Think Twice. Let's talk about money. Tips

Friday, 14 September 2018 11:13

Let's talk about money. Talking about money is not idle chatter; it's a serious matter that has a huge influence on our lives. Money may not be everything, but it does play a very important role in everyday life. But we all know this; let's move on to more interesting, but related topic.

How should we relate to our money? What is the best way to spend it?

We receive money and we spend money. Very often, we are not the ones who choose how much we receive. Other people do that for us. But even when that’s the case, we still have complete control over how we spend the money we get.

In this article, we won’t be talking about great sums of money or mergers and acquisitions. We’ll be talking about everyday decisions and actions.

Here is some advice that can help you manage your finances wisely.

First Tip: Build a finance plan. You should plan your expenses for a month, for a year, or for every week of your life. And don’t just have a plan, but stick to it. Yes, It's difficult to do, but it can be done. Most of the time.

When you drive down a highway, you probably assume that the other drivers are relatively clearheaded people. But every once in a while, you see strange driving and accidents. Nobody can predict those things. Such things can suddenly appear in your life and ruin your financial plans. And then unexpected expenditures are necessary.

In order to prepare for such situations, you should create your own safety net / reserve fund.

Second Tip: Create an emergency fund. Some banks may offer such a service. You can determine what percent of your income you want to go to your savings account. A normal amount is between 5 and 10%.

Ad instead of having your bank do it automatically, you can manually transfer a certain amount of your earnings to another account (or under your bed).

Five to ten percent is not a big amount. After you start saving it, you might not even notice its absence as you go about your life. But if you do start saving, you can walk around with a sense of security knowing that you have something put aside if you ever need it.

Another way to create or replenish an emergency fund is by selling old or unnecessary things. You can do this yourself or with somebody's help, by having a garage sale or by selling online. If you look around, you’ll probably find that you have more useless things than you think you have. Old cell phones, TV’s, computers, and other electronics, even an old armchair - these are things that take up space but don’t earn their keep. Turn them into money and then put that money in your emergency fund. It’s a strong move in the game of life.

However, sometimes our life presents us with surprises that even an emergency fund can’t cover. That’s when a loan is necessary.

Third Tip: Be very careful if you get a credit card. Spending with credit is always more expensive than spending with cash. The only positive thing about spending with credit is time. Look at the time you gain and the money that you will lose. On the one hand, you get the essential thing or service you want right now, and on the other hand, you have a payment that can stretch for months or years.

It's like if you’re planning to go to a high school reunion and so you decide to buy a nice suit or a nice dress. For one night, you look great and you feel great. But then for months afterward, the clothes hang in your closet and you have to keep paying the money back. Reunions/parties are great and maybe you do need a new suit, but think about how many months it will take to pay back such loans.

Examine the repayment schedule, determine your estimated income during that period, and pay special attention to the penalty if you miss a payment. And remember that the most important provisions are usually in small print.

Last Tip: You can plan your life; you can plan your expenses. What you can’t do is foresee unexpected events or emergency situations. However, you can prepare for them. Manage your money. Don’t let your money manage you.

Think twice before getting a credit card.

If you decide to get a loan, a short-term loan is the best decision.

Go to EZ, because EZ is the best marketplace for short-term loans.

8 advises before taking out a loan.

Saturday, 18 August 2018 01:29

Consider some advice before taking out a loan, especially a payday financing plan.

#1 Build a plan. Consider other financial instruments. Select the one which meets your expectations. Plan a schedule for paying back the loan.

#2 Compare the interest rate to the benefits you’re planning to get from the short-term financing. It should be obvious for you that the short-term loan will change your financial situation for better, not worse.

#3 Avoid downward debt cycle at all costs. For instance, never apply for a payday loan in order to pay back a previous loan.

#4 Check the laws of the State you’re living in. Some financial instruments are prohibited by law in certain states.

#5 Short-term lenders don’t check applicants’ Credit Rating. Make sure to take that into account if you’re constantly getting rejected from long-term loans.

#6 Long-term loans require more time and documentation for the application but have a lower interest rate. Short-term loans are rapid and easy to get the approval and have higher risks, therefore, a higher interest rate.

#7 Be responsible. Pay in time. Loans don’t like overdue payments. Additional charges and penalties will hit hard. Lenders are doing their business and really appreciate in-time payments. So, next time you’ll apply for the loan – your reliability will be taken into account, so you will have a chance in getting a discount or a better rate.

#8 Keep in mind the golden rule: The ideal financial assistance should be closed in a positive financial balance. For instance, it’s better to wait for a discount and apply for a short-term loan, so by the end of the day you’ll save more.

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