Category Archives: finance

5 Important Things to Know Before Taking a Personal Loan

While applying for a personal loan, it is for you to take into consideration factors like your credit score, interest rate, and other fees and charges. Examining these criteria ensures that you make a decision that’s best for you. It also prevents you from making mistakes such as selecting the wrong lender, opting for an inconvenient tenor, or borrowing more than you need.

So take the time to examine these five aspects before applying for a personal loan:

1. Maintain a good credit history

  • A credit score or CIBIL score the is a representation of your creditworthiness, based on your history of credit repayment. The CIBIL score ranges from 300 – 900, and a score above 750 is considered ideal. A lower credit score signifies bad debt management and may result in your loan application being rejected or you paying a higher interest rate on your loan.
  • You can maintain a good credit score by simply paying your dues on time, a good way of ensuring this by automating your payments.
  • Another important way of this is by reducing the number of credit cards used and ensuring that you continue to use your old credit card with a good credit history. It is also important that you never exceed more than 30% of credit utilisation.

2. Compare the interest rates in the market

  • Comparing the interest rates offered by various lenders ensures that you get the lowest rate. You can easily compare the rates offered by different financial institutions on websites like Paisabazaar, Bankbazaar, Myloancare, etc.
  • This enables you to select a personal loan at the lowest interest rate and a type of interest that is best for you, making the repayment of EMI on your loan easier.

3. Assess all costs

  • When borrowing a loan, there can be numerous costs like processing fee, prepayment fee, and late payment fee involved. This cost is initially incurred by the lender but gets added to the amount that you’re supposed to repay.
  • Before applying for a loan, look into the various fees that your lender charges to get a clear estimate of the expenditure.
  • This can help you manage your finances better and help you decide whether the loan is affordable.

4. Consider your needs to arrive at the right loan amount

  • Make a list of all your needs and requirements and then prioritise which of the needs you are going to finance with a loan.
  • Some common purposes for taking a personal loan are to buy a vehicle, finance a wedding, or plan a holiday.
  • Based on the prices and expenses associated with your needs, you can decide the amount that you need to borrow. If your monetary needs are unpredictable, consider opting for a personal line of credit.

5. Evaluate your ability to repay the loan

  • Before borrowing a loan, prepare for its repayment. You can do this by routing income from investments towards EMI payments.
  • But, you should also ensure that your income is enough to repay the loan.
  • You must also consider other financial obligations and debt repayment before borrowing a loan to avoid financial confusion later on.

6. Avoid falling for gimmicky offers and plans

  • There are lenders all across the market that offer artificially low interest rates or gimmicky schemes.
  • When you check the fine print, these loans often turn out to be more expensive than expected. Also, at times, they are based on floating rates of interest. This makes the interest rate appear low initially but, as time passes, it can increase substantially.
  • Some providers also bury costs and charges in paperwork. Find a lender who is transparent for the best personal loan experience.

How to Apply Home Loan?

A home is something which every individual desires but there are several challenges that you will meet on the way before living in your own house. Even though the problems are largely financial the options of home loans that are offered by banks and different financial institutions can mitigate your troubles to a great extent. After all it is a decision of a lifetime and the way in which property prices have spiraled during the recent years require you opt for a bigger amount for securing the right home. As a matter of fact, it is to secure a loan at first which clears the way to living in the home.

Choosing the lender

Of the multiple options of Home Loan that are available in the market, your choice of the lender is the key to success. Whether to secure the loan or a bank depends on your financial status. You need to carry out deep research before narrowing down the list of lenders that offer loans in the market. Not only will you come across banks with different criteria but there are private financial institutions that will offer you the amount you need to invest in a home. You need to set your finances right before starting the research and choosing the lender.

Finding the rates

The thing that boggles your mind is the rates of the loan which you need to pay. You can try to find out the prevailing rates of this loan and how it differs from one bank to another for preparing a detailed report. However, the search does not end here as you need to take a look at the floating and fixed rates. If you are not aware the floating rates works put to be a cheaper option than the fixed rates as it remains same throughout the tenure. To get the Get the Best Secured Home Loan you need to have a deal with a trusted financial institution. Finding the right source of finance is the essence of constructing a home.

Following the verification

As soon as you locate the home that you want to purchase there are things that you need to remember and the priority falls on verification. If the financial institution does not belong to the regulatory association you have every reason to doubt the agency. It is not enough to get the clarification from the institution of finance but you need to get to the core to know the truth. While you need to be reliable to the agency, you must also have sufficient reasons to depend on them and the expert loan givers.

Reading the document

After studying the details carefully, you can decide to secure loan from a bank but no matter how trusted the source of loan may be, you need to read between the lines and understand every word before signing on the dotted lines. A lot of people sign on the agreement blindly without studying the terms and conditions. Whether it is the schedule of repayment that you need to follow or the collateral that you need to establish everything must fall in place according to the verbal discussions which you had with the financial institution.

Financial Skills – How to Budget & Balance Accounts

I was surprised when I asked parents to tell me the life skills they wish their kids knew, and there was a resounding request for a few topics:

  • How to open a bank account
  • How to budget & balance accounts
  • How to write checks and pay bills
  • And how to start saving for retirement

It seems some of the things we take for granted are, as a result, missing from what we teach kids.In the last article, we focused on opening a bank account. This article is the second article in the four-part series and will look at how to teach kids to budget and balance their accounts.

Budgeting

It’s not shock that budgeting can be boring and tedious. I’ve personally never been excited to sit down and create my budgets, but it’s something that creates wealth and pays off down the road.

So how do you get kids excited about it? How can you add a little glamour to something so dull and boring? Easy – make it a game with payoffs.

Firstly, it’s important to know how to create a budget, then to adhere to the budget.

Creating a Budget

You may have your own way to create a budget, and that’s fine. In my experience, the easiest way to make a budget is as follows:

On a piece of paper, draw a line down the middle:

  1. Spending BudgetCalculate your average monthly gross income and put that at the top of the page, then multiply it by.80 (for example, if you earned $1,000, you would end up with $800)
  2. Fixed ExpensesWrite down all of your FIXED expense categories (i.e. phone bill, insurance, mortgage etc… ) and put them in one column on the left side of the page
  3. Variable ExpensesNext write in the variable expense categories (i.e. food, gas, leisure, etc… ) and put them in another column on the right side of the page
  4. Fill in all of your expenses
  5. Net Budget after Fixed Expenses – Subtract fixed expenses from your spending budget If it’s a positive number, you don’t need to change anything If it’s zero or a negative number, you should look for expenses that you can cut or lower
  6. Budget variable expenses – Using your Net Budget after fixed expenses, determine what you can spend on variable expenses without overspending each month
  7. Set a budget for each variable expense so you know what you can spend on each category in a given month

Making it FunOK, now that you have a budget outline, it’s time to get the kids excited.

I know what you’re thinking: “My kids will never be excited for this.”

They will if you give them some prizes or payoffs. Here’s how:

First, tell them what a budget is and show them the paper. Next, tell them that you’re going to do a contest (if you have more than one kid, this works even better).

Contest 1: Anticipating Spending

The first contest is to see how close they can budget their money to reach a break-even or $0 over the course of a month. In other words, the goal is to predict your spending as close to the penny as possible.

If you have more than one kid person that gets the closest to break-even without going negative wins a prize. With just one kid, tell them that they get $5 or $10 if they reach break-even, and every penny they are off, you deduct 10ȼ

Contest 2 – Saving After Spending

The second contest is to see how well they can budget their money over the next 30 days. If they can save money, tell them you will give them whatever they save. That means if they save $5, you’ll give them another $5 (just like companies matching a person’s 401K contribution).

If you have more than one kid, tell them whoever is able to save the most will win and get a special prize. You will obviously choose the prize since you know your kids best.

Coming Soon

In the next article, we’ll discuss how to write checks and pay bills. You will also learn how to combine check-writing with these contests to simulate the real world of budgeting for your kids.

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a simple plan flashlights

Many of our clients are young individuals that would consider themselves fairly educated investors. But being educated on the stock market or on the bond market simply isn’t enough to ensure that your current and future investments give you the return that you are seeking. Not only must you be constantly aware of what is going on in the markets, but you need also to be conscious of what time of investments you should be making during each period of your life. When gambling in a risky market such as the stock market, individuals investing for themselves need to know the basic analytics necessary to achieve success. It is also crucial to know how you should be balancing your accounts, and how to properly manage them.

When analyzing stocks to purchase there are about a million different factors that need to be considered, and every stock analyst will go on to tell you their personal opinion on which statistics are best to consider before making a purchase. The truth in the matter is that at the end of the day the stock market is just legal gambling that is truly unpredictable. Yes, there are ways to possibly see what the future of companies will hold when examining some stocks, but if you don’t spend the majority of each day educating yourself on the markets, you probably won’t have an idea on what the future holds for most companies.

A few key elements to analyze when making a stock portfolio are the Beta, dividends paid, and the company’s earnings. The beta provides you with an idea of how that particular stock will be affected with a change in the economy and stock market as a whole. A proper stock portfolio built for success should have stocks with a wide range of betas. This can ensure protection over your account if there is ever another stock market crash. It can also provide you with protection while the stock market is progressively moving forward at a solid rate. Dividends are definitely something to be considered when making a stock purchase. Either companies can choose to pay out dividends to their shareholders or they can dump that money back into the operation to try to improve their business.

Many people like dividends when purchasing stocks for the short-term. We all know that stocks are meant to be a long-term investment, but many people still try to profit off of them in the short-term. Personally, I do not invest in many companies that pay large dividends to their shareholders because I’d prefer them to use that money to grow their business and drive their stock price as high as possible. Don’t get me wrong, money now is always better than money later, but when trying to optimize a long-term investment I’d rather be patient and watch the company’s success go through the roof in a few years than make an extra five dollars per stock each year right now. Always prepare before you make a choice. There is so much info about 1binaryoptions at http://1binaryoptions.eu

3 Tips for Sending Money Overseas

Sending money overseas might sound straightforward enough, but without proper planning and research, you could end up losing a lot to fees and poor exchange rates. Particularly if you are buying property abroad or regularly sending money overseas, the differences can become very significant. Don’t be tempted to simply go to your local branch or log into online banking to send a large sum of money, since you’ll invariably end up spending a lot more.

1 – Get a Favourable Exchange Rate

Exchange rates fluctuate all the time, and even a day or two could make a significant difference, particularly with larger transactions. It is important not to take the exchange rates quoted in Google, XE and other such services too seriously, since these typically reflect the best possible rates which, in practical terms, are usually unattainable for consumers. High-street banks rarely have very attractive exchange rates, so transferring large amounts of money by way of a direct transfer will often end up costing you a lot more than you need to pay.

2 – Find the Lowest Fees

Do not be tempted to automatically go for the option with the lowest fees, since you’ll probably end up getting a very bad exchange rate. Consider, for example, the currency exchange offices that you find in airports. They invariably advertise the fact that they don’t charge a commission, but the exchange rate tends to be so poor that you’ll actually end up spending much more. Most foreign exchange companies charge a set one-time fee for each transfer rather than a percentage but, to get the best deal, you’ll want to transfer higher amounts. If you plan to send money overseas on a regular basis, it may even be more suitable to go with a company that charges a monthly or annual set fee.

3 – Don’t Neglect Security

As with any banking activity, you’ll want to prioritize safety and security to ensure your money is in good hands. Always ensure that any international currency exchange service you use is fully licensed and regulated and that they are insured should something go wrong. Fortunately, it shouldn’t take long to find a reliable and trustworthy company given the wealth of information available online. Before making any commitment, be sure to read some reviews, and always familiarize yourself with the small print. If, for some reason, your money goes missing or takes a long time to get to its destination, you need to have guarantees that you’ll be adequately compensated.

Final Words

The most suitable option for sending money overseas will depend entirely on your particular situation. If, on the other hand, you need to transfer a large amount of money, you’ll likely be better off using a foreign exchange broker and targeting a more favourable exchange rate. As always, be sure to compare the options online and get multiple quotes to find the most suitable option.

Money Transfer Technologies

Advances in technology and the development of the Internet are changing the way people transfer money. With all these technological developments, moving money is simpler than before. Earlier, transferring money meant a visit to the bank. But that is no longer needed as there are various technologies in play to make money transfer easy and convenient.

Alternative Payment Services: Several websites allow you to transfer money through email, eliminating the need to reveal your bank account and credit card information online. Although online transfers have wide online security and fraud-prevention measures, they are not foolproof. Complaints like phishing scams, hacked accounts and identity theft are quite common.

Donation Texts: The use of text messages to transfer money became popular, when the American Red Cross used this technology to raise over $22 million in hurricane relief fund for Haiti. On the flip side, this technology is risky and scammers misuse this tool by asking people to text money to illegitimate numbers. Always check the organization’s website to confirm that the number you are texting is associated with the cause are supporting.

Bumping Phones: Mobile phones are fast replacing the wallet and on-the-go digital money transfers are becoming commonplace. Now, you can send and receive money by just bumping Smartphones together. Technologies include Bluetooth and near field communication (NFC, a set of procedures that allow Smartphones to establish radio communication with each other by touching them together or bringing them close to each other at a distance of 10 cm or less). Though, the risk of unauthorised payments from a stolen phone is yet to completely be addressed.

Remote Deposit: This technology allows you to deposit cheques from anywhere. Many Smartphone applications allow you to take a photo of the front and back of a cheque and download it into your account. While this process is secure, there may be concerns about the consequences if the phone is stolen or if financial information is intercepted. The remote cheques are not stored on the phone, and the data is encoded as it goes from the mobile phone to the bank’s computer system.

Mobile Magnetic Stripe Readers: These are small scanners that can be attached to Smartphones. Busy individuals, can just swipe credit cards on the scanner and the money is transferred.

Online Finance Services – Power To The People

In this day and age, every second, new ways of empowering the common-folk are being discovered. The most sought-after mechanisms are being seen in the financial sector, especially in internet finance. With banking getting more and more complicatedly cumbersome, easier methods are being designed to provide the public with “money” as and when they need it and wherever they need it.

Trending today is the very well-known concept of digital currency. Though there are still apprehensions about its use, it has taken the world with a sweep and gained popularity because of the convenience it has to offer. An example of digital currency would be the popular Bitcoin. Many online merchant websites have accepted bitcoin as the form of payment for making purchases from their website.

This type of currency does not require any identification on the part of a purchaser; therefore animosity is one chief benefit that it has to offer. In the form of investment, Bitcoins have proven to be profitable. This is because of the reason that its price in Dollar equivalents has been on the rise ever since its conception. If you own two Bitcoins that have a net present worth of $800, by the end of the year this price has all the possibility of rising up to $1000 for two Bitcoins. Thus, you can either use your Bitcoins for online transactions or keep them safe as an investment for your rainy days.

Another convenience in this box has the name of mobile payment systems. You must have heard of Google Wallet, or something similar from other global corporations. With the advent of payment systems such as these, it has become highly probable to enter a cashless future very soon. Currency has undergone drastic changes in this era – morphing from cash to cheques, from cheques to debit and credits, from that to finally online wallets. This wallet is the online phone-app version of your bank account. In every sense, it is a wallet, only it exists digitally. Whatever purchases you make through your phone or over the Internet, this wallet enables you to pay for those purchases, removing from the loop all the banking-paperwork otherwise required. These payments are not just limited to Internet. The NFC technology enables you to check-out of physical counters by a touch of your smartphones, although this method has attracted scepticism. Either way, convenience is convenience. It is safer for you if you don’t carry much cash around. Just use your smartphone.

Finance over the internet has plunged into another very fascinating service – the crowdfunder. This concept is by far the most useful of all, because it enables entrepreneurs to gather online and share funds for their business. Elaborating it further, it means that if five people are interested in setting up a, say, online shopping business, but are short on funds individually – they can come together on a crowdfunding website and combine their money in a partnership. This way, they all get what they want, including the money to start their business. These people can also decide to share their funds with some other entrepreneur to help him get started. The internet has thus changed the scene of financing sector.

To get more crowdfunding news, visit Moneysedge.com

Monica Baggins is an expert when it comes to new age online finance solutions. She loves writing interesting articles and blogs, helping people in understanding what these services are all about. She recommends MoneysEdge.com as the name to trust for the latest reports on Bitcoin currency, e-wallets and crowdfunding news.

Finance Management of Small Business

Managing finances in a business is among the few important things that need to be considered when starting and carrying out a business. It is all about efficiently and effectively utilizing available funds in order to achieve the objectives of the business. Financial management is aimed at planning, observing, organizing and managing the monetary resources of a business.

Small business finance management strategies

Small business finance management is mostly concerned with procurement, allocation and control of financial resources so that a regular and adequate supply of funds is maintained to run a business. Once the funds are in hand, they should be utilized in maximum possible ways at low costs and should be invested intelligently in safe ventures. A few tips that can help you efficiently use your funds while running a small business are:

    • In the initial years of managing a small business, you need to estimate how much money you need for a decent living and pull out that money from your business income. Now invest the remaining money back into your business for its growth.

 

    • Early wins in the form of high profits may urge you to spend it on leisure holidaying or improve your housing status. You need to be firm and defend yourself against such ideas and wait till your business gets a little more established.

 

    • The main expense in a business is covering the payroll of your staff. It is advisable not to hire new employees unless you absolutely need them. When things get busy and a lot of work pressure builds up, you may get tempted to hire more people. Try and stretch the existing staff members to their full potential to get through the workload and hire only if necessary.

 

    • Try and save up money on applying for loans and procuring inventory. Taking up loans from banks is a common practice in the business world, but it carries an extra cost of its own in the form of interest you pay while returning. Reducing this extra cost can help you add up and save more money in the long run. This can be done by dividing the total money you need as loan and borrowing it in parts over a period of time. This reduces the overall amount of interest you pay back to the bank. Borrowing the entire amount at once will result in you paying interest for the money you are not going to use till later time.

 

    • Keep the money separate for paying the taxes and avoid mixing it with other funds. Paying taxes is of utmost importance and since that money is meant to be given away, it should not be kept or used for other purposes.

 

  • Bargain the terms of the agreement with the outside contractors and vendors like delivery services, electrician etc., such that you get a grace period in paying your bills. This grace period can be used to manage your funds and prioritize your other bills more efficiently.

Vacations – Investing in Yourself

Many people’s financial plans emphasize frugality today for prosperity tomorrow.

Preparing for the future is much easier when we’re enjoying the present.

There are many good reasons to take a vacation – taking some time away from the stresses of work and daily life to focus on spending time engaging in stimulating (or relaxing) activities with family members and friends in a new setting can recharge your batteries. It will give you added perspective on your life and work, and you’ll return to your regular routine invigorated and more productive. And your health can be greatly improved.

Prolonged periods of work without a vacation have been shown to have numerous medical consequences – people who are “all work and no play” become irritable and inattentive, and are more likely to have accidents on the job. They are at higher risk of cardiovascular problems, depression, anxiety, and other illnesses, both physical and mental.

Your financial plan should be flexible enough that you don’t need to save every last dollar you make for retirement. Life is about balance, just like vacations are about balance. By helping you make wise budgetary decisions, you achieve a balance by making judicious investments – in both your financial future and your happiness today.

Working with a financial planner will help you need to determine your individual needs and wants (such as going away on a family vacation). The financial planner will also assist in developing a a financial plan that fits your personality, and investment goals.

Financial Irrelevance to God by Those Missing the Real Treasure

Money is manmade and has nothing to do with the way God sees the world. Wealth is an addiction created by greed and those who engage in it are unlikely to be a part of the inheritance of the great treasure at the end of the day. Following my reincarnation and with a strong link to the Spirit of the Universe, the only real God, it commissioned me to tear down the wall of blindness and bring in the harvest. In a vision a great treasure was shown to me buried deep under the ground.

The meaning of the treasure haunted me for some two to three weeks and my pleas to be shown what it implied had no effect. That is until one day while praying with a minister at the Order of St. Luke’s Healing Service where we each asked for something special. He asked for the healing of one of his charges in a nursing home. My request was to be shown the meaning of the treasure.

On the way home the Spirit led me by a different route which took me past a friend’s house. She is a spiritual person and we were often drawn together for the purpose of serving God. Nearing her door the tears started and they were flowing full pelt when she opened it. Ushering me into her lounge room the tongues started and they poured from my mouth in an unstoppable fashion.

As soon as they ceased my friend jumped to her feet with the interpretation. The Spirit told us that the treasure was buried by the churches and that they lie and hide the truth. It informed us that it would be I who would unearth the treasure and return it to the children from whence it was stolen.

Over months of working in the Spirit and with healing miracles part of my work the treasure has been shown to me. It is the truth and the knowledge of how religions have stolen the name of the real God and given it to the false God of religion, Jesus Christ. He was the image put up by Constantine who established the Catholic Church in 325 AD.

The wall was built by the first beast, the sun, and strengthened by the emperor who was an Amorite by inheritance. The Amors inhabited Babylon and stylised the sun-star into a woman named Mary. Men considered they could ‘marry’ Mary by dying on a cross at dawn and rising with the sun into the heavens. Constantine reinstated her as the Mother of God and his new religion was based on it and the Islamic rituals of Islam.

He buried the treasure by denying the children of Israel the truth and he hid the way to gain access to the Spirit of the Universe. The Vatican then banned reincarnation and anyone who went against its orders were murdered. The emperor introduced the systems that control governments, the law, military, religions, and the economy. He is 666 and identified as such in a vision shown to me and in Revelation 13:18. Money continues to separate those seeking knowledge of God from the Spirit.