How to Invest Online

Online trading is the most popular form of investing, and provides you with the fastest and most reliable way to execute your trade.  If you are old school and want to call More »

How to Save Money without Noticing It

Saving money is one of the greatest issues people face. In a world that tries to stimulate consumption as much as it is possible, you will find a lot of temptation to More »

Assets: Make money work for you

Picture this: you are the head of your own company. the big cheeze, the BOSS. you have hundreds of employees, and you sell a good or service that just rakes in the More »

Tips for a better personal budget management

As it was already said, creating a personal budget is one of the first steps for healthier finances. Apart from creating it, following it strictly is the next most important thing to More »

What to do after you have your Personal Budget

We already established the basics to create a personal budget. Of course, everybody has a different one; one that adapts to their lifestyle and especially their incomes and expenses. But, it does More »

 

How Should Ordinary People Invest?

Speculative investments could be profitable on the long run, but for that to happen people must understand that there are some things to be done. When you enter the arena of investing the first thing that you need to realize is that you are entering a competition. We must be straightforward and tell you that those who make money are earning from the ones who lose money.

That how the market functions and there is a small percentage of people who make money on a constant basis and a big percentage of people that do not manage to make it and encounter losses. What you need to ask is:

What are those successful people doing?

And then, copy them.

Simple strategy for ordinary people

Passive investments in the form of index funds represent the best option, according the Warren Buffett, one of the biggest investors of all time.

For those of you that don’t already know, index funds are holding every stock in an index, such as the S&P500, including big companies that have expensive shares which are unaffordable for more of the people. According to Warren Buffett, index funds offer low turnover rates and fees and taxes tend to be also lower.

We agree with Warren Buffett and it is true this is a good strategy, especially for people with low tolerance to risk.

Why is that?

If you have limited capital available, hoping that you will be able to generate huge returns by investing in cheap stocks is a strategy that has very low probability of success.

It is possible to make money work for you, but in order to be able to do that, requires a lot of study, practice and hard work. Keep in mind that you will be competing with others to make money and you need to be better than them.

To summarize, find a way to invest in solid companies, that have a long track record, solid reputation, exceptional products and services and on the long run, you will be able to generate a strong and stable passive income source.

For those of you that have a higher tolerance to risk, you can approach riskier strategies, but be aware that with high profit potential there is high risk involved, as well.

 

Meta description: Investing gest tricky for ordinary people because they do not manage to understand some basic principles. Find out how you could invest in a productive way.

 

 

How to Invest Online

Online trading is the most popular form of investing, and provides you with the fastest and most reliable way to execute your trade.  If you are old school and want to call your broker to place a trade, it will likely cost you more and it will definitely take more time.  Wait time for popular brokers can be 5-15 minutes, where online orders can be executed in seconds.  Here are some of the steps you need to take as you begin online investing.

Opening your account

  • You will need to register, supplying information such as your name, email, and phone number. In some cases you will need to supply your address, proof of address or even your social security or national identification number
  • Many brokers want to know about your trading experience to determine what types of products you are eligible to trade. Many reputable brokers want to avoid providing customers with tools that will allow that to lose all their capital.
  • Once you are registered, you need to fund your account. There are several ways to fund your account including a bank wire, a check, a debit card or even a credit card. This will depend on your domicile. For example, in the U.S. you cannot fund your account with a credit card.

Evaluating Trading Tools

Once you open your trading account, it’s important to evaluate the tools that are available to help you make your trading decision.  This could include evaluating the charting and graphical packages that your broker has available. In addition, many reputable brokers supply clients with economic research including a financial calendar that shows all the different important data points that will be released during the week or the month.

You also want to see if your broker has an education section. Here you might be able to find many different trading strategies and how to use them.  Check to see if your broker offers technical analysis tools and an explanation on how to use these tools to enhance your trading. Your broker might also offer news and analysis. The more information you know the better your trading decision will be.

Order Execution

Each broker will have a different trading platform. Before you risk real capital, make sure you understand how trades are executed.  Many brokers have demo accounts that allow you to execute traders without risking real capital. If your broker has this capability, give it a try so you become familiar with executing a trade. There is no harm with making a mistake with demonstration money.

If you plan on using your broker’s trading app platform, make sure you also take this for a test drive before you execute a trade. If you are on the go, you want to make sure that you can see your balances and position on all platforms offered by your broker. For example, the trades you make on your PC should show up on your mobile device.

Summary

Trading online is the most efficient and cost effective way to execute a transaction. After you register you should evaluate the trading platform before you deposit capital.  Test drive all the platforms you plan on using to make sure you understand all of the nuances of your brokers trading platform.

How to Use Credit Wisely

Borrowing money is a normal thing in the modern economy and without it, we would have not reached the level of development we are seeing today. However, with the positive, the negative is also present and the usage of credit could be tricky. This happens all the time, especially due to the fact that people fact financial education.

And this is not the only reason. When we are kids, we do not think about starting slowly to learn a skill or a certain profession. With a flawed educational system and lack of interest from ourselves the results are usually nasty.

Searching for the easy way out

People do not realize that their current situation is simply a result of all their actions from the past years. So, they find themselves with little money and what do they do?

They make a credit.

However, most of them are not smart with their money. They take the credit and then just spend the money on things that sometimes are useless.

We do not want you to be in the same situation.

Spend on things that generate income

Using credit for consumption purposes is a big mistake, from our point of view. Even though it is promoted heavily, because consumption accounts for 60% of the total GDP in most of the countries, that does not mean you should do it.

Instead, our advice is to not use all the borrowed money just for consumption. Try to spend them on things that could help you generate income in the future. Maybe you begin with a startup and be an entrepreneur. Or maybe, you could attend some private courses, where you can learn new skills and valuable information.

It is up to you to choose what the best is for you. If you do not want to have your wallet empty, then it is time to put yourself to work and do something about it.

You can use credit, but make sure to spend money wisely. Spending the money on MC Donald’s food won’t improve your financial situation for sure. Hope you will think about this subject seriously and you will be able to make the best decisions in the future.

Meta descriptions: Find out how you could use credit in order to increase your wealth and live a happier life. See more information in this article.

 

Useful Tips for Managing Expenses

If you are reading this article, you probably one of those which do not manage to manage expenses properly. Now, depending on everyone’s condition, there are two factors that lead to that:

  • Your income is low and can’t cover all the things you need to buy
  • You have a decent income, but you do not manage to spend your money in an intelligent way.

This article will try to help those of you which find themselves in the second category. We will write another material in which we will discuss about increasing income, but let’s now focus on ways to optimize expenses. We’ll give you some useful tips which will help to spend money in a more efficient way, so you won’t find yourself on the negative at the end of the month.

Tip #1 Record all the monthly expenses

Before you start to make a strategy for managing expenses you need to have a track record of your current expenses. So, for the first month try to draw a picture of your personal budget and expenses. Note every expense that you make, without exception. You need to understand how you are spending your money, so this first step is crucial.

Tip #2 Organize expenses by categories

After you have the list of expenses you need to organize them in a series of important categories. Some of them might be:

-food and drinks

-bills

-entertainment

-traveling etc.

It depends on each one, there is no fixed way to do it. This step will help you see on a percentage basis, how much are you spending on each category.

Tip #3 Make a budget for each category

If you are not managing to handle your salary, you need to preset a fixed amount of money which you can spend in the span of a moth. Discipline is highly important here, as you will see yourself tempted to spend as you did before.

However, if you want to manage your money properly and be able to plan an extra vacation in a few month, you need to make sure you are handling your expenses properly right now.

Meta description: Managing expenses is tricky sometimes. Find out more about how you could do it easily in the fresh material.