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Personal Finance

How to Improve Your Finances Once You’ve Been Treated for Drug Addiction

When you’re dealing with a drug addiction, it’s easy to see how this can take a toll on your health and well-being. What many people don’t realize about drug addiction is that it can literally ravish your financial standing and cause you to deal with money problems that you’ve probably never faced before. Many drug addicts are so broke that they are forced to live with friends, family and even on the street. Overcoming and being treated for a drug addiction is crucial to stopping the vicious cycle of being paid and spending that money on drugs, but work needs to be done afterwards to ensure that your finances fall back on track.

Why Finances Can Be a Problem After Drug Addiction

There’s a pretty good chance that if you were once addicted to drugs, that you spent a good majority of your income on the drugs that were being used. Whether these includes illegal street drugs or prescription drugs, the price you paid for drugs was probably extravagant and exhausted all of your finances in practically no time. Other people with addiction problems borrowed money from friends, family or even lenders so that they could keep up with their addiction. This results in having to pay back all of these people so that your credit isn’t destroyed in the process.

Where to Start

The best thing to start with is to stop the vicious cycle of spending your income on drugs. If you haven’t already gone for drug treatment, now is the time to do so. If you have gone for treatment but are relapsing, it’s crucial that you seek help as soon as feasibly possible. Next, you’ll want to start by taking account of all of your finances and bills. If need be, rely on government assistance programs so that you can get yourself back on your feet. For example, staying in a halfway house after drug treatment is often free or incredibly low cost, so you will have the opportunity to save up money while staying there.

Understanding Relapse

Many people believe that relapsing is part of overcoming a drug addiction. Understand that relapsing can be long-term and short-term. If you’re noticing that you’re beginning to relapse, seek help right away so that you do not go back down the path where you’re spending all of your money on drugs. Most drug treatment programs will prepare individuals for relapse and what they need to do in order to get out of the addiction quickly once relapse occurs.

Working with a Financial Adviser

Financial advisers often charge for their services, but they can be a viable option for those who have had their finances ravished by a drug addiction. The adviser is going to be the one to help you work through the income you’re currently earning and then put some towards renting an apartment or buying a home. They can also help with investing, which is crucial if you are starting out with a small amount of money and need it to grow as quickly as possible.

Working and Assistance

It is essential that you work after coming out of a drug addiction. This is because you will probably not have much income coming in and will need the money to continue your life and begin living a life that is drug-free. While many jobs do background checks, it is best to be totally honest about your past so that nothing comes up as a surprise when the company is running a background check. If you’ve had issues with drugs before, many government assistance programs will not only help you financially, but they will help with housing as well as helping to get you a job that provides a regular income for you. Most drug treatment programs will automatically sign you up for this type of help, but if they do not, it is important that you look at what is readily available to you so that you can take advantage of this to get back on your feet.

Drug addictions can be a major problem because it affects your health and your entire life. You will also find that after having an addiction problem, it’s difficult for you to get back to where you’re living a financially stable life. In order for you to do this, it is important that you work diligently on your finances right after coming out of treatment. This involves finding work, getting help from both a financial adviser and government addiction programs as well as asking for help when and where you need it. If you have a lot of debt that has accumulated because of a drug addiction problem, you might also want to think about working with a debt consolidation firm so that they can get it to where you either owe nothing or you owe a lot less than what you might have if you had never contacted them. Now is the time to get your life back and know that you’ll be back on your feet in no time.

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Personal Finance

4 Golden Rules Of Personal Money Management That You Need To Know

Personal money management is all about how you manage your finance, invest your money and control your spending habits. It is something that you don’t get to learn from school but learn from your experience. It might take some years to become a pro with personal money management but learning the basics is easy. To get started, let us understand the basics of personal money management that will help you to get a groove of your money. Once you get started with the basics then you will be able to create a budget that works for you and start saving & investing money.

We share with you 4 golden rules of personal money management that you need to know for a better financial future. Let us understand how these 4 rules would help you to manage your finances in a well-organized way to leave some room for savings and investment.

The 4 Golden rules of Personal Money Management:

#1. Know the basics of personal money management

You would have grown up learning the basics of maths but not aware of the basics of money management. The basics are as simple as it sounds. In short, your mindset and your habits would define your financial future. Let us start with the basics first:

• Your expenses should never exceed your income

Are you spending more than what you earn and falling in the heap of debts? Then its time to analyze your expenses and know where your hard-earned money goes at the end of the month. If you spend less than you earn, then you’ll have some money left which you can use wisely (either save or invest or do both)

• Look for alternate ways to get more income

Never get satisfied with one income if you wish to become financially secure. You can get second income through lots of ways such as share your knowledge and take tuitions, sell your art, write reviews, blogs etc. A second income would help you to clear off debts soon, reach your financial goals faster or have more savings.

• Start saving as soon as you start earning

The common mistake which everyone does is start saving only when retirement is nearing. If you start saving as soon as you start earning, you would end up retiring as a millionaire.

• Spend every penny wisely

Every penny you spend matters, so it’s better you spend it wisely. Spend on the things that you need and not want, there’s a thin line between both.

• Clear your debts before the deadlines

To avoid paying for the extra interest on the debts, clear off the debts before it crosses the deadlines.

#2. Create a workable budget and follow it

The next important rule is to create a workable budget and stick to it. All you need to do is list down your monthly expenses and income (in separate columns). Now, separate out the essentials such as rent, utilities, phone bills, groceries etc. Analyse the rest and look for the areas where you’re over-spending. Fix an amount to spend every month based on your income and the necessary expenses. For sure, you will be left with some money to save or invest. This is how you make a workable budget.

#3. Use the right tools in the right way

How to save money effectively- should you invest it on something or save in bank accounts? More than just saving money, it is important to do it in the right way.

• Look for investment options based on the risk you can afford

If you started managing your finances well, then you would be left with some savings. If are planning to invest it, then you need to know about the risks involved, profit share etc. You can invest that money in stocks, bonds etc. Before you decide on investing, know about the risks involved.

• Pick the bank that gives you better interest rates

When you choose to save in bank accounts, it’s essential to know about the interest rates, minimum fee, fixed deposits etc. Make a list of the local banks with the interest rates they offer and then choose the one that suits your needs.

#4. Start saving for the future, today

Don’t wait for the right time to start saving for your future. The simple motto is starting soon, save soon. When you’ve just started earning, it might look difficult to save. But even if you manage to put a $100 into your savings, it would make a huge difference in the long run.

Summing up:

Getting hold of your finances is not that easy and doesn’t happen in a day. You will notice a difference in the way you handle your finance, once you understand and follow the 4 golden rules of personal money management mentioned above.

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Personal Finance

5 Important Steps To Shape Yourpersonal Finance Management

What if there was a shortcut to handle money? We all would love to get the knack of it and would never get stressed with finances. Do you have the feeling the money just slips out of hand and there’s no room for savings? Then, all you need to do is scrutinize your financial records and know how to spend your money. Remember that it’s never too late to start especially when it comes to giving a new shape to your personal finance management. There are 5 important steps that will be able to help you with handling finance in a better way and become a pro with personal finance management.

If you feel you’re not able to manage your money, then it’s time to change the way you handle your finances. We share with you 5 essential steps that embark on analyzing your weak areas and shows how to improve in those areas for better personal finance management.

5 steps towards your personal finance management:

Step 1. Get rid of your debts as soon as you can

Debts should be the last thing you would want to have especially when you’re struggling with financial management. As it can ruin every plan of yours, it’s essential to get rid of your debts as soon as possible. Debts can add up in a single day but get rid of them might take years. The following steps would help you to make a debt management plan:

• List down the debts based on the amount and interest rates

• Start making payments towards the ones with higher interest rates and eliminate them soon

• Make minimum payments towards the rest and follow the same hierarchy

• Sell your unused stuff to pay for the debts

• A second job would also help to clear off debts soon

• Never fall into a new debt until you clear off the old ones

Step 2. Create financial goals to save for

Financial goals would keep you focused on your personal finance management and motivate you to save for something that you love or need. Your financial goal can be anything be it getting rid of debts, buying a home, a vacation etc. The next thing you would want to know is how to create financial goals.

How to create financial goals:

• List down the things you would want to do in life and spend your money on. Categorize it as a short-term or long-term goal.

• Prioritize each goal and fix an amount for it along with a timeline

• Start saving money based on the priorities

• For goals like saving for retirement, which is a long-term goal, you can get the benefits from your employer with IRA and 401(k) accounts.

Step 3. Know your weak areas and plan to reach your goals

Once you have your list of financial goals ready, the next step is to plan on how to reach the goals. Your financial plan should help you with saving money, getting out of debts and have a workable budget. It is very important to be steady and regular with the plan. You can see the results only when you follow it regularly.

The planning phase:

• The planning phase begins with analyzing your weak areas. Track down every expense you make to know where your money goes at the end of the month.

• Once you have the expense report ready, make a budget

• Now, look for ways to free up some cash and pay off the debts

• Meanwhile, start contributing towards the essentials such as emergency fund, retirement account etc. irrespective of the state of the financial plan

• Start investing money based on the risk you can afford to double up your savings

Step 4. Create a budget and stick to it

The personal financial management plan would work only when you’ve workable budget and you stick to it no matter what. A budget would help you to spend and save money effectively. You can even use budgeting apps to track your expenses and cut down on unnecessary spending.

Step 5. If in doubt, ask someone

When you’re all done with clearing debts and left with money to invest, then consult a financial advisor. You can even check with someone you know and trust, who deals with the same profession to guide you on investment options and financial management knacks as well. It’s good to ask someone and get guidance on the things that you don’t know or new to it.

Summing up:

No one is born perfect and same is the case with personal finance management. Every small mistake you do would surely teach you something. It is very important to channelize your focus on the way you handle every single dollar. Follow the 5 steps mentioned above and you will be able to see the difference in the way you handle your finances.

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Personal Finance

The Basics of Buying A Car

Buying a car can be an intimidating experience: you’re preparing to fork over a big chunk of your hard-earned savings; you’re committing to a significant monthly expense; and you might not know enough about cars to feel confident as a buyer. If you’re preparing to buy a car, whether new or used, these basic principles will help you when it’s time to make your purchase.

Basics of Buying A Car

Determine your must-haves

Make a list of must-haves and nice-to-haves, and then keep this information close by when it’s time to start shopping. Start by reflecting on why you need a car so that you can determine your priorities.

  • If you’ll be on the road a lot, fuel economy will be important so that you’re not wasting lots of money on gas.
  • If you’re driving in the city, you might want to consider a smaller car that will be easy to maneuver and park on congested roads.
  • If you have a family, space for car seats and strollers might be a priority.
  • If you take a lot of road trips, a navigation system could make your life a lot easier.

Create a budget

Owning a car isn’t cheap, but it shouldn’t break the bank either. Before you start looking at cars, its important to determine how much you can afford for a down payment as well as monthly car payments if required.

This is a good time to do some research on the true cost of car ownership; the average Canadian spends around $9000 a year on one vehicle. If you’re like most people, you need to plan for this expense. You’re not just budgeting for your monthly payments, but also for insurance payments, gas, regular maintenance, licensing and registration and emergency repairs. When you take these factors into consideration, you might realize that you need a lower monthly payment than you originally expected.

Do your research

It’s time to find your dream car! Using your budget and your list of must-haves as a roadmap, start looking into what makes and models best meet your needs. You can start by looking for the most popular cars (people are buying them for a reason) or the most cost-effective cars (your bank account will thank you). You can read reviews online, visit the dealership to ask your questions in person, and talk to friends and family about what they love and hate about their current vehicles. Compare how cars on your shortlist stack up to your budget, your must-haves and you’re nice-to-haves. Don’t forget to research car insurance options. You might be surprised to find that rates will vary from one insurer to the next, so don’t

settle for the first quote you get.

Go for a ride

Studies have shown that almost 16 percent of people forgo a test drive when buying a car, but you shouldn’t skip this important step. For new vehicles, it will give you a sense of whether or not you feel comfortable driving the car and will help you decide if it meets your expectations. When you’re stuck between two comparable options, the test drive might make the decision for you. Test driving becomes even more important when you’re buying a used car, as you’ll get a feel for whether or not there are little problems or quirks that the owner failed to mention.

Negotiate

For a lot of people, negotiating can be the toughest part of buying a car – but you might lose money if you skip this step. You’ve already done the groundwork for your negotiation through your research and budgeting: you know what questions to ask and what you can and can’t afford. Be prepared to say no to extras the dealer tries to tack onto your sale price and ask to cut administration fees. Also, you might be able to negotiate a better price depending on the timing of your purchase. Many dealers who are looking to make monthly or yearly quotas offer better deals at the end of the month or year, or during the winter when sales are slower. If you’re buying a used car, your research should give you an idea of whether the seller’s price is comparable to others in the market. You also might want to have the car inspected to determine if there are any pending repairs that will cost you additional money so you can knock those extra expenses off the sale price.

Whether you’re buying new or used, you’ll be investing a lot of money upfront and long-term to your purchase. This isn’t a decision that should be rushed, so take your time, do your research and commit to finding a car that you’ll love driving for the next few years.

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Personal Finance

8 Expert Financial Planning Tips For 2018

With the onset of New Year, it becomes a huge task to re-create or modify your financial goals for a better saving.  Everyone gear up to plan their financial goals so that the upcoming year yields better results than the previous. If you’re a beginner, then you might be baffled with where to begin.

Here are 8 financial planning tips from the leading financial planning thought professors and leaders that can guide you to take your financial planning to a noteworthy stage.

Financial Planning Tips

8 expert financial planning tips for a financially secure future:

Boost up your retirement savings:

The best thing that would make you financially secure is having enough savings in your retirement account (401(k) or IRA). There are simple yet powerful ways to boost your retirement savings.

Professor David Littell from the American college of Financial services, shares the 3 secrets to maximize your retirement savings. They are:

Secret 1:Put your savings on autopilot

In order to auto-transfer a part of your money towards your saving, you can choose from options such as paying down a mortgage, automatic monthly withdrawal from your checking account or salary deferrals to 401(k) plans.

Secret 2: Fully utilize the tax

Utilize the advantaged retirement vehicles such as IRAs and Roth IRAs to the best extent possible.

Secret 3: Shhhhh…..

The best thing to do is forget that you have this money!!!

Handle your debts wisely to become debt-free!

Each one of us wishes to be debt-free but might not have a strategy to work on. If you wish to stay clear of debts, then you need to have a strategic debt management plan. The debt management plan includes paying off the most expensive debt first and then followed by the less expensive ones.

Look for long-term investment plans

As stated by Professor Robert R. Johnson, President and CEO, The American college of financial services:

“Success in investments is a marathon and not a sprint.”

In the initial stages, you might look for options to get immediate return which is actually quite difficult. Firstly, you need to have an investment strategy and stick to it irrespective of the market conditions. The success in stock markets can be achieved by showing up and sticking to it for the long-term.

Engage your loved ones in money matters

It is always good to have transparency in any relationship especially in the context of money matters. Hiding financial secrets can have a negative impact on your relationship. Building a shared financial vision about future goals can strengthen your relationship and it would become easy if you have extra contributions to it. As a parent, take time for your kids to teach them about handling money as this can be a foundation to their upbringing.

How about reallocating your investments?

It’s never too late to reallocate your investments. If the current plan doesn’t work well for you, it’s no harm to try a different option. Keep an eye on the market trend and update your investment portfolio accordingly.

Review your insurance coverages

When did you review your insurance coverage last time?

If you haven’t thought about it, do it now and often on a regular basis. It is always better to ensure if the coverage amount is still consistent with your original needs. You need to review all the insurances that you have enrolled yourself in such as life insurance, health insurance, car insurance, disability insurance and house or any property insurance. Insurance is one of the crucial factors for a financially secure future. 

Find ways to maximize your flexible spending accounts(FSAs)

Most employers offer a range of flexible spending accounts (FSAs) such as dependent care costs, medical expenses etc. It would be wise of you to make the best use of these options and grab it once offered. The best thing about saving in these accounts is that there is no tax for this money. So, start looking for ways to maximize your FSAs so that you can save thousands of dollars in tax savings.

Don’t neglect your estate plan!

The 2 key factors in comprehensive financial planning are estate planning and emergency planning for families. Every one prepares for the emergency and saves some amount as emergency fund. But why neglect an estate plan? I might sound quite depressing to prepare in advance for premature death planning. But what will happen to your family needs and will there be any assets to take care of your final expenses along with your family needs.

Summing up

A proper workable plan is a powerful tool in financial planning. We have shared quite a few important tips that would help you build the right plan towards a financially secure future. The motto is simple try to clear debts fast, automate your savings and calculate all expenses.

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Personal Finance

Things You Should Know Before Venturing Into The Forex Market

Despite the tales you have heard of business magnets striking it big at the forex markets, just about anybody can also make a kill if they learn the basics. Although forex trading is not exactly rocket science, you may lose all your life’s savings in a twinkle of the eye if you get it all wrong. Many people have made millions in these markets, but much more have lost millions in the very markets.

Venturing Into The Forex Market

You can avoid the downward path of wannabes, and trade successfully on these markets if you consider the following basic tips:

Forget the hype

Tales of people who became overnight billionaires from the forex markets abound, tempting you to use your family’s fortune. You may be putting yourself up for a rude shock, and may not survive the aftershock. However, you can still win if you exercise discipline, patience and a sober mind frame. Define your goals and work towards achieving them gradually. Ignore the hype because it may drive you into making rash decisions.

Lose interest in vacations

If you are a first-timer into the world of forex trading, you will do well to steer clear of the family savings and any other money for the essentials. If you are going to risk any money, it should be that amount you have set aside for a holiday in Honolulu at the end of the year. Stake only that money that you can afford to lose.

Read widely

It would be utter folly to engage in the risky and highly volatile foreign exchange markets without outstanding research. You are going to make friends with financial markets literature so that you can learn to read the signs. Read about the best trading practices in magazines, newspaper, and from websites of financial services companies, such as CMC Markets. You also need to watch television channels and listen to in depth analysis from forex experts. Plunging into the forex markets would be akin to committing financial suicide.

Different baskets for your eggs

When venturing into the financial exchange markets, use the oldest trick in the book: never place your eggs in one basket. Instead of risking all your money in one trade in the hope of winning big, try your hand in several small trades so that a loss in one would be compensated by a possible win in the other. If you happen to earn a substantial sum, avoid the temptation to splash all of it back into the market – you may lose everything! Avoid trading in a single currency. It only takes a change in political temperatures in the Middle East, and everything falls apart. Spread out your risks in several trades and currencies to be on the safe side.

Keep a level head

You can survive in the foreign exchange market if you can manage to resist the temptation of being greedy. You may be having a good day at the market, but you should avoid getting too anxious and excited. If your exploits at the market get into your head, they may make you throw caution to the wind and engage in risks you otherwise have avoided. Stick to your original plan no matter how much your instincts tell you to extend the stop loss or move that take profit.

The foreign exchange market offers high and quick returns on your investments, but can be just as treacherous. Just don’t listen to the hype and keep focused when making a move. Remember to do a lot of research before choosing your trade because you must read the signs accurately. Use only that money that you can afford to lose, not your family fortunes.

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Personal Finance

Basic Finance Tips for Entrepreneurs to Manage Finances

For entrepreneurs, everything turns out to be a tad difficult to take care of and manage. One of them is finances. While entrepreneurs have anyway signed up for a risky business as this, it becomes more important than ever to take care of their financial situation, which might even go stronger or crumble with time.

It’s all very easy for employees, right? When they take those big fat paychecks back home, it is the entrepreneurs who are left to deal with everything. Right from taking care of his or her business to maintaining consistency in cash flow and financial stability, entrepreneurs have quite a lot on their plate all the time. And it is them who need a great deal of financial assistance to keep their incomes and cash flowing and avoid bad debts.

Finance Tips for Entrepreneurs

If you are an entrepreneur dealing with a startup, studying about the risks and implication of a stable financial management system is all the more essential for budding entrepreneurs like you. To say the least, better money management can help you leave a great legacy for your family, and also relieves your stress when it comes to handling the financial books of your company.

Before going ahead, here are some really basic questions that you need to ask that entrepreneur inside you –

  • How stressed are you with your current financial situation?
  • Is your’s a start-up or an established enterprise?
  • Do you have an emergency stash or reserve kept aside, just in case?

The point of the above questions is just to let you know that your answers don’t really matter. Regardless of them being a yes/no, or any other explanation that you may have, you need to stay educated on some essential finance tips for entrepreneurs that can help you stay on your heels and motivate you to keep it together at all times while running the business.

Choose LLC or S Corporation

You must have heard companies with different incorporations, the two most popular ones being the LLC (Limited Liability Company) and S Corporation. And there is quite a difference between these two, especially when it comes to having a control over income taxes, social security and Medicare taxes.

If you select an LLC, you don’t have to pay taxes in the current scenario. However, whatever incomes, deductions, incomes taxes and other taxes are all passed through and levied on the owner’s tax returns, which are your tax returns. Also, self-employment taxes are paid on the entrepreneur’s share of net business earnings.

On the other hand, an S Corporation is straight up on you receiving your salary and paying off other taxes. Also interestingly, self-employment taxes are lesser as compared to the amount under an LLC. So what gains your interest here?

Understand financial statements

Yes, financial statements are any day a very tricky thing to understand, and some people don’t ever seem to get it, no matter how much they try. But as an entrepreneur, you have no choice but to learn and get educated on what those financial statements actually mean and the message that they are trying to convey to you, most of which include-

  • Balance sheets
  • Income statements
  • Cash flow statements
  • Shareholder’s equity statements

Just understanding these financial statements will right away solve half the dilemma that you are facing with your financial situations. Also, understanding such important financial documents is the key to stabilizing your financial position and determine where all the money is coming and going from your business.

Open your emergency fund

When it’s business, there are always ups and downs, and you have to be prepared for that. You cannot let ups and downs cause any instability in your financial situation. Therefore, open a cash reserve or an emergency fund in other words, and keep some money aside to help you cope with such distraught events and occasions, as and when they arise. Business is full of risks, and as an entrepreneur, you need to be sharp and wise enough to foresee such circumstances that might put you in a debt-trap. A well-maintained cash reserve will always have your back in case your business tries to take you for a ride.

Think bigger

Apart from just your business, you can put some of your money other important investments and assets that you know will give you favorable returns, at least for a short while. Even better, the returns of such funded investments by you can really help build-up your cash reserve. There is no harm in keeping yourself safe and place funds into other side businesses and smaller investments. In case the market dries up tomorrow, you are already covered.

Don’t be embarrassed to take help

Becoming an entrepreneur means taking a bucket load of stuff and responsibility on your head. Some people manage it, some quite do not. To tackle financial obstacles, it is advisable to take help from either an expert or do some self-learning. Whether it is to understand your financial statements or creating invoices, some extra help and assistance from outside parties can do a great deal in keeping your financial situation right on track.

As it goes, prevention is always better than cure. And when you are into something as risky as entrepreneurship, it is imperative that you stay careful with each and every baby step that you take. As an entrepreneur, you will always have your plate full at all times. However, with some help and knowledge, handling your financial books will not be that a difficult time for you over time. If not, you can always take the help of financial advisors and consultants without any hesitation.

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Personal Finance

Important Tips on Spread Betting

During the course of history, the financial markets in principle the asset derivative sector has always been identified as a complex venture that requires professional traders. As a result, trading in the securities exchange has always been the preserve off hedge funds as well as investment entities. However, ever since the introduction of online trading this notion has changed significantly with numerous individuals taking part in asset derivative trading in an unusual manner. As the prominence of online trading emerged, a number of tricks or tips so to speak have come up over the years, the most employed according to experts is share betting.

According to trading experts, spread betting is described as a process of earning tax-free revenues though prediction of price movements. The difference between spread betting and traditional share trading it based on the fact that with the former you don’t actually buy the physical asset in the form of a currency or a share. In this instance, you earn from predicting and placing a stake on price movements. When you expect the value of a share or asset to surge positively you open a long position, which is a financial term to ‘buy’. Contrariwise, if you expect that a share or asset may be set for a drop you are expected to take a short position, which is another term for ‘sell’.

Spread Betting

For example, if you expect the price of the dollar to go up, you could set a prediction on the dollar movement by staking £5 a point. This would therefore mean you will earn £5 for every point the price of the dollar rises. It should be noted that you are not buying the dollar in this process and it is easy to see that with share betting the revenues are much significant considering the stake determines your earnings and not the actual value of the dollar. Nonetheless, should the dollar fall in value you are bound to lose £5 for every point it does get in the red.

Spread betting also allows you to earn while the markets are falling in value. For instance, if Volkswagen (OP6N) in the markets is £140 and news gets out that the company has been understating their emissions values there is an expectation that OP6N shares would fall. In such an instance, you are allowed place a stake for example £5 for any point below £140. In three weeks if the share price is, £106 then you are liable to earnings of £390 despite the fall in the market value.

Well as explained this is a nifty way of making money without actually buying the assets some of which are highly priced and may be out of reach for a trader. Additionally, as explained, there is the instance where you may predict a rise in a share or commodity and this earns you significant earnings you are allowed to go short if you feel that the upsurge is over. This allows you cash in before any losses; additionally, this tactic can be used to reduce your losses in the instance where predictions are not going your way.

According to CMC Markets spread betting may be considered as an option if you are wanting to start trading. Nonetheless, there are a number of risks you have to consider when share betting suggesting that just as casino betting this is not a suitable venture for everyone. They therefore strongly advise their clients to use their demo account before investing their own hard earned money. Simple tips as you take part in this form of trading;

Spread betting is a short-term venture; it allows you grow your capital as you look to trade into shares and other derivatives that actually accumulate to having assets.

Spread betting is typically held over a short period probably a few days or weeks evidently this means the earnings are limited.

There is not much professional help when it comes to share trading; consequently, you should know there is no insurance or assurances when it comes to share trading.

This sort of trading options requires constant checking in order to make sure you are on the right path.

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Personal Finance

7 Ways For Talking To Your Partner About Money

At times it can be quite hard to deal with the money issues while you are in a relationship and if not solved, it can even lead to fights, underfunded saving accounts, and busted budgets. Well, in the worst cases, it can also lead to divorce.

Talking To Your Partner About Money

Here are 7 helpful ways for talking to your partner about money before it gets too late.

Know Your Partner’s Perspective

When you are talking to your partner about money, it is important to be patient and try to understand what your partner is trying to express. Maybe your partner isn’t purposely being difficult. There are chances that he/she may have a different financial understanding and different expectations from you.

Each (spouse) has its own money beliefs about how the things should be made normal. Most of the times, these beliefs are not articulated instead they are acted out. You got into this together and make sure you get out of this together.

Know Each Other’s Financial Goals 

You can learn each other’s financial goals by writing them down in a letter. Discuss your financial past in that letter and how your family dealt with that situation. This will help in learning what both of you think about money. Both of you should sit down and decide as who will be having control over the money or whether both of you should opt for a joint or single bank account. Make sure you have listed your retirement dreams.

Set Rules For Spending

While it is not important that you keep a check on every pound that your partner spends, setting rules for the large purchases does help in preventing impulsive buying of the unnecessary things. Above all, this helps in keeping both of you on the same page. Entirely depending on the budget, set this rule for a mutually agreed amount. All purchases surpassing this set amount should be discussed together.

Listen To Each Other 

If your partner doesn’t feel comfortable in putting £160 a month in savings, make sure you have questioned why? Is it because your partner wants to make the payment for the debt? Or is it that your partner wants to eat more in the fancy restaurants than home? It is important what your partner thinks and find out if you can make a sensible negotiation. Make sure both of you are on the same page in order to finalise a set budget.

Discuss the Mistakes

Let us assume your partner has overspent his/her share of the budget. Avoid blaming your partner; instead find ways to prevent it from happening in the future. Make sure you don’t argue without your partner without knowing the reason, it can really make the things worse.

Following are some ways to stop your partner from overspending –

  • Have a regular money meeting – First and foremost, it is important that both of you are willing to discuss. If you are not discussing, then you are making a mistake. A partner who overspends should know the consequences of his/her behaviour. It is advisable to have a regular meeting date where both of you should discuss the money issues.
  • Set aside some money – Have a separate bank account for all your leisure activities. This account will certainly provide the overspending partner with the financial freedom and this will also help from breaking into your main account. The partner can spend the money without any restriction. Once the account is empty, he/she will have to wait for the payday to spend again.
  • Cut up using credit cards – In case you have opted for envelope system for budgeting, but you have still kept the credit cards, then the temptation of using the credit cards can be irresistible for the obsessive shopaholics. If you really think this is the case with your partner, then make sure get rid of them right away. Financial experts are of the view that spending money can be addictive, especially when you can’t see the money leaving your hands.

Don’t Expect Perfection 

Both you have to realise one thing that you don’t have to agree on everything that you discuss. Remember money management is not about being perfect, instead it is making your best moves to make adjustments as you need to. Both of you must be having unique ideas, you should try and make the most of each other’s strengths and start by working on the things both of you can agree on.

Know When To Seek Assistance

There may be a situation where you may end up asking yourself if you are fiscally compatible? It is important not to wait for too long instead seek professional assistance immediately. Non-profit credit counsellors play an important role here as they help you learn how to budget effectively, how to use the credit, and how you can deal with the debt. If you need any assistance with the communication skills, then you can seek the services of a clinical counsellor.

Summary

I hope now you are feeling encouraged to make those extra efforts to talk to your partner about the money. Remember your efforts can result in desired results and does make a great impact on your relationship. Money should never come in between your relationship. There are always ways in which you can sort out the money matters, all you need is to follow the above-discussed methods.

Categories
Personal Finance

The Best Personal Finance Tips and Tricks to Manage Your Finance (Part-2)

What made them millionaires? 

#41 Your time is more precious than money!

Spend your time productively and make the best use of every minute to look for ways to earn more.

#42 A passive income options

It is good to look for a passive income options apart from your regular job. Turn your hobby into a source of income.

#43 Multi-jobs can make you multi-millionaire

A secret to become millionaire is look for do multiple jobs, may be part-times jobs after work, work-from-home options etc.

#44 Tone your body and finance down

A fit body can bring creative thoughts to handle finances. Spend some time to exercise and sometimes take part in marathons as well.

#45 Appreciate what you have

Learn to appreciate what you have and get contented.

#46 Recycle to save more

Try all possible means of recycling the things before you opt for buying a new one.

#47 Get a money buddy

Look for a buddy who shares same traits as you; so that you can discuss your finances and get ideas as well.

personal finance tips

Boost your current earning potential

#48 Let employers name the figures

Let the new employer quote the salary first so that you get the idea of how much you can push it.

#49 Little extra from salary

Negotiate with the future employer on paid leaves, work hours, vacation time etc apart from your salary.

#50 You are susceptible to Unemployment

When the recession is at peak, unemployment can knock anyone’s door.

#51 Make Salary Discussions at Your Current Job About Your Company’s Needs

If you are need of extra money then try negotiating for hike or bonus based on the value you add to the company rather than putting forth your personal needs.

Special points for students

#52 FAFSA – for every student

It’s no harm in filling the form. Don’t miss out any opportunity that can get you grants.

#53 Opt for federal student loans over private loans

Federal student loans have flexible payment terms and better interest rates.

#54 Look for repayment options in federal loans

If you’re struggling with federal student loans, then ask your lender if they offer extended or income-based plans.

#55 Grab student discounts everywhere

The best thing for a student is the discounts in everything be it a movie, a salon or loan. Try to grab every possible deal.

#56 Pay per use

What is the point of spending $40 on a T-shirt when you can get one for $5? Pay as per the use of the product rather than wasting money on expensive stuffs.

#57 Learn from experiences not things

Spend time and money on concerts, meet-ups, conferences and shows rather than just buy things. You can learn a lot from these experiences.

#58 Overdraft protection – ditch it

Don’t fall in this trap laid by banks, to make you overspend and then make you pay for the privilege.

Planning ahead for retirement phase

#59 Your time starts now

Start today to put money for your retirement needs as it is going to take long to grow and yield results.

#60  A bulletproof retirement plan

Make a plan for your retirement with the exact figures starting from how much you need to save on a monthly basis to all the policies you need to invest on.

#61  Try not to cash out your retirement account early

There are many reasons for this: penalty for early withdrawal, a tax bill for what you withdraw and finally after all your hard work, the money is not even invested.

#62 The give & get option

The 401(k) match is when your employer contributes money to your retirement account but for that you need to contribute first.

#63 Hike- for the retirement savings as well

Every hike or increment you get, add it in your savings as well. An increase in your income should be an increase in retirement contributions.

#64 Knowledge is power!

It is important to read and learn from every source, the possible options that can fill your retirement needs. Keep track of the changes in policies, different retirement accounts and market trends for more savings.

#65 Go for 401(k)

You get enrolled for 401(k) once you get hired by any employer. This account holds the money directly from your paycheck and sometimes the employer contributes the same amount as well (termed as matching).

#66 Opting for traditional IRA

This is set up so that your contribution each year is tax deductable and you aren’t taxed on the income you make as it grows.

#67 Roth IRA – an additional way

In this you pay the taxes upfront at today’s tax rates and the best thing is , you don’t have to pay taxes on your investment earnings.

#68 The fourth option

Apart from the usual retirement account options, there is an option of non-deductible traditional IRA.

Credit the must watch thing!

#69 Keep an eye on your credit score!

Monitor and know your credit score as it would determine what kind of credit cards you’ll get approved for and how expensive your mortgage or car loan would be.

#70 Review the usage

You need to track down your credit usage and review it so that you know how much you spend.

#71 Use 30 out of the total credit

It is going to affect your credit score if you spend more than 30% of your total available credit.

#72 Have a bad credit, go for a secured one!

A secured credit card has the benefit that it will not let you overspend and will help you build credit as well.

The perfect way to get insured!

#73 Look for more, apart from your company’s policy!

Mostly, the basic policy from the employer will not cover all your needs. So, it’s better to look for more policies.

#74 Plan B- Renters insurance

This plan B can save you when there is a robbery, a natural disaster, a medical coverage if someone got hurt at your place, a rented apartment for a temporary stay in case of any damage in your apartment etc.

#75 Short-term insurance policies

The annual renewable term gives you 1 year of coverage and you can renew it every year. But there are chances that the figures vary every year.

#76 Long-term insurance policies

A level premium term lets you lock the premium for a particular period may be 5 years. This is a smart option to insulate you from any premium increases.

#77 Allocate time to read the insurance terms & conditions!

It is very much important to read what the insurance policy covers before you opt for one so that you get the maximum benefit.

Get grooving for those rainy (financial) days

#78 Savings- a part of your monthly budget

When there is an extra flow or not, it is better to set savings as a part of your monthly budget.

#79 Separate savings from the checking out

If you have savings in your checking out, you will never actually save it. Instead you will end up spending it on your regular expenses without actually knowing.

#80 Different banks for checking account & savings account!

It is good to open a savings account in a different bank as there is no chance that it gets mixed up between accounts.

#81 Opt for direct deposit

It feels great to see your savings grow apart from what you have in your checking account. Although it comes from your paycheck, but going for a direct deposit will leave no chances of missing it.

#82 Switch to Credit union if required!

It may not be an option for everyone unless you’re looking for kinder loans, better customer service & better interest rates on savings account.

#83 Be prepared for the 3 worst-case scenarios!

It is good to be financially prepared for these 3 emergencies:

  • A medical emergency or a sudden travel for a funeral
  • Fired from your job
  • Home or car repair

#84 The Richie-Rich’s savings

Who would not love to have savings like Richie Rich? Too much of savings is not bad at all. When you feel you have saved too much, go for investing it.                             

The smart way of investing

#85 When is the right time to invest?

You might be thinking of this for sure. When you have some extra flow of money & you have saved enough then it is good to plan on investing. A wise move is to make the best out of every extra dollar you earn.

#86 The right investment option

You don’t have to be an expert about personal finance to make the right investment. Instead of purchasing items that will out-grow or become useless once old, put money on things that can become an investment.

#87 Look for different investment options

Based on the money you can invest, opt from the various options like stocks, bonds etc.

#88  Pay attention to expense ratios!

Watch out! The fees you pay for your funds can crib on your returns so opt for low-cost index funds.

#89 Re-balance your port folio every year

Keep a check on your brokerage account every year to see if you investment allocations still match your goals.

#90 Be prepared: It might take long to save up a down payment

Before you plan to buy a house, you should be financially stable. Don’t be in a rush if you can’t handle the down payment.

Few more additional finance tips

#91 How your significant other handles finance?

Yes, this is an essential factor that would decide on your future goals and how you save for it together. Discuss and know more from him/her.

#92 Find a good tax accountant

Your financial situation decides if you can DIY your tax filing or hire someone to do it. Be sure you find the right person to do it.

#93 Where your parents stand financially?

You will feel great once you have this conversation with your parents. They are the one who stood by you in every situation and took care of you. You should be aware of their situation as well and help if needed.

#94 Know your money personality

Do a self check on how you handle your money to know is you’re: the budget-buster, the pleaser or the protector.

#95 Manage your budget-busting friends

In 20s hanging out with friends and spending will seem cool but if you drag the same in your 30s or 40s, it’s going to make you hurt in future savings.

#96 Did you know the truth about other people’s finance?

Don’t fall in the trap to try the same; the co-worker with great clothes might be struggling with huge debts. Don’t opt to do things just because someone else is doing it.

#97 The big cost of your little splurges

Once you start handling your finance well, you will realize that every $2 coffee can add-up to a huge at the end of the month and become a hurdle in your finance goals.

#98 Socially responsible investing

Giving charity is here & there is good; but it makes a difference when you do it the right way.

#99 Your favorite under $10 dinner      

Everyone has a signature dish, what’s yours? It’s good to go out occasionally if it doesn’t affect you bank balance.

#100 Do you need a will?

There are 2 types of wills: a last will (or testament) & a living will. A last will is a legal document that will spell out what happens to your possessions when you die. A living will is health care directive for what should happen to you if you’re unable to communicate your wishes. And you need both!