Credit crisis: new problem or ancient Roman history?
When things are looking dim, I often look to history to provide perspective. Learning that other societies have faced similar circumstances--and that my problems are not unique--is a reassuring experience. The tales of history provide an unusual source of hope. So what can history tell us about the economic crisis? Mind ...

APR and APY converter
I've made spreadsheet that converts an APR to an equivalent APY (and vice versa) to complement my article about the difference between APR and APY. You have to enter a frequency of compounding. Many savings accounts like ING's Orange Savings compound interest monthly. This means you enter 12 for the compounding ...

Say no to ATM fees and improve your finances forever
Suppose you need $100 to pay a tab at a cash-only bar and your friends are gone. Which of the following options would you choose to get cash? (a) Withdraw money from the nearest ATM, which is not owned by your bank ($3 fee from your bank, $3 fee from ATM ...

Credit cards, debit cards, and cash–which way of paying is best?
At a bar, I once saw three people at a table receive separate checks, and amazingly, each of them paid in a different method. The first person threw down cash, the second a debit card, and the third a credit card. It got me thinking about why people pay in ...

Motivational tool: paying yourself first
Today, I focus on the method known as "paying yourself first." Chris Johnson at Wisebread explains the principle: The key to increasing your wealth without knowing it, is to take away your money before you even think you have it. This money is not actually being lost, you are simply just ...

Understanding the time value of money
A bird in the hand is worth two in the bush--Miguel de Cervantes The time value of money is fundamental to money management. It is the key to understanding stocks, bonds, financing your loans, and making good business investments. It's the reason why lottery winners often take lump-sum payments at a ...