We live in an ever-globalizing world in which
countries and their economies are becoming more and more interconnected each
and every single day. The overall wealth is also growing rapidly thanks to
emerging economies in Asia, Africa, and South America. Countries like India and
China, along with a number of others, are driving global economic growth while
shifting the financial, commercial, and political power centers into neutral
With global wealth rapidly growing all across
the world, an increasing number of companies establish partnerships overseas,
offering numerous opportunities to investors. Unlike in the mid 20th century,
individuals and entities have a much greater and more colorful palette of
options to choose from when it comes to making investments. However, coming to
the decision amid such diversity is trickier than many might think.
Advanced economic and financial systems come
with more and more complicated schemes, which often are fake or are hiding
something behind them. Even some of the most influential international
companies have been accused of fraud and illegal financial activities in recent
years. Under such circumstances, individuals, particularly young people are being cautious about making any
significant investments. Stocks have become some of the least
desirable means of financial security for the youth as they fear that the 2008
global financial crisis will repeat itself and will be worse than before.
Yet, despite the possibility of getting
yourself in the middle of an international fraud scheme, a bigger chance is
that investments you make will come with exceptionally high risks. The
increased diversity of investment opportunities contributed to the creation of
comparably high and low options. The fundamental difference between them is
that usually, high-risk investments are much more lucrative than those of
low-risk. In case of exceptional luck, one might double, triple, or even
quadruple the amount of investment within a short period of time.
On the other hand, low-risk investments almost
guarantee a profit, but the sum is significantly less than what a more
dangerous game has to offer. Usually, low-risk investments take years to repay
but for some people, the feeling of certainty is much more crucial than making
a bigger profit.
For instance, in some countries, one of the
most popular means of low-risk investment is Forex trading. Buying and selling
currencies is easier than ever before in the era of technology and the internet
connection. In Finland, one of the world’s most technologically advanced
nations, people are trying to benefit from this opportunity. As a result of
immensely large investments in the sector, the Finnish
FX brokers list here in their native Europe, and even across the
Atlantic is quickly growing. Yet, Finns see personal development as an
important asset and consequently, many people trade on their own. So how do we
decide where to invest and to what extent can we risk?
Look for innovation, trendy is
The past few decades have also been absolutely
game-changing for the global state of economy and politics. Industries that
were considered minor gained unprecedented influence and capital over this
period of time. Countless breakthroughs in digital technology caused a massive
revolution in traditional industries, such as finance, education, and even manufacturing.
All of these sectors are trying to adapt to
the digital times of today. In the long term, any significant investment should
be made in a way that considers the demands of tomorrow. For instance, if one
is considering investing in the financial sector, more focus should come on
banks that have good digital platforms or those that are completely
cloud-based. Neo banks are growing fast and are gradually overtaking
traditional institutions. This particularly is relevant today as the
virus that has killed more than 200 thousand people has as well
forced the vast majority of the global population into quarantine. Under such
conditions, remote financial services are of utmost importance to keep the
global economy moving.
Evaluate the company – go through
their past, see the present and review the future plans
Every business you might invest in has some
kind of history regardless of how young or old they are. When looking at
potential target companies, go through their history first. In this process,
every detail is rather important. How did the company start? Did it ever exist
in a different shaper or form before? How did it do in the first years? Answer
all of these questions and carefully evaluate the past state of professionalism
and the pace of development of a particular business.
Later, move on to the present of it. How is
the company doing now? What is their reputation? The latter is particularly
crucial in the era of social media and news. A company with a bad reputation
might still be profitable but not the best addition to the portfolio,
obviously, if you care about it.
Last but not least, look into their future
plans. In what direction are they planning to develop? Are they taking high
risks? Is their approach innovative and somewhat different from mainstream
business ideologies in a certain field? If companies want to succeed in this
utterly competitive market, products, and services, as well as our approach to
business should be creative and different from what already exists. Otherwise,
the success of your investment is highly uncertain.
Look for highly trusted companies
Businesses are not only user reviews or the
overall satisfaction rate. There are many more important aspects when it comes
to trusting a company for your savings or spare money. Generally, big companies
with easily recognizable names are the most reputable ones. With them, your
money is almost certainly safe. Look for so-called ‘blue-chip stocks’ that
belong to most highly-trusted businesses. Yet, they tend to be quite expensive
and rather difficult to afford for entry-level investors. Thus, if you are just
starting out, the advice would be to look elsewhere.
Remember that cheap stocks are not always
essentially a bargain. Similarly, most expensive stocks will not surely bring
good profit to you without a comprehensive analysis of the company’s
background, reputation, and financial state.
Debt is one of the few stressors in life that does not go away easily. Most dangerous thing about debt is that it gives so much stress that person falls victim to chronic diseases. Most stressful things in life-a car accident, death in the family, a divorce-happen and then they are over. Our bodies react to these losses and bounce back. But owing someone money completely becomes inescapable.
But if we take a closer look at the emotional, psychological and behavioral studies, it shows that there are healthier ways to spend money and decrease the debt, which will ultimately reduce the stress we feel.
We have gathered few important tips that you can follow to decrease your debt and increase your savings.
The first thing you should avoid is to create more debt. Increasing debt will not take you anywhere. Instead, try to pay-off your entire debt in minimum chunks of money. Although, it won’t get you out of your debt but atleast, you will not be increasing your debt. Make possible to pay-off the debt entirely in just one shot. If you can’t, it’s fine to pay the minimum on your credit cards.
- Pick one debt and pay-off completely
It’s good if you have only one debt to repay, but if multiple debts are lingering on your head, it is better to choose the one with the highest amount. In this way, a huge burden will fall off from your chest. Or make a big payment from your account every month to repay debt if you can’t do it all at once. Do the same for another debt and so on.
Building an emergency fund when you have already a debt to pay-off seems dull. But it will give you an edge in emergency situations. An emergency fund can actually keep you from creating more debt by providing you with a safety net you can use in an emergency. Usually, the perfect emergency fund is six to twelve months of living expenses. You should atleast make $1000 in the short term.
- Request for lower interest rate
Ask your creditor for lower interest rate on your debt. Higher interest rates keep you in debt for longer period. Your hard-earned money goes towards the monthly interest charge and not towards your actual balance. If you have a good credit history, you will easily be considered for lower interest rate request.
- Put more money towards the debt
The more money you put towards your debt, faster you will be paying off for your own good. Create your monthly budget and try to find ways where you can cut your expenses and add them to pay your debt. You can also come up with the money for your debt by selling few expensive things in your home.
- Use retirement fund or life insurance policy
Both choices are risky. Use these options when you find no other way. You may consider pulling money from your retirement fund but your savings will fall short when the time of retirement comes. Also, borrowing from your life insurance can also be considered but it will affect the death benefit your beneficiaries will receive.
Getting a second job or doing second shift on work is common way for people to pay-off their debts. No one can actually make it but if it does work for you, you will be debt-free before you can even imagine. For this scheme to work, put your extra shift money into the debt repayment. These extra hours are not permanent. Once you have paid-off all the debt, just sit back and relax. You will be back to your normal routine.
- Make settlements with creditors
Debt settlement is also the solution if your accounts are past due or you owe more money than you could repay over a few years. Ask the creditor to accept a one-time, lump-sum payment to satisfy the debtor. Sometimes, creditors who agree to a settlement offer also agree to cancel the rest of the debt, but they typically accept these offers on accounts that are in default or at risk of defaulting.
- Speak with a credit counselor-it’s free
If you are really struggling with your debt and you cannot manage anymore, try credit counseling. It’s absolutely free. They will help you in finding programs that can help to deal with your debts. A reputable and honest credit counselor will explain all the options that you can avail to clear your debt. Many people do not know about the debt-repayment programs but are relieved when they come to know about it. Speaking with a non-profit credit counselor about your options is confidential, non-judgmental and a better escape.
If the debt repayment has drained all of your savings, it’s time to build your savings again. Before you pay for anything else, put aside some money into your saving account. The secret to increase your savings –whether it’s earmarked for your emergency fund or another savings account-is to pay yourself first.
Here are few tips to paying yourself first to increase the savings.
- Make a habit to save every month. It doesn’t matter if you save a single penny every month; it’s about commitment you make. If you make it a habit, it will help you towards a healthier financial future.
- Consider saving as the necessary work. Make it a priority in your monthly budget.
- When you reduce or eliminate an expense, or save any money on grocery or shopping, put it in the savings account. Any fund, bonus, raise you get should be put in the saving account.
- Always go for the job that gives you maximum benefits for example a good life and health insurance, any extra favor, free transportation etc. The less you pay for these extra things, the more you will be able to save for yourself.
You already know a lot about credit cards. You’ve heard that consumer debt in this country-particularly credit-card debt-is at an all-time high, while our savings rate is lower than ever before. You realize that the boom in online shopping, with its absolute dependence on credit cards, is further fueling their use. You are well aware that running a balance on your plastic-and paying the unconscionable interest rates that come with it-is one of our most basic and widespread financial blunders. And you suspect that the sheer volume of direct-mail credit-card solicitations with low teaser rates must be devastating the forests of northern Idaho.
Still, credit cards are a fact of 21st century life, and it only makes sense to understand how to use them wisely. While it’s probably impractical to keep all plastic out of your wallet, it is prudent to limit the number of cards you have, and, of course, to pay all balances in full every month. Indeed, having only a traditional American Express card, which doesn’t allow you to carry a balance, can be an excellent way to impose fiscal discipline on you and your family-although, as the Visa ads point out, not everyone accepts American Express. For the rest of us, who do occasionally dabble in credit-card debt, here are a few ways to keep your habit under control.
1. Take advantage of frequent-flier programs tied to credit cards, but keep in mind that interest payments on a high balance can quickly turn “free” flights into outrageously expensive ones. At a dollar per mile, running up a debt of 25,000 may get you a plane ticket, but it will also saddle you with $4,500 in yearly interest payments, assuming an 18% annual rate.
2. Look very closely at credit-card offers before you bite. Obviously, most of those 2.99% and 3.99% rates will be in effect for only a few months. But there may be other catches as well. Making a late payment, even if it arrives only a day after it was due, may immediately trigger a permanent rate hike. Also, low initial rates sometimes apply only to transferred balances, and you could get charged a fee for making the transfer. Check, too, to see whether there is an annual fee, or charges for exceeding your credit limit or even for closing an account.
3. Avoid amazing grace-period tricks. What you’re looking for is a provision that says you’ll never be charged interest as long as you pay your bill in full by the due date. But some cards have no grace period, calculating interest from the moment you make a purchase, while others give you only a limited time after making a charge before interest is imposed. That period of 20 days or so may end before your payment is due.
4. Don’t forget to cancel cards you no longer use. If you don’t, they’ll show up on credit reports, and that could be a problem, particularly if you’re applying for a home mortgage. Your would-be lender may be reluctant to make a loan to someone who has a cumulative credit-card limit of $50,000, $100,000, or even more.
Ignorance is not bliss when it involves debt. Ignoring a problem will not make it go away and where debt is concerned is likely to make it worse. Ignore it long enough and financial failure is likely. If you are overwhelmed by high debt levels and by the high monthly repayments on your loans, a personal debt consolidation loan may be the best financial move you could make.
By combining all your non-mortgage debts into one personal debt consolidation loan, you are taking the first step toward financial freedom and saying no to financial failure. A brighter future starts with a decision.
A good personal debt consolidation loan will offer a lower interest rate and lower fees than most credit cards and consumer credit. It also has a definite loan term after which you will be debt free. These advantages translate into profound personal benefits for you:
MORE MONEY IN YOUR POCKET. Your total monthly debt repayment costs will be significantly lower if you consolidate your debts into one personal debt consolidation loan. This means that you will have more disposable income available for personal or family use. No longer will you have to worry about how you are going to pay the electricity bill because all your money is eaten up by debt servicing costs. Instead of increasing debt, you may be able to increase savings. No matter how you use the extra money, a personal debt consolidation loan will improve your financial situation so that you have choices available to you.
MASSIVE SAVINGS. By offering lower interest rates and fees over a definite term, a personal debt consolidation loan can save you a lot of money over time. Credit card debt can be perpetual with the balance never reducing, causing permanent financial bleeding. Credit card interest rates also tend to be much higher than other types of credit. Over a ten year period you could save thousands of dollars and maybe even tens of thousands of dollars just by consolidating your debt. What could you do with that money?
STRESS RELIEF. Financial stress places huge pressure on individuals and families and is a major cause of divorce and illness. Relaxation techniques, coping strategies and medications are all commonly used to reduce the impact of stress. What about just solving the problem? A personal debt consolidation loan could be the best stress relief remedy available to you. You might be surprised that other problems fall away as soon as the financial stress disappears.
If someone offered you the opportunity to have more money every month and to save thousands of dollars over the next ten years, wouldn’t you jump at it? A personal debt consolidation loan is this opportunity.
Each year, millions of people file bankruptcy as a means of erasing their consumer debts. While this approach may relieve stress, a bankruptcy is damaging, and will hang over your head for the next ten years. Still, it is possible to overcome bankruptcy. The key is making smarter financial and credit decisions. With this said, some people choose to purchase a home after a bankruptcy. Here are a few pointers to consider when buying a home.
Reasons to Delay the Buying Process after Bankruptcy
If you consult with mortgage or financial experts, they will likely discourage you from buying a home following a bankruptcy. After your bankruptcy is discharged, there is a black cloud that looms over your credit report.
When any prospective lender reviews your report, they will be notified of your recent or past bankruptcy. In some instances, this justifies an immediate denial. On the other hand, there are lenders eager to help you establish or rebuild your credit. Thus, they will approve a loan request. Nonetheless, the penalties are steep.
Higher mortgage rates can be anticipated when purchasing a home after bankruptcy, especially if you have not established other credit accounts. Mortgage lenders consider two factors: credit scores and credit reports.
Although a bankruptcy appears on your credit report, having a high credit score will increase your odds of getting a comparable rate. Unfortunately, if you buy immediately following a bankruptcy, you will not have the opportunity to boost your score.
Reasons to Buy a Home after Bankruptcy
Lenders will approve mortgage loan applications one day following a discharge. Therefore, it is possible to get a home after a bankruptcy. Buying a home is perfect for rebuilding credit. Moreover, it is the quickest way to increase your credit score.
After a bankruptcy, the average person has a credit score below 600. Good credit consist of credit scores 650 and above. Maintaining current mortgage payments will gradually increase your score. After two years of regular payments, you will have established a good payment history. Hence, you may qualify for a low rate refinancing, which may lower your mortgage payments.