don't have the manpower (womanpower), to invest in this area.

   This arena will require entrepreneurial skills and the ability to negotiate with business leaders to form networks they didn't have. Specific B2B forums may be the answer but it may also involve some video-conferencing which in this day and age not unreasonable to organise.
   



3. Editorial Service
   

   If you have a gift in writing, one internet home based business idea is editing other writer's work. With the growth of blogs, e-zines and even mainstream media many writers are looking for good editors. Submission of their work would happen via email with you perusing and editing it to an agreed deadline and charged at a rate per word.

   Other options may be joining an editorial service, or if you feel like you would enjoy the challenge you could start your own. These services are a growth area and will be required well into the future.
   



4. E-Zine Publisher
   

   I already mentioned ezines as a legitimate internet business idea. Ezines are web-based magazines targeted specifically to niche markets. Depending on your interests and the level of competition in that niche you may be able to start your own home based internet magazine.

   E-zines can cater for hobbies, sports, technologies and anything that has a sizable interest in receiving more information on such a topic. There are many free ezine publishing software products available and even more if you're prepared to pay for them.

   Most of the money publishers make off e-zines are from advertisers although limited topics can also command subscription dollars.
   



5. Expert Referral Service
   

   This is one home based internet business idea that will require more setup than the others. While many of the other options can be accessed through other services this idea will need to be completely set up by yourself. Not only that, but like the Business Consultant you will need to build a reputation first before people make the journey to seek you out.

   Depending on what you plan to refer whether it be financial or psychiatric counselling services, home cleaners or commercial lawn mowers, you need to know that each service you offer is of the highest quality and that they will do what you say they will.

   There may be other ways to "skin this cat" but I would foresee the best way to do it would be hosting a website with people subscribing or purchasing the information in some form.
   



6. Ghostwriting/ Copywriting
   

   As I mentioned previously blogs and e-zines are exploding as a form of media. While you may not choose to start one of these, copywriting for them is a great internet business idea. I've been checking out some options from Digitalpoint's copywriting forum where people are charging others for the copy they write.

   As long as the articles are genuine and not copied bloggers are prepared to pay good money for them. Most copywriters charge per word and there are obviously deadlines that will need to be met.
   



7. Information/ Research broker
   

   This is a similar home based business idea as the copywriting option but it requires you to do the research rather than write original copy. If you have studied for a degree you will know that research is a very time consuming chore and if requires you being able to source good quality material. However, the internet is the home of information and there are sources that you could subscribe to get the info needed.

   This isn't a hard business idea to set up but it may take some time as you work out efficient ways to source the required data and to also source clients, matching their needs with your efforts.
   



8. Manual Article Content Service
   

   Many software developers require documentation for their products before they can release them. They may also require ongoing content for help and support services so this is another internet based home business idea that many mum's could fit into their busy daily schedules. It is similar to copywriting although you are writing on a very specific item. Could become tedious and would require someone who had a detailed mindset.
   



9. Personal Coach
   

   This is a great internet based idea. People are searching out coaches for them for many facets of their lives. A coach is someone who keeps a person on train probing them for problem areas and helping them to set goals, measure their success and help celebrate their wins.

   Usually, these arrangements are temporary and may last 3, 6 or even 12 months while others, depending on what area it is, may go longer. The internet offers the opportunity to coach people from all over the world and in many areas at once.

   To make money out of this home based business idea you would need to negotiate a financial contract with the person wanting to be coached.
   



10. Webmaster
    

    I would even add Blogger here. While the opportunity for a webmaster lies in administering websites and being paid for their efforts the idea of a blogger lies in their ability to write content appropriate for the public's needs and drawing revenue from advertising.

    Both are very real home based internet business ideas that can be done with a few hours each day and don't usually require many deadlines to be met.
    

There is the 10 best internet home based business ideas for working mums. I'm sure there are still some that could be added and I'm keen to here your views on these.

Posted by Stuart at 9:05 AM | Permalink | Comments (4)

The reason most consumers want to consolidate credit card debt is because they carry too many credit cards in their name. Each credit card applied for and accepted has its own limit, annual fees and interest rate and the more we carry the harder they become to manage.

However, there is a more disturbing trend though as teenagers succumb to spontaneous credit purchases at rates that are becoming far more than alarming. Each generation has become more comfortable with credit card debt and is using it proficiently while savings slump even further every year.

Demos and the Center for Responsible Lending jointly published a report titled The Plastic Safety Net: The Reality Behind Debt in America in October 2005. The report showed that low and middle income earners owed $8,650 in average credit card debt. The average in Australia is is more likely a little over $2,500 these days.

So while the future looks bleak there is a light at the end of the tunnel - and it's not a train!

4 Steps to consolidate credit card debt

1. Research your current cards - I can unequivocally guarantee that if you have more than 5 credit cards you would have very little knowledge of each card's terms, interest rates and charges. So in order to start the consolidation process you need to educate yourself with the vital statistics of each card you own.

   Once you know all the relevant information it will give you a wealth of knowledge that you will need to move forward and assess which cards are worth keeping and whether there are others that might be worth getting.
   



2. Prioritise which cards to deal with first - Once you've researched each card it's time to start prioritising the ones that need immediate action, those that require keeping an eye on and those that are safe or worth keeping.

   The variables that will determine this priority process will be;
   

   
   
   1. Interest rate
   
   
   2. Card charges including overlimit charges and annual fees
   
   
   3. Number of interest-free days
   
   
   4. How pretty the card looks in your wallet or purse - NOT!
   
   
   
   


3. Set yourself a monthly repayment budget - If you don't set a monthly repayment amount you will find that the credit card debt can become overwhelming. Setting this amount will free you to be realistic about the possibilities.

   Set this amount as high as you can and understand that you may need to make some sacrifices in order to keep to it. Also, set yourself some measurable milestones that you can reward yourself for such as reducing the number of credit cards by 2 or paying your first $1000. Make it something that's not unachievable but isn't ridiculously easy either.
   



4. Plan to consolidate your credit cards - You will have quite a few options here to eliminate the debt and it will depend mainly on your own self-discipline and motivation for consolidating the debt in the first place.

   If you're not a strongly self-disciplined person the best option may be to apply for a personal loan with a fixed interest rate and monthly payments. You could consolidate all your credit cards into this one loan or at least some of the higher interest charging cards.

   Another option may be to transfer the debt onto fewer credit cards. If you had 3 cards that were okay after your priority process, 4 that were middle of the road and another 3 that were really bad, try spreading the debt from the 3 really bad cards onto the other 7 with a preference for the best 3.

   If you were really self-disciplined, you might even consider moving all your credit card debt onto your mortgage and increasing your monthly repayments. To do this would require paying more that the minimum monthly mortgage payment so as to counter the compounding effect on a long loan such as your mortgage. If you chose this method of consolidation you might want to consider keeping one credit card for emergencies (spontaneous buying impulses are not emergencies!) and reducing the limit to $500 or $1,000.
   

Posted by Stuart at 7:30 AM | Permalink | Comments (3)

Providian haven't had a great rap for their customer service over the years and while they're known for their low introductory rates, they don't seem to stay very low for long.

That may have been past history though as Washington Mutual (ranked as one of Fortune's best 100 companies to work for) snapped Providian up as part of its credit card services last October. Washington Mutual has a great customer record and is one of only a few banks that are committed to the retail loan market.

The reason for Providian's lack lustre reputation has been their sneaky tactics in charging fees and they have been sued for allegations regarding these tactics. They're not alone though, most of the major credit card issuers such as First USA, Chase, Capital One & Citibank (not excluding Providian) have all been sued over allegations of unfair billing practises. It seems that most credit card providers are willing to go the extra mile in charging out expenses to the tune of more than $3 trillion per annum.

Consumer Affairs have a number of complaints about Providian and their credit cards ranging from introductory APR's that were promoted as 7.99% that really were 41.78% among many others that bear similar trademarks. Here's a case in situ:

S.A. of Foley, MN:
A telemarketer representing Providian contacted us and promised a 7.99% APR card. When we received our agreement, the rate was higher. We contacted the bank and asked them to fix this issue. They responded by saying their telemarketers wouldn't have made that offer. (I felt that they called us liars).

So, we closed the account by paying it off with a transfer to our existing card. Now, they claim that we owe them in excess of $140.00, due to our method of paying them off. I would NEVER do business with them again.

One highlight in all this though is Providian's growth in the new "tweener" market. Tweener's are those people who either have emerging credit, such as immigrants or young people, or those that are climbing their way out of a bad credit history. And, yes...you guessed right. They can charge higher rates on these credit cards because there is less competition for these consumers and they can justify the excessive rates.

Being accepted for a Providian credit card may be one of the easiest cards to be granted but unless their poor customer performance accelerates Washington Mutual could end up with a dud acquisition.

Posted by Stuart at 7:06 AM | Permalink | Comments (3)