Is Over-Investment A Potential Option Of Investment?

In general finance, over-investment mainly refers to personal financing. It is quite contradictory that whether it is good or bad. For some investors, it is simply wastage but for others, it is a potential investment. In most of the cases, assets investments are included within the scheme.rnrnIf you are investing more in assets having comparatively lower value, then the case of over-investment arises. In this case, you have to fix up your purpose and objective and then on the basis of the same, it can be decided that whether your investment is worthy or not.

If you are making over-investment, then it is always wise to choose only consumable products especially houses, trailers, automobiles and other related ones. These products or assets can be used for a long time as a result of which you can enjoy the fruits of your investment in a consistent manner rather than waiting for a long time. Until and unless you choose the right consumable asset, you should not take the decision for this kind of investment so that will bring acute wastage and you might face a greater financial instability.

The assets should be highly versatile so that they can be used either for getting regular profits or for getting one-shot profit.

if you think that your purposes have been served enough then you can also take the decision of selling out the same.

If you are using the assets for your personal usage, then your purposes are getting resolved.

Today’s investment can save your money in future and this is really quite an interesting deal.

You can make an open comparison between these two values and you will automatically get the actual result that will help you to judge that whether your investment is worthy or not. You might have other investment options but no other option is that very interesting like the concerned one. Consumable assets are in higher demands these days and this is the very reason the concept of over-investment is getting the highest popularity. If you have repaired your house as a part of maintenance service and then have leased out the same to potential tenants, then you will definitely be able to get regular returns on a monthly basis in the form of rent and thus the investment can be justified.…

Choosing Between Paying Off Debt or Saving for Retirement? Here is What You Should Consider

One of the great problems that most people face in life relates to managing debt. Some experts are of the view that one must allocate income in a way to get rid of debt as soon as possible. But what is equally important is to save for the retirement.

So, what is the best financial decision? Should you focus on getting rid of your debt or prefer saving for your retirement?

The answer, according to David Ramsey, a National best-selling author and radio host is definitely to hold retirement savings until you are able to pay off the debt. In his book “Baby Steps”, he offers the following four steps for financial success:

 Step 1: Save $1000 for emergency fund.

Step 2: Pay off all the debt except house mortgage.

Step 3: Save about three to six months’ salary for a rainy day.

Step 4: Invest about 15% of income in retirement accounts with tax benefits.

In Ramsey’s financial success formula, retirement savings do not come into the picture until the forth step. He says that the four Baby Steps will add to financial security and lay the foundation to build wealth that will last for a long time. It will also ensure that you don’t fall further into a debt hole.

Laurie Itkin, who works as a financial advisor at Coastwise Capital Group in La Jolla California, is also of the view that it’s better to pay off high interest debt before thinking about saving for retirement. The reason is that the interest that you have to pay will be higher than any returns you get from your savings. As a result, you will end up losing money instead of growing your net worth.

In contrast to the views of these financial pundits, Amy Podzius, a TIAA Financial Consultant based in Chicago, advices that individuals should take a balanced approach and do not lose the opportunity of contributing to a retirement plan offered by the employers. She says that retirement savings grow over time, so the sooner you contribute to the account, the larger will be the nest egg.

Graduates today are encumbered with student loans. If they put off contributing to their retirement account later, they will not be able to build a sufficiently large retirement nest egg.

According to Podzuis, an individual should set aside about six percent of the income, which is usually enough for most employee retirement plans. The employers matching contribution is simply free money that everyone should take advantage of.

In the end, the answer to whether to focus on paying debt or saving for retirement depends on the financial situation of the individual. You should not become paralyzed by the complexity of the question. Instead, focus on assessing you current financial status and take instant action to make the best of the opportunity. For some the best course of action will be to eliminate the debt first before saving for retirement, while others will find it better to balance things out.…

How to Keep the Spark Alive in A Relationship When You’re Broke?

One of the major factors playing a pivotal role in staling the relationships before time is money. And not only is it because of the very much needed financial security but also because being broke impacts a relationship in various ways, all toxic. If one keeps the terror of a loss of financial security at bay, the equation still contains relaxed atmosphere, and a need for emotional connection which is hindered with the money issues.

The question arises, when you are not financially strong, or worse, broke; how to manage a spark in your valued relationship despite that?

Some of the tips help in reviving the strong connection with your partner despite the financial crunch:

1)    Mark your relationship priorities away from money

Though money matters are crucial when it comes to long term relationships, it is not all what it takes for a relation to grow. Set priorities in your relationship and make sure they are non-material. Make each other your priority, the time spent together is valued much more than anything else. Having solid basis of a relationship helps it through the times of financial hardships.

2)    Never cease to communicate

Lack of communication kills the relationship before anything else or anyone else gets the chance to. Talk about money matters to your partner and try to provide information which is important so not to keep them in dark. It becomes very essential to share your financial condition with your partner when you are broke, this won’t only help you two find out a solution a solution together but also will garner trust and respect for one another’s decisions which they might or might not understand, hence strengthening the bond.

3)    Set financial goals together

Align your relationship goals with financial goals and make it a point to achieve them together. Not only will this help you both get out of a financially fragile state but also will add spark as you set out on an adventurous journey to regain a strong position in togetherness, through thick and thin.

4)    Never cease to surprise one another

Never forget the fact that after all, your romantic partner isn’t your financial partner solely and he/she though very well understands that you are broke, the need for emotional intimacy never fades. Look for creative ideas to surprise your partner and relive the moments when you both had goosebumps just hearing each other’s voice and all the milestones you both have achieved since the initial phase.

5)    Laugh it off

The significance of laughter and the role it plays in maintaining healthy romantic relationships cannot be ignored. It is important to share a good laugh together over mistakes (your own) and to shrug off the stress of being broke by looking forward to things which aren’t money related. Have fun together, set out on trips which don’t require much cash, explore new things and never stop dreaming together.

Remember, money is important and issues related to it could bring a lot of distance between partners. To avoid that and also add spice to your relationship, it is important to make your relationship a priority and never stop striving for a better tomorrow.…

Stay Away from Fraud—Tips You need to Keep in Mind

Your financial freedom is dependent on three things: your hard work, money management skills, and your shrewdness in detecting and protecting yourself from scams and fraud. Nowadays, fraudsters and scammers are present both online and offline, preying on the un-prepared.  This post shares some essential tips to guide and protect your financial well being:

Deal Only With Those Who You Know

Many scammers and sellers offer various services and product making amazing offers to get the attention of potential buyers. These deals are often too good to be true. The rule of thumb  is that before dealing with anyone, you make sure of their physical existence and know where their physical address is. A name, website and email are just too vague to deserve your time. Make an online search and ensure that they are an existing entity, have been in business for some time, and have an existing clientele.

Keep Regular Checks on Your Statements

Identity theft is one of the most favorite tool of scammers. Scammers steal account information and  use it to charge under your name. If you see any or tiniest bit of abnormality in your statements that doesn’t sit well with you, then it’s time to call and contact your card issuer or creditor immediately.

Shop Safely

Yes! Mobile phones are a great way to make excellent purchases but they pose greater threat to your financial security than desktops. This is because with smartphones, most of us are still lax about online security and it’s easier to fall prey to online frauds. Avoid suspicious websites at all cost. Always check if the website offers secure gateways for transactions, such as an SLS and safe payment gateways. Additionally, check their popularity from Alexa to ensure that they receive regular local traffic.

Remember, your Social Security Number is yours, and this information should never be shared online. Make your passwords long and difficult to avoid possible break-ins. On an ending note those holiday cards may seem too cheerful to be good. These hidden holiday e-cards have all the punch in them to knock you out of the ring for good.

Stay on the Alert with Unsolicited Offers

Any pitch that you receive from a company asking you to invest your money, needs your time to be investigated firsthand. Make sure current financial information is available from independent sources. There are many schemes such as ‘pump and dump’ that want foreign investments and asking for money to be sent abroad. Close them all and never look back.

Destroy All financial Data Residue Before Disposing It Away

Records on computers and electronic devices, receipts in your possession, and carelessly written contact numbers are all clues for scammers to gain an opportunity to get back at you. Hence, it is important that you keep the bare minimum backup of information and destroy any information leading to your personal financial data and which you do not need.…

What To Do If your Application For A Guarantor Loan Is Rejected?

Credit ratings and loan application may not sound like a big deal when you are young and living your life on someone else’ financial support. However, the moment you take up your own responsibility and start catching up with life, many people end up in financial trouble. Whether it is about education, housing loan, or arranging financial aid to setup your business, it is important that you know about factors that could lead to rejection of your loan application.

While guarantor loan sounds a viable option, there is no guarantee that it will always be successful if you have a good credit report. In fact, this is the only form of loan where your credit history does not play an important role. The success of your application depends on how strong your guarantor is or how thoroughly you have followed the criteria.

Following are some important steps you can immediately take if your guarantor loan is rejected:

Check the Criteria Again

Chances are that you might have missed out on something. Go through the details once again and thoroughly check the eligibility criteria set by the lenders you are dealing with. If you are just working according to a rough idea, it may not turn out positive for you. You should know for sure.

Speak to your lender and find out if you have missed out on something and immediately fix it up to improve your chances.

Find a Steady Job

For a guarantor loan, it is important that both the borrower and the guarantor are employed and have steady jobs. A person with a better and steadier job is surely the ideal customer in the eyes of the lender. As a borrower, by having a steady job you can ensure that you will be earning a certain amount every month and will be able to make your repayments without trouble.

The same applies to the guarantor. He or she must have a steady income stream — whether from a full-time job or a proper business. A consistent income stream is going to make your case stronger.

Find the Guarantor with the Right Age

The age of your guarantor must be between 18 and 75. If your guarantor is too young—despite off meeting all the other criteria—your loan application can be denied. Therefore, make sure of the age before you submit your loan application. This factor is important because the lender wants to make sure that the guarantor is mature enough to take this decision on his or her own will. Also, that the guarantor is able to keep up with the responsibility he or she has taken.

Pay the Bills

If you or your guarantor have unpaid bills, now is the right time to pay it. Your eligibility depends on your ability to repay and fulfil all your liabilities including your bills. This will portray positively and will be beneficial for your loan application.

In short, finding the right guarantor is the only thing that can help you with a successful guarantor loan. So invest your time here and meet all criteria for a smooth experience.…