By InvestMe | August 6, 2016
Bankruptcy is such a situation where a person is buried under heaps and heaps of debts and don’t have any idea as to how to recover from such situation and that’s when he decides to file for bankruptcy. Filing for bankruptcy is a tough decision and you have to suffer from that situation for years to come. Bankruptcy can just deteriorate your whole credit situation. This is not at all good. Instead of filing for bankruptcy, you must think and hunt for the ways to recover from bankruptcy. Of course recovering from bankruptcy is not an easy thing but still trying is not a bad option either. It needs really thoughtful planning to recover from bankruptcy and along with that it also needs careful and real efforts to recover from bankruptcy. However it is difficult but not impossible to recover from bankruptcy. If followed the right steps you can still tackle the situation and recover from bankruptcy and have a great credit in future. Here are some of the tips and tricks which can prove really helpful for you to recover from bankruptcy.
Get yourself back on track
It is very important to hold yourself and make yourself believe that you can recover from bankruptcy. It is not possible to recover from bankruptcy if you yourself don’t believe it how you will do it. Thus get yourself back on track and try to make the things right. Its high time now you have to take some bold steps for your financial conditions and thus you have to be bold.
Do a self-financial evaluation
No one can make you realize your mistake better than yourself. Thus ask yourself what are things which took you to such situations. Well you will probably get many reasons like careless spending habits, excessive borrowing and many such things. Now it’s high time and you have to take responsibility of your poor choices and bad habits and get over them. Getting over them is not just enough, you have to make sure at any cost or in any circumstances you are not going to repeat it. Make a list of all those things which led you to bankruptcy and while you are trying to recover from bankruptcy, commit yourself to not to go that path again no matter whatever happens.
Make a monthly budget
Budget is such a thing, however hard you try to follow it you will still breach it some point. It is just like your study timetable you use to make in school days and then never followed it. But when you have pass through such a situation you must be peculiar about your budget and follow it no matter what. But be very much realistic while making your budget as you are going to follow it. You know very well how to make a budget as you would have made it so many times. Make a list of all your monthly expenditures. Calculate each and every even a small expenditure while making your budget. Now compare it with your income. If expenses are surpassing income then it is really a bad situation for you and you must work on it and lower your monthly expenses. This can also be one of the reasons which led you to bankruptcy. And thus trying to recover from bankruptcy, make sure to avoid such situations.
Pay your bills on time
Making on time payment is very good habit and this is not only in paying bills but in every matter. This is a very essential tip for recovering from bankruptcy. If you are paying your bills in advance then nothing is better than it but if not then at least do it on time. Delayed payment of bills make a bad impact on your credit score and hence when you already had such a bad past record, making a new addition in it would not contribute positively in recovering your bankruptcy. Thus make a habit of paying the bill at the same time when it arrives. This will save you from the situation of forgetting the bills to pay. If this doesn’t work you can try reminders in your cell phones to pay the bills. If you can set a reminder for birthday, then why not for the payment of bill? You can also try marking in calendar and referring it every two days. Any of the method you follow, the main thing is the payment of bill on time. Doing this will help to recover from bankruptcy and also help you to create a positive credit score?
Monitor your credit score
Credit score is one of the most important things affecting your financial record. Positive credit score is the ladder for recovering from bankruptcy. Thus you must have a regular check on your credit score and your credit report. Be aware of every single thing going on with your credit score. If there is some negative activity, you must be aware whether you are responsible for it or not and if you are then you must be aware to not to repeat it next time.
Get a secured credit card
Secured credit cards are not like the normal credit card. They work differently from the normal and traditional credit card. This will work on the basis of a security deposit and it will avail you with the credit on the base of that. This limit can be up to the amount in the savings account. You will be allowed with the credit only till that extent. Bank can also avail you with the extension in the line of credit but only in some cases. You can also get this type of credit card by depositing a specified amount. You cannot use the credit card beyond that limit. If you failed to make the payment then it will be recovered from the amount deposited by you. Making payment of such credit card should be on the priority list of yours. Delay in this or missing them entirely can lower your credit score to a great extent.
By InvestMe | July 19, 2016
One of the most sensible moves to make when you are working abroad or have to travel a lot to abroad be to open an offshore bank account. When you travel a lot or you have shifted to any new country, it is advisable to open an offshore account. Now you must be wondering as to where to start from. You can find many jurisdictions where you can open an offshore account and you can also avail investment services. If you are new to the concept of opening an offshore account, then you might be in dilemma as to what to do and how to do. You might also be in confusion whether to open an offshore account or not. If you are never going to leave your native place or just leave for having a trip once in a year then you might not consider any point opening an offshore account. But you have business in other countries and you have to visit other countries often and have many transactions there then you might consider opening an offshore account. Here are some of the tips to be taken into consideration when opening an offshore account.
Start by seeing your circumstances
Firstly while you are thinking of opening an offshore account, you must see whether you are appropriate candidate for opening offshore account or not. Usually if you are an expatriate then you possibly have many advantages in opening an offshore account. Opening an offshore account avails you with many benefits and one of them is that you can grow your savings more efficiently. While you are working abroad you can grow your savings and that too in tax efficient manner.
Make most out of your finances
One of the things which you should take into consideration while opening an offshore account is that whether it helps you managing your finance or not? The answer is yes. Opening an offshore account enables you to manage your finance in more efficient and well manner and along with finance it also enables you to manage your investments in more efficient manner. In some of the centers like jersey, British crown dependency off the cost of another center France, you can find accountancy and legal specialists, finance practitioners who possesses many years of experience in the field of advising and guiding expatriates and those who are having cross border assets and help them to make understand the best and most efficient ways to manage their wealth. Thus you can get a fair idea as to how to manage your finances if you open an offshore account.
Your mother tongue
One of the most important factors to be taken into consideration while opening an offshore account is the language. You will not be able to make the transactions with smoothness and ease if you are having any language issues. Thus while opening an offshore account, you must have a fair and reliable idea as to which language is used in that country and which is the secondary language and whether you are comfortable making transaction in the primary or if not primary then in secondary language. Choose a jurisdiction where the primary language is English if you are comfortable with English and if it is your mother tongue or your secondary language. Service providers like HSBC Expat in jersey enables the service of twenty four hours English speaking telephone banking. Thus inquire properly about the language before you open an offshore account in any of the countries and any of the banks in there.
It does not need to be in one currency
Most of the leading offshore banking groups will not be having accounts in one currency; instead they would be having in more than one currency. They generally have multicurrency facilities and hence you don’t need to lose on any of the currency exchange. Thus if you receive any of the payment or any of the amount in US dollars which needs to be pegged in UAE dirham, you need to place your funds into an US dollar account and you can make the exchange of currency whenever you want until then you can keep the amount in dollars only. You can make the currency exchange when you feel that the rate is in your favor until then keep it in the account itself and wait for the right time.
Take into account access to your funds
One of the major aspects to be taken into consideration is the access to your funds. Most of the popular and leading banks which are into providing offshore banking services avail you with the telephone banking service which is open around the timing which matches up with the international time zone. They also offer banking services which can be accessed through your computer and various mobile devices and they are totally safe and secured. While opening an offshore account, it is advisable to make some research and shop around and then go for the one which offers you with maximum benefits and also fits perfectly with your needs. If you take HSBC expat for example then it avails with a service called global view which allows you to view their accounts securely and also transfer the funds online from one spot to another at just a click of mouse.
Place your assets in a location which is stable
While opening an offshore location, pick a spot which is stable both economically and politically. This is an important factor deciding the location to place your assets. Say for example jersey is very much stable both economically and also politically and hence it is very much popular for opening an offshore account.
Ask about the depositors compensation
While opening an offshore account, take into consideration the jurisdictions which are willing to provide the investors with the safeguards as to what will happen to your assets and where will they placed if the financial institutions is in any kind of trouble.
By P J | June 11, 2016
Want to go for certainly the easy way than opening saving accounts in your bank? Then for you, checking account is considered to be the best type of account which you can go for. It is comparative very easy and simple to operate and less risky which can be consider to be in the benefits of the bank account holder. Well, opening a checking account is also known with the name of opening a share draft account. I know it is considered to be financial language but make my words; you are at the benefits if you are going for opening a checking account. Opening a checking account is very easy and simple; you just need to follow up the steps on by one so that you can get through the process of opening a checking account in your bank easily.
It will be considered to be more helpful to you when you will understand it step by step. Because we think that opening a checking account is considered to be tough thing but no, it is not as hard as you are thinking of. This article will help you like a guide in providing with all the knowledge and details which you are in need of at the time of opening a checking account. Well, there are many thing which you need to take in top account at the time of going for opening a checking account of your like you needs, comparing of financial institutions with the other ones, etc. and many more of the things which you need to take in to consideration ta the time of going for opening a checking account of yours. The further discussion will help you in getting all sorts of detail which will help you in the matters of opening a checking account.
How to open a checking account
- Identify your needs
The first and the foremost thing which the account holder must comply with is to identify up the needs of their regarding they want in their account. You must go for opening a checking account which can help you in getting through with your habits and needs. There are many questions which you need to go for asking yourself like do you really want to open up the checking account for the matters of paying your regular bills and depositing your earning in to it or your want it for any of the other reason? We all know that opening a checking account means complying with your preliminary stuffs in easy manner where by the use of cheques are being avoided. Another question which you must go for asking yourself is that how much money you want to keep in your account? This will help you in getting all sorts of answers regarding opening a checking account for yourself.
- Are you in the grounds of getting and attracted towards the interest rates which you are being provided by the banks? Not only are this but there many other question which you need to ask for yourself so that you can get the clear idea about the things which you are in need of from the banks. Do you need to open any special account which can help you in other matters for going with the process of opening a checking account in your bank?
- Now let us start up with the process of opining a checking account in your bank. First thing which you will need is to gather up the materials which are considered to be mandate e thing to comply with. This are called as proof which each and every bank needs for the basic information of yours. Proofs can be said like identifications proof, address proof which shows your residence stay, identification, etc. and many more of the thing which are considered to be one of the most important factors for the banks which they generally ask from the depositors who wants to open a checking account in their bank.
- After complying with the afore said things, it is now the time to go for getting your application and filling up the form which the bank have supplied you for the matters of opening the checking account. This application form muster be validly signed and duly filled with all the details which the bank have asked for because it will help you in getting the process done in a speedy manner. Go the bank which you have selected and submit up the application form in the specific branch of the bank. After this the bank will review up your application form and get access towards all the things which are considered to be taken in to account by the bankers.
- Not only that but it is considered to be compulsion to sign up each and every document which you have given as the proof to the bank. This is called as self-attested which is considered to be mandate thing which all the deposits must take in to account at the time of going for such type of checking account for them. After getting all this process now the bank will provide you with all the details and the account tools which is considered to be the debit card and the checks with the help of which you can withdraw the money or deposit in your checking account. Not only this but opening a checking account will help you with many of the benefits which you can go for at the time of getting all the details from this article regarding getting the access over the opening a checking account in your bank.
By InvestMe | May 31, 2016
Debt is such a thing which can eat up all your savings. You will not even be able to realize when your small debt will be turned into big one and you will in a huge trouble for hunting the ways to repay it. It you don’t want this situation to happen, you have to start managing your debt. When you are having small debts, you might feel like there is no need to worry about managing your debt, but this is certainly not true. When you start managing your debt, you might figure out that even though small you have a handsome amount to pay towards your debt and managing your debt will give a fair idea as to how you are going to do it. When you are having small amount of debt, the one thing which you should careful about is that this small debt should not be turning out into big one and make sure that it does not go out of your control. On a contrary when you are having large amount of debt, the thing you have to do for managing your debt is to put on some of the extra effort for paying your debt in timely manner so as to avoid the extra amount of interest which will be charged on your debt if you make more delay. Thus here are some of the tips for managing your debt which might prove to be helpful in paying off your debt.
Know how much and where you owe
The first and foremost thing you need to do for managing your debt is make a list of your debts. For managing your debt, you need to have fair a fair idea about the total amount of debt you are having. Thus take into account the creditors, monthly payment, due dates, insurance, loans, mortgage, interest and any such other things where you need to spend your bucks on. You can make use of your credit report to figure out the debts you have on your debt list. You cannot manage your debt if you are not able to figure out your debt. Once you are done with this this list you need to check it out on monthly basis and also need to make changes as you go on paying them. Don’t forget to update your list and change the amount of debt every month. While managing your debt and your list make sure there is only decrease in the list and not any kind of increase.
Pay your bills on time every month
For managing your debt, you need to make a habit and tendency to make your payment of your bills very month. This will help you a lot in saving some of the bucks. Making late payment of your bills will make it much more difficult for you to pay off your debt as you will have to pay extra amount in the form of late fees. Just miss two of your payments in a row and you will have to make increased payment in form of higher interest charges and finance charges. Hence while managing your debt, take into consideration all these things. Try to make use of your calendar system in your computer or you can use it on your smart phone. Enter the payment on the date which you have to pay and set an alert for reminding you for the payment few days before the date of the payment is due. This is a nice and systematic way of managing your debts. If you miss any of your payment then don’t wait for the next date to become due instead send it late as waiting for the next date can result in reporting in a credit bureau. Instead of that send your payment as soon as you remember it.
Decide which debt to prioritize
While managing your debt, you might have come across many debts and you would be in dilemma as to which debt to pay first. The easiest way to manage your debt is to prioritize those payments which have the highest rate of interest. Credit cards debt is considered to be such a debt which has the highest rate of interest and hence while managing your debt; you must be considering it to be paid first. Use your debt list and make it according to the priority and follow it at the end of every month for paying off the debt. While managing your debt, you can choose those debts first which are having lowest balance as they can be repaid soon.
Make at least the minimum payments
While managing your debts and making payments, if you cannot afford to pay all the major portion of the amount then the least you can do is to make the minimum payments. Yes it is true that making minimum payment tis not going to help you in making the actual progress in managing your debt but it will stop your debt from growing. When a situation arises when you miss to make the payment then it can get difficult to catch up and it might result in going your account into default.
Use an emergency fund
It is very difficult to manage your debt without any kind of savings. Having even a small emergency fund will also help you to cover up some of the minor expenses which come every once in a while and can get you in trouble without any kind of savings or emergency fund.
Use a monthly budget
You must have made a list of debts to be covered at the end of the month, but along with making a list of debts, it is also very important to make a list of your monthly expenditure. All your routine expenses should also be covered like groceries, milk, movies, restaurant bills and such other expenses. This will let you know how much amount you are allowed to have at the end of the month after deducting expenses.
By InvestMe | May 23, 2016
Getting a mortgage or finding the best home equity loan is not an easy and simple task and it should not be taken lightly. There are many important things which are to be considered and paid focus on while getting a mortgage. You will have to suffer and pay a lot if you haven’t focused properly on important matters while getting a mortgage. Here are some of the important things to consider while getting a mortgage or home equity loan.
Mortgages are not commodities
If you are thinking mortgages as commodities then you are totally wrong. Mortgages are not sat all commodities. If you think that it’s all about the rate then you are going to get disappointed from the initial stage only. It’s all about hunting for a trusted partner who will accompany you and guide you navigate a complicated and kind of complex transaction by giving you honest opinion advise and a good and responsive support during the entire process of loan and mortgage. Thus one of the important things to be considered while getting a mortgage or home equity loan is that you should not only focus on the rate of mortgage but others factors are also to be taken into consideration.
Online is not the place to transact your biggest liability
Buying your clothes online, or music player online or order some books online or bid on some sports equipment’s is really a very simple thing to do and even beneficial as it can save up your time but going for mortgage online is really a big no no for you. Mortgaging over the internet is really very risky thing to do. While getting a mortgage or home equity loan it is advisable to meet the party to mortgage face to face and don’t do transaction over internet. There can be so many variables which can arise throughout the process of getting a mortgage or home equity loan over internet. But this does not mean that you should not use the internet for knowing the rates for getting a mortgage as there are many reputable sites on the internet which can help you to find proper rates for getting a mortgage. Internet can also help to get you to calculate the potential loan and along with that it also provide various other information relating to getting a mortgage. Thus it is totally okay to seek knowledge and information regarding getting a mortgage through internet and also getting the rates through internet but it is not at all appropriate to get the mortgage on internet.
Types of mortgage lenders
While you are on the search of getting a mortgage or home equity loan then you will have to find mortgage lenders. While you are searching for mortgage lenders, you will find two types of mortgage lenders, the one who does advertisement on the web and the other who makes advertisement on the newspaper rate table. You might have of some and might be unaware about some and you come across them when you are hunting for getting a mortgage. You will mot a thing that the major and especially well known lenders will generally give higher prices. Now, you might be wondering why it is so. It is because they are having cost structures and The other reason can be they are more reputable and the service provided them is also better and reliable. Thus they charge higher. Now you should compare the rate with service while searching for getting a mortgage.
Avoid interest only loans
If you are planning to move in a short period of time or the loan is for short term or it is a construction loan then you should probably avoid the interest only loans while searching for getting a mortgage. If you are opting for only interest loans then you will not be able to build up any kind of ownership or any kind of equity in your home and hence it is not advisable. Thus try to stay away from such kind of loans while getting a mortgage.
Are the fees reasonable
Before getting the mortgage find out what exactly it is going to cost you. There are certain fees which have to be paid and they are unavoidable. But on a contrary, there are certain fees which are not that much necessary and can be considered as junk fees or negotiable fees. Before getting a mortgage ask for good faith estimate statement which shows you the total expected fees. There are certain companies which will include all the fess in the rate of interest they offer to you. Here are some of the fees which you should be asking for before getting a mortgage.
- Application fees
- Evaluation of credit
- Title search
- Loan processing fees
- Appraisal fees
- Documentation fees
- Underwriting fees
- Escrow fees
- Prepayment penalty fees
- Fees like amortization schedule fees, financing statement fees, trustee fees, inspection fees, photo inspection fees, warehousing fees, computer fees, administrative fees, credit report review fees, notary fees are some of the junk fess from which you should stay while getting a mortgage.
- When you are seeking information about interest rate, don’t forget to ask about the APY as it is generally higher and it is actual amount of interest you have to pay.
Try and avoid adjustable rate loans
Adjustable rate loans can be quite attractive to you as the rate of interest is comparatively lower than the fixed one. They usually avail you with the four options of payment.
- Minimum payment
- Interest only payment
- Fully amortized 15 years old loan
- Fully amortized 30 years old loan
Last two options are almost similar to that of traditional loans. The only change is that your interest rate is adjustable. Here are some of the reasons for considering an adjustable rate.
- If you are planning to sell the home before the first rate adjustment.
- If the ceiling of loan of adjustable rate is lower than the current fixed rate.
By P J | May 18, 2016
Loans are considered to be one of the important parts of our life whereby we can get the access over the money which we can take it from the bank and in return we need to pay off them the amount and the interest rates which are being charged by the banks at the time of providing with the loan. As the time has been changes there are many things which has also been changes like the most importantly the technology. Yes you heard it right. The most innovative idea which can be considered in the favor of the person taking the loon is taking of online personal loan. Now you can easily take online personal loan which you want by just sitting at your home. All the things and the procedure which is being taking in to consideration are taken up online and no hard copy is being taken in to consideration.
This article will help you in getting all the information which will help you in getting benefited at the time of taking online personal loan for you. No doubt there are many things which you need to take in to consideration but let me help you in knowing for the instance benefits which you can get at the time of taking online personal loan like lower interest cost rate, easy and quick procedure, etc. and many more of such benefits, which you can avail at the time of going for or taking online personal loans for you.
Benefits of taking online personal loans
- As stated above there are many benefits of taking online personal loans when you are in need of. The scenario and the thinking of the people have changed and they have also started accepting the concept of online transaction and all the work which you can do from a place sitting at your home without going for the places to visit. With the help of the internet you can get all the things in one place. You just need to surf it up and go for the things which you are in need of. Not only just surfing but you can go for the process of taking online personal loan which can be easily availed to you. You just need to follow up the instructions which are provided to you and see the thing or the task is being done. I know as we are discussing about the benefits than lets go for it in the further discussion.
- The first and the foremost benefit which you can get at the time of taking online personal loan for you is to decide that rather you want to take it or not? Yes, it is considered to be important factor because it depends up on the needs of the person who wants to take the loan. It is not at all the factor of being trust on the banks but it depends up on the factor of necessity. If the person is not having much necessity than he is allowed for not taking online personal loan but if the person is in need of money for their personal reason than they can go for the process of taking online personal loans.
- Another benefit which you can go for at the time of going for the process of taking personal loan is the access towards it has been become easy to comply with. You can easily deal with the tings whenever you want to do it at the time of sitting at home also. As it is globally established everywhere in the world, there is no need to going for the individual meet for going for the process but you can access it anytime when you want to do by just sitting at the place where you are present. Credit score is not a compulsion of being watched out in the matters of going for. If you are having lower credit score still you can get the loan approval when you are dealing with online personal loan criteria. Well, we can say that this is considered to be one of the reasons why the demand of online shopping has been increased day by day.
- Lower rates are considered to be another factor which can be considered to be amongst the benefits of taking online personal loan for you. As compared to the live ones, the demand for the taking online personal loan has been increased because it provides with less and in fact lower amount of rates of interest which can be considered in the benefits of the person taking online personal loan. The risk of higher interest rates can be considered to be a threat for the person taking personal loan. But applying this and accepting the process of taking online personal loans will help you in getting all your doubts clear about it.
- Another benefit of taking online personal loan is that it helps the person who is taking the loan to lower down the factor that is considered to be most effective is it saves time. Yes, in today’s world no one have more of the time to go to the place for doing up with the work in fact they prefer of getting it done by the way and the use of the internet. Approval of the loan which you have taken is given on the quick basis. There is no need for getting the paper work done because everything is going on and carried on the internet way which can be considered to be very quick and trustworthy means for complying with the process of taking loan. Well, the core motive of this article was to provide you will all the benefits at the time of taking online personal loan which you can go for with all the trusting factors because now day’s internet is considered to be amongst the best and reliable thing which you can go for. The above discussion information is considered to be something important which will help you in knowing the importance of taking online personal loan for you.
By InvestMe | May 9, 2016
One of the main objectives behind making investment is to save up the extra money which is left at the end of the month. You might be saving up this money for something big for saving is very important. If you have already saved then you have accomplish extra money to spend on something big without occurring debt. It can be anything like a gadget or any new furniture. But for achieving this level of having enough money to buy anything you need to make savings or investment in any account. Investing in savings account is not going to give you a much amount of interest but it is definitely going to keep your money safe and at least on a side to make sure you have that money secured to achieve your new target. Savings account is a perfect place for you to keep your investment if your goal is short term.
If your goal is long term one says for like time period of two or more years, then you should invest your savings in such a place where your money should potentially grow and create more savings. The investment plans like saving money for the higher education of your child or for your retirement or for setting up a business are long term investment plans and saving for them should not be done in savings account. Investment means making your money grow at a rate which is faster as compared to putting your money in savings account. It is a method of saving your money for something which is useful to you in your future. Savings is very much safe with low return whereas investment do carries risk along with it. But it will definitely give you higher return as compared to making investment in savings account. Here are factors which should be considered before investing.
Best use for your money
The most important factor to be considered before investing your money is that where the use of your money would be best. You must look at the factor that whether it is the right time to invest or not. For example if you are having debt and you are paying interest on it then it is probably not advisable to invest in some other place and earn interest on it. It would be better if you pay off the debt first. Also before making investment you must take into account that you will earn the profit or interest, don’t invest in such a place where you cannot even recover your principal amount. If possible, you must get yourself covered with medical insurance. Investing in medical insurance is really advisable as there can be many chances that you get into any medical emergency and has to spent lots of savings into that. You should also make an emergency fund and invest into that emergency fund. If you suddenly get unemployed then you can use that emergency fund during those crisis situations.
Objective for investing
The one factor which determines where you should invest is the objective behind your investment. If you want to get higher return within short time and you are also ready to take a risk for that then the objective behind your investment is to gain higher returns and you are also agreed for the risk factor. If you are investing into some safe place with less return then objective is to save money as you are going to need in return and you don’t want to lose it even you are ready to take low interest for that then the objective behind your investment is that you just your money to be safe to utilize it in near future.
One of the factors which affect your investment is your age. Your age decides where you should invest how much and when. While making investment, being young is considered as an advantage. When you are less in age you can wait for investment to give you fruit. The time period can be long for investment as you will be able to enjoy it in future date. When you are young, you also don’t have any responsibilities and you also have more disposable income thus you can make good amount of investment. While doing investment at a young age you also have the option of making mistakes and learning from those mistakes and make better decisions in investment next time. One of the other advantages of being young is that you have much time for earning compound interest. Compound interest means you earn interest on the principal as well the amount of interest. This makes your investment and savings grow at a faster level. At a very young age, there is no point of saving or investing with a view point of retirement. This is not the correct age for retirement investment. If you are a person of middle age and you haven’t started for retirement investment then you should probably invest as much amount as you can for retirement so that you can have a better life in the end. Here you should also take less risk and invest in a place where you will not lose your amount and will be getting a secured amount at the time of your retirement.
Time before you need the money
Everyone is not just investing for retirement purpose; many people are having short term goals to be fulfilled. Thus while considering where to invest, the time you are going to need the money back must also be seen and then investment should be done. The longer you stay in investment the better will be the result. This means if you are investment for long term then you will be able to earn higher amount of interest on it but on a contrary if you are investing for short term then the result you get would also be less. At the time of making investment also consider the factor of penalties and charges if you take the money back before maturity. You must take into consideration this factor while making investment.
By InvestMe | May 4, 2016
Your finance is such a thing which can skip out of your mind at any point of time and when you realize it that you have skipped one of the most essential thing it has probably become too late to manage your finance and get over your situation. Taking some time out and plan for managing your finance is better than to regret at a later stage. It can really help you save some of your dollars if you manage your finance in a proper manner and pay off your bills in advance instead of paying it late and pay extra as late fees or penalty. The money you save from here can be used in your pension fund or you can use it for your next trip or for buying your new car. Thus it can really prove to be helpful to manage your finance beforehand rather than to go in debt and suffer a vulnerable financial crisis. Here are some of the tips for managing your finance and learn to set your budget or how to stick to your budget or how to save from your regular income.
Set up budget
The first and foremost step of managing your finance is to prepare a budget. Making a budget can take a little effort but this can give you a quick review of money coming and money going out. Managing your finance includes setting up a budget and it will result in ending up less in debt. By setting up budget you will not be caught up in unexpected costs. It will also result in having good credit rating. By managing your finance you will also increase the probability of getting a loan or putting up your property in mortgage. By making budget and managing your finance you will also be able to find out such spots from where can make savings. By making budget you will be able to be in such a position to save for your holiday or save for your new car or invest in any other thing. By making budget and managing your finance you will also get mental peace as to how much you spend on what things and how much you are saving and if there is some unnecessary cost you can also cut down on that.
For making proper budget you need to work on how much you spend on household stuff, electricity bills, travel, leisure or luxuries, insurance and presents and such other stuff for family and friends.
Keep your budget on track
It’s not enough to just make your budget; the more important thing is also to follow your budget. Make sure that your budget is balancing your income and expenditure. If you spending more than what you are earning then you probably need to revise your budget and make some changes in that. As, this type of budget is not going to work. This can be making your lunch at home instead of spending in your canteen or it can also be cutting down any membership which you are not using on regular base. Thus for managing your finance you need to make proper budget and stick to that budget. For managing your finance, you can keep a diary with you and note your monthly expense and if you are not doing this you does expenditure by banking transactions then call for your banking statement of the last month and evaluate that. For managing your finance it’s not only the big expenses where you need to focus its also the minor expenses which should be controlled.
Get everyone involved
Get each and every person in your family involved with making up budget and maintaining it. Get all your family members with you and prepare a plan sitting together and make such plan where you can stick together. This will help you a lot in managing your budget. Decide how much money you got to spend and divide it among all according to the needs of each one.
Cut on your household bill and mortgage
There are many houses where household bills contribute a lot towards expenditure and it can be a big trouble in managing your finance. So if you want to take some real effective steps towards managing your finance then review your household bills and decide where you are spending more and cut on that expenditure. It’s not only the household bills which hinder you’re saving contribute too much towards expenditure it is also the mortgage. If it is mortgage then you must work on changing your current mortgage or review the one you have now and pick out the problems and work upon it for managing your finance.
Life and circumstances are unpredictable. Hence once made a budget, it’s not going to be the same for long term. Hence for managing your finance it is important to review your budget once in a while. Don’t be too much rigid with your budget. There can be some medical expenses which are necessity. These expenses cannot be cut down. Thus if possible put some of your funds on a side for such contingencies. Thus if such situation arises you already have savings for it and it does not move your budget and create financial crisis.
Paying off loans and credit cards
If you are having a loan or you have payment of credit cards pending on you then your first priority should be paying off such things. While you are planning to manage your finance, the first thing should be to evaluate what among all the debts or pending payment charges you the highest rate of interest. The payment which charges the highest rate of interest should be paid first. You might be having the store cards which can cost you the highest rate of interest which should be paid on first priority. After that if you are having credit card payment pending they are also such things which pay you the highest rate of interest thus they should also be paid.Personal loans are such which charges low rate of interest and thus they must be paid on later stage.
By InvestMe | April 27, 2016
It doesn’t matter which type of investor you are, there are some or the other types of mutual fund which fits with your needs. Based on the last count approximately there are more than ten thousand types of mutual fund. This gives a conclusion that there are more types of mutual fund then stocks. It is very important to know that each type of mutual fund is not similar each and every types of mutual fund have different rewards and different risks. The general rule of each and every types of mutual fund is that higher the probability of earning huge return higher will be the chances of risk. Of course there are some types of mutual fund which has less risk when compared to other types of mutual fund. All types of mutual fund has certain level of risk it is not possible to diversify all the risk. This is such a fact which is applicable in all types of investment.
Each and every types of mutual fund has some predetermined objective which signifies the funds’ assets, strategies of investment strategies and regions of investment. If you have a look at fundamental level, there are basically three types of mutual fund.
- Equity mutual funds (stocks)
- Fixed income mutual funds (bonds)
- Money market mutual funds
All other types of mutual fund are variation of these three fundamental classes. Say for example equity funds which are investing in fast growing companies are considered as growth funds, equity funds which invest only in companies of the similar region or sector are considered as specialty funds. Let’s hover upon the different flavors or let’s say different types of mutual fund.
Money market funds
Money market funds are usually the short term debt instruments. This is safe type of investment. Treasury bills are the most common of money market instruments. There is no scope for high returns but of course there is no fear to lose your principal amount. The usual amount of return is twice the amount you would earn in usual checking or savings account but lesser then what you earn in certificate of deposit.
The name of income fund is very suitable to what it does. The objective of income fund is to avail current income on a steady and regular basis. When you are referring to types of mutual fund of this kind then bond, income and fixed income are similar. These are the terms which basically invest in corporate and government debt. The prime objective of these types of mutual fund is to avail a steady cash flow to the investors. Investor of these types of mutual fund consists of retirees and conservative investors. These types of mutual fund usually pays higher amount of return when compared to certificate of deposit and money market instruments but these types of mutual fund do carry risk. The risk factor is similar it depends where you invest. Say for example mutual fund which invest in high yield junk bonds ir more risky when compared to those mutual funds investing in government securities.
The fundamental purpose of such balanced funds is to give a proper balance of income, capital appreciation and safety. The logic of investing in balanced funds is to invest equally in equities and fixed income. A general balanced fund has a weighting of 40% investment in fixed income and 60% investment in equities. This weighting can be restricted to certain minimum and maximum to each class of asset. Similar type of mutual fund is well-known as asset allocation mutual fund. The basic purpose of these types of mutual fund is almost similar to that of balanced funds only but here there is no specified percentage of holding needed in any class.
Equity mutual funds are the representative of largest category of mutual funds. Basically the objective behind investing in these types of mutual funds is to create a long term capital growth with little income. There are several types of equity mutual funds as there are several types of equities. The risk and the return factor in such types of mutual fund are almost equal.
International mutual fund is such a fund which usually invests only outside of your country. Whereas global fund is such a mutual fund which in any country of the world including your own country. It is bit complicated to say whether these types of mutual fund are riskier or safer as compared to domestic investments. These are more volatile and have different risks based on the country and its political situations. But on the other side, they can make a balanced portfolio by reducing the risk by increasing diversification. The economies of world are becoming more inter related and thus investment and making risk can prove to be good.
This category of mutual funds has proved to be very popular but it doesn’t belong to those categories which are described till now. These types of mutual fund go for more diversification to focus on specific segment of the economy.
Sector mutual funds focus on selected sectors of the economy like technology, health, finance etc. Sector funds are too much volatile. There are higher chances of big gains but you have to be prepared that you sector can get tanked.
Regional funds let you focus on the specific area of the world. This also means keeping attention on specific region or an individual country. One of the advantages of investing in these types of mutual fund is that it becomes easier to buy stocks in foreign countries. Otherwise investing in such things becomes very much difficult and expensive. Just like sector funds, in case of specialty mutual funds there is high chance of loss and high chance of profit. Thus investing in specialty mutual fund can be very risky; either you can earn high profit or high loss. If the region where you have invested goes into recession or there are some major political changes then also your investment can be affected.
By P J | April 25, 2016
Used to saving account for you? Then let me help you in dealing with new type of account which is considered to be the best use for you. Checking accounts, there are many types of checking accounts which you can go for. Not only that, in fact you can get better more advantages and benefits if you are opting for different types of checking accounts. It depends up on the service receiver’s wish that which type of checking account he or she wants to opt for. Well, there is nothing confusing in it; checking account is similar like the savings account which you open up in your bank. It provides you with the service of making payments, drawing of checks, making loans, or taking it, etc. and many such of the options which can help you in selecting and going for types of checking account for you.
I know getting very creepy about using cheques for the matters of making small transactions too right? Well, then this article will help you in knowing different types of checking accounts which will help you in knowing the exact scenario of the things which you are in need of from the bank accounts. Well, if you ask me than let me give you some of the examples of different types of checking accounts like basic checking accounts, NOW accounts, free checking accounts, joint checking accounts, etc. and many such more of the type of checking accounts which you can go for in your bank. The further information which is being discussed will help you in getting all the knowledge which you are in need of in the matters of knowing the different types of checking accounts.
Types of checking accounts
- All the banks have their different rules and regulations which you need to comply with when you are going for different types of checking accounts. As already specified that there are many different types of checking account which you can go for but you need to act according to your needs. If you are not in the need of which checking account you want to go for than you can also take the help of your bank which can help you in the matters of going for your best type of checking account. It is more advisable at the time you are going for the checking account in your bank that to know all the details and the copy too before signing up with the banking details of your bank for opening new checking account for you.
- The first type of checking account which you can go for is the basic or the non-interest bearing checking account. We all know the benefits of checking accounts which we can be availed if we are opening it in our bank. If you are just planning of opening the type of checking account for your normal use like to pay of the boils, or any smaller expenditure in your routine than basic checking account can be considered to be the best option for you which you can go for. On of the most important benefits of opening the type of checking account for you is that you can take the help- of the bank which can help you in opening the checking account in the minimal balance. There is no such need of keeping more amount of your investment or money in to checking account for the matters of keeping and maintaining your balance of checking account.
- Remember one thing that the banks do not pay off any interest on your checking accounts which you are going for. The provision of paying the interest is on the savings and fixed accounts only. You can draw more amounts of checks whenever you want to and these things in being stated by the banks for the benefits of the checking account holder. As stated that there are different types of checking accounts which you can go for then let’s move further for the instance of getting the knowledge of next checking account for your matters. Another type of checking account which you can go for in your bank is the free checking account. If the checking account holder wish to save up their money and keep it safe in the bank than they can go for such type of checking accounts. In free checking account to are needed to maintain up the minimum balance which is considered to be the requirement of the bank’s rules and regulations.
- If you are not maintaining the minimum balance than there might be possibility that your checking account which you have opened in your bank can get closed and further can be charged up with amount of penalty fees which cannot sound in the favor of the checking account holder. Well, this account can be considered to be more appropriate for the teens and the students who are thinking for going for such type of checking account. Another type of checking account which you can go for is the interest bearing checking account. Well, this account is needed to maintain the minimum balance which can help you in keeping this checking account.
- Not only juts the need of keeping the minimum balance in the account but to also comply with keeping more amounts in the account so that can you can easily avoid the service fee which is being charged. Well, in this type of accounts, some of the banks p[ay the flat interest rate or some of the banks gives the privilege of increasing the interest rate if the amount of money is maintained higher than. The interest rate which you can get on your checking account is 2% and while some of the banks also provide 1% of interest which is obviously low as compared to the savings and the fixed accounts in your bank.