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  • Some mental tricks which helps in Money Saving

    Some mental tricks which helps in Money Saving

    The biggest barrier between saving and spending is probably comfort. It is difficult to reject something that we can enjoy at the moment because of something we will obtain in the distant future.

    Saving money is not a simple task: it is difficult to think in the long term to resist the temptations of the moment. However, fortunately we can trick our brain to do so. We bring you the 10 best mental tricks to save more and spend less.

    Let’s see what some of the best are:

    • Do not give up things, enjoy them more: Instead of thinking that you will have to give up eating at your favorite restaurant every week, think about how much you will enjoy it when you do it once a month. Psychologically it will be much easier to think that you are not giving up something, but enjoying it more.
    • The brake or accelerator method: A popular method is to imagine yourself inside a vehicle every time you make a financial decision: depending on what you decide you will be stepping on the brake or the accelerator. It depends on you how quickly you want to reach your destination.
    • Try the technique of the “unknown”: Every time you go to buy something imagine that a stranger gives you the option to choose between the product and the money that is worth that product. What would you choose? If you would opt for the money, you already have it in your pocket.
    • Impose the rule of 3 days: The technique consists of always giving you a few days to think between the moment you set out to buy a product, and the time to do it. Maybe during that period you realize that it was not so necessary.
    • Involve another person in your savings plan: Have a savings partner. Both you must share your financial goals and the plan to achieve them. Once a week you will meet to tell your progress. If you feel the support – and pressure – of another person you will be more likely to keep your word.
    • Try the technique of false rewards: This technique may be somewhat peculiar to you, but there are people to whom it works. Every time you buy something, imagine someone telling you that they will give you 3 euros if you do not. The mere fact of stopping to think can make you realize that you do not need to buy it as much as you think.
    • Put a photo in your portfolio that reminds you of your financial goal: Visual images have more impact on our brain. Keep a photo that reminds you of your goal in the portfolio, every time you go to pay something you will see it and ask yourself: what is more worth it?
    • Cover up your credit card: Put a physical barrier between you and your card by wrapping it. You can draw pictures of your goal or write down notes to remind you that it is only for emergency use.
    • Use the emergency test when you go shopping: To avoid wasting money on clothes before buying a garment, ask yourself if you would put it right out of the dressing room. If the answer is negative, it may not make you so excited.
    • Write down your savings goals: Studies show that people who write down their goals are more likely to achieve them. Write down your financial goals and take them with you when you feel tempted to spend.

    Other than these mental tricks there are some wise practices which while implemented in our daily life help in money saving:

    1. Write a list of all the things you want to fulfill. Dreams, goals and specific objectives such as paying your credit cards, a trip to Europe, buying the new Smartphone or a new computer, paying the initial of a house, etc.
    1. Make sure your goals are realistic and prioritize each of your savings goals. This helps reduce frustrations and escalate aspirations.
    1. Once the goals and the priority of each of them have been established over time, determine the amount of money you need for each one.
    2. Now make a list of all your monthly and annual expenses. If you already work with a budget, it will be easier to know how much money you have.
    3. After having your accounts clear, decide an amount to save money and for how long you will have to save that amount to achieve each of your objectives.
    4. Set a fixed monthly fee to save. The minimum recommended is to save 10% per month of your income. You can add up all the expenses to identify how much you spend in this category and start saving it instead of wasting money on small and unnecessary purchases.
    5. Consider saving money as a fixed monthly obligation, which is as important as the payment of basic services or rent. In this way you convert savings into a commitment and not an option, guaranteeing the fulfillment of your goals.
    6. One of the best tricks to save is to not use these funds for purposes other than the one that was established. Do not stop fulfilling any of your monthly payments and take care of the money you have saved. The best way to achieve this is with a budget.
    1. Finally, choose a means of formal savings. A savings account in the bank is the best option, this not only gives you the opportunity to save safely, but you can also get a return on the money saved with interest.

    Conclusion: Most people believe that money should be saved only when “left over”; They believe that they should wait to earn more money, get out of debt or get a better job to start saving, but to acquire the habit of saving, you just need to organize and have clear goals.

     

  • The Most Common Mistakes People Make With Office Insurance

    The Most Common Mistakes People Make With Office Insurance

    Office insurance essentially targets the businesses that use any commercial property as office. For every industry specialized polices are introduced to cater the needs of that industry. Similarly, office insurance focuses on the needs of those clients who run the offices.

    Whether your office building is big or small, it is essential part of your business. So it isof great importance that your office space is suitably protected.It is advisable for office owners to have an insurance policy to protect their offices.

    In case of any unforeseen circumstances such as fire, natural calamity and robbery, which can impact your income outcomes, your office insurance provides you sigh of relief. Specially, for small business owners it highly recommended to get their offices insured and protected.

    Office insurance provides you protection against any harm done to your office premises, any business disruption that results in loss of revenue and apparatus breakdown. It also provides the insurance cover for office contents.

    While finalizing your office insurance policy keep the following benefits in mind. If any insurance policy does not provide these benefits, leave it.

    Public liability insurance

    Public liability insurance not only protects you, but it also protect your customers. It is your responsibility as the owner of the office to make it as risk free as possible.

    If third party suffers any injury or loss in your office premises, public liability insurance covers it for you. For example, if someone in your office falls from your office building, your office insurance covers for the public liability.

    Employer’s liability insurance

    Employer liability insurance provides you sufficient amount that you need to pay damages to the members of your staff from suffering any injury or damage during performing any task you, as their employer, are liable for.

    You can have this insurance even for freelance or volunteer workers as well. It provides you ample funds to compensate against their claims.

    Insurance of office building

    This insurance policy provides insurance for the building of your office. In case of any damage to the building structure of your office, your insurance policy will cover the cost of damage to your building.

    Office contents insurance

    Office contents insurance provides insurance for the contents of the office,for example, desk, computers, documents, furniture and cupboards. This policy if offered to those who have specific office building, and to those who have home based offices.

    This insurance policy covers your office contents against hazards such as theft, fire and water damage, even if the possessions are provisionally outside the premises of the workplace.

    What is not covered by office insurance?

    This insurance policy does not cover the following things.

    • Damages done during the earthquakes, floods and other natural calamities.
    • Utilities
    • Repairing the computers etc

    As mentioned above, the office insurance policy provides many benefits for the office owners. But, getting the right policy is not an easy task.

    Most of the times, when you go for policy hunting you fell prey to the false conjectures of the employees of the insurance company. Besides, you do not equip yourself with the essential knowledge and market competitive rates. It results in following mistakes.

    Mistakes people make with Office Insurance:

    • What is already insured?

    While settling for your final insurance policy people do not check what is already being insured. If building is already insured by landlord insurance, you do not need to get it insured again.

    Similarly, if the contents are already insured, you can exclude them from the policy.

    • Difference between natural calamities and routine hazards

    Some people do not differentiate between the natural calamities and routine hazard. It results in enlisting of every routine hazard as natural calamity, which makes your insurance company not liable to pay you during routine hazards.

    • Paying too much

    While deciding your policy, many of you do not research well. It eventually lands you in hot waters, especially when you have to pay the cost of insurance policy. Try to add minimum things and exclude those items which already have been insured.

    • Not having interruption in business insurance

    Many people forget to include this clause in their insurance policy. For any reason, if your office becomes dysfunctional for time being and you are unable to run your office, your insure company would provide you money to sustain your business.

    Business interruption protection will provide you funds so you can continue paying rents, salaries and other expenses which you have to bear in order to keep things going.

    As long as you are able to put your business on foots again, this insurance will keep bearing the expenses to make your survival in market possible. So, do not forget to include it in your insurance policy.

  • Should I Refinance My Mortgage?

    Should I Refinance My Mortgage?

    After making one of the biggest decisions of your life – whether or not to buy a home – you took the plunge and became a homeowner. But after a few years of homeownership you now find yourself facing yet another big decision: should you refinance your mortgage?

    Refinancing your mortgage involves research, paperwork, and fees. With that said, it’s a smart financial move for many homeowners. To help you decide whether it makes sense for you to refinance your mortgage, take a look at three primary reasons for doing so:

    ● You’ll lower your interest rate: Lowering the interest rate on your mortgage can save you thousands of dollars throughout the life of your loan.

    ● You’ll lower your monthly mortgage payments: Securing a lower monthly payment means that you’ll be able to save money on your mortgage bill every month. At the same time, the length of your loan may be longer once you start refinancing your mortgage.

    ● You may get a better loan overall: Changing your loan type can mean going from a fixed-rate mortgage to a variable rate mortgage or vice versa. It could also mean changing from a 20-year amortization schedule to a 25-year amortization schedule.

    Do any of these reasons feel relevant to you? Read on and find out more about whether or not refinancing is for you.
    Is Refinancing the Best Move for You?
    Once you understand why you might want to refinance your mortgage, it’s time to break down the mortgage lingo. This will give you a deeper understanding of mortgage refinancing and help you find the best loan.

    1. Lower interest rates
    Interest rates for loans may feel like arbitrary numbers, but mortgage interest rates are important because they can increase or decrease the cost of your mortgage.

    For example, if you took out a mortgage for $360,000 with a 4% interest rate and a 25-year amortization schedule, you would pay a total of $210,000 in interest during the life of the loan. If the interest rate were to increase to 4.5%, then you would pay an additional $30,299 for a total of $240,299 in interest during the life of the loan.

    So, even though it may seem like 0.05% is a small amount, the interest rate percentage – even less than 1% – is an important factor. As you can see, refinancing your mortgage to secure a lower rate is a wise idea.
    Refinancing Fees
    Before getting too excited about the money you’ll save throughout the life of your loan, it’s a good idea to make sure that you’re not spending more than you would save. Keep in mind that refinancing your mortgage may introduce a slew of fees. Here are a few examples of the fees associated with refinancing:

    ● Application fees
    ● Home appraisal fee
    ● Title search
    ● Credit report charge
    ● Title insurance
    ● Legal fees

    When considering refinancing your mortgage, run all the numbers and consider these three factors:

    1. What is the new interest rate?
    2. How much will you pay in fees?
    3. Will you save money or at the very least, not lose money?

    For example, if you have an interest rate of 5% and can save $10,000 over the life of your loan by refinancing with a rate of 4.75%, then you should make sure that the refinancing fees are less than $10,000.
    2. Lower monthly payments
    Lower mortgage payments may provide you with immediate relief if you’re focused on paying other bills, eliminating debt or building savings. Refinancing your mortgage may also be a great way to secure a lower monthly payment.

    Yet, before you take the plunge and refinance, make sure you fully understand the ins and out of associated fees and how your new loan term can affect your monthly payments. Take a look:
    Fees
    Some of the fees associated with refinancing include title insurance, legal fees, and application fees. Also, if you break your contract during your current term, you will incur prepayment penalty fees.

    Here’s how it works—if you have a fixed-rate mortgage, you’ll be paying whichever is greater: three months’ interest or the interest rate deferral. What’s interest rate deferral? It’s the difference between the interest rate on your current mortgage term and today’s interest rate for a similar mortgage.
    If you have a variable rate mortgage, you’ll pay three months’ interest. While fees shouldn’t deter you from refinancing your mortgage for a lower monthly payment, make sure that you will actually save money with your new loan.
    Length of Your Loan
    Lower mortgage payments are wonderful, but they often go alongside a longer loan. Before you refinance your mortgage, you might want to check the length of your new loan.

    Here’s how it works – the longer the loan, the more interest you’ll pay. So, if you have 15 years left on your mortgage and refinance to a 25-year amortization schedule, you’ll probably have lower monthly payments,but you’ll likely pay more in interest throughout the loan term.

    If this sounds complicated, just remember: a longer loan typically equals more interest.
    Should You Refinance to Another Type of Loan?
    Changing your loan type can be a great way to save money on interest, decrease the length of your loan, or secure more favorable terms. Here are a few things to keep in mind if you want to change your loan type.

    ● Interest savings: Even though it may be tempting to focus on your monthly payment and how to reduce it, a lower interest rate may be the key to saving you more money in the long run. That’s why changing your loan type and decreasing the length might be a smart financial move, even if your payments remain the same.

    ● Length of loan: Don’t forget the most important rule about loan length: the longer the loan, the more interest you’ll typically pay.
    Types to Loans to Consider
    There are many different loans to consider when it comes to refinancing your mortgage. Here are a few loan types you may want to think about if you’re looking at refinancing.

    ● Fixed-rate mortgage
    ● Variable rate mortgage
    ● Adjustable rate mortgage
    ● Hybrid mortgage
    ● Collateral mortgage
    ● Closed mortgage
    ● Open mortgage

    When it comes to changing your loan type, keep in mind that it’s most important to find the best loan for your situation and goals.
    Bottom line
    Refinancing your mortgage is a big decision. After exploring your options and experimenting with the numbers, you’ll be ready to make an informed decision that takes into account both your short-term and long-term financial goals.

  • Forex Beginner’s Guide Learn how to trade currencies online

    Forex Beginner’s Guide Learn how to trade currencies online

    The Forex is short for Foreign Exchange, the English name for the currency. Currency is the market where one country’s currency is exchanged for the currency of another country. One may need forex when doing international business for example, or personally, when traveling.

    The currency market is a volatile market where sometimes you can make very large gains. Such large gains come with a potential for substantial loss.

    Hedging and Currency Trading

    The foreign exchange market has its usefulness. It allows companies that trade internationally to limit their risks by hedging their foreign exchange risk. It is known as hedging . To hedge currency risks, companies will eventually buy currency pairs. The forex market is the largest market in the world today, because to companies looking to hedge is added a mass of currency speculators: major banks, hedge funds, investment funds, hedge funds, brokers and individuals who joined this market not so long ago.

    This market is very successful because it is a liquid market. In the beginning, forex beginners may find this a bit complicated, but in the end it’s a market like any other: supply meets demand and there are sellers and buyers. Currency prices vary widely and there are several factors that can affect the value of a currency: interest rates, trading flows, tourism, growth of various countries, geopolitical events and more again. In the currency market, as in any other market, when you buy a currency pair, in front you have a seller who sells the same pair of currencies.

    Learn to trade – Forex as an investment

    Forex as an investment or as an asset class has emerged recently.  Forex trading is by its nature a short-term trading. Trading was very limited to institutional players due to their clients. Gradually, the banks themselves have set up proprietary trading to exploit the differences in currency quotations and make risk-free gains on arbitrage strategies. Today, forex is a market also accessible to individuals through the trading platforms offered by forex brokers and CFDs brokers.

    The Complete Guide to Forex

    The forex market is a decentralized market with no clearing house. This is an OTC (Over The Counter) market. The interbank market is made up of many banks that trade currencies against each other around the world. The risk in the currency market is counterparty risk, as there is no clearing house. Each bank displays its purchase price and its selling price and the formation of the price is given by the market. Negotiated volumes are very important and there is hardly anyone who can influence currency rates significantly. The daily volumes are from 2000 – 3000 billion dollars. Only central banks can influence prices by their interest rate decisions.

    Attempts are being made to create ECN (Electronic Communication Network) networks to bring buyers and sellers into a centralized exchange so that traders can see the order book and the depth of the market. This is a positive move for the individual traders who will gain an advantage by seeing the volumes.

    The risks on the forex are similar to those of the other stock markets. an investor may lose his capital if he makes a bad trading decision.

    Advantages of Forex Trading

    The currency market is the largest in terms of traded volume in the world and offer deep liquidity. It is thus easy to go in and out of position quickly without worrying if we will find a counterpart.

    Significant leverage is available in this market. Forex brokers offer different leverage that can range from 10 to 1000. It is very important that the leverage is mastered by the trader because it amplifies the gains, but also the risks.

    Another advantage of the currency markets is the fact that you can trade 24 hours a day, trading starts in Australia and other major places follow: Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London and New York.

    Currency trading is a “macro-economic” trading. Negotiating currency pairs is like comparing the two economies. Some traders find it easier to interpret currency pair movements than movements in technical markets, such as the options market or the futures market.

    How to Trade Forex

    There are several ways to trade Forex:

    • Scalping / arbitrage with a large capital
    • leveraged trading
    • hedging
    • long-term currency trading

    Forex scalping with large capital is possible for banks and other financial institutions. Professional traders develop arbitrage strategies and run them on very large sums of money. It is true those in the currency market changes in quotations are weak and that large volumes of orders are needed in order to generate some profitability.

    Traders who use leverage are traders who cannot afford large banks but want to exploit the volatility of currencies as well. The risk of this kind of trading is that leverage can increase losses and gains.

    Hedging is a protection trading against a risk. An exporting company that will receive 1 million euros in 6 months needs to protect itself against the volatility of the euro today, in order to cover its costs. In the same way, a US investor who buys European stocks and wants to sell them in 1 year, must protect himself from the volatility of the Eurodollar, because this investor will have to have dollars at the end of the period and his shares are in euros. Hedging is a zero sum game, but it allows you to close the gain / loss at the rate desired by the investor. Always remember that forex is a very volatile market. Trading strategies based on volatility can be considered in this market.

    Long-term currency trading requires knowledge of macroeconomics and the need to anticipate forex movements over several months and years. In long-term forex trading we can find the “Carry Trade” strategy. The carry trade is a trading strategy in which we will go to borrow money in a country where interest rates are very low, like the Japanese yen and invest this money in a currency where the interest rate is higher, hoping that the exchange rate will not cancel all the gains of the carry trade. The best known carry trade has been for years the carry trade between the Japanese yen and the US dollar.

    Conclusion: Forex is a risky market that offers earnings opportunities too. It cannot be stressed enough that trading the forex with leverage is a risky thing and that it does not suit any type of investor. Before deciding to trade forex you need to consider your investment objectives, your level of experience and risk appetite. To learn more about currency trading, it is always advisable to open a demo account to test forex without risk.

     

     

  • What to look for when buying a house in 2019?

    What to look for when buying a house in 2019?

    The slowdown in the property market in London maybe due to new taxes and Britain’s impending exit from the European Union. Though this might seem like great news for home buyers, some challenges do remain. Saving up for a deposit still remains one of the biggest blocks for home ownership.

    In such a scenario of volatility, it becomes all the more important to make sensible and informed decisions, where the real estate market is concerned. Do not be in a hurry to view a property in Cobham and buy a house that could be your home for several years, maybe even a lifetime. Have you made a checklist of all the things to keep in mind before making that big decision in 2019?

    Let us help you with 4 essential factors to look at, though there are several more to keep in mind too.

    A structurally sound building

    Check to see if the property that you are looking at has a solid foundation. Look at the plans of the house. It might be a good idea to take the help of a professional while studying them. An architect or a builder might be able to help you in decoding the structure. When viewing the property, take them along to help you watch out for risks and improvement areas. One of the things that you might want to check out are cracks, especially near bay windows, extension joints, and walls.

    Are there any damp areas in the ceilings and walls? If the property has been freshly painted, this could be a give-away sign for covering wet spots. Watch out for mouldy and damp smells and plaster that is peeling off.

    Does the property serve your needs?

    There is nothing like a perfect home. But there are properties that are nearly there and meet most of your needs. Find out if the rooms are large enough to house your family and pets if any. Will your existing furniture fit the new home? One of the tricks of home sellers is to use smaller furniture and make the rooms look larger than they are. So watch out for this.
    Another area that is often overlooked is the storage area. Are there enough built-in cupboards, shelves and space to store your junk, linen, vacuum cleaner and the gym equipment that you have never used, but do not want to give away?

    It might be a good idea to carry a compass while viewing the house, to find out the direction in which the property is facing. You do not want to end up with a house that is perennially dark in the summer, while you were expecting lots of light and warmth. It might not make so much of a difference in the winter, on cloudy days or in the night. But it is a completely different scenario in the warmer months. Another angle would be to spend some time in the house to find out how it pans out when the sun is out. Ending up in a furnace-like property is a total no-no.

    Roofing and Plumbing

    When viewing a property in Cobham, find out how old the roof is because replacing it would turn out to be very expensive. It might also be a good idea to check the material used because different materials have different life expectancies.
    Inspect the plumbing – if the taps have enough pressure, if the pipes are insulated if the radiators work and the age of the boiler.

    The Neighbourhood

    Check out the neighbourhood and find out if it meets all your needs – are the stores close by? Are there restaurants and pubs that might become overwhelming with their noise levels? Is there easy access to public transport? And most importantly, does the property give you a sense of home.

  • All you need to know about debt consolidation

    All you need to know about debt consolidation

    A debt consolidation is a way to refinance a debt. A person can take out a new loan or line of credit that is large enough to pay off their loans. The outstanding debts are then repaid and you begin to repay the new loan or line of credit, which usually have a lower rate or a simpler payment schedule. Paying off your debts is a great way to get your finances back and rebuild your credit.

    A debt consolidation loan is like a standard personal loan, but the money is used to pay off the debts. Since all debts are repaid, they are consolidated or “consolidated” into a new loan.

    A debt consolidation loan can be used to pay off credit card debts, pay late bills, auto loans and more. When you repay your debts through a consolidation loan, you only need to repay the new loan. Your payment schedule is thus simpler and the interest charges are lower, especially if you had late payments for your old debts.

    How to apply for debt consolidation?

    The bank assesses the risk you represent. They study your credit history, debt ratio, repayment behavior and ability to pay your loans. If the bank feels that you would have had trouble repaying the other creditors, it may not give you the loan.

    Banks may require a guarantee through an endorser. If you have a good job and equity on your home, for example, you could be a good candidate, depending on the amount of debt to consolidate.

    How does a debt consolidation work?

    1. Ask for an online loan quote to find out how much money you can borrow. It will only take a few minutes and it will not affect your credit score.
    2. If the bid is right for you, a specialist from the respective financial organization will contact you. He will recommend a loan solution and a payment plan tailored to your needs and your budget.
    3. Visit the respective branch to complete the loan application process and get your debt consolidation loan.

    Why do people ask for a debt consolidation loan?

    People are asking for a consolidation loan for several reasons:

    • A debt consolidation loan consolidates bills and debts to make a single payment. It is therefore easier to manage the repayment of debts.
    • A simplified payment schedule allows you to repay your debts faster and, therefore, save on interest charges
    • An easy-to-manage payment schedule will allow you to make timely payments, demonstrating good repayment habits on your part.
    • Over time, a positive payment history will help you rebuild your credit.

    What is the best way to consolidate your debts?

    The best way to consolidate your debts depends on your goals. If you like to have a simplified payment schedule, then choose the monthly payments, since they involve only one payment per month and therefore only one date to remember. If you like to repay your debts faster choose installments every two weeks and a shorter loan term.

    The goal of a debt consolidation is to free you from your debts. It is therefore important to keep control of your new loan. Regardless of your payment schedule or the length of your loan, consider setting up automatic payments. The money will be withdrawn from your account on the day of your choice. With automatic payments, you no longer have to worry about forgotten or late payments. So you stay on track and repay your consolidation loan on time.

    Why debt consolidation loans are recommendable?

    If you have multiple bills and unpaid debts, debt consolidation may be the right solution for you. Debt consolidation is especially useful if it is difficult for you to track your payments. If you are thinking of getting a debt consolidation loan, try any debt consolidation calculator from any financial organization offering debt consolidation. The calculator lets you see how much you can save by paying and consolidating your bills with one payment.

    Advantages

    The main advantage is certainly the reduction of stress related to multiple payments and especially to their deadlines. Also, the interest rate for a debt consolidation is usually lower than that to pay to your creditors and these will be paid in full, more quickly. It is obviously easier to manage only one payment, your chances of forgetting decrease considerably.

    The inconveniences

    Even if the consolidation of your debts allows you to save on interest payable, you must keep in mind that your overall debt still exists. Ignoring this detail, the possibility of getting into debt is watching you. It will therefore resist the appeal of an “empty” credit card, as attractive as it is.

    Conclusion: By consolidating, the overall debt remains the same, contrary to the consumer proposal. And even after consolidating credit card balances, remember that the amount of debt to be repaid will increase if you continue to use them.It’s never too early or too late to take control of your finances. Give yourself some time to review your financial habits and make sure you are on the right track in achieving your goals. If in doubt, your financial adviser can help you.