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[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]One of the questions that needs to be addressed now is the impact of the present recession on our retirement plans. So far a bull market and a portfolio designed according to basic money rules gave many the hope of retiring early. But the onset of a bear market and the current recession have erased a

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]One of the basic money rules about a portfolio was that it had to be diversified to reduce our risk of losses. Well all of us know that diversifying our portfolios did not stop us from losing money in the recent downturn of the stock market. What went wrong?Rule #6: DiversificationOld thinking: A diversified

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]Until recently it was almost always assumed that renting meant throwing away money. The golden money rule was to build home equity since real estate "always" appreciated. Thanks to the sub prime mortgage fiasco and the recession that emanated from it, the real estate bubble finally burst with a big

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]The past decade saw the boom of the "power of leveraging" - a fancy name for debt. Until recently, most Americans put their purchases on their credit cards and personal savings fell to nearly zero. Credit was easy, and people used it to build wealth. Can building wealth with debt be a money rule?Rule #4:

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]When we began disciplined investing through a diversified portfolio, "experts" were of the opinion that the more years one had to recoup losses, the more aggressive one could be. In other words the younger we were the more risk we could take on. Unfortunately we learnt that the rules of money are not so

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]In continuation with our contemplation on the basic rules of money for attaining financial security, today we examine the importance of cash savings and emergency funds. In a deflating economy, unemployment is high. Most businesses go into an expense trimming mode and pink slips are a norm. In such a

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]Recent times are challenging and unprecedented. Needless to say that it has brought its own bag of lessons for us. The recession, a topsy turvy stock market, job loss and several unanticipated changes are forcing us to reexamine and contemplate on the basic rules of money for attaining financial

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] We recently concluded a series which dealt with increasing our awareness about some common caveats of the credit card game. Knowing about these oft practiced sly tricks can help us save hundreds of dollars and hours of head ache as well as stress. It will also aid us to be better debt managers while

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] Once we sign up for a credit card we frequently get offers to sign up for a disability insurance or purchase a card theft insurance. Often when we call our card's customer service they try to sell us these programs. Simply avoid them, they are not worth it.What is sneaky about these offers?The disability

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]If we have a good credit history, we'll receive plenty of 0% APR offers for new cards from reputed credit card companies. Congrats!Beware of the fine print though. Perhaps it's time to grab a magnifying glass and read the fine print well.What is sneaky about 0% APR offers?Most cards sneakily mention whether

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]It is a known fact that credit card companies attract new clients by advertising low "Fixed" APRs. Newbies might think that APRs on their balances are fixed till they pay it off, right? No dear, we are nowhere near the truth!What is sneaky about fixed rates?According to credit card jargon, "fixed rate" means

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]Cash is king when its not a debt but has been accumulated as a result of our savings. And like convenience checks, cash advances from our credit card accounts is a terrible mistake. We should avoid it at all costs.What is sneaky about cash advances?The rate for cash advances is much higher than the APRs

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] To boost their profits, credit card companies often lure their clients by sending lucrative offers with lower minimum payments on debts. The lowered minimum payments can be as low as 2% of our owed balance.What is sneaky about lowering minimum payments?Stay away from this gimmick at all costs. Else we might

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]During the holiday season when our card balances are usually high, credit card companies often send offers which invite us to skip a payment. This might appear to be helpful, more so since it has come at an opportune moment when our balance is high and our wallets stretched. But be careful, whenever the

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] Often we receive attractive "convenience" checks from our credit card companies. The convenience offered is the ability to write checks against our credit card account. Beware, even the most tempting offer comes with hidden fees that make the risk far greater than the reward.What is sneaky about these

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] Most credit companies charge high late fees to the tune of $35 to $39 per late payment. So a smart credit card user has to be careful to avoid this trap.What is sneaky about this fee?The sneaky thing about this fee is that even if we're late by one minute it would still cost us $35 to $39. So its simply not

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] There are many credit card programs which do not offer any grace period. A wise strategy is to simply avoid such cards whenever possible.What is a grace period?The period from the statement date to the payment-due date is known as grace period. If we make a full payment by the end of the grace period, the

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]Often credit card companies charge various types of sneaky fees that catch us unaware. They do list all fees in their fine print and we do agree to abide by them when we open an account. But often there are some practical difficulties which might cause us to err. And then we end up paying heavily.One of

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).] Every year we earn a tidy amount to the tune of $3k - $5k in credit card sign-up bonuses, airlines' rewards miles, cash back rewards and special card promotions. It is a nice way to supplement our income. We feel enthusiastic about these deals since they help us to reach goals set for our annual charitable