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Investing? It May Be The Key To Unlocking Your Future

December 30th, 2016 Posted in financial education, learning about money, Money Tips
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The future’s a scary place isn’t it. Human beings have an inquisitive nature and need to know the facts; they need the knowledge to ground them. Unfortunately, we can’t predict the future, and that’s a terrifying concept for most.

Especially when money is concerned.

Everyone wants to know that their finances will improve in the future. Everyone wants to know that their hard-earned cash is safe. There’s no straight and clear answer here, but there’s a number of things you can do to take a peek and see what the future holds.

Chief among them, is investing your money. An investment is something you put your cash into in the hope that there will be a profitable return. Simply putting cash into a savings account is an investment. Other investments are bonds, shares, and property. Running a set of investments is called a portfolio.

Unfortunately, investment isn’t risk-free. Banks can fail, and markets can fall through. That has happened and may happen again. It’s not a blind gamble, though; there is an entire archive of information available to you about investing. There’s always going to be risk, though. That’s where the portfolio comes in.

Spreading your investments across different subjects is going to not only increase your chances of success, it’s going to stabilise your income so you don’t suffer when one aspect is under performing.

Firstly, you’re going to need some starting capital to invest. Ideally, this should be around $3,500. This is so you can access the basic Vanguard funds to provide you with more options. You will need to scrimp and save to build your starting fund, and this will be hard work, but the benefits will be worth it.

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Whilst you can put your money into funds, you can also put your money into real, tangible assets. You can purchase gold bullion, which will be stored in a vault for you or you can purchase a property. Either way, they are an investment and options for diversification.

If you would like to find about more about investing in gold take a look at Gold IRA Strategy, Tips, & Rules (The Ultimate Guide) by Sarah Smith

A property investment might be a great option for you. Not only will you hold the deed to a location and a real thing, but it can constantly earn money from you. You can rent this out to commercial or residential tenants and the rent they pay back to you goes to paying off the mortgage on the site. Not only that, but the surplus is your profit. It’s a big responsibility, though, as you’ve got to keep your tenants happy, less they move to a better site and leave you empty handed. Property is huge and diverse and could see you investing into ranches and farms one year before moving over to something like a 1031Gateway property the next.

Investing is a huge world and something that never ends. Although you can’t predict where your cash will end up, it can allow you to peek behind the curtain of your financial future and allow you to have slight control over your future. Do your research and let investing give you a secure future.

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Frustrating Finances: Three Reasons That You Might Be Having Money Problems

December 30th, 2016 Posted in Money Tips
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Picture From Flickrmoney problems - cutting up dollar bills image

It’s pretty common to worry about money. In fact, it might be the most common cause of worry and anxiety that there is. People’s financial situation is constantly hanging over their heads, causing them to fret over even the simplest decision. If things get really bad, it can stop people from feeling able even to open their mail a lot of the time. Once things have reached that point, then it’s become pretty clear that things can’t go on as they have been and something has to be done. The problem is that it’s very difficult to know where to start. The answer is actually rather straightforward and obvious. Before you can solve any of your financial problems, you’ve got to be able to identify exactly what it is that’s causing them. Of course, there are plenty of potential reasons that you might have some money troubles. Here are just a few and how you can deal with them to get yourself back on track.

Out of control spending

This is by far the most common cause of a lot of people’s financial woes. In reality, most of us don’t actually realise how much money we’re spending on a day to day basis. You might think that a small purchase here and there won’t make any difference at all. After all, what are a few dollars count for in the grand scheme of things? While this might be true, the problem is that those few dollars start to add up over time. The only way to get this under control is to start budgeting more carefully. If you are able to keep track of your money, then you’ll probably discover that over time, those little purchases add up to a pretty significant sum of money that you could be using much more sensibly.

Debt

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Debt can have awful effects on you beyond just your bank balance. It can have some serious, long-lasting psychological implications as well. After a certain point, dealing with large amounts of debt can make it feel impossible ever to get yourself out the financial situation that you’re in. Not only that but debt has catastrophic effects on your credit score. A lot of people tend not to think about their credit score, but a bad one can set you back pretty badly. This includes making it harder to get approved for a loan as well as discouraging landlords from accepting you as a tenant. Check out yourcreditblog.com for more details on how to check up on and improve your credit score.

Household bills

A lot of people don’t realize just how much less they could be paying for their household bills. By making just a few simple changes to your lifestyle, you can cut your energy bills by as much as half! Far too many people waste huge amounts of heat and electricity that basically counts as money down the drain. Look into ways to save energy and you will find that your general monthly outgoings go down significantly.

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Buying A New Property? Not So Fast

December 29th, 2016 Posted in learning about money, Money Tips
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There are a few things that you’ll need to consider before you head onto the property market in search of a new home for your family. If you don’t think about these issues now, you might run into problems further down the road. Let’s look at some of the problems that you might have to deal with.

Raising The Cash

Do you have enough money to buy the home you want? You can usually buy a home with roughly five percent of the asking value. But you should really aim for roughly twenty-five percent of the asking value to put down as a deposit. This will give you access to some of the best mortgage deals on the market. That will ultimately cut the cost of buying your home in the long term.

Paying The Repayments

Next, you need to think about the cost of the repayments. Don’t forget, these can end up being a lot more than what the house was worth. Particularly, if you have to deal with nasty levels of interest. That’s why you need to check your mortgage deal carefully before you buy. A lot of people run into financial issues because they didn’t understand how much they would owe for the home.

Checking The Home

You do need to perform an extensive check on the home before you even think about buying. There can be a lot of issues, particularly with a home that isn’t brand new. The following infographic has all the problem areas that you might need to watch out for.

 


Infographic Designed By SPI Property Inspections

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Investing In Property Can Be So Simple A Child Could Do It!

December 29th, 2016 Posted in financial education, financial literacy, kids and money
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investing in property - house image

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You might think that investing in property is quite complicated. After all, you will be dealing with large amounts of capital particularly when you’re buying homes or even apartment buildings. But if you make the right choices this form of investment could be a lot more simple than you ever imagined. Let’s start by thinking about finding the property you want to buy.

Finding The Right Property

When you go on the hunt for a property investment, you are looking for it to tick off a number of boxes. It needs to be selling at the right price which means you should be able to afford it with the money in your bank account. It needs to be in a great area that is thriving and has an infrastructure in active development. It should be in an area where the crime rate is low, and the community spirit is high to encourage buyers to invest. Or tenants to choose it as their new place to live. Most importantly of all, it should have massive potential to increase dramatically in value. How do you find a property like this? The best way is to get in contact with a property broker. They will present you with the best investments on the market right now that match your budget. Thus, you can make sure that you find and take advantage of a fantastic opportunity.

Fixing It Up

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Once you’ve bought the property you then need to think about fixing it up and making it look attractive. Either to tenants who are looking to rent it out or to buyers who are hoping to turn into their own dream investment. You can fix up a property with very little trouble at all. You just need to make sure that you are hiring licensed contractors and designers. This will ensure that any work you complete on the property is above board and legal. It will mean you can avoid getting financial headaches further down the road. It’s always a possibility but one that is easily avoidable if you hire the right team to work on your property. One thing you want to avoid is too much DIY work. While this can seem like a way to save money, if you’re not skilled or qualified it can lead to the same problem.

Managing The Property

If you’re investing in a property to lease it out you do need to think about management. But this can be easy too because you can use a residential property management service. This will ensure that your property is always well maintained and looked after even if you don’t have time. We know what you’re thinking. Is that just another additional cost? Indeed, but it will save you from the financial issues that develop when a property needs emergency work. With the right service, it will never reach this point.

Keeping It Modern

Lastly, you do want to but a small amount of cash to the side each year for upgrades and improvements the property. This will ensure that you have enough to keep the building looking modern and contemporary. Depending on the size of the building, a few thousand should be enough to cover this.

That’s all there is to it. You see, investing in property can really be so simple you could put your child in charge of this investment.

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Teaching Teens About Investment: The Basics

December 23rd, 2016 Posted in financial education, financial literacy for kids, kids and money, teaching children about money, teaching kids about money, teaching students about money
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As a parent with teenagers, you are likely to be worried about their financial futures. If economists are to be believed, millennials could be about to become the first ever generation to be less well off than their parents – so there is obvious cause for concern.

It has never been more important, then, to teach your young adult children the vital importance of saving – and investing in their future. I’ve put together a few ideas which should help you explain – and demonstrate – some of the concepts of investment to your teens.

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Develop their interest in world affairs

Knowledge of global events and their impact on the markets is critical for investors, so encourage your teen to keep in touch with the news. OK, so if you are anything like the average family, your teens are likely to turn off when the news comes on. But, you mustn’t mistake this for disinterest in current and world affairs. There is a good chance that your teens have a keen interest in what’s going on in the world they just choose not to listen to a mainstream voice. Encourage it, of course, but start telling them the benefits of fact-checking and investigating sources. It will prove to be hugely beneficial when it comes to the day they start making investments.

Offer them allowance deals

If you are still giving your teen a weekly allowance, see if you can show them the benefits of putting money way and saving it. For example, let’s say you give them $10 each week. You could suggest that if they gave you back half and save it for 6 months, you would match what they have kept back, doubling their money. Not only will it show them the value of putting money away, but it will also teach them a little about interest and making their money work harder.

Get started on real estate

Buying and selling homes isn’t something your kids will be doing for a while yet. But that doesn’t mean it isn’t a subject you should be discussing. Educational games can help the younger ones, and Monopoly is always a great way to introduce the concept of investing money in property to get more back. If you have the money, you could, potentially, look around for cheap homes for sale, buy one, and let them run it as a business – assuming they are old enough, of course. There’s nothing to stop you from investing in property as a family business, either. You could, perhaps, give everyone tasks they are responsible for and pay them out of any profits earned. Finally, ask their advice. Too many households shield finances from their kids, but being open and honest will help them learn and, most importantly, ask questions.

Talk about the stock markets

Teens love modern technology and big brands – and there is a perfect chance there for you to take their interest further. You could even set them up with a little stock to play with, and see how the markets fluctuate for themselves. As long as your teens have a grasp of money and are interested in the subject matter, it should be easy enough to peak their interest in the relevant markets.

Do you have any suggestions on how to teach teens about investment? Let me know your thoughts in the comments!

 

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