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Three Critical Investing Tips For Millennials

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As it stands, the millennial demographic is larger than any other generation. Having said that, do they plan and save better for retirement than the other generations? Maybe, maybe not.

As millennials move into the critical earning years of their lives, it’s essential for them to save as much for retirement as possible. While it may be challenging to sock away a significant portion of your paycheck, investing wisely in the market could prove to be very beneficial in the long run.

But how?

Jason A. Sugarman suggests following the following three tips to investing in the right kinds of stocks.

Avoid Trends

Steering clear of fads will yield positive results. Just because you love snapchat, doesn’t mean you should throw all of your money into Snap Inc. We see way too often company’s stock diminishing after an IPO.

In order to avoid this pitfall, consider whether or not a company truly has potential for growth based on personnel and product advancement.

Let the Market Grow With Time

Sometimes, the best advice is to just “do nothing”. In this sense, investing in a mutual or index fund can yield some nice returns in the long-run. This may be a great option for millennials who really don’t have the time to monitor stocks and analyze the market.

It’s amazing how often an index fund will outperform a hand-picked hedge fund (not to mention the high fees that come with actively managed funds).

By removing the guesswork out of investing, indexing is a great way to go. You can also consider a target-dated fund, which rebalances your account automatically with age.

Early is Better than Later, More is Better than Less

As an investor, the biggest benefit that you can have on your side is time. When you’re young, you have leniency to take risks and suffer losses through the turbulence of the market. In regards to your retirement, risk really doesn’t matter that much due to the amount of time that you have on your side.

As history shows us, the stock market (over time) moves in a positive direction. We’re never going to have a 35 year recession. Unless we have some catastrophic event that ruins capitalism, you’re guaranteed to earn money in the long-run.

Investing in the stock market when you’re young is much akin to going shopping and buying something on sale. You’d purchase an item on sale even though you may not wear it until later, right? Millennials should look at stocks in the same light.

Recap 

Sure, investing can be very tricky. Having said that, if you follow these three tips, you’ll be sure to have some nice earnings later in life. Get started today!

Advice From Brennan & Clark Collection Agency – How to Avoid Falling Behind On Your Debt Repayments

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Debt is a affliction which many people are suffering under the weight of, not everyone of course, but there are many who are finding it difficult. Well managed debt is absolutely fine and will not cause any issues to you at all, poorly managed debt is a large problem however that affects many aspects of the life of those in financial difficulty. The key to staying on top of your debts, is to stay on top of your repayments, and we spoke to the Brennan & Clark collection agency, to give you some pointers on how to ensure that you are on top of your debt repayments.  

Review and Negotiate

The first step is to look at all of you debts, and the repayment amounts, and then cross reference that with your salary and the bills which you will have to pay each month. When reviewing your debts, you should also pay particular attention to the date on which the payment is required. After reviewing your repayment details, you can then speak with your creditors, to tweak the agreement somewhat. For example make sure that the date of repayment, is shortly after the date that you receive your wages, making the payments easier to make. If you have found that with all of you bills and repayments, you don’t have enough money to survive each month, speak with your creditors and try to make an agreement to pay less over a longer period of time.  

Prioritise

Debt repayments are something that you can’t forget about, or put off for another month, they are vital payments that must be made monthly. And so when you receive your salary, you ought to consider repayments in the same way that you would think about paying rent, or your gas bill. Make sure that you understand the importance of these repayments, and that you give them high priority to avoid falling behind.

Communicate

It is vital that any changes in your personal circumstances is known about by your creditors. It is up to you to notify your creditors of a change in salary, sudden unemployment, unexpected medical bills or any other situation which impacts your ability to repay your debts. Once you notify the creditors, in most cases you will find them more than happy to make alterations to your agreement with them, in order to keep your repayment plan up to date. The key is not to hide, but to notify your creditors of the changes.  

No More Borrowing

One thing which you must ensure that you avoid, is borrowing more money. Whilst in the short term, loaning money to cover your repayments and give you some cash on the hip may seem like a good idea, in the long run this will only compound your debt issues, and ensure that your repayments are made far more difficult in the future.

Tips That Will Help You Save For Your Travels

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Travel is an addiction. Once you are hooked to it, you cannot stop. But traveling costs money and you need to have that kind of finances. Except for the lucky situation that you have millions of dollars bequeathed to you by an unknown benefactor, you have to provide for your travels.

Travel is indeed an expensive option no matter where you are and where you are travelling to. The various components of travel expenses that you would need to budget for are as under:

Flights 

Flights to and from form a major chunk of the travel expense. Whether you want to book Mumbai to London flight tickets or tickets from London to Zurich, the expense is definitely going to burn a hole in your pocket.

Hotels 

Another substantial contributor to the travel expenses is what you need to shell out on accommodation. Of course you can save on this if you are ready to compromise on luxury and quality. But for luxury travelers for whom nothing but star hotels will do, this is definitely going to eat away a significant portion of the travel budget.

Sightseeing & Activities

When you reach your destination, you are of course going to take in the sights and experiences of the place. You have to pay for entry tickets, logistics and incidental expenses which can be substantial depending on where you are. For example the entry tickets to some amusement parks and safaris cost close to a fortune. 

Food

Just because you are travelling does not mean you have to forego those meals. You need to have your three or four meals of the day. In fact travelling makes you more hungry and the temptation to try exotic food and drink will fuel more expenditure.

Visa & Documentation

Depending on your home country and where you are traveling to, the visa formalities and other documentation could eat into a significant chunk of your travel budget. Travel Insurance is also a cost that needs to provisioned for.

So now we know what all expenses need to be provisioned for when planning to travel, in addition one always has to provide for a contingency fund for emergencies. Let us see what steps will help in saving money for your travels. 

How To Save For Your Travels

Plan for Your Travel in Advance

You cannot just pack your bags and leave. You need to have planned and have sufficient funds in your coffers to embark on your travels. The best way is to save consistently and regularly. Allocate a percentage of your income to a travel fund and do not touch it for any other purpose. It would be good to invest that amount if it is substantial in safe investments so that the fund is not idle and also keeps growing.

Review The Plan Periodically 

So now you have a travel fund which hopefully is growing. But finances and life itself is dynamic and subject to change. So review your income and expenditure periodically to see if you can divert more funds to the travel fund or need to cut back on it.

Increase Your Income 

Though this is easier said than done, see if there are any avenues to increase your monthly income. Can you put in an hour of extra work and get paid for it? Can you take on another part time job or freelance for some additional income? Of course the extra income generated goes straight to the travel fund. 

Cut Down On Your Costs

Always adopt a two pronged strategy for savings. On the one hand focus on trying to increase the income and on the other try tightening up the spending. Review all your expenditure and classify them as essential, can manage without, totally frivolous and unnecessary. Weed out the ones that fall under totally frivolous and unnecessary and try to minimize expenses that fall under the category, can manage without. This exercise is sure to result in some savings which again can be allotted to the travel fund.

Optimize on The Travel Costs Itself

So finally the day for which you had been saving has arrived and you are all set to plan for your travels.So there is no point in emptying the coffers of the money you have saved. After all travel is an ongoing process and the more money left in your coffers, the earlier you can plan for your next travel. So plan your current travel wisely. Look at various flight options and choose the most economical route and time. If you are flexible travel during the off season as flight costs come down drastically. Also traveling off season means hotels have reduced tariffs as compared to the peak tourist seasons. Of course an added bonus is there will be lesser crowds everywhere and you will enjoy your travel experience more.

Top 4 Personal Finance Tips

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Ensuring that your household finances run smoothly isn’t always easy, but utilising a few simple tips can help make everything run like clockwork.

Keeping expenditure lower than your income is the key to success, although even this most simple statement can be difficult to put into practice in the real world.

Read on for our top four personal finance tips to help you keep your finances on track.

Only spend what you can afford

Many people live beyond their means and end up in debt, so start by creating a budget of your income and expenditure to identify if you can cut any costs.

Look for savings on utility bills, examine household shopping expenditure and if your money stretches to online entertainment always make sure you take advantage offers like Mohegan Sun Casino bonuses for the chance to boost your bottom line.

Avoid using credit wherever possible. Taking out a mortgage is usually unavoidable, but incurring any other type of debt is rarely advisable.

Try and buy items up front – if you can’t afford to do so, question whether you really need to make that purchase.

Automate your finances

Setting up an automated system for paying your bills and saving for emergencies will ease the ongoing worry of managing your finances.

Link all your various accounts together and establish automatic payment methods as close as possible to payday for your priority expenditure.

Respected financial expert Ramit Sethi advises breaking down your personal finances to cover four key areas – 60% fixed costs, 25% guilt-free spending, 10% towards investments and 5% for savings.

Automating your finances based on these guidelines saves time and is easy to implement via online banking and money management applications.

Find a secondary source of income

Your full-time job provides the core of your annual income, but make sure you try to increase it where you can.

Take advantage of bonus schemes and overtime, but don’t miss out on opportunities away from work either.

Look for additional freelance assignments, build a property portfolio or create an online shop to boost your income and give your household finances some breathing space.

Save for your retirement

Starting paying into a pension as soon as you can, as the benefit from the reinvestment of your contributions will be far greater.

Someone starting a pension in their 20s will need to put aside far less of their salary than people who leave it until later in their working life.

Joining a workplace pension scheme is extremely advisable, with your pension fund boosted by payments from both your employer and the government.

How To Improve Your Credit

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It’s essential to have a decent credit score when you are making a big purchase like a vehicle or a house. It can also make it easier to purchase things like electronics, a mattress, or a couch. A good credit score can also help with educational loans or renting an apartment or house. The higher your credit is, the lower your interest rates on anything you borrow will be.

Life can be difficult when you have a poor credit score. All of your loans or credit cards will have very high interest rates. This is assuming you qualify for any credit cards or loans at all. You may be wondering what to do to improve your credit score if you wind up having a poor score. Here are four tips that will help you fix your credit.

Understand What Your Score Is and What It Should Be

Getting a copy of your credit report is the first step you want to take when you’re fixing your credit. With a service like Credit Sesame, you will be able to see a copy of your credit report. This will show you any negative items, any open accounts, and any hard inquiries. A hard inquiry happens whenever a potential creditor does a credit check to see if you qualify for an account.

Use Any Credit You Already Have with Responsibility

If you do have a credit card or loan that is still active, make sure you start using it responsibly. Don’t max out credit cards, and try not to utilize all of the credit that’s available to you. Make sure you are making payments before or by the due date as late payments can hurt your score. You may even want to just use a card for something like gas or groceries and pay it off every month.

Pay Off Any Outstanding Debt You Have

It’s important that you pay debts that you owe. You may still have negative items on your credit report if you had a lot of late payments, but it’s always good to pay debtors what you owe them. You may need to do a credit consolidation or you may need to negotiate with creditors to see if they will accept lower payments.

Be Dedicated to the Cause

You’ll need to be persistent when trying to repair your credit because it’s going to take some time. No one can shoot their credit score up from a 550 to a 750 overnight. You might find yourself getting frustrated as you work to improve your credit, but it’s important that you don’t give up. Be persistent and keep going forward.

These are a few suggestions you can try when you’re in the process of saving money to fix your credit. There are also a lot of helpful resources available online that will educate you and teach you how to make better financial decisions. Most people have made financial mistakes at some point in their lives. It’s important that you don’t beat yourself up about it and you just commit to making it better.

Refinancing Your Auto Loan: Is It Good Or Bad?

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Refinancing your auto loan can be beneficial or detrimental to your current financial status. Sometimes it tends to seem as if it’s the best option for your situation. However, before you refinance your auto loan, consider its advantages and disadvantages.

How Does It Work

Perhaps the best way to learn about refinancing your auto loan is to understand how it works. When you refinance your auto loan, you’re technically replacing the current auto loan that you’re having with a completely new one on different terms. In hindsight, this means you’re essentially going to pay off the current auto loan that you have with a completely new one, usually happening through a completely different lender.

This is a very different process for every owner, so be sure to pay extra attention to how your contracts work by the time you even consider taking a refinanced loan. You can find some options here: https://crediful.com/best-auto-loans/.

  • Most people tend to appreciate the appeal of refinancing car payments because of its ability to help them save money.
  • After all, some refinanced car loans are also capable of lowering monthly payments for users.
  • Other refinanced car loans also help users have lower interest rates and even adjust the lengths of their terms.
  • Sometimes, there are other more personal reasons to refinance their cars. These usually range from removing cosigners, and other different factors. No matter the reasons are, it’s essentially important to look at refinanced car loans from the perspective of its potential outcomes.

When To Refinance An Auto Loan

Refinancing your car loan can actually get you a lot of different scenarios. The point of course is clear, in that its primary goal is to alleviate some of the hardships you have with your current loan by hopefully replacing it with a plan that can be of more use to you. Of course, whether or not refinancing your car loan is a good idea depends on how you take these following effects.

If You Need Lower Monthly Payments

A lot of people actually want to refinance their car loans because they need lower monthly payments. Perhaps you’re having a rough time financially and you need more time to recuperate. A refinanced loan can get you in a state where, theoretically, it would be much more convenient for you to pay. This can be done in two ways.

  • The first is to get a lower interest rate than your previous. This normally means extending the length of time you’re going to have to pay for your automobile.
  • Another option is to extend the term of your loan, but chances are this may actually have you paying more in total compared to your total without extension.
  • Some actually have a third option, where they do both. Some lenders are actually considerate enough to allow you to extent both the loan term and the lowered interest.

Reducing Interest Charges or Decreasing Interest Rates

As stated above, you’re actually capable of requesting for lower interest charges and decreasing interest rates throughout the rest of your loan period. This can actually be done with a simple adjustment.

  • The best way to do this is to increase your credit worthiness to your lenders. If you do this prior to your refinancing, then you may potentially be able to get lower interest rates.

If You Need To Change Loan Length

Another way described above is to change the length of your loan. Always remember that you should try to do this is if you want to potentially decrease your monthly payments.

  • Don’t opt for loan length changes as your car depreciates in value every day.

If You Need To Add/Remove A Cosigner

You may actually also be able to remove or add cosigners to your loan. Removal or adding them may have personal reasons, but you’re actually capable of doing these kinds of adjustments when refinancing.

  • If you need a cosigner removed from your loan contract, you can actually opt for refinancing to get this change started.
  • Of course, this also means that the usefulness of your refinanced car loan inevitably depends on your situation. It’s always best to consult with an expert or with a consultant when you have specific questions about how refinanced car loans can affect your finances and credit reports on a more specific level.

Regardless, if you have any plans of refinancing your car loans, always maintain a spirit of caution and always double check if this plan is really for you.

Conclusion

Refinancing your auto loan can be a good option or a bad option depending on your financial status. In order to achieve this life goal of paying off your loan, there are a lot of factors to consider before even getting one. Always remember, however, that refinancing your auto loan must always be according to your current financial plan. Assess your current financial status before refinancing your auto loan.

What about you? Do you think refinancing your auto loan plan is a good idea?

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