Quote source : Yahoo! Finance

Rising gas prices are inspiring drivers to find new ways of protecting themselves against future increases--including buying gas in advance and investing in stocks that tend to rise along with the price of gasoline.

At MyGallons.com, the company makes those investments itself. Founder Steve Verona says that the company protects itself against future gas price increases through taking positions in the stock market. That way, customers can enjoy the simplicity of purchasing and redeeming gallons for an established amount and avoid experiencing market fluctuations themselves. Verona says the company doesn't plan to make money on gas, but rather from the annual membership fee (about $30), the interest float on the money that is paid before the gas is redeemed, and advertising on its website.

It looks tempting on the surface, what with fuel prices hitting an all time high everyday. People want relief and want it quickly. However what bothers me is the very volatility of the stock market itself. Obviously this is a question that comes to mind sooner of later and here's what they say :

Of course, gas prices could come down, which could turn any of these investment ideas into losing propositions. As with all investments consumers need to be prepared to stomach volatility.

But what if prices are currently at their peak and don't go up again? They say that's unlikely. "Very few analysts expect prices to come down...because current demand is increasing, while supply has stayed steady. We're talking years, if not decades, before [proposed] solutions have any impact. In the interim, prices should continue to rise," Verona says. He adds that if customers opt to drop out of the program, they can get a refund for their purchased gallons.

Now if rising fuel prices hasn't already given you a scare, that last statement should. At the time of writing this post, oil prices have reached an all-time high of $144.00++. At the rate that it is increasing, it's more than likely we'll see it touch $200 by the end of 2008.

When (optimistically, I should say "IF") that happens, I'd say MyGallons.com is going to be a very popular website indeed and we'll see many similar services being set up in the near future.

For more answers to your questions about how this system works, visit MyGallons' FAQ page.

Quoted from : Chicago Tribune
Image from : Indie Business Blog

Unemployment can strike anywhere, at any time. And it's striking more often.

Start looking for work. Do it immediately, even though it may be emotionally difficult. Losing a longtime job is akin to losing a loved one. Grieve, accept it and move on.
Make use of any job training or placement assistance offered by your former employer or in your community.

Years ago, there was still such a thing as a "job for like". These days, the almighty bottom line dictates whether you have a job or not. Having been laid off once and on the brink of another similar situation ten years later, I have come to the conclusion that however stable you think you job is, IT'S NOT.

So I believe that there are 3 things that everyone MUST consider doing while you DO have a job :

• Save a percentage of your income. Easier said than, especially when you have so many commitments and everything seems rosy at work. But believe me, your savings will help you in MORE and one way when you really find yourself in the middle of not one, but many rainy days.
• Keep yourself as debt-free as possible. If and when you lose your job or source of income, the interest that you have to pay each month on credit cards, that second car and personal loans can quickly bury you in despair.
• Develop other sources of income. Start a weekend business. Learn to make money from your hobby. Invest in a small business. Invest in stocks. Don't just depend on your salary. You have to learn to roll your money. Even if they don't match your salary, at least you have something to fall back on if you lose your main income.

Quoted from : Yahoo! News
Image from : Veritas77

If your paycheck is irregular, planning and budgeting are just as important as soliciting work, says debt counseling firm Money Management International. Here are some practical tips on keeping the cash flowing:

1. Average out your expenditures over a three-month period. If you're not tracking your expenses now, do it for a few months. Don't forget to include the monthly costs of health-care premiums, taxes and office supplies. Knowing where your money really goes will help head off any end-of-the-month surprises.
2. Free up your cash flow by regulating your expenses. Many utility companies offer balanced billing options so that horrendous winter heating bill is spread out evenly over the year.
3. Build a safety net for lean months. Start socking money away in a short-term savings account today. Whether you aim for three or six months of living expenses depends on your situation. If you have dependents, the more savings the better. Even if you can only put a minimum amount in, it's better than relying on Mr. Visa when money gets tight.
4. Though credit lines are tempting, avoid relying on them to make ends meet. If you occasionally do have to charge your expenses, promise to use any future windfall to get you back to debt-free ground.
5. Married to a regular wage earner? Go give him or her a smooch and then discuss (civilly, please!) using that income for the essentials, and the irregular paychecks for savings and extravagant gifts. (If money's an issue between you two, see our tips on divorce-proofing your finances.)
6. Earmark your savings. Knowing where to save and invest money for your current and future self makes it less tempting to blow an unplanned windfall on frivolities.

These are great tips for the self employed entrepreneur who's just starting out in business and the money is coming in sporadically.

Basically, there is one simple way to learn all of the above - and that's to get into the habit of saving. When you do that, you automatically limit yourself to spending only up to a percentage of your earnings and that's really important if you are self employed. It's a wise man who remembers that saying "To save your pennies for a rainy day" ... because rainy days WILL come. I believe that as you get into the habit of saving and watching your pennies, you will tend NOT to want to charge stuff to your credit card.

Point #4 is a real important one. Credit cards can turn into a monster that will swallow you whole if you lose control. As far as I'm concerned, there are only 2 ways to use a credit card :

• Always settle your monthly bill in full

or

• Never use a credit card