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With the proper savings plan or with a lucky financial windfall, many of us are ready to start investing. However, if you didn’t take any economics classes in high school or in college, you may not be familiar with the basics. Having seen the morning financial news for years, you’re probably familiar with terms like stocks, bonds, commodities and Wall Street, but you might not know exactly what they mean. Let’s take a closer look at exactly what a bond is.

A bond is described as a debt security. Now, don’t let that term confuse you, consider it much like an I.O.U. When you invest in the bond market, what you’re doing is giving your money to something, whether it is a corporation, a government, a federal agency or a municipality that is known as a bond issuer. Now, what do you get in return for this act of faith? You get interest. When you buy the bond, you agree to receive a particular interest rate from whoever you bought it from, and then once the bond “matures,” you get however much you bought the bond for back (usually the face value of the bond.)

The different types of bonds you can choose from are varied. Most people have heard of war bonds that are issued by the country to raise money for war. These were extremely popular during World War II and became a very patriotic thing to do. There are also things like asset and mortgage backed securities bonds, bonds issued by foreign governments and many other kinds.

Now, bonds sound like a pretty good investment, but it doesn’t sound like something that’s going to make you rich overnight. Well, that may be true but that doesn’t mean that bond investing is a bad thing. Think of investing in bonds as good long-term planning. They are perfect for families that need to save for their kids’ college education. If you don’t have kids, don’t worry, bonds are a fantastic way to save for retirement. Bonds are also highly recommended to have as part of your investment portfolio. No matter how much risk you can afford, it’s good to have a rock solid investment, too, so if things don’t’ work out well with your other investments, you have something reliable to fall back on.

Today’s bond market is varied and there are options for everyone, whether you’re just out of college and are looking ahead or if you are a Wall Street high roller and you need an anchor to your portfolio. Investing in bonds can be a fun and educational way to begin investing, and you likely won’t lose your shirt in the process.

Making the decision to buy your own home can be one of the most stressful but rewarding choices of all. If you’re a first time buyer, the entire process can seem very intimidating. A few common sense tips can help you ease your way through it much easier.

First off, go visit your local library and borrow a few books on basic real estate principals. Make a sincere attempt at learning the jargon associated with the real estate process, so once you’re sitting in a meeting with a seller, a real estate agent and a bank officer, you’ll have a better idea of what everyone is talking about.

Second, know what the difference is between “pre-qualified not pre-approved”, “pre-qualified” and “pre-approved”. Sound confusing? It can be. It all relates to how serious of a buyer you are. If you’re “pre-approved not pre-approved” it simply means that you have given a letter to a potential seller that you can afford their property. It’s nice, but it doesn’t mean much. If you’re “pre-qualified” it means that you have a letter from a mortgage broker saying what he thinks you can afford. This is better than not having a letter, but you can do better still. If you’re “pre-approved” it means that you not only have a letter from a broker, but everything in the letter was shown to be true by a lender and most of the work for a loan has already been done. You’ll have a MUCH better chance of getting the house you want if you’re “pre-approved” than if you are only on one of the other stages.

Choose the right lender. One of the phrases you’re bound to get sick of hearing when you’re thinking about buying a home is, “do the research!!” This can’t be emphasized enough since banks offer different rates across the board. The more banks you visit, the better the chances are of you getting a better deal.

Make sure that you plan for possible delays in processing. Any business that deals in red tape is going to have problems getting things done on time. Real estate purchases are no different, so make sure you factor these likely problems into your plans.

While none of these tips are fool proof, they can help you through a very stressful time. No doubt you will still have times where you feel like putting your fist through a wall, but a little common sense goes a long way when dealing with real estate, and the more you know, the better off you’ll be.

A recent downturn in gas prices has come as a welcome relief to most drivers in North America. The timing, however, of the price drop has many people thinking conspiracy theory. A recent poll of Americans showed that a staggering 42 percent of respondents believe that George W. Bush and the ruling Republican administration in Washington lowered gas prices in time for the November 2006 mid-term elections. While this may or may not be the case, the various stock markets around the world do have a real time impact on the price of oil, and therefore gasoline.

The biggest culprit in the lowering of gas prices might actually be Mother Nature. In preparation for the upcoming hurricane season, many investors on Wall Street and around the world invested heavily in gas and oil futures, guessing that another direct hit by a Katrina-like storm directly on gas and oil pipelines in the Gulf of Mexico would send prices through the roof like they did last year. But a recent correction by hurricane forecasters who downgraded the 2006 hurricane season caused the price of oil to plummet and all those investors who bought futures to cry.

But it wasn’t just the hurricanes that did it. The announcement coincided with the end of the summer season for drivers, which also dragged down the price of oil. The price of oil over this time fell off the table, going from an August 7th high of $77 a barrel to $58 a barrel in October. It doesn’t take long for this drop in prices to be felt at the pump.

This seismic shift in oil and gas prices over such a short amount of time left many investors in deep financial trouble. At least one mutual fund that was invested heavily in oil and gas futures went belly up due to this dramatic drop in prices. At the same time, there were other funds that did quite well despite the portfolio-ruining drop in oil prices. As they say in sports, sometimes it’s better to be lucky than good.

While it may be naive to think that global politics never plays a part in the world’s commodity markets, it is unlikely that the sole reason for the massive and speedy drop in oil prices was due to upcoming elections. The number of variables that play on the world’s stocks, bonds and commodities is too vast in number to be influenced completely on one country’s elections.