I heard an interesting comment on the evening news from a high-profile real estate agent. The suggestion had been made that West Australia's property cycle was fast becoming a dangerous market.

Prices in WA are closing on Sydney's property market rates due to the economic resources boom. Growth of between 20-40% per annum for the past 2-3 years has increased the median price and it appears that Federal Interest Rates will rise from between 0.25%-0.50% when the Reserve Bank meet next week.

Greg Rossen from REIWA made the dubious statement when confronted with the "dangerous market" suggestion that "housing sales will cool and return to the long-term trend of 8%pa." This is true - in the long term view. However, in the short term, growth must cease and possibly decline to correct the "long term average of 8%". Many investors wouldn't have heard this but rather interpreted the comment to mean "at the least you will get 8%pa".

Afraid not. The very least has no depth gauge. It could be 0% or even less.

Time will undoubtedly tell.

Posted by Stuart at 9:16 PM | Permalink

The art of writing a resume that will guarantee an interview is the mix of being an incredible salesperson blended with humility and truth that entices.

Many people who write resumes believe that their curriculum vitae should be enough to capture the imagination of their prospective employer by listing every past experience as though it were a shopping list. In fact, I've actually read shopping lists that have excited me much more than some people's resumes.

The idea behind writing a resume is passing on a window into your life to a prospective employer. That window is very small and the employer must walk through hundreds of windows before they short-list a group to interview. Just like window-shopping, there will be a few windows that will entice the customer into the store. There will be others that promised much but on closer inspection the window was found wanting and the customer moved on.

Your resume will do the same thing. Either it will grab the employer's attention and tempt them to read further or it will be confined to the return pile.

Ring Lardner, an American journalist once said, "A good many young writers make the mistake of enclosing a stamped, self-addressed envelope, big enough for the manuscript to come back in. This is too much of a temptation to the editor."

The goal is ensuring your resume stays on the top of the pile and secures an interview for that perfect job.

Here are 5 tips for writing a resume that will guarantee you get noticed and secure a job interview.

1. Be creative (without lying) Put your "I'm-the-employer-reading-this-resume" hat on and start to jot down some ideas that you think you would like to see in a resume.

   Obviously, the usual information such as personal details, past career history, awards and written references from previous employers are required. But there is no rule that says that information has to be served up in a monotone dot-point list. Tell a story, include good quality pertinent photos (clipart is a big "No-No"), use captions and paragraph extracts to entice the employer further into your curriculum vitae.

   If you're a recent mother and have been out of the workforce for a couple of years don't skip over this. Name it and claim it. Tell your prospective employer what you learnt through that experience and how that will be beneficial to your employment with that firm.

   Never write your resume with an attitude of "I-have-only-done-this." Write it as though your were hoping to make it to the front page of the New York Times.

   Think outside of the box and develop your dot-point list to tell engaging stories.
   



2. Formatting and design layout that tempts Take a tour through some online websites noting which ones capture your attention. Those that have gaudy colour schemes, multiple fonts and flashing animated .gif's are probably the ones send you away rather than retain your time.

   Other sites which appear seamless that compliment colour, font style and size, graphics and content layout are more likely to keep your interest. Websites are modern day shop windows and you only enter that 'shop' if the window entices you in.

   The same applies for your resume. Think of yourself as the shop and the employer as the shopper. Her biases towards your resume will go far deeper than just the front cover. It will extend to paper choice, font style, how the resume is bound and design layout. This 'shopper' already knows what they're looking for - they just want to find it.
   



3. Include more than just previous employment tell them about your latest trip to Kathmandu and what you got out of it. Tell them about a personal struggle that you overcame and how it's shaped you for the future.

   Obviously, this information must be concise. A future employer isn't keen on reading a novel by an unknown author so your stories must be succinct. Include one or two at the most and keep them to no more than a short paragraph. Use a title for your experience that grabs the employer's attention like; "How frostbite renewed my passion for life" or something that truly headlines your experience.
   



4. Tell them about you – don’t just fill in a questionnaire Many resumes that I've seen work like this;

   Hobbies: Gardening, tennis, bird-watching, kayaking.

   While this may seem like an impressive list to you when writing your resume it casts the employers mind into the realm of unknown abilities. If you garden, tell the employer how active you are as a gardener noting your current projects. If tennis is a sport you play as member of a club that plays pennants each Wednesday night then tell them that. Explain why tennis is part of your life and is so important as a hobby to you.

   What do you mean by mentioning kayaking? Do you enjoy watching it or doing it yourself? Is it a pastime that secures a weekend every year or do you train on a daily basis? All these little insights build a picture into the employer's mind. The important thing is that you want to be the one building the picture. Don't leave it up to chance.
   



5. Explain your life goals What?...You don't have any life goals? You're hoping to secure your dream job and you don't have any life goals?

   Why did you want this job in the first place? Is it part of a bigger plan? Do you hope to see it take you somewhere or are you planning to turn it into the dead-end job you left within 3 months?

   If you haven't formally written out your life goals then now would be a good time to start. Your employer wants to know what they're investing in and where they will fit into the picture. This question will surface in the interview anyway, if you secure one, so it's better to put this on the table prior to it. Outline where you are heading and what you're hoping to achieve via this opportunity.
   

Remember, your resume is just a little window to your life. Just explain the facts and they will undoubtedly pass you by. Dress the window with some creativity and you will surely secure a job interview.

Posted by Stuart at 6:37 AM | Permalink | Comments (1)

Picture this - You've been working in a dead-end job for what seems like an eternity. Your pay has increased over the years but certainly not in proportion to cost of living expenses. You find coming home from work is far more exciting than the obverse and getting a promotion is not an enticing possibility.

[Opening the envelope] "And the options are..." - undoubtedly limited.

Why not start searching again for that dream career you always envisaged? You only have one life and is it worth tying up in a dead-end job? Certainly not, would be the correct answer.

So it's time to make some changes.

Let's break the prcess down into bitesized pieces.

1. Firstly, you want to find out what it is that you actually enjoy doing. Start by thinking through your hobbies and analyse why it is that they interest you.

   Example: You enjoy woodwork and spend most weekends buried in the shed. This would demonstrate a few key traits, such as;

   1. You don't mind working on projects by yourself.
   2. You enjoy performing a task that has a tangible end result.
   3. You would rather work with materials than intangible products

   Now, just because these things make up a little of your character doesn't mean that you should be a carpenter. You do woodwork as a hobby and would rather it stay that way.

   However, it highlights a few characteristics about what motivates you and these should be considered and analysed well as you think about the career you would like to pursue.
   



2. Next write a list of all the daily events that currently make up your lifestyle. List things like spending time with your spouse, children, going to the gym, your membership with the local book club, house work etc. Once you've listed everything that makes up your life go through the list again and prioritise the events that are the mos important.

   Use a number or letter system to assign the most important events that can't be let go to the ones that you're okay with leaving altogether. This list will become important as you begin to process different career opportunities.

   As you analyse each job opportunity you will be able to use this list to "count the cost" of what will need to go to make room for the dream career. For instance, if you're hoping to be an autonomous marketing consultant with a large established firm then weekly family dinners may become a thing of the past. Some events will need to take second place to your new position and it's better to calculate the cost before you embark on the search than after accepting the job.
   



3. Okay, we're moving along quite nicely now. The next activity would be to think through some of the aspects the new job may need in order to be your dream career. Do you want to work from home? Would you like to travel on a regular basis? Interstate? Overseas? Do you want to work in an office? A shed? A construction site?

   What do the answers to these questions tell you about yourself? Perhaps you enjoy being outside and detest the thought of being cooped up in a claustrophobic little office. Maybe the thought of travel is exciting, but 6 months down the track will it just become a drag living out of suitcases and not being able to commit to people or events back home?
   



4. Now it's time to start getting inspired. Grab a copy of the local employment section and use the answers from the past three activities to assess the possibility of finding that dream career. Cross out the ones that don't fit your self-assessed criteria and circle the ones that do.

   Then begin to rank them in order of most desired to least. Remember that you are not looking for specific jobs at the moment so you can put the phone back down. This is now a research phase.

   If your knowledge of a particular career is limited then you need to source some information. What are the prerequisites? How much does it pay? Does the industry suffer high staff turnover? And if so, why? Which companies are the most dominant and have a good reputation for leading the way not only with their service or product but also with their staff?
   



5. Finally, as you have started to unpack some different options now is the time to begin dreaming. With your skills, personality and knowledge what are you able to bring to that career? How could you be different from all the others who will also be vying for the same place? This will become an important question when we get to day 3 - Making a Job Interview a Job Promotion.
   

Posted by Stuart at 7:08 AM | Permalink | Comments (2)

Is it possible to give your kids a better credit card history by making them authorised users? Possibly. But the question should be is it necessary. Janet Bodnar from Kiplinger's Personal Finance warns against it.

Posted by Stuart at 4:46 AM | Permalink

Many couples are now deferring becomeing parents and instead opt for getting a mortgage, travelling and preparing a nest egg before junior arrives. The reason: the economic cost of passing up double wages and living on one income.

How do you do it?

Well, if you're reading this for the first time scratching your head and pondering this very question understand that you're not the first. And you most certainly won't be the last couple to face this dilemma. It's a big decision and you are probably already adding up all the creature comforts (the daily latte, magazine subscriptions, 2-door coupe) that are going to be side-lined.

But it doesn't have to be all bad! Reducing the working hours of one partner can free up some more lifestyle choices as well. Holidays are easier to juggle (albeit harder to pay for), socialising time is freed up and odd jobs around the house can be accomplished without spending weekends rushing around.

If you planning on living on one income in the near future you might want to peruse the 5 point Survival Kit.

1. Address the budget - procrastinate in this area will only mean delayed, and harder, results of limited spending. You can't keep the same spending habits when your family income goes from 100K to 50K. Some immediate savings are going to come from work-related expenses for the partner who has left the workforce such as parking, transport fees, fuel, cafe lunches etc.

   Other areas that might need to be pruned are non-essential items such as the weekly manicure, daily newspaper, cable-TV subscription. It may seem like you're giving up a lot but in essence your just removing what you filled your double income up with.
   



2. Consolidate any loans or credit cards - this is an area where you can make huge immediate savings. If your mortgage length is 25 years try extending it over a 30 year time span. Of course you will end up paying more interest but it is better to have a mortgage that is achievable than default on one that's not. Provided you don't fix the interest rate you can supplement payments as and when you receive extra monies.
   


3. Find supplemental income sources - there are so many opportunities today for stay-at-home mums or dads. Be creative and use your time well. Even an extra $50 per week can help out the family budget.
   


4. Apply for government subsidy - many world governments now provide benefits to single income families in a bid to increase the birth-rate of Western societies. Find out what you're entitled to and work within those limits. Many welfare regulations allow stay-at-home parents to earn a maximum income amount before benefits decrease.
   


5. Increase your salary insurance - the risk losing one salary while both partners are working isn't too detrimental but consider this problem if you're only living on one income. Salary Insurance protects the main income in case of death, disablement or if the breadwinner has contracted a terminal illness. Work related accident insurance is covered by your employment (unless self-employed) but Salary Insurance protects against things you can't.
   

Make some wise choices and living on one income shouldn't be too hard. Ignore the fact that your lifestyle will need to change and you will find that problems will continue to mount regardless of your nonchalance.

Posted by Stuart at 10:04 AM | Permalink

I always worry when my wife gets invited to a home party plan. How much can the credit card bear? Will we have room for all the new [insert product here]? And, don't we already have enough of [insert product here]? are questions that quickly flood the mind.

But the biggest question, and fear, is only answered when she walks through the door and confidently tells me "I've booked a party here next Tuesday." Oh, brother! What makes it even scarier is the night before you held her in your arms as she wept openly about her lack of significance in this world. Like party plan is going to help you become significant?

Don't get me wrong. I'm not against party plan sales per se. I don't mind at all if other women want to spend their evenings out, making endless phone calls to a woman called "Wilma" (who's a Pearl direct and drives her own [insert product here] car) or buy [insert product here] ad nauseum. So long as it's not MY wife!

I can hear all the women libbers getting stirred up now but it's not an issue of equal opportunity - I wouldn't want to do party plan either. There are copious opportunities available for stay-at-home mums. I've even mentioned a few on this blog. So why party plan?

It's okay, I've settled down from my rant now.

Setting off into the wild frontier of party plan is like any other business and while you're obviously infatuated with the rewards it may be a good time to consider the costs.

Firstly, before you consider getting too involved in a party plan concept review the Don't start a home business without answering these 7 questions checklist. Most people fail in party plan because they see the dollars and rewards scheme without calculating the costs involved.

When you look at a home party plan idea try and be objective. Ask yourself these questions;

1. How long will it take to achieve my dreams?
   


2. How much time do I need to give to this to realistically achieve them?
   


3. Can my family sustain all this extra activity?
   


4. What investment of money is required (this will include filling the car with fuel on a regular basis, buying product samples and all the training videos etc)?
   


5. When am I likely to begin to recoup these costs?

Secondly, think through the product line itself. You may have fallen in love with these items but are they something that will sell and sell easily? Are you likely to go night after night without seeing any purchases? Many product lines that are sold through party plan are also highly reliant on a good economy. If the national current account deficit heads south it's more likely that your sales will follow.

Finally, if you're really serious about joining a party plan, find one that you enjoy. If the product is good and other women at the party liked them enough to consider parting with their cash (or at least swiping their Visa) then the only thing left is to make sure you like the way the party plan company works.

If there is issues about the concept that bug you from the start they are unlikely to be rectified unless you have some control over it. If it's 'Company Policy' then it maybe easier to 'cast a mountain into the sea'.

Posted by Stuart at 7:01 AM | Permalink

When most people consider purchasing an investment property they normally think in terms of residential or commercial rentals. That is, they buy a property expecting to rent it out to long-term tenants. While this is an effective investment proposition and has been successful over the years there is less known about purchasing a holiday investment property.

We've just come back from a weekend in Fremantle staying in a holiday property. The unit was sited amongst a block of 1 and 2 bedroom apartments that was oiginally built in the 70's. From the outside the building was very ordinary but inside the unit the owners had renovated the living space into something very tasteful and comfortable.

We came across this unit from some online hunting and were able to secure it for $70 per night (fairly cheap when you consider most hotel rooms range from $110+ per night). The selling point for us though was its own kitchen and amenities which allowed us to cater for ourselves without having to dine out for every meal.

It then challenged us to think about the possibilities of buying into this market fo a couple of reasons;

1. Cheap holidays - obviously this is the biggest bonus. Not having to fork out cash every time you want to take a holiday is big plus.
   


2. Location - If you have your own property in a location where you are likely to use it often then it can also provide a major benefit. Most of our family live in Perth so we always trek north for Christmas, major family functions and the occassional gathering. This event, with our four children, can sometimes be an insurmountable mission especially when we require staying with family members. Being able to have our own place that isn't too far from the action but far away enough to give us some space would be great.
   


3. Rental income - when we're not using the property we can rent it for others to use and hopefully this will pay the mortgage.
   

There are several points to consider though if you're planning to buy an investment property for this purpose.

• Is it a popular holiday tourist destination? - There's no point buying a lavish townhouse in some outback mining town hoping to rent it out to holiday makers. If tourists don't flock to your town then you may need to look elsewhere.
• Do tourists visit all year round? - The answer doesn't have to be 'yes' to this question. However, if it's a 'no' then you will need to charge accordingly. For instance, the property we stayed in charged $70 per night over the winter months and this doubled to $140 in the summer months when Fremantle attracts more tourists.
• How much work do you want to do? - Just like residential or commercial investment property this question needs to be answered. If you don't plan to get too involved then buy an established site that won't require any extra renovations or continual maintenance. Just expect that you will pay more for this.
• Who will manage the property? - Depending on your distance from the holiday property will determine whether you can manage the property effectively. If it is too far away then you may need to consider employing the services of a management company who can administer everything from the payments to maintenance, advertising and cleaning.
• How often do you want to stay? - This is a big question in determining the effectiveness of buying a holiday investment property. If you want to stay often and presumably in the peak tourist times then renting it out to the public may not be a viable option. In this case you're probably better to just purchase the property and maintain it for your own use. Otherwise, you may find you'll need to coordinate your holiday periods so they don't clash with the peak tourist season.
• Can you earn enough from the holiday rent? - Some holiday rentals make more money in the 3 months of summer than they could as a residential investment for a full year. On the other hand, some holiday rentals make less than if they were rented out for a full year by a long-term tenant.

This list of questions may be a helpful start if you're thinking of getting into the investment property market. Do the math and think pragmatically of all the reasons why it won't work. This way it will ensure you make a right decision as you step forward.

Posted by Stuart at 7:34 AM | Permalink

It wasn't that long ago that downloading music from the internet looked like it would finally ruin some of the mainstream recording companies. Napster (the old version) and the music download software Kazaa were gaining in popularity, and notoriety. Every country with interests in copyright wanted them shut down and every week a new article would appear concerning a new legal battle.

That was then, this is now. Napster is now just another music downloading site among the plethora.

So, in an age where music, video and any other media is virtually on demand how do we go about obtaining it legally. For starters, if it's mainstream and popular and you can get if for free - chances are that it's probably not legal. Secondly, if you don't have to agree to the site's registration agreement then it's most likely that the media has been copied.

Having said that, there are many sites which do offer free music and video that don't require payment or registration. However, these usually offer less well-known bands or genre's which are not popular such as indie, folk and world music.

To erase any doubt, I decided to compile a list of sites where you can download music legally. Some are global while others are restricted to certain countries. I hope it's a benefit to you.

Posted by Stuart at 12:19 PM | Permalink | Comments (4)

According to this article, "What Caused the Great Depression of the 1930's?", the three main factors that caused it were;

• The over-stimulated economic euphoria of the 1920s.


• The draconian monetary policy pursued by the Federal Reserve Bank from 1930-1933.


• The sudden rise of global protectionism leading to the collapse of world trade. The dramatic rise of income taxes in 1932 may have also prolonged the downturn.

While I'm no economist, I like to consider that I am a realist and that signs for a global slow-down are certainly imminent.

While the world has never again seen a recession as grand as the Great Depression, there have been some hiccups throughout our history; the Japanese slow-down of the '90's and even the stock market crash in 1987 produced some ripples in the economic world. And while legislators have tried to smooth the way forward, evening out the highs and lows of fiscal policy, it seems that many have not seen the economic Tsunami appear on the horizon. At the least, not expecting it so soon.

What is this looming phenomena? Global oil prices.

Petrol here in Australia is already at a high of $1.40+ per litre and the news is that we're heading for a possible $5+ per litre in the short-term. Can you imagine the ramifications of a 350% increase on the most required energy source in western civilization?

The world has now been riding the benefits of a global economy that has been booming for some time. It seems, however, that we didn't expect to see the effects of oil prices for quite a few years yet. And in our apathy we've been caught napping on the beach.

In contrast to the Great Depression we have already encountered the first point of an "over-stimulated economic euphoria". Depending on whether world legislators have a knee-jerk reaction to this problem will describe history's architecture. Already businesses are feeling the effects of high oil prices and it will become very tempting for governments to implement policies that could have devastating effects.

Watch this space...

Posted by Stuart at 6:54 AM | Permalink | Comments (2)

It pops into your mind every so often, that niggling thought that you still haven't tied up all those loose ends you planned to three years ago - or was it four? It's not that it isn't a high priority it's just that it's so easy to procrastinate on writing your last will and testament.

The reason I'm posting this very topic is because having a legal will has once again risen it's ugly head in our household. We have four children, a mortgage, lease on our car and several other assorted assets including home furnishings for which there is no designated benefactor.

If Deb and I were both to die tomorrow our financial situation could be tied up in bureaucratic red tape for months. The situation is even more exaggerated because there is currently no guardian to protect our children and I could envisage a major family bun-fight for who would step into this role.

So, it's time to clean up our act and get a legal will in place. Here's what I've found;

Wikipedia defines a last will and testament as;

In the common law, a will or testament is a document by which a person (the testator) regulates the rights of others over his property or family after death. For the devolution of property not disposed of by will, see inheritance and intestacy. In the strictest sense, "will" is a general term, while "testament" applies only to dispositions of personal property (this distinction is seldom observed).

A legal will can be drawn up on any piece of paper providing it has the following requirements catered for;

You need to be 18+

This isn't true for every state or every country but there will be a minimum age that legislation recognises for a legal will. Some states of the US have lower minimum ages while other countries have much higher standards.

There are also certain situations that are overruled by a minimum age and these can be for those who are married, serving in a defence role or who have assets above a legislated threshold.

You need to be mentally competent

This is where a witness proves their value, as they should be able to attest that you were of sound mind when you wrote the will and when they witnessed your signing of it. If you have doubts that your will may be contested further, it may be appropriate to have a doctor's certificate included stating your mental disposition at the time of signing.

Needless to say, your witness also needs to be of sound mind and should they fail to be in the future it's recommended that you rewrite your will and have it witnessed by another person.

The will must be signed by the testator plus 2 witnesses

Each witness should observe the testator's signature plus each other's signature when signing a legal will. Some jurisdictions won't allow witnesses to be beneficiaries and therefore will annul some, or all, of a benefit left for them. Therefore, witnesses should be people who have no vested interest in the document.

Be careful who you try to disinherit

Most countries will overrule a legal will that disinherits a spouse unless provisions were made prior to the marriage that the spouse would not be a benefactor. Even then, the courts could still frown upon a pre-nuptial agreement if it can be proved that the testator was not completely honest in their full disclosure of personal assets.

Some states and territories will also disallow children below a certain age limit being disinherited by the testator. This is to ensure that minors are provided for after they have left with a guardian.

Appoint a guardian for your children

If you have young children that will need to be cared for once you pass on then a competent guardian will need to be appointed to oversee their well-being. It's appropriate to have discussed this with the possible guardian prior to the reading of your last will and testament so that they don't find themselves in an awkward position.

In some cases, an older child may be able to care and provide for younger siblings.

Anyone can be a beneficiary

While there are laws that ensure your estate will provide for your spouse and children, you may also choose anyone else to be a beneficiary of your assets. This could be specific people, trust funds, charitable organisations or the homeless guy who sleeps in your neighbourhood park.

The courts are more interested in ensuring that state or federal laws aren't contravened and that those who should receive a benefit will. The more complex you make your last will and testament the more likely it is to be contested and your wishes will be overruled.

Posted by Stuart at 7:38 AM | Permalink

I'm not sure whether I should file this one under 'Investment' or 'Insurance' as it seems staying married can be viewed either way. Very few days pass by where there isn't some talk about a celebrity couple who are in the process of signing pre-nuptial agreements. Yet for the commoners we don't usually have this process in place. Perhaps we're idealists hoping that the marriage will survive and we will all live happily ever after...

The truth is that many marriages that begin don't last. I won't quote any stats here for I'm sure you've all heard them but more importantly I think they are generally flawed (most figures quoted take the current annual weddings and divide them by the annual divorce numbers. Therefore, if you were married in 1963 yet applied for a divorce in 2006 the statisticians would offset your divorce against the 2006 marriages - not the 1963 marriages).

Anyway, regardless of how they arrive at their figures statistics are still showing us that divorce rates are high. And, while these rates are so high the only ones making money are the lawyers as family breakdown is also financial breakdown.

Divorce is rarely an amicable solution. Each party feels hurt by the other and wants to see their partner have at best only a half share but more commonly much less than half. Therefore all assets need to be disposed of, and usually as soon as possible, in order that each partner can then get on with their own life quickly. However when it comes to investments and financial savvy every investor knows the worst time to sell an asset is immediately.

Savvy investors also know that the best time to buy an asset is when there is a divorcee sale.

So my investment tip is to stay together. I'm not advocating staying together for the sake of money alone as 8% of surveyed respondents claimed, but if the marriage was worth starting then surely it's worth keeping. If you choose not to stay together then it may pay to consider the financial ramifications of this decision before you opt out.

Sometimes jumping from a sinking ship is the best decision but you may want to know what it is your jumping "into" to get away "from." Like the old cliche, "from the frying pan into the fire."

Here's a couple of financial questions you might want to ask yourself before you start scribbling your autograph on the divorce papers;

1. What's the best deal I'm going to end up with?


2. If the house gets sold, what's the best price that we will secure for it right now?


3. If kids are involved, what will the maintenance fees do to my weekly cash flow?


4. How long is it going to take me to get back to the financial position that I currently enjoy?


5. If the average family lawyer costs each party approx $5k each, what would I rather have spent this money on, and could it have been spent improving my marriage instead?

Your marriage is a relationship that you have invested some considerable time into and if it seems the only way to go forward is to step backwards then it may be worth considering ways to move sideways.

To add an addendum to my investment tip I would say; Stay Married; or at least exhaust every possible option to move forwards together.

Posted by Stuart at 2:01 PM | Permalink | Comments (2)

This weekend marks the end of term and the beginning of school holidays (I can hear the cheers in the background). And while the kids are excited and enthused with the prospect of having a couple weeks off, many parents start to bite their nails terrified of what the holidays will cost the budget.

If your family has decided to stay home over the holidays and save some money then to spend a heap of it entertaining the children seems counterproductive. Yet once the common "I'm bored" comment begins to surface we can easily shelve our money-saving ideals for the sake of some peace and quiet.

So what can children do to keep them entertained without costing a small fortune. Firstly, it depends on what age your children are and secondly what time of the year the school holidays fall in. Let's start with the first variant.

Children (5 - 10)

Apart from playing with their friends there are creative ways to amuse this age group.

1. Create some craft activities - potato stamping, cutting and pasting, colouring and painting are all cheap ways to engage your children for a while. Even making some play dough is a great activity.
   


2. Organise an excursion - children love to explore and experience new sights and sounds however creating an excursion doesn't mean hauling them off to some theme park which costs mega-dollars. If you live in the city, take the kids out to the country and vice versa. Make a day of it by packing a picnic as well.
   


3. Utilise shopping centre activities - shopping centres often organise school holiday entertainment in the hope of attracting you to spend more at their shops. Organise your weekly grocery shop around one of the activities which are usually offered for free.
   


4. Community activities - many community groups offer some great activities for children in this age group that are either cheap or free. Find the best ones and book the kids in.
   


5. Explore the library - most cities and towns have their own public library. Apart from books, many libraries also carry games, jigsaws and other activities for kids.
   

Children (10-13)

Many children in this age group are a little TC (Too Cool) for activities in the first age bracket but there still many ideas you can implement.

1. Plan a community project - like all children this age group love to do things yet they are more open to doing them within the context of the family. Find a need within the community and set about creating a project to meet it. It doesn't have to be a "save-the-world-project" yet it can focus on just helping one person like weeding an elderly person's garden or something of that nature.
2. Create a scavenger hunt - plan a list of items that will give the child some focus to go and gather. They can range from things that would range from being easy to source to be extremely difficult and challenging. Sourcing things that normally require a cash purchase but not allowing them to use cash can make it much harder and increase the experience.
3. Organise a concert - this is always big in our family. Our kids love to perform so any opportunity given to achieve this in front of an audience of friends or relatives is readily accepted and produces some great family moments (and photos for the 21st Birthday!)
4. Camera Scavenger Hunt - this is a variation on the scavenger hunt theme but performed with a camera instead. The child is given a list of items to source but rather than collecting them they need to provide photographic evidence of finding them.

Children (13-17)

1. Plan to go busking - if your child in this age group has some musical or creative talent, challenge them to go and busk in a local mall or public space. The advantage is they could earn some extra dollars but even if they didn't the experience would give them an incredible buzz.
2. Set up a holiday business - pictures of a lemonade stand on he sidewalk spring to mind but helping your young person develop their own business for a period would make a great project. They could do window or car washing, walking people's dogs etc. They would need help to create some business flyers to generate some interest and the project will help them with many required future skills - like talking to people.
3. Have friends sleepover - allowing your child to host their friends can keep them amused for days (well...hours anyway). This can be tied in with a DVD-marathon than can last an entire afternoon or evening.
4. Organise the family photos - kids have a great handle on technology these days so getting them to produce a computer presentation with the family photos will get their creative juices flowing.

When planning your activities you need to take the seasons into consideration. Obviously, there's no guessing that a beach activity won't work in winter and an excursion to the snow in summer is a tad outrageous.

As always, saving money requires preparation and a little organisation. Having a list of cheap fun ideas is great but if you exhaust them within the first couple of days you'll find that your back at square one and the "I'm bored" comment will resurface.

While this list is hardly exhaustive it may help you generate your own ideas to amuse your children over the school holidays.

Posted by Stuart at 10:09 AM | Permalink | Comments (3)

“Hangovers account for an average annual opportunity cost of $2000 per working adult.”

Assuming there are many people like myself who rarely drink and never get drunk this is an enormous cost. In the US, companies actually budget for hangovers. It's become such a problem for efficiency that businesses are now recognising it as a major problem.

Fortunately, there is a new drug that can assist workers to overcome a hangover and clean out their body of toxins. Great! You can screw up your body overnight and then fix it with a quick pill.

One benefit of this pill for employers is it takes away many of the excuses for 'Monday-itis.'

Posted by Stuart at 8:11 AM | Permalink

NEWS -- A new website has just started at Business Review World aiming to educate would-be home business operators about legitimate home based businesses opportunities. The site reviews many current business opportunities and exposes the scams that this industry is fraught with.

As I get many people asking which home based businesses ideas are good ones this is one site that reviews them all.

Source: PRWeb

Posted by Stuart at 7:58 AM | Permalink | Comments (1)

When I was completing my Marketing degree one of the things that stuck was the three main appeals of advertising; Sex, Humour and Fear. Each of these appeals can generate a response from people and hopefully engage the consumer in desiring your product.

While I love humour, and I'm tired of seeing sex used as an advertising strategy, I would never base an investment decision on either of them. Fear, on the other hand, is a great indicator of a possible success when it comes to investing.

Take this post for example,
Identity Theft and Security Lead to Surge in Sale of Shredders. The biggest biochemical stock prices have soared after news that the avian bird flu may become a pandemic. Even free-range chickens are now commanding premium prices, as people are concerned about hormone inducing technologies. These are just the tip of the iceberg.

As most investors will tell you, the best time to buy a stock is when its discounted from it's real value. The real value of a stock can only be achieved by people's perception of what that stock is worth. The same applies with products, which obviously flows through to stock prices.

If you want to buy stock at a discounted price you need to anticipate the mood of consumers. What are they frightened of? What is driving them to make irrational decisions about their future based on their insecurities?

Please don't misunderstand me. I am not advocating predating on people's fears. Merely trying to predict what people are going to become fearful of and will throw money after in order to feel secure again. Reading this market well will always result in success because consumers are willing to pay premiums for security.

Why do you think products like mangosteen (aka Xango Juice) and Hoodia are becoming so popular? It's because people fear dying and bad health. They will gladly pay exorbitant amounts of money and eat or drink products that taste disgusting in the hope that their fears may be allayed.

If you are looking for an investment that will take off start by finding a problem that's linked to people's security; home security, security of personal belongings, identity, health and well being. Then follow the logical progression. I the case mentioned before, the problem was identity theft. The solution is shredding personal details so that consumers don't become victims at the hands of some negligent employee. If shredders are the solution, then invest in a company that produces shredders. Their stock is about to boom.

Posted by Stuart at 8:08 AM | Permalink | Comments (1)

It's never actually happened to me, but I do have friends that have suffered at the hands of an uninsured driver. While you pour out your hard-earned cash in premiums each year looking after your investment you have no control for others who don't.

When it comes to an accident that involves an uninsured vehicle you can lose big time. In fact, with the laws as they are, it makes more sense to not insure your vehicle.

Here are a couple of scenarios where you're insured but the other driver isn't. The first one occurs due to some fault on your part. The whole cost for the damage to both parties is paid via your insurer and your premiums then increase.

The second scenario lays the blame on the other driver. It was due to some error on their part that caused the accident however because they're not insured you need to take the claim to the courts. If there is a witness involved who will verify that the other driver was in the wrong your insurer will usually fight it for you. If there isn't, then you may as well walk away and fix the damage yourself.

If you do end up taking them to court and you win the ruling this doesn't necessarily mean that you're likely to see any funds - certainly not in the short-term anyway. The average person would be able to plea on grounds of financial hardship and be allowed to pay the debt back over an extended period - usually at a rate of $10 to $20 per week. This is fine if you have an understanding lawyer and panelbeater.

Needless to say, less and less drivers who are wanting to protect their no-claim bonuses find that pursuing a non-insured driver for compensation is a waste of time. Fortunately governments are starting to pay attention and in some countries, like the UK, they are beginning to regulate against drivers who don't insure their vehicles. Kudos to the UK government for imposing such hefty fines that make insuring seem more tempting.

Posted by Stuart at 7:58 AM | Permalink

It seems that every new piece of technology that arrives on the scene has the enhanced ability to save us money. We can buy an iPod and download tunes at cheaper prices than buying the CD replacement equivalent (which BTW replaced our now defunct audio tape collection, which also superseded our LP and EP collections).

Continuing the example, the iPod can store anywhere between 1000 and 5000 songs depending on the size of the hard-drive, which of course depends on how much you're willing to spend. But, will an iPod be all that I need 5-10 years from now.

As a teenager, the SONY Walkman was the biggest thing since sliced bread and every teen hankered after it. Today you can pick them up for less than $5 at a garage sale and the audio tapes they played will probably be included in the deal.

Technology is moving at such a fast rate with every consumer chasing the next big item that will change the comfort levels of their own lives. It wasn't that long ago that the 5¼in. storage disk was replaced by the 3½in. disks. My new computer doesn't even have a slot for the 3½'s.

Which brings me to the dilemma facing some students in the web report, "High Schoolers Pick Web Yearbook". Teenagers are turning to the web to store their yearbook photos and therefore hopefully save $70. Makes a great amount of sense but what if the technology has changed so much when they hold their 25-year school reunion the pictures are no longer accessible.

It's possible. Why do you think so many companies are now popping up offering to convert your VHS movies onto DVD. It wasn't that long ago those VHS movies were being created from Super 8 reels.

And what do you think the cost of all this transferring to the next form of technology is costing?

Let's go back to the yearbook example. A student pays $70 for their personal hard copy of school photos. $70 today for something you can get for free seems ludicrous. Yet 25 years down the track who knows what may occur.

The chance of myspace.com being around in 25 years is miniscule let alone MyYearbook.com. So to preserve those precious memories something will need to be done about storing them. If you decide to end your time with the hosting service and burn them onto a DVD then it's only cost a couple of bucks.

Take this out five years as myyearbook.com dissipates with all the other social bookmarking sites and as a new form of media hits its straps. DVD's are now replaced by MQ3's (I'm making this up!), which are then superseded by some iris infusion media and each level of technology costs to be transferred.

Two things will either happen. The first is that this person will have continued the transfer process, paying for it each time. My guess is that the costs of each of these transfers will easily outstrip the initial $70. The second option is the most likely though. The first process of taking it from the website to a DVD will have occurred but after that they will have lost interest. The DVD, if they still have it, won't be able to be viewed by any digital processor and will be useless.

Therefore, you may actually come out in front by declining the technology.

Posted by Stuart at 7:20 AM | Permalink