Earnest Money Negotiations

The first thing to understand is that the earnest money deposit is not the down payment. Many buyers show up to write their purchase agreements and announce to their agent that they do not have to put an earnest money deposit because they are getting down payment assistance or hundred percent financing. Things can get hairy at that point. Communication is very important. It is not that difficult to see where an inexperienced buyer would confuse one deposit for another, so do not feel bad if you, too, just learned something new.

Unlike the down payment, the earnest money is returned to you at closing. Whether you actually get the cash back or have it applied toward your closing costs depends on your situation. Once you submit your earnest money it is held in a non interest bearing escrow account until closing. The purpose of the money is to provide insurance to the seller that once he starts taking action toward closing, for himself or per request of the buyer, that the buyer won’t lose interest and walk away from the sale. It the buyer does walk, the seller gets to keep the earnest money, to offset any expenses he has incurred meeting the buyer’s terms, as well as for his inconvenience.

Just like the sale price, buyers are quick to try and negotiate the amount of the earnest money deposit, too. If you truly do not have the money then just offer what you can afford. But if you do have it, keep in mind that you will get it back at the end so trying to negotiate is just adding another element to fuss over. Sellers like clean deals and especially in the case of a multiple offer deal may take a slightly lower sale price that came with a higher deposit because the seller perceives that buyer as being more serious. So give the full deposit when you can.

Everyone thinks that their primary concern is the dollar, but when it comes right down to it, a successful transaction with minimal drama is what everyone really wants. A buyer who is not serious is a buyer who could walk away a week before closing and no seller wants that. When you find your dream house, make your offer stand out and leave no question as to your seriousness if you want the best chance of receiving an acceptance.

Where to Invest Your Money? Make Your Money Grow and Beyond

These days there are so many different options when it comes to investing. You need to be armed with the proper knowledge and put your head down and learn all that you can about the investing strategy you choose. If you don’t learn and become more aware of the investing risks and rewards you could start chasing those who promise quick riches through the next killer penny stock or some secret trading strategy that will only be made available to a few people. Basically, these people pray on the human fear of loss. Some are even downright scammers but it takes a while for these crooks to get caught. Resist the temptation to earn money quickly and easily. If anyone promises you either of those scenarios, don’t walk, run in the opposite direction.

Your best bet to getting rich is using a long-time perspective when it comes to your savings and investments. If you are always looking towards the short term or the next 3-6 months when it comes to calculating returns on investment or rates of return on other investments you are likely to make poorer decisions. When you consider each investment for a longer period of time i.e. for 3-5 years or longer, you are likely to do your due diligence and you will not lose sleep over the market’s ups and downs. Wondering where to invest your money? Lets look at our top picks for where to get the best returns for your money:

1) Stocks: Nearly everyone talks about stocks as having the highest rate of return when it comes to investments especially if you consider the long-term as we suggest. Stocks can be a great investment especially for those who are OK with crunching a few basic numbers and doing some due diligence about the company whose shares of stock you are willing to buy. There are a lot of different approaches you can take to individual stock selection. We advocate reading up ‘Rule #1’ by Phil town when you are starting out and then reading ‘The Intelligent Investor’ by Benjamin Graham.

2) Index Funds or ETFs: Those of you who like minimal management of their portfolio but don’t want to lose out on higher potential returns stocks can offer should consider investing in index funds or ETFs (Exchange Traded Funds). With the advent of ETFs you can invest in a diversified aggregate of stocks which represent the different indexes or sectors that you are familiar with. Its less riskier than investing in individual stocks but can offer superior returns if you play it right.

3) Yourself: That’s the best investment anybody can make. Invest in knowledge that increases your earning ability and sharpens your investing skills. Read books, take courses & seminars and above all else apply what you earn. Be prepared to make mistakes and more importantly learn from them.

Money and Finance

Monetary investment and finance planning is often found to be helpful in helping an individual to earn significant profits from the money markets. Managing money in finance markets, however, is not extremely easy. One needs to have a thorough understanding of his/her own money assets and other personal finance issues, in order to form effective financial plans. For investing and finance plan-making, investors often require the expert advice of professional financial planners too.

Personal money finance planning is required to create a blue-print of the way in which money should ideally be spent. Strategic management of personal finances is generally done in any of the following three ways:

i) Keeping monetary savings in banks,
ii) Finance planning and investing money in an informed manner, and
iii) Choosing ideal investment instruments, that would yield profits even over the long-run.

As stated above, one of the most popular ways to manage money/personal finance is to open bank accounts. The banking sector is one of the most important components of money and finance markets. Typically, you can avail of any one (or, more) of the different types of bank accounts. If you are looking to boost your level of savings, you should ideally put your money in a savings account. On the other hand, for ease in deposit and withdrawal of money, current accounts of banks are deemed suitable. These accounts, however, do not yield interests on money deposits. You can also make a fixed deposit, so that you can enjoy interest income as well as be able to withdraw money, as and when necessary.

Investing and finance planning also form a potentially rewarding channel of money management. There are several investment tools in the money and capital markets in an economy. Mutual funds, bonds, stocks and securities and personal insurance policies are some of the most popular of such tools. Each of them differs in their rates of return and their associated risk-levels. Investors can choose from among these, and other, common channels of investment, according to their tastes and preferences.

Long term personal money finance management also requires individuals to have proper retirement plans and estate plans. There generally exists a trade-off between these two types of planning (more money set aside for retirement planning means less funds are available for current estate purchases), and financial health can be optimized by striking the correct balance between the two.

Money and finance issues are extremely important, and can appear to be rather complicated to a beginner in these fields. With the help of professional planners, however, individuals can identify suitable profit-yielding finance plans and investing opportunities. With sound personal money finance plans as the basis, one can indeed earn rich rewards from the money and credit markets in the economy.