Sunday, July 31, 2011

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Wednesday, July 27, 2011

Stay out of trouble

If you are going to get "dirty money" always remember the laws and try not to do something stupid that will attract the attention of authorities, thus get you caught. Always expect to get pulled over and be ready to handle the situation. You need a fool proof way of keeping merchandise out of a cops site and smell. If they smell or see something, they automatically have reasonable suspicion, thus the car search begins.
If you happen to be in the wrong place at the wrong time, you may also get caught. Try to avoid people that spontaneously just get up and commit crimes. These people will cause you jail time and cost you money. Trust is a big thing. You may not know who to trust. But I'm sure you would be able to tell which are your true friends and which are not.
Lastly, don't forget about the grand pre-paid phone. Use a fake name for your account and always pay in cash. The best deal is setting up a text bundle for a fixed price each month. Most phones will even allow you to block all incoming and outgoing calls. Remember that your phone from your contract has a lot of personal information associated with it. If you were ever under investigation they can pull up your phone records and find out everything.
One other thing is, stay close to people you know. Don't mess with people who are friends of so and so. The farther you stray from known connections, the more likely you are to get caught. Not only are you at risk of getting caught, you are at risk of getting robbed by an unknown contact.

Earn interest

Yea that's right, make your money work for you. It just sits in your account generating income while you add more funds to generate even more income. It doesn't have to be in a bank. You can purchase CD's, Stocks, Bonds, Mutual funds, etc. I myself do not like exposing my money to risk of losing it. So I put it in a high yield interest account like with American Express. currently they give me 1.0% and that's way better than my bank 0.30%. Now a days, most banks will insure 250,000 or more. I also suggest going with a credit union. My credit union has been the best and I only was charged 30 dollars once for over draft. But now we have overdraft protection. Which leaves your account in the negative or removes the funds from your savings account.
You also have to keep in mind your liquidity needs. If you need quick access to cash, putting it in the bank is your best choice. If you really don't need the cash, it can be put towards a few years in a certificate of deposit. The longer it sits there, the better the interest. Liquid cash and interest amounts are opposite of each other. You cant expect to get high interest and taking out money frequently. You can easily find a CD with an interest rate of 3 to 5 percent. Usually it would be for a few years. A great way of locking in a high interest rate is to use a method called CD laddering. It is basically buying CD's in different terms which can go as high as 5 years. Lets say you buy three; one for one year, the next for three years, and the last for 5 years. Usually for 5 years you get the best interest rate. But I'm sure we all can't keep all our money in a CD for five years. But you bought a CD for one year which at the time of maturity, will go toward a new CD for 5 years. You can find out for yourself on this web site
http://www.bankrate.com/finance/cd/certificate-of-deposit-investing-strategies-1.aspx