What to Consider Before Investing

Investing is a risky business in which people should only enter into once they are fully prepared for each potential outcome. As such, there are several key factors to consider before taking on a serious financial investment, including thoroughly assessing your finances, paying off debt and protecting yourself from the unthinkable.

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Read more to understand each before deciding whether to part with your hard earned cash.

Examine your financial situation

Before making any investment decisions, it is advisable to take a candid look at your whole financial situation and decide whether now is the right time for you to invest. Carrying out a full examination of your ingoing and outgoing finances per month is a good place to state and will allow you to get a clear picture of what you’re at, whilst discovering areas in which savings could be made.

You can begin by listing all your income sources, such as salary, savings, benefits, pensions and any financial support you might receive regularly from family. Next up, work through your previous bank account statements and list all your regular expenditures, making sure to take note of any standing orders and direct debits that go out, particularly if they are old and you no longer use them.

Once you’ve done this, you can decide which outgoings are essential, and which you can make savings on by getting rid of or by switching suppliers. You’ll often be surprised at how much you spend on things you do not need or rarely make use of, and by ridding yourself of those added costs, you could be on the right path to investing.

Pay off major debts

Any financial adviser will warn against investing before your major debts are paid off, or at least under manageable control. This is crucial, because if you have a significant amount of outstanding debt they will likely outweigh any of the returns you can expect to gain from your investments. Paying off debts on personal loans and credit cards which have high interest rates is, therefore, a wise idea.

Protect yourself

Any smart investor will tell you to start a backup savings fund to protect yourself in the case of an unexpected turn of events, such as unemployment or falling ill. As a general rule, having between three to six months’ worth of income to fall back on via an emergency savings account is wise, and this should remain untouched and separate from your investment funds.

You should also think about getting yourself covered by life insurance or income replacement cover. If you are self-employed, you might want to consider income protection insurance.

Determine your risk tolerance

Investing in anything is always a risk and the old saying certainly rings true – you should only invest that which you can afford to lose. However, more risk often means better returns. That being said, not everyone can afford to take big risks with their capital, nor may they feel comfortable doing so. It is up to you to decide what your risk tolerance is and act accordingly.

Seek professional advice

For first-time investors, skilled advice from the beginning is a very smart move and may be more than enough to help you get the ball rolling. Financial advisers can help examine your situation and create a solid plan of action based on your goals. They will also help you understand the risks associated with any investment you might be considering.

Moreover, there are many enterprises out there which can help you decide where to invest and whether an investment is good enough, such as an investment fund research company.

Remember, investing is risky business and on many occasions, you may receive less than what you put in. If you are not sure whether to invest, seek expert advice!

The Best Places To Invest Your Money

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Making money is one thing, but knowing where to invest, it is something else. Smart investments can see huge returns for very little effort on your part. Money that is not being invested or gaining interest in some way is being wasted. With that in mind, here are some places where you could invest your hard earned money.

Bank Savings Account

You should always search around for the best possible savings account.You want one with the highest interest rate possible, so using comparison websites and Google searches will help you with your research. Some banks also offer one time sign up offers, so you might be able to get some bonus money or a free gift, too. Once you have decided on a bank account and have put money into savings, all you need to do is wait for the interest to accrue. This is something that will happen every year, and it means that your money is safe for when you need it and you are slowly gaining more of it. However, you shouldn’t be afraid to switch savings accounts if your current bank drops the interest rates or somewhere else is offering a better offer. Being aware of the financial market and how the changes in interest rate affect your savings is also important.

Stocks and Shares

Both stocks and shares can be a little risky. There is a chance that if you make some poor investments that you could lose your money. This is why it is important that you either get professional advice or spend considerable time researching and understanding how the various systems work. However, if you know what you are doing or have consulted a professional, then you could stand to make a lot of money. Stocks especially require you to constantly monitor what is happening, and thanks to apps like eToro everyone can get involved in the stock market and easily keep up to date with their portfolio. Shares, on the other hand, tend to pay out a dividend each year or allow you to sell them in the hopes of making a profit.

Housing

The housing market is a popular place to invest your money. You could invest in buying a flat or house for the purposes of renting. Or perhaps you know how to renovate a house and then flip it for a profit. Both of these are excellent investment choices. Whichever you decide to invest in you might want to consult a property management company. They can give you the best advice and provide all kinds of services that make you housing investment a more fruitful venture.

Shipping Containers

This one might sound odd, but you can, in fact, invest in shipping containers. One website claims a 12% rate of return which far surpasses something like a savings bank account, so this could be something worth investing in. Like any investment, though it isn’t without its risks and as such requires the same level of research and consideration. There are also many different companies you can invest through, and you will need to research the best one for you.

Interested in Investing? These Are Smart Places To Put Your Money

Looking to turn a little money into a lot? If you’re in the fortunate position where you have money sat in the bank each month, why not make this work a little harder? Instead of accruing a measly amount of interest each year you could gain far more and maybe even turn it into a full time career. Here are a few smart places to invest if you want to grow your money.

Precious Metals

Investments into precious metals such as gold and silver are smart choice because prices increase over time. They’re not the best investment idea for people who want to make a profit fast, but those who are in it for the long haul will see a healthy return. In just the last ten years, the price of gold has almost doubled, which goes to show how much opportunity there is in this market. Only purchase from a reputable seller, there are plenty of companies out there which facilitate the buying and selling of precious metals. Do your research and work with one that suits you.

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The Stock Market

Investing in the stock market isn’t usually recommended for newbies. However, if you do want to give it a go there’s help available out there to allow you to familiarise yourself. For example, there are lots of professional brokers who are able to assist you, as well as simulation computer programs. These work by replicating the market that you can practice on first without actually spending money. You should never spend more than you can afford to lose, which is why this should be done with extra money not what you need to pay your rent and bills. If you’re fortunate you could do well here, lots of entrepreneurs make a killing from the stock markets and is something you could look into if it’s of interest. Some of the he best areas to invest in are commodities such as oil and gas companies and armed forces businesses such as weapons manufacturers.

Bitcoin

Bitcoin is a digital software-based currency, created to provide both a simple and convenient way to transfer funds to a seller when buying online. It’s still relatively new (it has only been in the public’s interest since 2013), but according to experts and investors, it’s something that’s likely to continue increasing in popularity. You can purchase this currency from a bitcoin exchange or online broker, or even directly from another individual. ATM machines often give the option to buy them too. As with any investment, there is some gamble involved especially with it being a brand new system. However, venture capital firms have bet that it’s something that’s likely to stick around.

Property

There’s a lot more that goes into buying and selling houses than simply buying cheap, renovating and selling for a profit. Property can be unpredictable as the market has peaks and troughs, plus you never know exactly what you will uncover when you start ripping out walls and floors of properties to renovate. Make sure you have enough background knowledge to be able to make the best decisions and boost your profits and avoid the common mistakes newbie property investors tend to make. There are a few ways you can make money with property, but an obvious one is to buy cheaply, do it up and sell for a profit. While it sounds simple enough, there is risk involved with flipping houses so you do need to do your research or speak to a professional who is knowledgeable about the property market. Many inexperienced property investors can concentrate too much on what they would want in a home themselves instead of what people who would be likely to buy would want. You also need to be aware of things like ‘ceiling price’ in different areas, because due to this, no matter how luxuriously you finish the property it will only ever sell for a limited price. The last thing you want is to end up in a situation where you’re stuck with a property and unable to sell it on for a while, or even where you lose money. Another option would be to rent out properties and get an income each month from tenants. You could do this in the country where you live or abroad. Sites like http://rumahdijual.com/bandung/ help you to easily find property, and if you get something that appeals to tourists you’re laughing all the way to the bank. As a bonus you could use it as a holiday home yourself whenever you wanted.

Financial Faculty: An Education In Money

Money. It’s amazing that something which is, in reality, completely fabricated can be so difficult to understand and control. No one finds this task easy. And, no one has mastered the art entirely. But, there are still those out there that are better at managing their money than the rest of us. For the lucky few in this position, money will be on their mind a lot; without having to consciously force themselves to be careful. This sort of attitude isn’t something you are born with, though, it’s something that is learned. To help you out with this, this post will be going through three of the biggest areas of finance. And, the ways that you can start working to take control. This sort of effort will make life much easier for you; so, it’s worth giving it a shot.

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  • Budgeting And Saving

Like any good financial guide; this has to start with budgeting. Without the ability to budget, it’s impossible to make improvements elsewhere. The best way to start something like this is by limiting your spending to the bare essentials. After doing this for several weeks, you will have a good idea of the money you have spare each week. This effort will get you nice and far into proper savings; if you use the money, you have left over correctly. Of course, it is also very helpful to make some actual plans for your budget. Knowing how much you’re allowed to spend each week before the week even starts, is a great way to ensure that you don’t end up in trouble. Nearly no school teaches kids to budget; so, this is something you learn by yourself. But, it’s very much worth it.

With a good budget in place, you should find it nice and easy to start working on your savings. A lot of people think that they have plenty of time to start saving. And, they will put off for a long time. But, with anything like this, it’s always best to start as early as you possibly can. This gives you more time to put money away; giving you the chance to save more during your time in work. Plus, being young doesn’t make you immune to the woes of money troubles. So, to protect your financial future, you should always have savings. Experts recommend that you save at least enough to live for three months out of work. This gives you the chance to get into another role; if you have trouble at work. And, it gives you a good reserve to help you in dire times.

There are loads of services out there to help you with an area like this. In fact, this is one of the biggest areas of finances. There are loads of different mobile apps and other tools which can be used to monitor your money and budget accordingly. This sort of resource can be great while you’re learning the ropes. And, to save, you should be using a dedicated savings account. Bonds will be too far; as you won’t be able to access your money when you want to. So, instead, you need to find the best instant-access account you can. Most banks have more than one. And, they don’t have strict requirements to be able to use them. Have a look at some comparison sites to find the account with the highest return.

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  • Loans And Borrowing

Borrowing money is often seen as a negative way to handle your finances. But, this isn’t always the case. Loans can be a great way to afford something you otherwise couldn’t; as long as you choose the right loan. In most cases, payday and short term loans are best to avoid. They are expensive and hard to settle if you have further money issues. And, they will hammer your credit rating; if you fail to pay them on time. Your credit score is one of the most important aspects of your finances. It’s dictated by your financial history and is usually the deciding factor when it comes to companies giving you a loan or other agreement. Using websites like Experian is a great way to monitor this part of your money. They can give you the advice to make improvements. And, they don’t charge a huge amount for the service. But, this is only one side of the coin. Now, it’s time to get back to borrowing.

Financial experts talk about strategic borrowing all the time. And, it’s something that makes a lot of sense; when you understand it. This practice involves planning your loans to have as little impact on your money as possible. It’s designed to help people get money through loans without having to change their life massively. Of course, though, like anything like this, it takes loads of work to get started. A great example of this can be seen in consolidating loans into one bigger one. By moving loans from here to there, and having them all in one place at the end, you will make them much easier to manage. And, they will be cheaper, too. The same sort of idea can be applied to getting a long-term loan instead of several shorter one; you just have to plan ahead.

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  • Investment, Passive Income, And Career

Now, it’s time to look at how you can make some money; not just how to save or give it away. Investment is one of the best ways to make money, in the modern world. Investment enables you to make extra out of the money you already have; without having to do much more work. For people new to this game, it’s best to start off small. Look into peer-lending and share options which will make you some decent money in a short time; but, have a decent amount of risk. Then, consider some longer options, like government bonds, too. This will give you a good range of choices. So, now, you just have to think about what would be best for you. To get some extra help here, it could be worth talking to a professional investment advisor. These people have loads of experience in this field and can help you make the most of your money.

But, what are the benefits of investing? You have to put in an awful lot of work into something like this. But, when you think about the results; it’s worth it. Over time, your investments will grow and start to generate a decent amount of passive income for you. When you’ve got enough invested; this could cover things like your mortgage or rent each month. And, this is a great benefit. Along with the income benefits, you also benefit from having money saved by inaccessible. This means that you have assets and wealth; but, you can’t waste in on a whim. This gives you the security of a savings account, with the financial gains of a low hours job.

Of course, you can’t just think about the money you make passively, though. You also have to consider the money that you make through your work. As you work on your career, you should always be aiming to make your future brighter. This means that you should never stay in a job for more than a few years without making any progression. It’s essential that you climb the ladder as early as you can. Otherwise, it will be hard for you to find another job which can get you somewhere. Of course, one of the best ways to skip this step is by starting your own business. But, this will be hard in itself.

Hopefully, this will give you a good idea of what needs to be done; if you want to start working harder on your finances. Most people don’t bother with this sort of effort. And, most people haven’t been taught how to handle it. But, it’s easy to make sure that you’re handling your money well. It just takes some work.

The Financial Error’s Of The Lion King’s Mufasa

There’s much we can learn from The Lion King, Disney’s 1994 classic. It’s a tale of redemption, of overcoming all the odds against you, about fighting for peace,…and about how you should never fully trust your brother, especially if they look evil and everything they say is said with a vague threat implied. But there’s something we shouldn’t take from the film, and that is: financial advice. Yes, a whole lot of mess could have been avoided had Mufasa just been a financially responsible parent. Alas.

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Investing in Property

‘Everything the light touches is our kingdom’, and thus implied, all yours Simba. Only, Mufasa didn’t actually invest in the land he was claiming was his; he just assumed it was his. That the zebras and giraffes didn’t put up a fight will not stand in the court of law. He should have acquired a deed to the land, which would have been very profitable. Also, the hyena hideout? We see a rustic getaway away from the heat, right in the heart of safari land. Imagine what that’d go for on AirBnb….

Securing the Family’s Future

For a guy with an obviously evil brother, Mufasa sure was pretty lax about securing the family’s history. Should he have put the time into looking for selectquote insurance? Of course he should. Instead, he was thrown from the edge of a canyon to his death and his family was left with nothing. His son has to spend his entire childhood hanging out with a meerkat and warthog. All because he didn’t have five minutes to spare….

Teaching Simba about Taxes

Mufasa didn’t teach Simba about taxes because…he didn’t have the foresight to think they might be useful! As king, all he had to do was enforce taxes, even a token gesture of taxes, and he might have spared his son his later hardships with the IRS (unreleased Lion King sequel – Simba and the Jury). If kids learn about taxes when they’re young, they can avoid the same fate as Simba. They’re a natural part of life, just like the circle of life they sing about so passionately during the film.

Not Working Hard

Mufasa and his family did have a pretty idyllic life when they were all alive, as did the other animals in the kingdom. But this would have eventually cost them: because it was wildly, recklessly unsustainable. To gain financial freedom, you have to be ready to work hard while you’re in the prime of your life, saving each and every week. Doing the bare minimum needed to survive – like Mufasa – will eventually cause financial difficulties.

One Thing He Got Right

We would be unfair on Mufasa is we didn’t give him credit for the one thing he most definitely got right. By teaching Simba not to have more than this share (in the scene where he explains how everything lives in tandem), he’s telling his son to live within his means, which is what all our children should know!