November 6, 2019, 10:18 am

Things Worth Sacrificing to Become Debt Free

by: The Financial Blogger    Category: Pay off your Debts

Image by Jill Wellington from Pixabay

Outsized debt from overindulgence is far too common. Yes, we know the sudden loss of a job or an unexpected medical expense can also cause personal finances to spiral out of control. However, if an emergency fund were in place, the situation would be considerably less severe.

Unfortunately, many of us overlook the possibilities of problems in our pursuit of life’s pleasures. With that said, it’s time to consider what things are worth sacrificing to live debt free.

Free Time

If you’re carrying outsized debt, odds are you can’t afford free time. OK, yes, you do need some time to recharge from time to time, but sacrifices will need to be made to eradicate your debt. This means earning additional income. Hopefully, you can find a way to accomplish this by doing something you enjoy. Perhaps you have a hobby capable of generating revenue. If not, you’re going to have to find a way to bring in more cash.

Either way, it’s time to get busy.

Extravagant Possessions

Are you sitting on a collection of watches worth thousands of dollars? Do you have a sports car in the garage you only drive once or twice a month? A sailboat, an airplane? Whatever it is, if it isn’t absolutely endemic to your respiration, it should probably be sold off to satisfy debt.

After all, you probably went into debt to get it in the first place.

Expensive Entertainment

Going to see “Hamilton” in $400 seats you bought with a credit card? Yeah, it’s time to stop doing that. Eating in restaurants several times a month? Yep, time to kick that to the curb too. You should also be taking your lunch to work every day and walking right past the gourmet coffee shop, foregoing that five-dollar latte every morning. In fact, changing just that one habit will net you somewhere around $200 each month you can use to keep creditors at bay.

Now, with that said, it is important to allow yourself moderately priced entertainment while you work your way through the problem.

Just keep it reasonable — and pay cash.

Your Pride

There’s no shame in admitting you have a problem you’re unable to solve on your own. This is why programs like Freedom Debt Relief exist— to help people who need it. Of course, the first step is admitting it to yourself. Then you can find the help you need to reach a viable solution. This might be debt settlement, a consolidation loan or maybe even bankruptcy.

Whatever it turns out to be, it’s OK to sacrifice your pride.

Social Media

OK, so Scott and Becky are spending a week on the Grand Princess in the Caribbean. Trevor and Steven just redecorated, while Glenda and Mary just got a new Range Rover Evoque. 

Looking at it on Instagram, Facebook and Twitter, you’re feeling left out because you aren’t doing something commensurate. So, you go into debt to take a river cruise in Holland to give you something to brag about.

Bad idea. Odds are, they’re leading that “amazing life” on credit too.

Stay off social media while you deal with your debt.

Common Sense Isn’t Common

Yes, a whole lot of this is just common sense. However, common sense can fly right out of the window when it comes to emotional issues. All our lives we’re told living a lifestyle of abundance is something to be pursued. Meanwhile, we’re also told owing people money is bad.

Thus, our common sense says, “Avoid going into debt” while our egos say, “We work hard, we deserve nice things and we can always pay them off over time.” Then, when the bills are more than can be comfortably paid, the ego falls strangely silent.

Which brings us to the key thing worth sacrificing to become debt free: Ego.

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November 5, 2019, 9:52 am

Advantages and Disadvantages of Options Trading

by: The Financial Blogger    Category: Investment, Market and Risk

Image by Gino Crescoli from Pixabay

When engaged in strategically, options provide traders with a profitable opportunity to engage in buying and selling of stocks. Options can also be used to reduce the risks of losses occurring. In this article, we will be looking at some of the benefits of engaging in this trade. We will also look at some of the drawbacks.

Let’s kick off with the advantages.

Benefits of Trading Options

  • Options trade require a low financial commitment

This is just one of the many advantages of options trading over stocks trading. The cost of purchasing an option is way lower than the amount that would be required to pay for shares. Traders who have invested in options make payments that are way lower compared to stocks but if the trade works in their way, both traders stand a chance to reap equal benefits. 

  • Options Investors are allowed to fix stock prices

Options contracts give the trader the freedom to fix stock prices at a certain level for a specified duration. This allows the traders to be able to buy/sell contracts at the desired price before the contract expires.

  • Flexibility for traders

Options traders benefit from the flexibility that the trade offers. Before the expiration of a contract, the traders are given several strategies which they can put to use. The strategic moves include; buying shares and adding onto them into your portfolio or buying shares and later sell part or all of them. This and other moves can help you to reduce the possible risks of an options trade.

  • Losses are limited to whatever is paid for

Whenever you call or put an option, you are not compelled to follow the trade through to the end. The case is different while trading in stocks. If your predictions in an options contract are incorrect and a loss occurs, you only make losses on the contract and the trading fee.

Downsides of Trading Options

  • Traders must meet set requirements

Some set requirements must be met before traders can start this trade. Options traders must maintain a minimum balance of $2,000 in their accounts. The first requirement is that you apply for approval from your options broker. To grant you this approval, the broker will ask several questions aimed at verifying your financial and investment experience. 

Choose a broker whose terms are favourable to you.

  • Limited time to make the next move

Although it has many alternative strategies, options trade is short term in nature. Trades normally take place within days or months and investors have to capitalize on the prevailing price movements. Traders have to study the trends and make the important decision of whether to buy, sell or walk away from a trade before the contract reaches the expiry. 

Things to Do That Can Help Minimize the Drawbacks of Options Trading

  • Never stop learning.

Keep doing your research on trading as you wait for the trade hours to clock in. This will expose you to new techniques and tricks. It will also prevent you from making uncalculated trade decisions. Learn from trade webinars and read informative trading media.

  • Delve deeper into specific patterns

Note down all indicators and all the elements that come with it. Scroll through past charts to see how the two affect each other.

  • Initiate trading chats

Got some questions? Consider discussing them with fellow options traders or your broker. There is a lot that you can learn from other traders. Use this as a chance to educate yourself and to develop your skills further.

Summing It Up

It is important to choose an options broker. Apart from offering you a platform where you can trade in options, a broker offers you the professional advice that is required until you can make trade decisions independently.

The broker will give such advice like which trades to place and setting the appropriate expiry time. He will also give you a breakdown of the potential gains.

To make sure you develop your skills, the brokers have a platform where you can gain experience by practising trading on a demo account.

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October 28, 2019, 9:29 am

Venture Funding: Weighing the Pros and Cons

by: The Financial Blogger    Category: Investment, Market and Risk

Image source: Pixabay

Venture capital financing sometimes allows small businesses to grow quickly, especially if they were successful early on. Many different types of companies use venture capital to expand, although not all are successful. This type of funding can be difficult to obtain, as it is not a loan and using it wisely may require some guidance; however, whether you are accepting venture capital or offering it, there are some pros and cons you may want to be aware of before you begin. 

Pro: You May Struggle Less 

When you accept venture capital, it can give you the means to cover expenses right away instead of having to depend on profit. As a result, you may struggle less when it comes to growing your company. You can purchase resources, pay vendors, and hire as many employees as you need without the burden of a bank loan or tightening your budget simply to meet these necessities. This may result in quicker company growth. 

Pro: Increased Networking 

Once you find venture capital financing, your investors will probably introduce you to other investors and people in his or her circle that may be interested in your company. This can help you build a network you can turn to when you need additional financing or want to reach out about finding new talent. The more individuals you have in your networking circle, the more potential resources you may have at your fingertips. 

Pro: Venture Capital Financing Is Not a Loan 

One major advantage of securing venture capital financing is that you do not have to pay any of the money back if your company fails to grow. This can have a variety of advantages for you as a business owner, including: 

  • No negative impact on your credit score 
  • No hefty interest fees 
  • No prequalification restrictions 

While your investors likely understand the risks of venture capital financing, it is wise to discuss all aspects of the process before you accept the funding, such as whether you plan to take your company to direct listing and which resources are needed for fast growth. This may help you and your investors maintain better communication, especially during periods of rapid expansion. 

Pro: You May Attract Better Talent 

Once you obtain financial backing via venture capital, you may be able to hire highly-qualified individuals and offer them the kind of salary that will keep them loyal to the company. This could result in reduced employee turnover and training costs, both of which can be a drain on company resources. Competitive salaries may also raise employee morale and maintain consistent quality control for product output and customer service. 

Con: Shareholder Interference 

Owning a business can be liberating, as you become your own boss and make all the major decisions regarding the operation and growth of your company. However, when you agree to accept venture capital financing, you are also allowing others to own a share of your business and perhaps take some control out of your hands. If this type of power shift concerns you, then accepting venture financing may not be the best choice and you might want to explore other options. 

Once you have more than several shareholders, they may vote to change certain aspects of your business and since majority rules, you may have to tolerate these changes. If you want to limit these actions, it is wise to do so when shareholders are first informed of their rights and limitations. 

Con: Investments Are High Risk 

While some individuals like Mark Stevens have made billions by investing in venture capital, being on the investment end does have its risks. A supported company may fail without warning, and since this capital is not loaned money, any investor in this position would stand to lose his or her investment. Some ventures might be riskier than others, but overall, investing in any startup this way may result in a financial loss. 

Cons: Your Salary May Be Reduced 

Receiving venture capital financing can allow you to purchase resources, hire talented workers, and obtain the tools and machinery you may need for growing your business. However, your shareholders may ask you to take a pay cut so financial resources can be spread through the company. If majority rules on a decision like this, you may find yourself with plenty of cash for the business but significantly less for yourself. 

Con: Venture Capital Can Be Difficult to Obtain

Venture capital financing has a variety of advantages that could give your startup a boost, but it is not something you can obtain easily. Many small companies are seeking this type of funding instead of opting for a traditional bank loan, so you may find the market crowded. Savvy networking may help you find an investor that suits your needs, but it may take months to work out a deal that is beneficial to you both. 

Venture capital financing has a number of pros and cons for both business owners and investors. Understanding the impact of these factors may help you make better investment choices, no matter which side you are playing.

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October 9, 2019, 3:14 pm

How Does Free Money Work in Online Slots?

by: The Financial Blogger    Category: Other Financial Articles

If you are a regular player, you must have come across the term such as a “no deposit bonus”. This is basically free money that is provided to punters when they sign up at a gambling site.

If you are a regular player, you must have come across the term such as a “no deposit bonus”. This is basically free money that is provided to punters when they sign up at a gambling site. It is called free money as you do not have to spend even a cent to get this bonus.

No deposit offers have been popular since the time online casinos came into existence. A majority of the online casinos entice new customers and members by addressing the barriers which might be stopping them from gambling at the site. However, most of the time, a punter is worried about spending money on a site that they do not trust. This is the reason gambling sites started offering no deposit offers. You now have a good excuse to try these out.

Why Do People Love It?

No deposit bonuses are actually sponsored, and players can enjoy gaming without any type of financial commitment. The slot spinning session with such boons entails no risks for the players. This is the ideal opportunity for you to explore the different games that are available at the online gambling house. Thus, you will be able to play on a wide range of slots online free in the quest for prizes.

A welcome offer is usually accompanied by a welcome matching bonus. Casinos use this to get you to make the down payment, and once you have registered, they will provide you with regular promotions. At times, they include free spins as an added incentive.

How Does It Work?

The process to use them is pretty straightforward.

  • The first step that you need to take is to find a gambling site that provides this bonus;
  • When you have chosen the best one, create an account for claiming the bonus. In certain cases, you will be provided with a code for this offer. However, at other times, it will be applied automatically. Some casinos ask you to get in touch with the customer support team to avail the offer. Make sure that you check the terms and conditions prior to taking advantage of it to be more informed;
  • Check out the game where you can apply for this promotion. And use it to enjoy your heart out;
  • However, do not forget the wagering requirement. If you have to cash out your winnings gained at the expense of such no deposit offer, you will have to fulfil the wagering requirement. At times, you might also have to cater to the maximum winning requirements;
  • Once you are done fulfilling the wagering requirements, it is time to withdraw your wins and enjoy. In case the experience has been satisfying for you, you can simply make the payment and start playing.

No Deposit Bonus: Avoid or Accept?

Since there is no risk involved, there is no reason to avoid it. This is the best way to explore the site, have an idea about the games it offers, and decide if it is really worth your cash and time.

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September 23, 2019, 7:54 am

What is Financial Planning?

by: The Financial Blogger    Category: Financial Planning

Financial planning is beneficial for everyone, no matter how much money you make or your economic status. You don’t have to make a lot of money in order to enjoy the benefits of financial planning. The earlier you take a close look at your finances, the better off you’ll be far into the future.

Image by Pexels from Pixabay

Here’s what you need to know about financial planning as well as tips to get started.

Financial Planning 101

Financial planning isn’t a one and done process. Instead, it’s an ongoing part of life that ensures you can comfortably support your financial needs while also preparing yourself for retirement. The process involves many factors; including your income level, expenses, and your goals.

Many people who are new to financial planning seek expertise and direction from a financial advisor. Financial advisors are a great resource for helping you to determine how much money you need to reach your goals while also helping you to create a path to meet them. These professionals can even manage your investment accounts. This less stress on your part!

To ensure your money and financial health is in good hands, you want to research an advisor before ultimately choosing one. You can use the Careful Cents site to compare the best financial advisors in Tampa.

With thorough financial planning, you can have peace of mind that your money is working for you. With a roadmap of your finances, you can create a solid financial foundation that will serve you well for years to come.

The Benefits of Financial Planning

Financial planning won’t make you rich overnight, but what it will do is allow you to develop a plan that enables you to make smart financial decisions. Without financial planning, you’ll be stuck wasting money on interest charges and frivolous spending, both of which can impact your financial stability for years to come.

There are endless benefits in taking the time to plan your finances. Some of the best benefits include:

  • Building financial confidence
  • Being able to boost your savings
  • Having financial peace of mind
  • Making it easier to maintain or increase your standard of living
  • Planning for the future and retirement

Now that you know what financial planning is and why it’s so beneficial, the next step is to put everything together. Financial planning is something that you can start at any time. But the sooner you start, the sooner you can begin to improve your financial situation.

How to Get Started

What’s great about financial planning is that it isn’t hard. No matter if you’re working with a financial advisor or doing all of the planning on your own, it’s not rocket science!

Know Your Goals

One of the first things you’ll want to do is to think about your life goals and what they cost. For example, maybe you want to buy a home, have kids, or retire early. These are all life events that cost money.

In order to turn these plans into something tangible, you have to plan for them! Buying a house means not only figuring out how much mortgage you can comfortably afford, but it also means saving up money for a down payment and building an emergency fund in the event of a large household expense.

By taking the time to plan your finances, you can determine how much income you’re going to need in order to meet each of these goals.

Track Income & Expenses

Once you’ve identified your financial goals, the next step is to examine your income and your expenses. First, figure out your net worth. This includes cash, investments, and other owned assets, such as a home. Then you’ll want to look at your expenses. Figure out how much cash you have coming in compared to how much is going out.

Take a look at your weekly and overall monthly expenses. Pinpoint where your money is spent. To make tracking all of these numbers a little easier, consider using budgeting apps such as Mint, Goodbudget, and Tiller.

Map It Out

Now that you have your goals and your financial data mapped out, the next step is to put everything together. Compare your goals with your net worth, income, and expenses. While you may not have the income to meet all of your goals right now, remember that financial planning is all about comparing where you are financially now to where you want to be in the future.

The next step is to create short-term and long-term plans. This includes creating a budget, reducing debt, and investing your money. As you meet financial goals, always create new ones! Remember, financial planning is a life-long effort. There’s always something that you can strive for financially, even as you entire your retirement years.

Conclusion

Financial independence and security don’t come without years of planning, budgeting, and smart decisions. No matter where you are in life, it’s never too late to reap the benefits of financial planning. Follow these tips so that you too can work towards a more sound financial health.

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