Tuesday 8 December 2015

Kicking Off The Three Most Common Finance Fallacies That've Been Disproven

Personal finance is like caviar for most people. Some like it the first time they taste it. Some hate it forever due to a bad experience, leaving a bitter taste in their mouth. But unlike caviar, personal finance is necessary. Many people find personal finance troubling because they believe these three silly myths you might find hilarious yourself.


Finance Are Huge Buildings And The Market


Personal finance isn't the New York Stock Exchange or having to walk into an insurer's building to inquire about your possible financial future. Finance isn't even these things too.
Finance is all about you and your wallet. It is about handling your personal finances and your unique situation where you have a positive and disciplined attitude towards your money.

Lots of Maths


No, personal finance does not involve any sort of complicated mathematics. Some perceive that you have to be a grade A theoretical mathematics expert to be good at personal finance.

To be honest, all you need is just the basic knowledge and equation of your interest growth. You may find online calculators for these. But for everything else, it's all about adding and subtracting, and knowing how much you can spend per period.

Jargons And Investing


Investing can be an integral part of personal finance. However, it isn't always necessary. Investments guarantee that your money continues to grow passively as you grow older. Once you have created a budget, investments come in second.

Some perceive that in order to invest, you need to understand the lingo of personal finance, which isn't exactly true. You do know the basic terms, as these are often explained when you're about to take on an investment or insurance policy.


But here's a bit of a clue; the simpler the terms used in your financial contract for a product, the better that product truly is.

Tuesday 10 November 2015

Three Reasons Why It's Important To Take Out Financing Early

Some say money and money-making drains you of your soul. If anybody could see it, it takes much creativity to create more money than to spend it.



Money is a reflection of a person's capability to receive items. It is a measure of skills and ideas, combined together to provide for basic necessities.

But you could always borrow some power and return it later while you're still in your mid-20s. It's as not bad as they say because…

Credit Score


Your credit score is determined by your ability to repay your financing in full and on time. Banks prioritize a client who could do that. They deem him or her worthy of having a higher financing amount.

It's not just individuals who have credit scores. Companies, both local and multinational and entire countries and governments have their respective credit scores.

Ways To Recover


When you take out financing, you allow the bank to see your financial capability and handling of situations.

It's like when you have a friend you want to make a party and you have considered him or her because of their previous party projects which turned out quite well.

Take the limelight and shine like a star so you could have better opportunities in the future.

Improve Yourself


Of course, it is inevitable we can fail at some point. Banks will deem us with a negative credit score. But our young age defines us. It helps us create more opportunities to recover and have lessons to improve our financial being.


Later on, we understand where we went wrong and then we can correct it effectively.

Thursday 8 October 2015

Anybody Wants To Earn Extra Money Without Any Trouble. But It Takes Some Three Struggles!

I know you're tired of working the nine-to-five. Heck, I'm way ahead of you on that one. We all need money but if we can, we want to get it with a struggle we could choose.

So why not start to struggle to get your own money. Struggling, in a manner, that you're not doing it for the company but you're doing it to grow your own wealth and cash flow.

You just need to know about three things to accomplish this effectively.



Make a Decision

Decide today. Everything you'll do will have a consequence. Once you leave your job, you're going to go permanently broke.

Minimising risks is the only thing we can do at this point. Before you leave, make sure you have enough to live on as you begin to work on increasing your cash flow.

But always remember, you will face some brutal consequences that no amount of preparation can save you from.

Opportunity Cost

You'll get lots of offers. You might see some "for £100 you could start your own business." These opportunity costs will come your way. Sometimes, you'll want to take them. But let me highlight the importance of research.

Opportunity costs could also be additional expense if the pay-off is not effective.
Think about it, however. Think about the wins you could get in an either/or situation.

If the pay-off fails, then you've learned some things, namely about how to avoid scams or unscrupulous deals.

If the payoff happens, congratulations, you've just earned yourself a new perk that has zero to minimal risks.

There is Always a Catch


But always remember, even good deals could have their own catch. You might get an investment that's quite cheap with the wealth you've built only to deliver something sub-par in some areas. Always double-inspect everything. But again, regardless of the situation, Murphy's law that anything that could happen will happen, will happen.


Sunday 13 September 2015

The Three Possible Effects Of The Greek Elections To Britain's Pound Sterling

With Greek elections coming up on September 20th after Former Prime Minister Alexis Tsipras' decision to resign from his position, investors fear for the upcoming instability and uncertainty posed by the new government. The new leaders may decide the weakness or strength of the Euro and it could mean deterred arrangements between Greece and its creditors.



The UK's inflation data shows oil as a factor to the lower inflation in the country. A low inflation level means a less chance of an interest rate rise, making the Pound Sterling very weak.

Over the last week, the Pound Sterling had weakened against the Euro bouncing between £1.35/ €1.

Analysts see that the Euro may weaken against the sterling in the next few months with the upcoming September 20th election. The threat of a possible 'Grexit' still looms despite the revolutionary Syriza government signing off of their position to eliminate austerities following Tsipras' decision to let Greece undergo another round of austerities.

Investors looking to buy Euros may want to do so at this point. However, the high uncertainty of Greece's decision and the threat of a Grexit still in the air, it is ill-advisable to move anything within the Euro to contain possible losses coming from the scenario.

Monday 10 August 2015

The Sad Reality That £1000 Gets You A Strange But Satisfying Dwelling.

Hackney's council members found themselves appalled when they saw a shed converted into a flat goes for £1000 monthly for rent. While many in the UK would get this (I really believe a family or a young professional would), the unique studio-type dwelling is probably no place like home. The council is still looking whether the shed meets planning laws.



So let's define shed. Doing a quick search on Google, you come up with images of a place where tools are placed. These can be big or small depending on how big your farm or garden or lawn is. To be honest, it's an outbuilding or a shack.

What I'm trying to say is it isn't designed to be a dwelling, or to be let.

The flat costs about £1083 monthly including bills for electricity, gas and water. What's more, real estate agents are in on the thing. They're selling it as something like "a unique large ground floor fully self-contained studio flat in standalone unit".

That's mighty lengthy. But then again, when I took a look at the photos inside the shed, it has a small eat-in kitchen, some space to fit the sofa, a good size for a bed and a fully tiled bathroom. Overall, it isn't so bad, to be honest. For the price. It's also in a gated complex, as seen in the pictures from The Guardian.


Well, would you bite this one? Maybe I would. It isn't so bad. But it doesn't look at all nice. I can live in it, so I wouldn't really mind at all.

Wednesday 8 July 2015

The Real Financial Crisis Is In China

As the Eurozone talks and negotiations partly resume between Greece and the European Union, China's economy fails to ignite after its months-long slump. According to analysts, China is heading for a 1929 stock market crash. The worst part, they say, is that investors glue their sights on Greece and not in an area that could serve as a global sinkhole.



According to analysts, before the Greek crisis, every summer, a 30% fall in the Chinese stock market becomes big news for all investors. This includes government actions to stem investor panic. But with the Greek crisis taking the limelight, China's economy may fall, along with its banks.

China is showing symptoms of the 1929 Great Depression where the United States was enjoying a decade of frantic growth, extraordinary wealth and excess. To blame was extremely rapid credit growth, according to analysts. China's credit boom even surpasses the capability the "roaring 20s" had.

However, China's own roaring decade only lasts a year.
The Shanghai composite had lowered by nearly 30% upon opening on Wednesday. Many companies have suspended their stocks from trading to contain the situation. Analysts also see that investors are not willing to gamble with the Chinese government's capability to manage assets effectively.


China's ineffective method of creating one bubble after another will not prosper for its stock market, according to analysts.

Monday 8 June 2015

Financial Words Parents Need To Teach Their Children

This list, taken from a Forbes article written by Jennifer Ryan Woods, children are particularly very interested in personal financial management. However, parents do not want their children thinking about such “adult” things at a very young time.



But teaching finances is very important. Ryan stresses in her article the facts that support these ideas. But taken from her context, it is important to learn the following terms:

1. Savings
2. Budget
3. Loan
4. Debt
5. Interest
6. Credit Card
7. Taxes
8. Investment
9. Stock
10. 401(k)
11. Credit Score

All these terms should be taught before children turn into 16. Each, according to Ryan’s article, could be taught at certain points in a child’s life. Savings could be understood by four-year-olds. Budgeting is something understood by five and six-year-olds.


The list goes on, and once your child understands the basic concepts of the following, he or she is on his way to financial success!

Monday 11 May 2015

Ahead of Eurozone Talks, Tensions Increase



As Europe’s finance ministers proceed to address Greece’s bailout deal, tension develops as Greece continues to lock itself in negotiations with the countries, including the IMF.



Germany’s impatience with Greece’s conduct has continued after the country voted for Syriza to change the country’s fate.

Greece and Germany’s Financial Minister had failed to develp trust with each other, bringing the deal with one of Greece’s bailout sponsors to a close. 

Greek and European attitudes continue to solidify with Germany stressing that a Greek exit from the euro would be easier to manage compared to three years ago. Germany itself is running out of money and may default.

Greece is currently using its central and local government funds to meet its international loan repayments. But it still has the possibility to default.

However, a survey indicate that Greeks still wanted to stay in the Eurozone and were willing to use a compromise instead. However, only half of the country is willing to cut their salaries and pensions to keep the Euro.

Wednesday 8 April 2015

The Three Biggest Myths of Personal Finance [Video]

Kiplinger Personal Finance Expert David Muhlbum says that myths spread through the internet on social media. He urges all to be sceptical of what they hear in the internet.

While this video is the US context, he says that social security in all countries won’t be gone soon, home ownership isn’t the fast way to successful retirement and any person can make and need a will.

Monday 9 March 2015

The Breakdown of An Average Student Budget [Infographic]

Planning your next student budget isn't really rocket science. However, it's not quite an easy task too. It's important to consider your room and board, tuition fees, transportation and if you'll need to do some part-time work.

Despite these figures being in the United States, what matters is that it also tackles the same issue of educational budgeting in the United Kingdom.

Monday 9 February 2015

Currency Manipulation the Biggest Issue in G20 Meeting



A US official attending the G20 Summit of Finance Chiefs in Istanbul warned that some countries are manipulating their currencies to gain a competitive edge. 



According to the US official, they have seen signs that there is currency manipulation happening. He said it was not an abstract possibility but a “real element of the current reality.”

A group of US Lawmakers are expected to unveil legislation on Tuesday aimed to halt the exchange rate manipulation against their trading partners. The legislation will treat currency undervaluation as foreign government subsidies. It would also allow US companies to seek compensatory duties for imported goods.

Senators are urging legislation to crack down currency manipulation completely. They are citing a Peterson Institute study that argues US workers are the ones to pay the price for currency interventions by foreign governments

Meanwhile, US automakers, the United Auto Workers and the AFL-CIO made the issue a top priority. They are expected to lobby against the Obama administration to include currency provisions and they hope to influence legislation to negotiate a free trade deal to get a vote from congress.

Thursday 8 January 2015

Three Ways To Ensure Your Business Funding Doesn’t Go To Waste



You have investors counting on you to make the business succeed. You have enough business experience to know that your business could work. However, regardless how passionate you are about your funding, you might have some flaws perceiving your accumulated experience. Here are three ways to ensure you don’t waste your business funding.

1.    Success Based on Pattern
Most proprietors anticipate success based on historical perception of patterns. This is a false argument. Businesses that use these pattern-based ideas about their businesses anticipate success as if it was scheduled. The reality is that markets move differently as every business is unique.

2.    Best Practices
Best practices are great as starting tools for business methods. But if you couldn’t adapt these best practices and old formulas to boost your business, you’ll find yourself in some serious trouble. The best way to resolve business issues is to ask directly the opinion of complainants, i.e. your customers.

3.    You Aren’t The Target Consumer
Remember, you are providing the service. It doesn’t mean that the customer identity you’ve pegged, which could be based from yourself, is agreeable with the real consumers who would use your products or services. You are providing the service, you are shaping it and it is the business’ responsibility to provide a solution for the consumers, not about the problems you as the proprietor are complaining about as a consumer.