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!

Investing Time and Money: What Kind of Investor Are You?

Before you dive in and start investing your money, you need to think about what kind of investor you want to be. There are so many different types of investor, and there are lots of tactics, techniques and approaches to investing as well. By knowing about these things before you started, you can develop an approach that works best for you from the start. One of the four types of investor you will find below could be you, so read on now.

The Calm and Patient Investor
Some people are naturally calm, and they like to invest in a patient and measured kind of way. This can work very well for some people, but others simply aren’t cut out for it. It’s the kind of investment strategy that you automatically slot into, or you automatically don’t. You can’t really control how calm and measure you are when investing your cash or selling stocks. If you remain calm and stay on top of your investments at all times, you can often ride out the bad times and find the good times. However, it can backfire. No strategy or approach to investing is foolproof.

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The Silent Investor

Some people like to invest, but they don’t necessarily like the work and energy that goes into it. This is especially the case for people who are investing in startups and small businesses. That’s why many people become angel investors. They look for new business opportunities and invest their money if they like the sound of a business or an idea. But they don’t necessarily get their hands dirty when it comes to the running of the company. Instead, they let the managers and other owners get on with running the business and creating a return on their investment. There are also lots of crowdfunding opportunities for angel investors out there.

The Risk-Averse Investor

Being a risk-averse investor might sound like a contradiction because investing is all about taking risks, right? Well, yes that is true. But there are still lots of investors out there who invest their money in a way that is very careful and cautious. They assess everyone opportunity very carefully. And they never let go of their money unless they are sure of what they’re doing. They might also be more likely to pull out of an investment or sell their shares at the first sign of trouble. This can sometimes lead to missing out on chances to make money. Or it can limit losses, so it works both ways.

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The Mix and Match Investor

If you’re a restless kind of person that likes to try lots of new things, you might be a mix and match investor. These are the people who invest in lots of different ways. For example, they might trade on the stock markets and also build up a portfolio of investment properties at the same time. That’s just one example. There are so many different types of investing out there, and you can combine or juggle them in any way you choose to.

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Penny Stretching: Making the Most of Your Money in Every Situation

Let’s face it, we’re all trying to look for a bargain and make our hard earned money go as far as possible. In almost every situation where we spend money, there’s probably some way to get more value out of our purchases. Whether it’s bargaining at a market stall or grabbing a multi-pack deal instead of a single item, here are some of the best ways to stretch every penny that you spend.

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Open a Savings Account

There’s no such thing as being too frugal. Opening a savings account with interest rates is a good way to get money passively and stretch your pennies. It’s an easy method to get the most out of your money, but it’s a very slow process. It’s kind of like investing, with the exception that you aren’t risking your money because it’s just a savings account. However, it is undoubtedly slow and if you aren’t actually saving large sums of money, then the interest you get will be rather low. Stashing your money in a savings account is a good way to practice frugality and you’ll have a nice sum of money in case you run into emergencies.

Enter Various Competitions

Most competitions are free to enter and can offer some very big cash prizes, such as Maria Casino’s Discomfort Zone. You simply register to the competition, vote or do whatever the competition asks of you, and then you’re entered in for a chance to win prizes or money. There are hundreds of competitions that you can enter online, in local stores, newspapers or magazines. Just remember to read the fine print and make sure it’s not going to cost you more to win or receive your prize than it does to just buy the item. Many people operate scam competitions so be sure to search for information online before you apply.

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Look for Deals

There are several websites on the internet that list the best bargains that people have found. They’re usually a mix of brick and mortar store sales and online bargains. You can find almost anything for sale on a megastore like Amazon or a marketplace such as eBay. Second-hand or refurbished electronics are a good place to start if you’re looking for a quality piece of equipment that’s backed by manufacturer guarantees and eBay’s buyer policy. Just make sure to read the fine print on eBay listings because some people will add sneak clauses such as “This item is damaged. You are buying a damaged item.” just to try and trick people.

Use Those Coupons

Some people find it embarrassing to walk into a store and hand the cashier coupons for money off—but there’s absolutely nothing embarrassing about being frugal and using “free” money. There are some sites on the internet that will give you coupon codes for cheap items, offers on restaurant bookings and activities such as waxing or even skydiving at discount prices. If you sign up for supermarket store cards, they usually reward your spending by sending you coupon codes. Make the most of these, and you’ll find yourself saving hundreds a year on groceries.

Investing? It May Be The Key To Unlocking Your Future

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.