Friday, August 17, 2007

Does Adsense make sense?

In a world driven by commercialism, there are few who can resist the temptation offered by something like Adsense. Adsense generates income for the owner of the site each time an ad link is clicked by a visitor. The more traffic a site has, the better the chances of generating greater income. The better the content, the greater the chances a site will have more traffic.

For Adsense to make sense, you would have to calculate whether the time you input into your site is worth the income generated by the ads placed on your site. This is difficult to do if you are just starting out a blog. Not much to say, not many visitors. It takes time for word of mouth to spread about how incredible your site is. But if you don't get any visitors within a year, you are pretty much an unqualified blogger. Websites are in a popularity contest where the most visited get to rank highest on the list, which brings more visitors, which get your ads clicked more often, etc., at which time Adsense will make much more sense than now when the only person willing to click on your ads is yourself, which, by the way, is against the rules.

Tuesday, August 14, 2007

How You Can Save $6,000 By Paying Your Debt Sooner

Many a person lengthens the payment period on a loan in order to lower the monthly payment amounts. Say you cannot afford to make $600 a month in loan payments. The lender gladly lowers your monthly payments to $400 a month because he has increased your amortization period by several months. What this means is that the total cost of your loan is higher because you will be paying more interest due to the increased number of months you will require to pay back your loan.

If you want to know how much money you could save by shortening your loan payment period, all you need to do is search for any amortization calculator on the internet. In my case, I found that I could save $6,000 on my $29,000 debt if I increased my monthly payments from $380 to $680 and reduced my loan period from 100 months to 50 months.

Play around with the calculator until you find a payment amount and payment period that suits your lifestyle. Then calculate how much less interest you will be paying to your creditor and contribute that amount instead into an interest-earning account so that at the end of paying off your loan you will be rewarded with a nice chunk of money!

Friday, August 10, 2007

Debt Sunset

Debt must be one of the worst possible forms of psychological torture inflicted on a massive scale by our financial institutions. Even though we were the ones who borrowed willingly in the first place, they are the ones who constantly increase our debt load while decreasing our ability to pay back. For example, what is the purpose of issuing a credit card with a $12,000 limit to a person with a $1,000 monthly income with no major personal assets (this is a real-life example)? Their objective is to have a person hooked on debt and to gain revenue from interest.

Sixty percent of my monthly student loan payments go towards servicing interest. Interest alone extends the repayment of my loan by two additional years, from six to eight. Although student debt carries a lower interest rate than credit card debt, many students find it hard to pay back their loans because in addition to their student loans they carry a credit card loan with a much higher interest rate.

In my case, I never had more than a thousand dollars credit limit in my credit card, so it was very easy to pay that back. But my student debt, built up throughout five years of study, has not been that easy to deal with.

My method for paying down my student debt quickly is to cut down on ALL expenses. When I moved to my new apartment, I did not buy a single piece of furniture. I furnished it with things I found on the street.

Some of the advice I could give you for saving money would be:
  • Look for free furniture, appliances, toys, etc. at the end of every month when people throw away stuff when moving.
  • Cook at home.
  • Seek free entertainment (borrow a movie from the library, play sports, etc)
  • Don't buy clothes and accept hand me downs from family or friends
  • Move to cheaper accommodation (vacate that penthouse!)
  • Get a cheaper car
This will allow you to save more money to pay down your debt sooner.