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

Saturday, April 27, 2013

How to maintain your credit rating!


How to maintain your credit rating? Maintaining your credit rating in the world of personal finance is essential. The credit has an influence on a lot of things we touch. It influences the conditions of bank loans, the discount interest rate and even our financial reputation. Here are some tricks that allow me to maintain a good credit rating. We live in a society where the rule of consumption plays enormously. Therefore, as a consumer, you have one day or the other the desire to own any property. Obviously, things have changed. Before you know reputable seller or practically confirmed your purchase. Now we swear by your reputation and bank credit is the king. Hence it is very important to keep your credit rating in good condition. The first thing you have to do is to build your credit rating is as follows: you must make purchases by funding. Then complete the purchase of thing in cash. Leave your money in the bank. Get now a credit card to prove your spending habits, and most importantly, payment habits. So pay your bills at the end of every month or at least your minimum balance.

Whenever there is a delay in your credit card payments that will be indicated in your credit file. This negative impact will fall on your side. Obviously, the higher your score down, the more you become a consumer uninteresting by banks. Therefore, you will lose promotions, you will have high interest rates and it will be difficult for you to build a good heritage. If you are in the category of least preferred by banks, we need to change that. There are actions to be taken, over time; you can develop yourself to be a customer who is preferred by the most popular banks. Initially, pay your bills that too on time. This is obvious, but how many people do not perfectly? Also, do not change your credit card every year. This will ensure that your credit history will disappear and your credit rating will be less beautiful.

 Avoid more credit applications regularly. Often, it is rather the others who make for us in trying to verify exactly our credit. In this case, ask if it is really necessary. If the answer is positive ask the person rather pick up your credit report of you. A request by you has no impact on your score. It is in my view you should use credit wisely and get a credit card. But settle with just one card. Having many credit cards indicates that you have the opportunity to borrow a lot, thus adversely affecting your score. Thereby maintain only a good credit card only. A good credit score will increase your chances of getting the loan as required for the purchase of your home or your car. You may receive bank discounts and preferential interest rates benefiting you. You could maximize your assets more efficiently.

Wednesday, March 27, 2013

Best Advice to Get out of Your Debt


Number of people are facing debt, and for some it can turn into a nightmare. Although the debt can be a positive thing, it can also quickly mutate into vicious circle that will push you to develop a funding plan for all your purchases. So I would like to present my principles to get out of debt. Stop funding your purchases and stop keep accumulating new debt. Someone who is in debt should not continue to invest either in bank accounts at risk or in new or objects. An increase in the debt does not usually get out of your debt (at least not in the context of personal finances). If you have a credit card that allows you to have a negative balance, get rid of it and ask your bank to a card that does not allow negative balances.

Stop your recurring payments:

Your subscriptions for cable, mobile phones (especially phones last generation) and contributions to gym classes or others which weigh a lot in your monthly budget. I suggest you delete any subscription "useless" (type gym, cable or magazine) and try to reduce the burden of subscriptions called "essential" as the phone (internet package or unlimited time options are most can happen) or the Internet.

Build an emergency fund:

Unfortunately, being in debt does not mean you are immune to mishaps. At any time, an unexpected expense can come fill your budget dedicated to paying off your debt (step detailed in the following section) and you jeopardize your opposite banks, insurance companies and other creditors. Note that the process of creating an emergency fund can take several months.

Pay off your debts:

Like the previous, this step may take several months or even years depending on the amount of your debt. You must first establish a monthly repayment to spend. There is no fixed value for that amount and it all depends on the total value of your debt, your income and the time you have to make the repayment. The first step to begin the repayment of your debts begins by taking a second job. Although this option is not valid for everyone, I think especially to parents who keep their children, or some may be working too much to spend time on a second job. The fact is that this solution is very effective to increase substantially the share of your income devoted to paying off your debts. You will then need to establish a method to repay your debts. Some say that we must first repay debts that cost you the most in interest. Others think it is better to start with the smaller debts worth to get rid of them one by one and more quickly. I find this second solution most suitable for each canceled debt cancellation generates interest. So you can add to your monthly value of the interest on the debt previously canceled. Accumulated small amounts added to your monthly payment will allow you to increase significantly. Now you just have to start clearing your debt. The process can be long and difficult, but this task will dramatically change your outlook a financial point of view.

Thursday, March 14, 2013

Good and Bad credit!



Normally, if you are in debt, you are not rich. This is the fact. The intention here is precisely to have no debt and enough money aside to buy what you want. In looking more closely, there are basically two types of debt, good debt and bad, as there are good and bad cholesterol, good and bad stress etc. A bad debt is a loan you take out for something that does not earn you money: a loan for your car, your home, your plasma screen etc. Because these assets do not generate money and you need to repay your credit from your pocket.

Most of the Rich people who are well aware of credit traps pay cash for these things instead of getting a bad debt. A good debt, you'll understand a credit contracted for a asset that generate income for your investment. For example, if you pay the monthly installments on your house rented and you are receiving the rent paid by your tenant, or the loan you take out to start a company will be repaid from profits. You do not take money out of your pocket to pay for a good debt. However, there are exceptions in the case of bad debt.

 When the rate of your credit is less than the rate of inflation, for example in the case of a zero-interest loan, it is better to credit. This is also the case when you put the money you were going to spend on your purchase that brings you more than the cost of credit that you will incur to complete this purchase. Now a day mortgage rates are low, you can benefited through that also.

Wednesday, March 13, 2013

Increase Your Income By Investing A Little Time


The increase in income may go through several things: financial investments, overtime, promotion, etc. But you can also easily increase your income by investing a few hours a week and a bit of money upfront. The theory is simple: in addition to your work, you can invest a little of your time (approximately equivalent to 10% of the hours spent at work) to generate alternative income. Working for yourself is much nicer than having to work for others, and much more satisfying when you reap the benefits. Large cash flow is a little hard to get at first, but it may end up paying. The trick is to know, what to do to get more money. The most important choice is to take an activity that does not require too much time (not to exceed 5-10 hours per week).

If the chosen activity is done, it can increase your additional income to several thousand Euros per year very quickly. Personally, I strongly advise against trying to make money with online surveys or websites that offer reward systems, etc. You rarely touch the money in cash, sometimes rewards, and often the site in question may prove to be a scam which does not pay. We must not go after this type of site as Source (s) of alternative income. It is better to turn to other types of activities: gardening (many economies) blogging (paying little at first, but generates hundreds each month after 1 or 2 years of operation, and constantly rising), freelancing (choose something you can do and offer it as a service), etc.. Finally, it pays a lot more money doing something you like. It is not because you work better, but because you are more motivated to work.

 I suggest you diversify your income with an activity related to your interests. Still, the lesson to be learned from this post is that it is not always enough to put money aside for retirement, sometimes we also know that money to work to your advantage. I also advise you to continue to set aside money for your retirement, but also increase your income by investing a little time and (very) little money. Your goals for retirement accumulated capital will be achieved much faster. Do you already have diversified sources of income of your own?

Friday, March 1, 2013

Why Gold and Silver is always a good investment?

In recent years Gold, considered as a safe haven, gradually changing status to states and savvy investors to regain its historic role as the reserve currency. This should lead many investors to make an investment vital for years to come. End of 2011, a significant change in status of gold has very little was echoed in the mass media: Venezuelan President Hugo Chavez demanded the return of the gold reserves of the South American country in the trunk strong national bank, its reserves are kept in the far western banks. At the time this request spent more provocation for Chavez to the west for a rise in the role of gold. But in January 2013, Germany the first power of Euro zone country much more symbolic, has called for the gradual repatriation, by 2020, all its gold reserves stored in Paris (374 tones) and some of those stored in New York (300 tones).

 End of 2012 the gold reserves of Germany amounted to 3391 tons, and accounted for almost 80% of foreign exchange reserves of the country. It is the second largest gold reserves in the world after the United States but to those of the International Monetary Fund (IMF - about 8,000 tones) and Italy (2,451 tons). France is in fifth position, with 2435 tons. The Euro zone crisis has led the German public, inspired by some conservative politicians to worry about the national stock of gold. The German equivalent of the Court of Auditors asked last October to establish an inventory of the gold stock of the country.

Euro skeptic politicians have publicly questioned the extent of German reserves abroad, asking for their repatriation. Germany justified the repatriation of reserves by the lack of possibility of change, but it clearly demonstrates that the national gold reserves are again a strategic issue. This decision may be treated as a major event (compare Gaulle's decision in the late 60s that had ended the Bretton Woods system) which foreshadows the return of the gold standard. Countries have clearly lost confidence in the central banks (New York Fed and Bank of England), supposed to hold physical gold on behalf of many states. The gold is perhaps more simply as GATA says, lent to banks and sold on the market to keep prices under pressure. Thus, they save more time confidence in the monetary system of silver "paper" not convertible.

 In addition, the market for paper gold, would be a hundred times larger than the physical market. The day that investors will obtain delivery of their gold-backed paper that there will not be enough physical gold to satisfy demands. Gold is a material present in limited quantities in the world and its scarcity intensifies over time. Repatriating its gold, Germany eliminates counterparty risk and ensures really hold physical gold and not pieces of worthless paper.

With these repatriations that give us a strong signal of progress towards the degradation of confidence in currencies, families should reconsider the amount of gold and silver to possess. Gold is money. Its role is to safeguard the wealth. Especially the yellow metal still beautiful day ahead when we know that less than 1% of financial assets in the world, destroying every argument bubble in gold. At the same time, monetary impressions launched by the Fed and the ECB devalue paper currencies and does not restart the economy. Gold (and silver) continue to reflect the destruction of paper money. It is not gold rising; the dollar, the euro and the pound sterling fall and this may continue. These safe havens are not diluted by central banks.

Silver is also a precious metal and historical ratio gold / silver is 16. That is to say that every gold coin you possess worth 16 pieces of silver. Today this ratio is greater than 50. Thus, investing in silver metal should be more profitable in the long term, provided they are patient and mentally strong to withstand fluctuations in its price. To eliminate the risk of counterparties must hold his gold outside the banking system, directly in physical gold. I advise to hold a small portion of its assets in precious metals, in order to keep this future security. Money that we do not need a long-term horizon may be invested in it. Invest around 10% of your assets in gold and stumbling sounding reassured, but for the rest

 I prefer you to invest in developing your income. Precious metals have this defect, they produce nothing. Besides this, you can buy stock of assets, real estate, which in turn will generate regular income.

Wednesday, February 27, 2013

Social Capital and It's Importance


Recently I came across a article which described about Social Capital and its importance and how we can save a lot of money for little or nil effort. And here I wish to give you a brief outline of it and show you the value of the social capital. What is social capital? The Social capital is the capital which is obtained through service to others. With every service rendered, you get a chance to get some favor in return. For life in the big cities, it is certain that it is more difficult to accumulate social capital because people know little and therefore do not see the value of helping someone. However, in small towns, social capital is a much more powerful tool.

Large firms are much less present, and competition is less severe for small traders. Prices in chains stores like bakery, supermarket, mechanics, etc are extremely high relative to manufacturing costs. But shopkeepers in smaller cities may sell goods and provide services at a much lower price. A price that is even lower if you helped this person to move last week. Let us see how to create and use the capital with some examples. Helping your landlord to perform certain tasks in the building could help you reduce your few dollars rent and reduce in your share of maintenance expenses of the building you are rented. Organize your neighbor’s lawn and help him to mend repair his truck or be a baby sitter for someone. Using the social capital depends on what you need.

The idea of social capital is to serve without knowing what service you will receive in return, not even knowing if you need anything from this person in the future. This is why it is important to build social capital with people from varied occupations and knowledge: a kind of diversification of capital. To summarize, social capital is a very powerful tool that many can use to save money. Moreover, it is highly likely that social capital have preceded the money as a way to exchange services. The important is to build a kind of community of people around you who are able to perform various tasks and help you in many areas.

Saturday, February 23, 2013

How to become rich?


You learned good principles in your life that help you manage a large number of situations that you are facing. Forget them when it comes to managing your money as applied not make you richer. But probably makes you poorer. Here are six principles you have to strictly follow to become rich: Do not settle for average. Search for the best. Funds "means" as index funds perform better than 80% of actively managed funds. Trust in your instincts and what your heart tells you. It is better to listen to your brain and if you sell coldly losses, rather than thinking that prices will rise and you will chase your losses.
 If you do not know how, ask an expert. Seek help from an expert may be useful in the case of complex financial or very specific topics such as taxation. To manage your money, especially if you want to get rich, no one will do better than you. You'll get the price you pay. In terms of investments, the less you pay fees and the yield obtained is important. Crisis, we must act quickly to resolve the problem. Do not panic. Invest every month and you can enjoy automatically the benefit, the market declines or increases without you pack whatever the trend.

 Is to invest regularly over time is important. History repeats itself. As it is written on every financial prospectus, "Past performance is not a guarantee of future performance." Do not choose funds based on rankings of the year; look at the behavior of the bottom 3, 5 and 10 years. Behave wisely in case of market volatility and market down trends. Because what you have learned does not apply with respect to managing your money, you must spend at least a minimum time to acquire a financial literacy. It is this; investment in time that makes the difference between a successful investor and one who realizes low performance.

Sunday, February 3, 2013

Few Financial Mistakes We Should Avoid!



Regardless of our income, financial situation or lifestyle, it is wise to manage personal finances and avoid unnecessary spending. Many people do not pay enough attention to where their hard-earned money goes. Here is a compilation of some financial mistakes and tips to avoid them.

Credit card Usage:

 According to famous economist, a credit card is an essential financial tool, but only when it works for you and not vice versa. The credit card allows you to make online payments, regulate your purchasing power, to accumulate rewards points and build a solid credit rating. By cons, it is easy to fall into the traps when you are in financial pressure. Avoid all cash advances, unpaid balances, minimum payments and late payments in a credit card. These are all ways leads you to get into debt and sullying your credit reputation. It is also necessary to handle the number of credit cards and their limits as they may hurt you when you apply for a car loan or mortgage.

Budget:

 Do not holding a personal budget is a mistake that could cost you without you even knowing it. Holding a budget is your advantage to take the time to analyze your income and expenses and then focus on what is important to you. A budget is not synonymous with austerity, but prosperity, because knowing where your money goes and you can avoid unnecessary leaks profit pleasures (restaurants, trips, outings and other). 3. Not realize that the "little expenses" add up quickly. You maybe realize or not, but daily losing $ 3 is more than $ 1,000 annually, enough to pay for a trip! Day to day, these expenses seem innocuous, but your budget will prove just the opposite. A simple change in your habits will save you considerable sums.

Financial commitments:

When you make financial commitments such as buying a house, a car or even furniture, make sure you do not live on the edge of your means. The game plan here is in case of a loss of income that would stretch or if an increase in interest rates and therefore monthly payments. Live to the nearest dollar that you do bring additional stress and not happiness.

 Having an emergency fund:

 Would you be able to find $ 2,000 to repair your car in case of mechanical failure? Can you able to pay $1,000 for unexpected medical expenses? In addition to a transaction account (also called checking account) and a savings account, you should have an account for emergencies to bet the contingencies of life. Do not rely on your credit card to fix these problems because you risking to pay the price. Do take advantage of discounts: Without falling into consumerism, trying to find good deals when shopping. Competitive traders such as banks, dealers, supermarkets, shops, tour operators and others cut their prices to have you as a customer, so enjoy. Just be careful: a discount is not necessarily a bargain!

Open a joint bank account:

 Love is blind, it is known. Opening a joint bank account may seem like a good idea when the relationship is doing well, but when things escalate, you may regret your decision. Make arrangements just between you and your spouse and think twice before opening a joint bank account. Avoid unnecessary bank charges: Paying a withdrawal fee is an aberration! Try to withdraw money from ATMs of your bank and take larger amounts to avoid annoying situations. In addition, you will be less likely to spend the cash on you compared to a credit card.

Take advantage of tax cuts:

 When you make investments or save money, you use all the financial vehicles available to save tax? The government offers a variety of products for tax saving which are tax-advantaged. Contribute the maximum to those who make the most sense for your situation.

Plan your future:

 We are good at planning things trivial: dinner with friends, a romantic evening or a weekend with the family, but how much time does we spend planning our future? Buying a house, organizing a major trip, planning a career or studies are all crucial decisions. Make sure you think about and plan for your future that is to your liking.

Thursday, December 20, 2012

Want to be a millionaire?

Want to be a millionaire? Who is having his money well placed and with which, if he can easily ensure the financial independence, then he can become millionaire easily. Becoming a millionaire is not as hard as some people think and it does not necessarily to earn five or six digits to get there.

First and foremost one to be a millionaire is, you have to acquire a good financial education and build up some personal qualities such as interest, curiosity, perseverance, love to meet the challenge etc. Most of the millionaires have the excellent investing knowledge with action back up. Most of them read read read read..... a lot. Invest and Read books on personal finance that will make you to win thousand times of your profitable investment in books. The more you earn the more likely you will become a millionaire. However you should know the importance of spending less than you earn. Since you are in consumer society you should know the differentiate between your needs and your desires then only you can save more by eliminating unwanted expenses there by your savings will be more. Leading a simple life with fulfilling your only basic needs pave way for your millionaire dream. Never allow your bank account to dry. Minimize your debts and give first priority to repay them.

If you are to be a millionaire then you must work with your money. To achieve this every month you automatically convert minimum 10% of your income in to your savings. Preferably invest in shares of the growing companies that offer regular dividends that fill your pocket with passive interest. Diversify your investment strategies so that you will not be affected by the stock market fluctuations. Never forget to build a capital security to cope with the unexpected happenings. Finally keep it in mind; the millionaire has a plan and stick to it very firmly with a self disciplined manner. Unfortunately wealth in a quick time does not exist. With respect to your income you always open the opportunities for diversification. If you are earning more means you can invest more and that will create a snow ball effect on all your investments to generate even more.

 Spend less, earn more, save, invest these are the key and the strict rule to follow. Repeat this method as many time as possible.

 Last but not the least: Take action and be persistent in your work plan.

Tuesday, November 27, 2012

College students Learn How To Put Your Finance In Order!

      Are you a student going to college and who wants to get good knowledge and skills that will endorse you to have a good job at the end of your studies? Then this is the post meant for you. Put your studies apart for the time being and get some personal finance education here which wills surely going to help you particularly after your higher education.

    Other than European countries, every student is assisted by their parents by paying their room rent, college fees, food expenses and other miscellaneous expenses during their college days and the students learn nothing about managing their personal finances. There may be some exceptions, those who are working part time and study. At the end of the college days they enter into the world of work with full confidence and enthusiasm but without the right knowledge and right tool to manage their personal finance. Here are few tips to set right your personal finance in order. First and foremost one is making your budget. Make a budget for a year or a month and then break it up into smaller period of your convenience say weeks. Spare your good time for making an inventory of your expenses and revenues. If you are already having bank account, then open another bank account. The first account is for your financial reserve such as for receiving money from your parents, savings and contingency funds etc. Second one is for your expenses you can schedule your automatic payments of your regular payments. Keep the money in the second account to meet the minimum requirements of your expenses and don’t keep more. You have to invest and read personal finance books they may cost little but they will give you high returns in your future. This should be the first expense of your planning the future. With the guidance of those books plan different strategies and implement.

      Now this is the time to set your goals. According to the recent study by Harvard University, three percent of the people who set goals themselves and constantly working towards it has created ten times more wealth than the remaining ninety seven percent of the people. Hence plan and set your goals first. Keep yourself surrounded by right kind of successful people to understand the facts. Use the knowledge of others; be curious and attentive to know the success stories and experience of them. This knowledge will serve as a spring board that takes you near the success. Don’t hesitate to ask them directly the right information you needed for your success. The wealth is only attainable only through following strong financial principles. It requires commitment, willingness and persistence spend less than the earnings. But for the most of the people it is hard to follow. Spend less than you earn and invest that margin to generate alternative income and that marginal income will make your financial liabilities into financial independence. Here your financial education helps you to identify very smart and ideal investment that benefits us most. I assure you with rigor and perseverance you can achieve anything under the sky.

Friday, November 16, 2012

Don’t Buy Gold!!!

    Why should we not buy gold? There are so many reasons not to buy gold. One of the first reasons is that gold does nothing, and it remains in the bank or in our locker. The only reason we are buying gold is that we are very sure that we can sell it to the higher price in future. In very recent article Warren Buffet said that the growing fear of loss and confidence in the market has motivated the practice of buying gold. Since the financial crisis of 2008, the gold prices have continued to climb. The lack of confidence in the global financial markets has let people to want something more concrete that cannot fail has placed gold into that place. As on June 2012 one kg of gold was about 41,525 Euros.

     Since the people hoped that future economic policies and the continued push for the progress will make gold as a profit buy. We don’t know when it will plunge. This is a risky game investing in gold. Globally the central banks of each of the county don’t want their people to invest in gold which openly displays how their people reject their paper money and hence they will act swiftly on day or the other. If the trend continues to be volatile then the governments will announce a very debilitating tax on this yellow metal to break the upward movement. If the gold market tend to monotonically increase then it will be good to the investments in stock markets. If the stock markets continue to fall then it will ensure a good appreciation in near future. Since the stock market is unpredictable when compared with the gold trend which followed a significant increase that lead to a bubble.

 Most of our readers aware that market is drive by the two namely fear and greed. Now we are in the middle of fear cycle. When it ends the cycle of greed starts immediately. If the gold bubble happens the gold price will fall and people will sell in bulk and they will forced to buy securities and therefore the stock’s price will increase. Hence it is ideal to buy gold as a small portion of our assets.

Sunday, June 24, 2012

How to Overcome Fear of Money?

How can we make more money or material ultimately succeed in life without fear? In truth it is a fear that we had me for a long time. In general, this fear of the money moves from childhood. In some families money is associated with the errors (s) and sometimes even some decline. I call this the power of beliefs. For a long time I understood the sentence incorrectly. I understood that money is money and no matter how it is obtained, the important thing to have. Given the values that are mine, I could obviously never adhere to such principle.

In truth this phrase simply means that money is a tool for change, change of life and / or change jobs no matter what! Money has no smell because it has neither quality nor default. It is neither good nor bad, it's what you do, A Food for orphans or weapons to Africa. Fear of money is the fear of success

Know this, money does not come without we mentally prepare for its arrival. What does "prepare for the arrival of the money? “ It simply means that if you do not know what you will do with the extra money you are asking then there is a good chance you unconsciously sabotage yourself. Fear of money, sometimes it's the fear of being happy. The question arises as unconscious as follows: And if my level of happiness does not increase with the level of my bank account?

This fear is real, it can really paralyze you in the quest for more money after all and if ever it were true? And if more money does not mean more happiness in the end it would mean there would be a much more important work to do but make more money. This work is called "return home". The real work is how to associate one or reasons that are considered "good" the fact of wanting more money in the end just do more or better the same reasons that we find good. Money becomes the means and purpose.

Unconsciously this amounts to allow himself to succeed. Financial worries seem less important and at the same time your bank account will show you the numbers you want to see. That's what I mean when I write sometimes see your world as it should be.