Monthly Archives: March 2018

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.

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 spend all your hard-earned money. Most of the people are not even noticing that they are sacrificing their long-term well-being for some things that gives them satisfaction for a short period of time.

If you are reading this article, it is clear that you think different and you want to do things in a smarter way. You are also probably searching for some tips for personal budget  and that is why we want to give a simple and effective way to save some money. Although the sums might be small in the short run, you will see that in the longer run results are better than you would expect.

The 10% rule

Let’s say that you are currently earning 1k per month. This number is below average and we’ve choose it with purpose, because we do not want to artificially inflate the numbers, so they will look better. Make sure to receive your salary on a bank account, not cash. You’ll see in the following statements why.

Open a savings account

The next step would be to open a savings account. A private pension account would also be a good idea. Preferably, your bank account and your savings account should be opened at the same bank, so it will be easier to make the next step. We won’t recommend any bank, it is up to you to choose one that you think fits the best. Do a little research, find out what feedback other customers are offering and only then open the account.

 

Set a monthly transfer to the savings account

You have the possibility to set a monthly payment from your bank account to your savings account. Make sure to set a date that is after the date you receive your salary, so you won’t encounter any issues. Set your account to automatically send 10% each month to your savings account.

If you do the math, for a 1k account, 10% means 100, 100 multiplied by 12 equals 1200 and in 10 years you will have 12,000. Simple enough to save a decent amount of money and improve your personal budget.

Meta description: Find out an easy way to save money in order to be able to manage your monthly expenses. See how you could do that for free. Find out more in this material.