Financial planning consists of four basic things – insurance, taxes, retirement and estate planning. The first and the most important pillar is to have insurance against the losses that you cannot cover yourself. For this you will need to determine what the losses that you can endure are and what you need insurance against. For example, you may not need to insure a laptop since if that is lost you can afford to replace it with a new one. However, it would be wise to have insurance against emergencies like hospitalisation, fire and robberies.
Recent times have been tough with prices soaring and income decreasing. However, the book Rich Dad, Poor Dad does offer some very useful insights into how to live a happy life even with a limited income. The most important thing is to “feel” rich! Instead of spending the entire day fretting over how little you have and how you cannot afford something, you should spend your time counting your blessings and thinking about how to afford the thing you want! This creates a feeling of positivism and enables us to get new ideas.
With the torrent of bad news and wrong moves in the market lately, nobody’s really surprised anymore about financial and economic dismay. Almost everyone started on a defensive break to try and survive for a little while longer, playing it safe, waiting the economic fluctuations out. Meanwhile though, during the same time that these investors are high-tailing their way to safety, there are a few vigilante investors who tell themselves that it’s better to risk it out than to stay and hamper growth. Of course, crossing the trench lines heavily armed with machinegun batteries directly is a sure death wish. So, these witty investors are up for a different approach to take on the market.
ETF is an acronym for “Exchange-Traded Fund”. It acts much like how a mutual fund does, and is also a plethora of different investments that trades like a stock. It was first introduced in the United States in 1993. Most ETF’s simply track a kind of index, although some can be actively managed.
Mutual funds are limited to buying and selling of shares once a day, whereas in ETF, you can buy or sell shares whenever you like, and as many times you want to. Mutual funds usually need to determine the closing price before they can even provide you with a calculation of how much worth one specific part of the fund would be. There are also 5 main benefits of ETF’s, which are:
Credit is a crucial aspect of your finances. It offers a lot of advantages and conveniences but it can also come with undesirable hazards which can be caused by negligence and inefficiency. In fact, credit has already driven millions of people into unwanted debts and other problems. That is why you should weigh and consider credit risks or if you are going to apply for credit.
Learning to use credit is not a difficult task. You just need to be careful in making decisions that concern your credit and other related transactions. Credit cards should be taken seriously because irresponsible credit management can cause you numerous troubles and cost you a great deal of money which is needed for other necessities.
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