Showing posts with label personal finance. Show all posts
Showing posts with label personal finance. Show all posts

Thursday, May 21, 2015

How to Maximize Credit Card Rewards


Credit_Card_Rewards

Credit Card Rewards – Perks of Rewards Program


According to a 2011 research from Colloquy and Swift Exchange, the average household active in rewards program do not redeem a third of the rewards they tend to earn every year which could include credit card rewards. John Ulzheimer, president of consumer education at Smart Credit.com comments that `there are a slew of people out there that has cards with points on all of them and they don’t even realize it’.

 The idea of receiving rewards credit card is to give the person the perks of the rewards program and the best way to ensure that one gets the most out of the rewards credit card is to use the right one and make sure it is paid off each month.

It could be used to the greatest advantage while also being aware of the possible pitfalls like leaving points on the table. The first problem is to ensure that the credit card and rewards program chosen matches the individual’s financial lifestyle.

 If the person travels a lot during free time, then a hotel or airline card could suit the individual while a gas credit card could be best for a road warrior. Those who would prefer an uncomplicated reward system could opt for cash-back credit cards, according to vice-president, Amy Lenander, of rewards programs at Capital One.

Cash Rewards Easy & Straightforward

She states that `cash rewards tend to be easy and straightforward as rewards can develop. Customers who prefer miles and points could save up for a big reward and dream up the possibility, whereas the cash-back customers tend to be more practical’.

Besides this, several cash back cards are provided with various ways of redeeming rewards like in the form of cheques, statement credits, charity donation or gift cards while others tend to automatically deposit the rewards directly in the bank account. It is essential to read the terms and conditions since not all cards are created equal even if they offer a similar form of reward program.

There are various forms of credit cards wherein some may require spending threshold prior to earning rewards while others cap the amount of rewards that is earned. Users should also be aware of blackout dates in redeeming travel rewards or the expiration date on points. Linda Sherry, director of national priorities at watchdog group Consumer Action also informs that these rewards programs are subject to change at any point of time.

Some Advanced Planning

Cash back cards could also involve some advanced planning and while most cards provide one percent to two percent cash back there could also be certain restrictions or requirements. These could include caps on spending in various categories or more rewards on purchases on gas, groceries or dining. Other cash back rewards programs could be even more difficult, with rotating categories needing quarterly registrations.

According to Bill McCracken, CEO of Synergistics Research in Atlanta, states that in some cases, consumers tend to pick the spending category and receive the rewards or the rewards are given to the highest spending category. This could mean more observing by the consumer in taking full advantage of their credit card.

Consumers should be alert for opportunities to double or triple their reward earning power. Lisa Hronek, senior analyst at Mintel Comperemedia informs that several issuers tend to offer an increased cash back return rate each quarter for certain categories usually the ones that go according to the season.

Friday, May 15, 2015

Equity Systematic Investment Plan - SIP


SIP
Stocks with good fundamentals are known to be some of the best ways of investment plans and investment in equity stocks has reaped phenomenal returns amongst various other assets if the same has been done in an organized manner with long time horizon. It is very important to select stocks and the right decision of the right price to enter in equity investment where most of the investors often tend to commit errors.

Equity Systematic Investment Plan or SIP is an instrument that tends to help an individual in avoiding the risk of timing the markets and enable wealth development in an organised or disciplined manner by averaging the cost of investments. Saving which tend to be small could create the big corpus in the long run. SIP enables the individual in building a portfolio on a longer time basis with small investment that are done at regular intervals thus reducing the danger of market volatility.

Individuals have the option of choosing between Quantity based and Amount based SIPs, in Mutual Funds, Stocks, ETFs as well as Gold. Quantity based SIP is a type where a fixed amount of quantity of shares of a desired company is purchased at a predefined frequency while Amount based SIP is a fixed amount which can be decided by the individual intending to invest in selected share at predefined frequency.

Disciplined & Long Term Time Horizon

The formula for calculating Quantity is SIP Amount/Market price of the said share. Fractional value is ignored and the order is placed for the remaining quantity. In the case of Quantity based SIP the quantity which is to be purchased is specified by the individual and is fixed at the time of placement of order according to the desired frequency.

The order value is then calculated depending on the usual market price of the scrip while execution of the order. In order to have a long term wealth development through the equity market, it is essential to have a disciplined and long term time horizon that have integral features of SIP. The following features would make an appropriate choice for equity market –
  • Disciplined and simple approach to investment
  • Based on concept of Rupee Cost Averaging
  • Investment possible with small sum of money invested recurrently to mount up wealth
  • Flexible intervals like Daily/Weekly/Fortnightly/Monthly basis
  • Flexibility with regards to Amount or Quantity based SIP
Avoid Majorly in Aggressive Funds

While investing in equity funds through SIP, though one will gain the rupee cost averaging benefits at the time of the volatile market phase, one should also avoid investing majorly in aggressive funds such as sector, thematic and mid-cap funds. One cannot guarantee better returns in excessive aggression.

On the contrary it could make your portfolio risky and probably disrupting the life stage with regards to investment goals. However, with mid-caps as a section of the portfolio, majority of it could comprise on large cap funds. Individuals often tend to start SIPs without a second thought on the amount they intend to invest comfortably. Often they try to make up for the lost time and then find it difficult to continue with their SIPs after a period of time.

This results in a stop of their investment and their long term life stage goals. Hence with systematic investment plans one should start conventionally and increase their investment amount gradually over a period of time ensuring stability.

Monday, March 30, 2015

Credit Cards


Credit_Cards
Credit Card – A form of Borrowing

Credit card is one form of borrowing which involves some charges and its terms and condition could affect the overall cost. It is advisable to do some research on the terms and the fees before any agreement to open a credit or a charge card account.

 Being unaware of the terms and their charges could leave the user disappointed when faced with the overall cost they may encounter. At times shopping with the credit card could save you money on interest and fees. Issuers of credit card tend to have wide scope in charging interest though they should brief the customers on the interest rate. It is also essential for the customer to read the fine print in the original credit card agreement as well as in any supplemental copy.

As per the federal law, interest rate tends to increase on existing balances under some conditions like when a promotional rate may end and there is a variable rate or when the cardholder tends to make a late payment. The interest rate on new transaction may also increase but after the first year. If the customer is faced with an issue regarding the credit card, they should first try resolving the same directly with store or the credit card company or the financial institution.

Consumer Financial Protection Bureau

If the matter is not resolved, they could file a complaint with the Consumer Financial Protection Bureau – CFPB which presently accepts complaints with regards to credit card issues and take them up either through phone or through their site at https://help.consumerfinance.gov/app/ask_cc_complaint. For any guidance regarding credit card debt, fees and high interest rates, customers could contact a credit counselling service or debt Management Company who can render the necessary guidance and support. They could also provide practical as well as legal financial advice with regards to the use of credit. Beside this, they could also make attempts on renegotiate the terms of the credit agreements and make arrangement to pay off the debts. One needs to check on the debt management company though all arenot the legitimate ones.
    Credit Card Eligibility Calculator

    Some of the following credit card eligibility calculator could be helpful to individuals such as:

  • Bad Credit – For bad credit scorers- Those who apply for credit card and have been rejected need not go in for the same. They should check on cards that would fit their profile and try to rebuild credit rating by using the top `bad credit’ credit card and ensure to pay in a timely manner
  • Interest free spending- 0% Spending – If the need to borrow for a purchase arises, the right choice needs to be taken, credit cards are far cheaper than loans though if misused it could add debts which may be difficult to pay off
  • Balance transfers – Cut existing debt costs – Shifting the prevailing credit card or store card debts to new balance transfer card could save much wherein the balance transfers when a credit card could pay off debts on other credit or store cards. Thus one owes the new card though at a lower rate which means they can be debt free much quicker.
  • Travel Money – Several cards add 3% cost than the banks to the exchange rates which can be avoided by a specialist card that does not add this percentage and you get a good exchange rate. This could be used for overseas spending though one should bear in mind to repay in full to avoid the additional burden of interest.
  • Balance transfers and spending – All-rounders - Most of the banks offer introduction deals to attract new customers with cards that could be either good balance transfer deals or low rates on new spending. All-rounder cards offer cheap intro rates for balance transfers as well as purchases and if a person needs to move debts from an existing expensive card as well as need to use a card for purchase, they could be checked since they cannot damage the credit score with additional applications.
  • Cash back – pays when spend – The cash-back credit card tends to pay you each time you make a purchase where top cards tend to pay around 5% introductory cash-back while other offer 3% on fuel and transport spending. Besides these, there is also other good fee free; cash reward cards which are like cash-back cards offered.
  • 0% Cash in Bank account – Money Transfer – The money transfer credit card enables the customer to pay money from their new credit card in the current account with a small fee wherein they get a long interest free period in repaying the debt. Should the customer fail to repay the same within the given time period, they are charged with a high interest rate.
  • Get Air miles while spending – Airline credit cards are an addition of regular flyer programs and one could earn points or miles on spending as well as earn bonus for signing up. The miles earned from spending could be added with those earned from flying or by other credit card reward schemes like converting Tesco Clubcard points.

Thursday, March 26, 2015

Bitcoin: Government to Regulate Crypto Currency to Avoid Money Laundering



Bitcoin
Bitcoin – Issue of Money Laundering 

Bitcoin can be useful in purchasing thing electronically and its like conventional dollars, yen or euros which are traded digitally and its most important characteristic which makes it different to conventional money is that it is decentralized. There is no single institution that controls the bitcoin network and this puts some of them at ease since it means that a large bank in unable to control their money.

However, money laundering has become a major issue which the British government has been facing and most of the people in the government are of the belief that bitcoin and similar crypto-currencies are used by some to launder money and there is a need to regulate bitcoin exchanges. This kind of measures taken could stop their use as money laundering hubs. The Treasury is of the opinion that bitcoin has capabilities of being used for money laundering and in order to curb the issue, it wants to regulate digital currency exchanges for the very first time, though this would not mean that the government is not in favour of innovation in the nascent technology but the prevention of criminal use of the digital currency.

Anti-Money Laundering Regulation – Digital Currency Exchanges 

The UK government released a document with the combination with the announcement of UK’s 2015 budget stating its intention to apply anti-money laundering regulation to the digital currency exchanges in UK. As per the document it would be creating the right environment for legitimate players in the space to flourish though it would also ensure that a hostile environment for illicit users of digital currencies is developed to discourage the users. As per the Treasury it is reported that the Government will be regulating bitcoin exchange in order to stop its use as money laundering hubs. A report published with George Osborne’s annual budget, the Treasury has informed that the new regulation would be supporting innovation to prevent criminal acts of digital currencies and the proposals would be consulted in the next parliament session. It is said that the government would be working with the British Standards Association – BSI for the development of a set of standards which would be helpful in protecting the consumers.

New Research Initiative on Digital Currency Technology

It was also informed by the Treasury that a new research initiative on digital currency technology would be coming up, which would inject an additional 10 million pounds in the area. According to a board member of the UK Digital Currency Association, Tom Robinson, who has been involved in the Treasury’s consulation procedure that `the announcement is significant, which bring bitcoin and other block chain technologies closer to mainstream adoption’.

In the discussion published in February, Bank of England informed that the digital currencies like bitcoin portrayed considerable promise and it showed that it was possible to transfer value securely without the need of a trusted third party. Other queries were also raised by the bank on whether central banks should issue digital currencies themselves. In several developed countries, bitcoin has been regulated by existing money laundering or terrorist financing laws. Traditional financial sector regulation is not applicable to bitcoin according to European Central Bank since it does not involve traditional financial players while other the EU state that existing rules could be extended to include bitcoin as well as bitcoin companies.

Three Ways To Optimize Your Personal Finance In 2015


These days, more and more people are interested in getting their personal finances in order so that they can lead lives of economic freedom. If this is your agenda, you should note that there are numerous techniques you can implement to accomplish your objective of attaining financial freedom. Here are three simple ways to get started immediately:

1. Learn More About Trading. 

One of the great ways to optimize your personal finances in 2015 is to learn more about trading. As many financial experts know, trading is an incredibly effective way to build some substantive wealth. Unfortunately, many people are intimidated by the thought of trading because they don't have any substantive experience in this sector. If this is a challenge for you, you should note that organizations like the Online Trading Academy can help. This organization was specifically designed to provide education and assistance that will help traders obtain tangible results and improve their skill set within this sector.

2. Develop (And Stick To) A Budget.

Another strategy you should definitely consider implementing in order to optimize your personal finance in 2015 is to develop and stick to a budget. Budgets are critically important because they give you the opportunity to see how much money you're earning as well as how much you're spending on things like bills, clothes, entertainment, food, etc. Unfortunately, many people overlook the importance of developing a budget and therefore have only a vague understanding of what they're making and spending. Don't make this mistake. Instead, sit down and devise a budget that will provide you with a clear understanding of your current financial state. You can then use this information as a springboard to cultivate the type of strong financial future you desire.

3. Eat Out Less. 

As many financial experts know, many people tend to spend a substantive amount of money on eating out. If you're interested in cutting back a bit to really strengthen your personal finances in 2015, it's a good idea to consider eating out less. Instead of going out to expensive restaurants, consider the value of learning how to prepare your favorite meals for yourself. If you enjoy eating out for the social experience, be sure to invite friends over to partake in your great meals!

Conclusion 

If you're looking forward to optimizing your personal finances in 2015, you can get started right now. By using some or all of the financial tips and tricks discussed here, you will likely find yourself attaining the level of economic stability and freedom you've always wanted. Good luck!

Friday, March 13, 2015

Dedicated Card and Payment Crime Unit


Card
DCPCU – Protect Security of Card Payment

The function of UK Cards Association is to protect the security of card payments system with focus on tackling organised criminal activity. In order to accomplish this, the UK Cards Association, funds a specialist policing team known as the Dedicated Card and Payment Crime Unit – DCPCU to identify organised payments fraud. The Dedicated Card and Payment Crime Unit, a special police unit comprises of police officers who have been appointed from the City of London Police as well as the Metropolitan Police Services who operate together with industry fraud investigators.

Their focus lies in identifying and targeting the organised criminal gangs which are responsible in attacking the payment industry. The Unit was established in April 2002 and is fully sponsored by the card and retail banking industries which was created due to the rising growth in payment card crime during 1999 and 2001. From the time of its establishment, the banking industry has been put in an investment of around £4 million per year for the operation of the Unit.

Experts have attributed to the growing incidents of organised crime in the area and the lack of dedicated police investigatory. The main purpose of the DCPCU is to identify, check and seek appropriate prosecution of offenders who have been responsible for organised cheque and payment card crimes.

Organised Criminal Gangs - Targeted

It is headed by a Detective Chief Inspector who brings together the officers as well as civilian staff from the City of London Police and Metropolitan Police forces. Moreover, expertise and payments industry knowledge is also given by industry secondees. Though it is a London based unit, investigations are nationwidewhere the organised criminal gangs responsible for payment related fraud are targeted. Some of its achievement since its formation is –

  • Achievement of £450 million in the form of saving from reduce fraud activity equating to £800,000 weekly
  • Recovery of around 700,000 counterfeit card
  • Recovery of 346,000 compromised card numbers
  • Secured 346 convictions on matters related to fraud, which is an average of more than one successful prosecution per fortnight over the past decade.
Areas of Priority 

The impact on a wider perspective is the link to organised and serious crimes. The Unit’s investigation has established that a significant proportion of fraud has been committed by these criminal gangs, having strong links to other kinds of serious crimes, which also includes people, drugs, and trafficking as well as violent crimes. The Unit has also been responsible in providing key fraud prevention messages to the people such as with the help of television and radio work as well as through direct meeting with groups that represent consumers who could be at high risk. The Unit’s priority areas are:

  • Project Sandpiper – The Unit secured European Commission funding in 2013 which was funded by UK Cards Association and PFF in order to finance the project focused in tackling Romanian criminality that affected the UK payment industry. This involved connecting with the UK payments industry as well as law enforcement individuals in Romania in tackling its organised criminal groups.
  • Staff Insider – Work with banks that sponsored to reduce harm caused by dishonest staff and targeting organised criminal groups.
  • Social Engineering – Telephone – To locate criminal groups responsible in fast rising fraud cases who are aiming vulnerable individuals as well as businesses causing great harm to the UK payment industry.

Tuesday, March 10, 2015

Right of Rescission/Right to Cancel


Mortage
Image credit:Homeowner today.com
Right to Rescission – A Known Power/Law

A person has the privilege by law, with the right to cancel a mortgage refinance or home equity loan if they tend to act quickly and adhere to the rules. A known power or the law known as the `right to rescission provides the borrower with the ability in some situations, the right to cancel their loan deals within a period of three days with no questions asked and be free.

 In other words it could mean as another way of saying `right to rescind’ or `cancel’a given contract without losing any money. Within a period of 20 days, the lender then has to give up its claim to the property as collateral and should refund the fees which may have been paid by the borrower. According to Margot Saunders, counsel or the National Consumer Law Centre, states that it has been designed with a view to provide lenders with accurate disclosures and that consumers do not sign up for loans which are different than what could have been described to them.

This right is intended to safeguard the consumer from the risk of using family home or the equity in order to secure a loan and is not applicable in situations where the mortgage is made to buy the house itself. Nessa Feddis, Vice President and Senior Counsel to American Bankers Association, states that it is not to protect the (home) purchaser but to protect the person having equity in the home.

Covers Mortgages – Companies/Banks Etc.

Categories where the right of rescission are applicable are – home equity loan which is often known as second mortgage, mortgage refinance – if the new loan does not come from the same lender which had financed the original home purchase loan, home equity line of credit, cash-out refinance – irrespective of whether it is a new loan that comes from the same lender who had made the original home purchase loan though only the new money is covered by the right of rescission. According to Saunders, it does not matter what kind of lenders the money is borrowed from and the right of rescission covers loans from mortgage companies, banks as well as other lenders.

No exclamation is essential in the case of cancellation of the transaction within a three days’ time, as per Carole Reynolds, Senior Attorney with the Federal Trade Commission and the fact that the said loan is not needed is sufficient enough for an exclamation.

The Truth in Lending Act

The law - `The Truth in Lending Act’ was for the purpose of shielding borrowers from unscrupulous lenders with the right of rescission and was intended to oppose smooth talking lenders intending to fleece borrowers out of their money and their homes. Some of the borrowers may be under the wrong impression that there is a right of rescission with all types of mortgages which is not so.

Since state and local statutes differ, the federal right of rescission is specific which is mentioned in the Truth in Lending Act. Saunders state that there is no right of rescission for the purchase money mortgages and some of these categories with regards to the right of rescission which is not applicable are –loans made to purchase a house, any loans either 1st or 2nd mortgages, refinancing mortgages, etc., which involve properties which are not the primary residence and business loans.

Monday, February 16, 2015

How to Save Hundreds of Dollars with Tax Credits


Tax Credits
Awareness of Tax Credit

Being unaware of tax credit is like losing on a pay check and sad to say, several individuals are not aware of it. Each dollar of credit is equal to a dollar in tax savings, for instance in a federal income tax bracket of 28% and getting a buck’s worth of additional write-off could save one with 28 cents. Individuals tend to miss out on tax credits mainly due to the fact that they seem to be in a hurry when the dreaded tax filing deadline is near. Credits tend to fall through these cracks since they panic resulting in making complicated calculation or filling out additional forms. Setting aside more time on your return could help you to net several hundred dollars or could be more. For example –

Foreign Tax Credit - If a person has worked in a foreign country or would be having substantial income outside U.S, they must be well aware about the foreign tax credit which is intended to save you from being taxed by the two different countries on the same income. If the person tends to invest in some international mutual funds they could collect credit due to the fact that it is likely you paid foreign taxes the previous year – knowingly or not. A closer look at the statement on the fund summary of the previous year will provide you with some calculations in order to know the exact amount of foreign taxes which should show up on Forms 1099-DIV and 1099-INT. Presuming that the foreign taxes are from these sources totalling to or less than $300, one can claim the credit on Form 1040, Line 48 and have around $600 of foreign taxes and continue to follow the easy procedure if filed jointly. In other cases, one could file Form 1116 to claim your credit, though it could be a bit nasty.

Dependent Care Credit - When a person is paid to take care of an under-age child of 13 while the parents are out at work, one could be eligible for the dependent care credit where the credit percentage could range from 20% to 35% based on qualifying expenses and depending on adjusted gross income – AGI. Maximum credit possible for a child could range from $600 to $1,050 and for two or more the range would be $1,200 to $2,100. One should also be eligible if expenses were incurred in taking care of any other dependent that could be physically or mentally incapable of taking care of themselves, a disabled person. For high income taxpayers, the credits have not been phased out though lower dollar limits mentioned could be applicable. Form 2441 – Child and Dependent Care Expenses could be filled and credits claimed on Form 1040, Line 49 on furnishing the name as well as the Social Security number of the care provider failing which the IRS would disallow the credit with recomputed tax and would either reduce the claimed refund or sent a bill for the difference.

Moreover the Form 2441 also informs the IRS if one owes the Nanny Tax if they have an in-home care provider. One needs to be careful in taking credit if they have also contributed to a pre-tax dependent care flexible spending account – FSA the previous year through their employer. The pre-tax FSA is usually a process since it could reduce the taxable salary cutting federal as well as state income taxes together with Social Security and Medicare taxes as well. The tax saving rate could exceed the 20% effective tax savings rate which could apply to several people claiming the dependent care credit.

Elderly/disabled Credit – is applicable to individuals who have reached the age of 65 at the end of a particular year or one who has retired on permanent and total disability. Strict income limits are applicable and the credit is not available to most of them. Credits could be claimed on Form 1040, Line 54.

Adoption Credit - is when an underage of 18 years in adopted, you could qualify for a 2014 tax credit up to $13,190 for the adoption expenses and if married, a joint return to qualify could be filed. Phase-out rule, for 2014 could cause the credit to vaporize between AGI of $197,880 and $237,880. On qualifying for the same, credit could be claimed by furnishing details on Form 8839 – Qualified Adoption Expenses, with one’s 1040 with the credit amount on Line 54.

Credit for Overpaid Social Security Taxes – is where there has been more than one employer in 2014 and the earnings have crossed over $117,000 with combined salary, one has withheld too much Social Security tax. Recovery of the excess can be done by reporting the overpaid amount on Form 1040 Line 72 which is treated as a tax repayment and the effect on the tax bill is that of a credit.

Monday, December 29, 2014

How to Find the Best Prepaid Debit Cards


Debit_Cards
Prepaid debit cards were introduced to provide a medium of quick and handy payment transaction to the consumers. They were relatively fast than the traditional cheques in the business operations. Prepaid debit cards very soon made their in the modern banking solutions mainstream than expected.

Statics projects that almost more than $200 billion dollars are loaded on it in each fiscal year. These cards also give additional advantages to the consumers like mobile check deposits, direct deposit and check writing. Most of these prepaid cards costs very little in using and adds no more than few dollars a month.

Ranking of Different Prepaid Debit Cards

Ranking the prepaid cards is a challenging work. The fees attracted by the bank on the prepaid card essentially depend upon its usage. Same kind of card could a particular almost nothing while another person who suffers from frequent cash loads and out-of-network ATM withdrawals would end paying much more amount. Consumers taking advantage of the direct deposit or those who loads certain amount of their card each month as well as who utilizes for limited number of transaction would end up in attracting significantly lower fees.

The Best Prepaid Debit Cards For The Consumers

After carefully analysing the fees charged by the different banks on their specific kinds of pre paid debit cards, this list has been compiled which gives the best options available for the consumers.

American Express

American Express leads the chart with its two cost effective prepaid cards which are tentatively named as the Bluebird and Serve. In reality the Bluebirds could be better described as a checking account rather than a genuine prepaid card. Both of these pre-paid comes with additional features which are appreciated by it consumers. These additional features are checking writing, money management tools and online bill pay. Both of these cards attract extremely low fees than other cards available in the market.

Kaiku

Kaiku is prepaid Visa card which offers low and quite simplified fees which costs just $3 per month covering all the services. The services provided by this are mobile check deposits, direct deposit, a intuitive & secure mobile application as well as a ‘Funds-Ometer’ which tracks how the money is being spent by the cards in an efficient manner.

Walmart MoneyCard

Walmart offer its prepaid debit card with both Visa and Mastercard. Like other it also comes with low fees, a dedicated mobile app as well as free cash reloads at the Walmart stores with the preferred version of the card.

Mango Money

This is a prepaid MasterCard which attracts low fees which is just $3 per month. It also gives a saving account option to its consumers and pays 6.00% APY in return which is beneficial in its own unique way.


Prepaid debit cards acts as an alternative for the consumers who have trouble in establishing or improving their credit record. However it would wise for the customers to become aware of the various additional benefits and different kind of fees charged by the banks before opting for a specific debit card.

Tuesday, December 23, 2014

Things a College Student Know About the Personal Finance


Piggy
College time is the best time jump start your financial future which would be beneficial for you long run. Personal finance and investment management habit should be inculcated from the very begin and being an ample undergrad is the best time to get things in your control. Online websites and portals provide information facilities your decision by giving you in-depth reviews and guidance about the popular investing opportunities. Being a college student gives you the biggest advantage over other investors i.e. you have ‘time’

Take Heed of Situation and Act 

Second term is generally the time when the various bills incurred in the first term of your college year starts to catching up with you. This is the time to take right judgement and to review things which are most important and which could be done without for some time. Proper planning and intuitive thinking would help you in paying bills in time and saving also.

After analysing the personal finances if you find that certain products or services appear too much in your budget like beer, cigarettes, clubbing, etc; then take heed of the situation and try to cut back on these as much as possible.

Think Rationally, Don’t Invest In Things You Don’t Need

Young adults are known to be crazy for the tech products. They are factor which derives the sales of the giant tech companies. Students should understand that there is no need to buy every new offering by the Apple or Samsung or some other company. If you try to think rationally then you will find these products are not completely new innovation rather they offer enhanced version of the previous products, even the product you are using currently could last for three to four years which means your college could be over with one product as well.

If you are an avid buyer then you should then try to apply different methods while buying. ‘Buying cheap as possible’ and ‘buying best quality possible so it lasts’ both of these methods could be applied in different circumstances. As a student and consumer you must try to get full ’value’ of your money by buying products which gives you complete satisfaction which ruining your personal finances.

Socialize as Much as Possible

College is not just a place for getting knowledge from the teachers and professors rather it is a place which provides huge opportunities for socializing in a healthier manner. College is a place where we make friend keeps them for life long. Take part in different social events, contribute as much as you can but don’t let it have a negative effect on your budget.
Certain Tips Which Will Help Students in Long Run

  •  Use only one credit card and build a good credit history record. 
  •  Never borrow money unless it is extremely important. 
  •  You can easily buy books at half of it price form online portals and many other things as well. 
  •  Share room and goodies with your friend it will help in lowering your expenses to a great extent. 
  •  Do not invest unless you are sure about it.

Saturday, November 29, 2014

Loaning Money


Loan
When emergencies arise, you might not have enough money to pay for what you need. Installment loans are a solution for those who need to borrow money but can't pay back all of the amount at one time. 

With this kind of Installment loans, you will have a longer amount of time to pay back the loan. The terms are often more flexible than with another loan that you might get that has a set interest rate or mandated payments that you have to make each month. 

There will be payments that you need to make every month, but you can usually set a term that you can handle like 12 months instead of six. Some of these loans have higher interest rates because they are easier to get, but they are usually less than the payday loans that you will probably find are difficult to pay back. 

A loan like this through a bank is often much more manageable than one through a financing company. If you make the payments on time, then you can improve your credit score with most of these loans. Find out before taking the loan because some companies will say they report to credit agencies and end up not reporting anything unless you are late with a payment.

Friday, November 28, 2014

Investment options for $10,000 to get maximum ROI

Currency
There are different ways to get hands on money, it can be your pay for the extra work done at the office, you might inherit some money or you might have been saving that money for a long time. Irrespective of the medium of receiving the money, once you have the money in the hand, you want to use this money wisely. With the extra cash in pocket the best action will be to invest the money and get the money to work for you. The following steps can be used for wisely investing the extra cash.

1. The first step will be to ensure that you don’t have any outstanding debts or money pending to be paid as it can certainly change the complete outlook of the investment.

2. There are traditional means of investment like Index Funds, Mutual funds, bonds and stocks. These are always the best path towards your journey of investment. Through this your fund doesn't store at one place, but gets involved in different businesses and industries. There are different types of funds available in the market, which doesn’t require too much money at the startup level. Although stocks and bonds have risks associated with them, it is important that an individual checks on the possible risks before investing in them. There are retirement accounts like Roth IRAs and 401Ks which are tax deferred and also helps in multiplication of your money. These accounts ensure that you get extra income on every penny and dollar that you are going to invest.

3. Apart from the traditional market ideas, some of the non traditional ones include upgrading your educational level. Acquiring a higher degree or even a professional certificate can do wonders at the job. Not only you will get good opportunities in the market, promotions in the workplace become very easy.

4. One of the best and the trusted means of non traditional investment is real estate. One can easily build their equity through $10000. You have to contact a bank and then you can pay this $10000 towards the mortgage of the home you have been dreaming to live in. On the flip side, you are looking to sell out your current home, then this $10000 will help in making your outdated home to modern one. You might spend this amount for modification, but once the house is sold, you will get more in return.

5. One can also invest the $10000 to own a rental property nearly 5 times mores and you can rent it out another person probably for more amount. One needs to understand that even though buying rental property has benefits, but you are not sure about the future installments, then you might want to rethink your decision.

6. Last but not the least, even though the amount might sound, less to others, but $10000 is a really good amount to start your own business. One just need to get the correct understanding of the type of business and service that will ensure good returns.

Tuesday, November 25, 2014

Now to Improve Your Financial Life in 5 Minutes


Money
We meet so many people in our daily life who keep on complaining about how difficult it is for them to even think about getting their financial issues straightened out. No need to spend too much time or need to do any hard planning, what you need to do is just spare 5 minutes to take necessary actions to get your financial life back on track.

It is important to understand the basic secret that one need to devote some time to each of the financial issues on a constant basis and this will make sure that that slowly and steadily your financial life gets back on track. Here some of the simple 5 minute examples have been listed which will help you to regain your control on your financial life.

1. Remember to balance the checkbook on a daily basis: - With people relying on the online banking; they usually forget if they have issued any checks. People have become lazy and they don’t want to take time to check on the status of their issued checks. You need to make sure that none of your checks get bounced and you end up paying an additional fee for the bounced fee. But apart from this spending 5 minutes on online banking will ensure that you are going overdraft on your account and using your account in an appropriate way.

2. Always remember to cross check your bills before making payment: - With the increasing busy life, people don’t get time to even stop and check their bills and the amount they are paying for. They fail to check if the bill is accurate or not. It is important to remember that computers are not always reliable and even they can make mistakes. This is not limited to, your medical bills, but even your regular bills require attention from your end to ensure that you are not being overcharged. There are recurring charges involved with mobile phone and even cable bills, so it is important to ensure that you are spending at least 5 minutes to check on your bills.

3. If you have invested in mutual funds, check investment fees: - One needs to remember never to go just by the word of mouth or even recommendation from the friends to buy mutual funds. These funds can charge in different way to affect your overall returns and its possible that can end up with unexpected returns in negative way, hence it required you to spend 5 minutes of your time to understand the fund policy.

4. Always question yourself before overspending: - There are times when we see a new product in the market and get excited to purchase it. But, stop for 5 minutes and think if you really need the product, do you have any use of it, is there any other item which offers the same features. It is important not to spend on anything that you will regret later on.

It is always important to ensure that you keep a track of your investment and keep a regular check on it. Don’t keep any investment in your mind; keep a set record to check regular changes in the investment. It is said that prevention is better than cure, so it is important to take time out to consider these actions to avoid adding to your current financial problems.

Monday, November 10, 2014

Are You Monetarily Ready For Your Retirement?


income
It is important to remember that once you are reaching the retirement stage, you should manage your income goals through your current portfolio and make your money last for as long as possible. There are many tactics that can help in securing your future in terms of finance and some of them are given below

1.One should make sure that they create a balance between their debts and the savings


2. People can contact authorities to check any means of retirement pension so they can adjust their expenses according to that. This way you will be able to invest your savings into funds, bonds and other methods of increasing the amount.


3. Another means will be to invest in insurance policies which will complement your social security and other 401 (k) saving plans. There are investors will be ready to take your lump sum amount and give you directions for investing the money in the right way.

Why money is so important in retirement?
 
Today, everything is depending on money, if you want to go to the supermarket; you need money, if you want medical care; you need money. When you reach the age of retirement, it is important that you have saved money aside for this time. Retirement is not a phase, but it will extend for a very long time and you will face many situations wherein you might get a question in your mind- “Have I saved enough”?

Before you can develop any strategy for your retirement, there are some important rules that play a very important role.

Understand what will be your monetary requirements:
 
Industry and financial experts that they a person should save at least 80% of their current income towards their retirement. But is this really possible? There are people who end up spending more than what they earn and instead of saving they end up in debts. On the other side, there are people who spend less than what they earn and they will be able to save way more than what will be required for retirements. The best thing to do will be to keep a track of the yearly expenses.

Amend your future needs:
 
When it comes to retirement, nothing goes as planned. It is vital to consider every side of finance. There will be expenses in every part of the life, expenses will keep on getting added every day and there will be expenses that will no longer burden you. Expenses related to your commuting, work and mortgage will no longer be an issue, but travelling, medical care, supporting family members and home care will become an added cost to your retirement funds.

Understand the future expenses and income:
 
Once you know an approximate amount that will be required in the future, planning towards it, is important. There are various sources of income like pensions, social security, investments, income through renting your home, etc.,. The general rule of thumb is to multiply 25 with the income you get every year to understand a retirement income.

Life never goes as thought, it is vital to consider unexpected expenses and events while calculating finance after retirement.

Friday, October 31, 2014

How to Increase Your Retirement Income


Reverse
After retirement many people discover that their retirement income is not large enough to support their preferred lifestyles or to keep up with the ever-increasing costs of necessities. This realization often causes many people to lessen their living standards or return to work in their golden years. Thankfully, there are ways that you can increase your retirement income without having to give up your lifestyle or go to work each day.

Senior Discounts

One of the first things you need to do is become aggressive about senior discounts. Almost every industry offers discount programs to senior citizens. Utility companies may offer discounts or free services to seniors that help improve energy consumption and will reduce bills. Many stores offer “senior days” where just being a senior citizen entitles you to discounts that day. Restaurants and other service oriented businesses often offer senior discounts or free products. Learn where the discounts are in your area and always take advantage of them.

Reverse Mortgages

Take advantage of the equity in your home and apply for a reverse mortgage. This type of loan product can help you generate an additional monthly income that you will never have to repay. This money can be used to improve your standard of living or to pay off bills. By using the equity in your home in this manner you can quickly take control of your financial situation.

Community Programs

There are many programs in every community that are geared towards helping seniors stay active and healthy. Community health fairs are a great place to find free or discounted medical testing, free samples and discounts on medical products. Community centers and the library offer many free classes for seniors, allowing you to experience and enjoy many things at no cost. Check local websites or newspapers for free events in your area.

Retirement is about enjoying your life. You have worked hard for many years and now it is time to have fun. You do not have to let financial issues hinder your retirement. Make a few changes in your shipping habits, use discount programs to your advantage, and let the equity in your home fund a great retirement.

Thursday, October 23, 2014

Some Misapprehensions Among People Concerning the Emerging Market

Survey
It is often noticed surprisingly that people from various countries even the developed nations have various misconceptions regarding the global emerging market. On a recent survey about health treatment, women’s rights and also culture and education, people have great misinterpretations. The same thing happens in the case of the present condition of social and economic advancement in the global frontier market. Some non-profit institutions have made some statistical steps about the development in this world market.
 
Most of the people in UK, United States, and Norway and so on are enquired and their answers are found wrong. In comparison to some developed countries, Germany showed quite better and correct results since here 2 out of 8 questions are correct. But in a very developed country as USA, one out of ten is right.Therefore, most of the German citizensare likely to have low misapprehensions regarding the emerging world.

The misconceptions known from a survey-

In case of questions about the income distribution, the situation is somewhat problematic from the viewpoint of commercial and investment since one has to learn who has the money if one decides to get money. According to a survey in the year1975, almost 70% of the world’s citizens who was able to afford any trip internationally by airplane are inhabitants in the United States as well as Europe whereas in the present day, 50% of the inhabitants in the whole world belong to United States and Europe.

The misconceptions are also seen regarding the continent of Asia. The knowledge about global population is very important. Similarly, it is also significant to know about the number of rich and middle class people in the world. The majority of people also get wrong how many people live in Asia. This information will make certain about the improved commercial practices, good investing systems and also ability of recognizing how the whole world is changing.According to Ola, the news media is also responsible about the unawareness of people in our world. The nations, which created less social growth, can produce interesting stories than others.

Some challenges faced by the emerging markets-

There are a lot of threats and challenges that a firm can suffer in the global marketplace. Regardless of the fact that, the business is very large or local firm threats often exist, there are various types of economic systems such as capitalism, mixed economy and so on.

The present economic crisis has brutally impacted several businesses. Many business enterprises have been closed due to the recession. It shows that businesses have to adjust their strategies in accordance with the economic condition. The economic recession needs businesses to downscale employees and reduces cost. Economic setting also controls product costs.One of the main challenges to the businesses is their transactions in Euro that is changeable very often. There is also challenge concerning the serious competition in the global market of goods.

Monday, October 20, 2014

Overall Market Situation According to the Value of Gold


Gold
Gold measures the overall market trend and thus every person depends on the metal to accumulate the useful resources. The banks and other organizations maintain the suitable economic backdrop in accordance with the gold commodities.

The price of gold settles the overall economy around the world that varies according to the countries. So, the financial institutions need to maintain the suitable balance representing the entire market value.

The Central Bank however stands as an exception that is capable to sustain the suitable monetary. Even during the difficult circumstances, the organization can fulfill the market values without any intricacies. Therefore, the users are able to acknowledge the real time benefits in terms of money or the liquid cash.

The Major Reason Behind the Above-Mentioned Fact

The bank reveals that the skilled economists are responsible for the extraordinary outputs. Incorporating the sophisticated skills and other features helped them to come out with the effective results.

Therefore, the smart policies and other features that they represent accumulate the smart features accordingly. Here, the users can explore zero as well as negative interest rates that serve as the inspiring feature.

However, the users need to read the terms and conditions before investing. It helps you to pick up the right option that would meet all your monetary demands. Alongside, it also implements the innovative strategies ensuring the optimistic results that maintain ample resources eliminating all the hurdles.

The Role of the Equity Market Investors

The users who want to invest with an intention to gain increased resources need to seek the help of the efficient organization like the Central Bank. Get familiar with the complete system that helps you to select the ideal option eradicating all the negative issues.

Communicate with the representative knowing the details of the services that you would receive. In addition, carry out all the legal proceedings that help you to become the valid user. So, you are able to establish the strong monetary condition that would show you the suitable way to success. Learn how to accumulate the assets that represent the well-merited treasures accompanied with other beneficial solutions.

Make sure that you concede the original solutions exactly according to your needs without any sort of difficulties. Moreover, you can compare the options with other organization understanding the real time situation.

Always Remain Updated

It is important that the users should always comprehend the suitable information regarding the price of gold. It would help you to acknowledge the customized services that reveal the accurate solutions. Before you obtain the schemes, evaluate the entire market position that would aid you to gain adequate knowledge.

Develop the effective position ensuring the relevant outputs implementing the suitable features from the selected organization. Finally, you can see the growing rate of the graph according to which you can incorporate the feasible attributes.

Carry out a detailed discussion with the experienced persons knowing the true outputs that you would receive. Gradually, you can set up the strong monetary infrastructure along with all the optimistic upshots.

Wednesday, October 15, 2014

Common Financial Fears


Common Financial Fears
Maintain the Suitable Way of Life Along with the Effective Monetary Condition 

Leading a happy and peaceful life appears as the significant part that you need to maintain for a better standard of living. So, it is important to sustain the strong financial condition that would fulfill all your requirement.

Problems that You Would Face

Sometimes, you may come to face the situation when you feel the strong necessity for money. It would give rise to the financial worries that may destroy the peace in your life. However, even if you have large amount of resources you may worry that how you would spend them. Also, if you lose your job the you get afraid that you do not have any source of earning. But, you need to overcome such situations sustaining the normal lifestyle.

How to overcome the situation?

You can explore manifold advanced techniques that would help you to get rid of the difficulties along with the positive approaches. If you were not able to get to eliminate the worries, you would face the difficult situations both in social as well as professional life. So, it is important to ascertain to the innovative ways through which you can reach the successful position eliminating the monetary shortfalls. Once, you come out of the difficulties you can explore a new world free from any sort of monetary crisis.

Know the Details of the Monetary Fears Along with the Solutions

Here you can get a clear view of the fears that arise due to the monetary difficulties:

  • Always maintain a good volume of savings that would acts as the source of earning if you lose your job. Alongside, you also need to search for another option from where you can recognize the resources according to your needs.
  • Sometimes, you hear the stories of your close friends or relatives who need the money urgently to save the precious lives. It can give rise to certain type of trauma in your brain. You can overcome such tension knowing the suitable source of the funds. Once, you understand the complete situation you can eliminate the worries returning back to the normal lifestyle.
  • You may be running the shortage of money to carry out all the responsibilities efficiently. In this respect, you need to have a detailed communication with the other members to come out with the optimistic solution.
  • Some people face the huge volume of debt that is really difficult to cope up with. So, you face the tremendous economic pressure and need to search the suitable destinations from where you can receive the valid resolution.
  • Make your children self-sufficient that would help them to increase the source of earning. In this way, you establish a better social life.
  • Finally, you may worry that you are unable to make a good savings. You need to develop an estimate of the entire expenses that would help you to maintain the suitable volume of savings.
Overall, you can get familiar with the types of tensions and the ways that you can utilize to sustain the complete peace of mind.






Friday, March 14, 2014

How To Overcome Your Financial Sins!

Financial Sins
For starters, what is a sin financially? This is simply any type of expense that you might be likely to regret. It is very important to check its excesses and even those related to money. The problem is that it is difficult to know if you will regret a purchase until you have made. Personally, I have a personality that I was often pushed to the consumer, so I often "sin" financially in the past. But it also allowed me to make some purchases with passion and thus to consider improving my personal life (A brand new second car parked in my portico). To avoid having to follow the same path as me, that is to say from the blind without a real plan to buy, there are a few questions you should ask yourself.


Is it an impulse buy? To realize this, it is best to go buy items accompanied by a friend or family member. It is always easier to realize the stupidity of a purchase when you're in the presence of someone who brings an unbiased view and objective. Another good way to resist is the "30 day rule". If you're not sure you really want something, wait 30 days and if you want to always run is that it is not an impulse purchase (this does not mean that it must buy it, but simply that it is a deep and abiding desire). Is that it is a purchase in connection with my goals? Most purchases you make must follow some sort of guideline, guided by your goals. Your goals are not necessarily financial, but it is important that every purchase fits into logic. This will allow you to more easily distinguish between good and bad spending.


Can you check the result? Many types of expenditure are to be avoided because of their addictive potential: gambling, tobacco, drugs and alcohol are things that you need to say no. If you have the personality of an "addict", consider spending some as prohibited, and authorize certain periods of the year (which should allow you to enjoy while keeping the activity within a limited time) .If you are a couple or married, give a lot of importance in the fact those two decisions. Your spouse can refuse a purchase and therefore bother you at the time, but he / she will also support you in a purchase, thus removing any sense of guilt.


Before any major purchase (depending on the current size of your wallet), it is important to ensure that it meets these conditions. If this is not the case, remove it from the list immediately! However, if the conditions are met, and that you are not likely to do too much harm to your savings, then you can move on to phase purchase. In summary, control of desires spendthrift comes from the identification of the quality of the purchase. Someone who controls its financial sins will be able to perform incredible savings, because the person can distinguish a good from a bad purchase.


Once the above conditions are met, you can add one more rule: No major purchase without getting off. There is always a way to save money on a large purchase. Whether a mattress, a TV, a phone or a car, it costs nothing to try to dig up a small (not big) discount. Especially some "%" reduction can quickly turn into hundreds of Euros on this type of product.



Tuesday, March 11, 2014

How to escape from debt trap?


Debt Trap
We know that we could use a good debt to get rich but it is absolutely necessary to escape from bad debts! But most of us don’t know how to avoid succumb to debt in general? There are few tips to consider and I am detailing here follows. Strip wasteful spending budget and unnecessary expenditure budget. Debts are not always caused by uncontrolled spending.

Most of the time, they are the result of high costs. Debt is not spending a lot, but if the little expenses that occupy too much space in our budget then that will create a problem to your daily life. Analyzing your account will show fixed expenses such as rent of our accommodation, car insurance, home insurance, a mobile package, consumer utilization like power, water etc. For these expenses, our ability to reduce it remains limited but we must make the most of the money spent. We must try to get the best price or the quality and for that you need to run the competition.

Car insurance will be reviewable for example; a mobile package which cost us 50 USD each month will fall to 10 USD from the competitor if you are migrating to the better network. It can also lower a monthly borrowing or by renegotiating a new loan for example rate of 3.0%, to redeem the old rate was 4.75%. Thus, everything can be verified and judged. Thanks to the internet, all the information is accessible for all market players with details of the offer price, customer feedback on the service. This is the first step; that will reduce costs "fixed" in trying to get the most out of them.

Then, the variable costs come into play and there it is anyone's choice. Try to live more simply, do not clutter of objects that have the same function and that ultimately does not work after a few months. Prefer quality to quantity as feedstock. Keep only what brings you value, sell the rest, it will be a new contribution to your fund precautionary or your other investments. Some will be more extravagant than others but as mentioned above should seek the best quality / price ratio that is for fixed expenses services and for your variable expenses like food, cooking, dressing, equipment, appliances, high-tech.

Diversify and expand your sources of income: Debts lead us into a downward spiral, as they cause expenditures premiums and other interests. To head out of the water, it must cut expenses as above and / or increase revenues. This mean being more focused on your career in order to obtain a better paying job. We can also look for secondary sources of income, for example by developing your own business, selling skills (taking language classes, guitar, gardening, hairdressing, IT freelance, freelance financial missions) on sites.

There are many possibilities; you just open your eyes to the opportunities there to withdraw money. Credits are often a substitute for savings. Some live very well the fact of having no savings because they need something, if there is an emergency, it is possible to borrow ... This trend is based on credit is dangerous. It must be reversed and economies must become a priority. Initially you will not generate income but once a savings of security you will be made more serene.

Calculate your fixed costs and average variable costs, so you know how much you need each month. From there, you see if making some efforts without costing you in their quality of life, you could put 100, 500 or 1000 Euros every month aside. In the end the debt may become a distant memory, it should be organized in such expenses in obtaining and investment income.