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Finance and Law Marketing

To 4 Tips For Becoming A Successful Online Trader

It is the era of the internet and the world has gone online. From a needle to a car, everything is sold online and this trend is becoming famous day by day. Trading too is not left behind. The trend of online trading has revolutionized the world. The best way to become a successful online trader is to put your knowledge on the right path. If you have selected the correct way then the success is not far ahead from you.

online trader

  • Be Careful While Choosing Your Style Of Trading: Before starting online trading, you must be clear with your idea. Think deeply to select your trading style. Ask yourself that do you want to do day trading in which the trade ends at the end of a day or you want to go for weekly or monthly trading.  Before starting anything, it is wise to be clear with the style that you want to follow in your online trading.
  • Find A Broker for Your Trading Style:  After making the final decision on the style of online trading that you want to follow; now it is time to find a broker for your trading style. The style of online trading that you would opt for would be directly proportional to the type of broker. That means your trading style will decide the type of broker who would be the best fit for your online venture. A high speed direct access is required in the case of day traders. In terms of cost and broker fees, the choice of day trading is the most expensive among all the ones available. If you opt for short term weekly or monthly online trading then you may get some discounted brokers.
  • Use Less Risk And High Rewards Trading Style: Every business starts with a little risk and the same is the case with online trading. It is also a bit risky. Many people encounter damage to their trading account because of lack of knowledge. You must know how to win consistently.  An improper knowledge of online trading can cause a huge loss to you, so you must have good knowledge of your trading style and you must choose a style which includes minimum loss and maximum profit. The best solution for this problem is the efficient use of risk management. The competent use of risk management always makes your online trading less risky and more rewarding.
  • Analyze Your Winning Edge:  Knowing the winning edge is what discriminates winners from the losers. To make money by trading online, you must have an advantage on which you can rely without any doubts. Try to find out that what the factors are which give you an edge over the other traders. You must be sure about this because if there are any flaws here, you would have to succumb to the competition and lose out on revenue. The best way to find out your winning edge is to analyze your results.

Apart from following these tips, you should also try to connect with the best online traders in the market. This would help you in creating a useful network.

Get more useful tips on online trading and read reviews from students and professional brokers at TradingAcademy.com

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Business and EDU Finance and Law Marketing

Long Lasting Wealth Management Techniques

It really takes time, effort and dedication to keep and maintain your wealth. You must know that the more money you make and have, the more ways it can be splurged, lost, forgotten or stolen. As such, you need to have a long lasting wealth management technique to safeguard your assets, handle well your money and make sure that you have a financially stable and fruitful future.

Organization

Always keep it organized. You must create a filing system so that you know where all of your assets are intended and can access records in case you need them. Based on the study done by University of Florida (UF), the tax records must be kept for 4 to 10 years. Use a file to handle well your money, either on your computer or on paper, with separate folders for insurance, bank statements, checks, credit records and pay stubs, advises UF. Don’t forget to record the receipts and expenses in a spreadsheet and also talk to a financial adviser or an accountant every year to guarantee that your finances are up to date.

There should be a spreadsheet and record of expenses in different categories like the bills, clothes, food, gas and entertainment.

Objective

Your financial objective lets you determine how to save and budget your wealth over an extended period; this is according to the Financial Education Center at Bellevue Community College. This study also applies to determining how much money you want make in a certain age and how much debt you wish to get rid of.

Investment

Having an investment is the most important thing to become successful in your chosen field. You must have an investment plan so that you can record the inflation, emergencies and sound financial future. If your employer has a 401(k) plan, sign up for it. Also, put money into a second retirement plan, such as a Roth IRA or SEP. Deposit a certain percentage of each paycheck into a savings account every month. While it seems simple, if you put $100 a month into a savings account over a 15-year period, you’ve accumulated $18,000.

Preservation

To get a protection with your wealth it is highly recommended that you must hire a lawyer in order to assist you create a will and testament if something bad happens to you like if you die you are assured where your wealth will go. You can also get a life insurance policy to cover the costs of your funeral and to take care of your family after you’re gone and medical, disability and auto insurance for emergency purposes.

Lugen Family Office is a values based Multi-Family Office that helps empower family and business dynasties. We work exclusively with affluent families, philanthropists, executives, leading experts, top professionals, associations, foundations, and successful family businesses.

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Business and EDU Finance and Law

Kodak’s Bankruptcy a Boom for Lawyers and Maybe a Bust for Retirees

KodakIt has now been exactly one year since the once venerable blue chip company Eastman Kodak filed for Chapter 11 bankruptcy protection. Its legal bills thus far have been $125 million and represent a profitable source of revenue for law firms involved in the proceedings. The Chapter 11 process can be very expensive given the size of the company and its operations and with Eastman Kodak being a multinational corporation, it is reasonable to expect the bankruptcy to cost even more.

The amount of money Kodak is paying out to various legal firms to handle the myriad of fees is dizzying but it should be noted what is not being discussed openly is the proverbial “800-lb elephant in the room” which is retiree pension and health care. At the outset of the bankruptcy proceeding, the Pension Benefit Guaranty Corporation (PBGC) issued a statement that the Kodak’s pension was 86% funded which is relative good for company’s declaring bankruptcy. The PBGC also stated it had been assigned by the court to the Kodak creditors’ committee to watch over benefits. However, retiree benefit payouts totaled $119 million in 2011 and were the largest drain on Kodak’s cash in the year leading up to their bankruptcy filing. Given that Kodak’s 2012 legal fees exceeded their 2011 retiree benefit payouts, it is quite reasonable to expect the bankruptcy procedure to scale back the increasing pension costs as they have for other companies which have declared bankruptcy such as Delta Airlines and Northwest Airlines. The inescapable fact is that every dollar handed to an attorney by Kodak is one less dollar available to fully satisfy their debt obligations to creditors.

So who are among the 21 legal firms adding up the billable hours? Let’s review that.

  • The reputable New York City Firm of Sullivan & Cromwell LLP is representing Kodak for the Chapter 11 bankruptcy. Their bills year to date are $22 million or just over 17% of Kodak’s legal expenses.
  • The creditors’ committee has billed $3.2 million from the likes of from Segal Company for actuarial services, Zolfo Cooper LLC for financial advising, and the firms Arent Fox LLP and Haskell, Slaughter, Young & Rediker LLC for legal services.
  • The court appointed fee examiner of Luskin Stern & Eisler LLP has billed $225,000 for their services.
  • Ernst & Young is providing financial consulting and have billed in excess of $13 million.

The purpose of Chapter 11 bankruptcy is for an entity to seek protection from its creditors with the objective of reemerging a healthy and viable entity, which is a lot different from a chapter 7 bankruptcy NJ. For a complex multinational corporation such as Kodak, how well they emerge from Chapter 11 bankruptcy will depend on the quality of legal services they receive now. Kodak has retained the best firms in this regard and they best firms are never the cheapest ones.

Derek is currently blogging for a corporate conference call company.

Image Credit: B.Boyds

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Business and EDU Finance and Law

Important Advice for Obtaining a Motorcycle Loan

motorcycle loansIt doesn’t really matter whether or not you are a motorbike enthusiast, amateur fan or a hardcore biker, you will always improve, buy another, or replace your current motorbike with a new and better one. Motorbikes today are not only a means of transportation, but also a status symbol. Some motorbikes may cost up to fifty thousand dollars and that price may be small for that kind of satisfaction in life, but it is sometimes hard to reach. Many financial institutions offer motorbike loans that can help you fulfill this dream and with an excellent credit report and a little bit of savings along the way you will have no worries in getting preapproved. However, as well as with any kind of loan, this should not be rushed into easily. If you are an inexperienced motorbike loan shopper, it is good to ask around for helpful tips which can get you started and shake off the fear of the unknown. Here is some advice that could help you along the way.

Go dealer shopping

Many motorbike manufacturers have their own dealerships and / or they are directly connected with various dealers with a great background. These can surely give you the best deals with the lowest interest rates, whether you are planning to buy a used, new or a customized motorbike. It is highly recommended to check as many as you can before deciding. Feel free to check the online dealers, as well. Many of them have great deals to offer. Now I know what you are thinking, bike on the picture may not be exactly like the bike they are actually selling. However, if you do a bit of research you can create a picture of a good online dealer and a bad online dealer for yourself. See for yourself, because you never know, maybe you will end up finding exactly what you need.

Don’t be afraid of asking for a test drive

Primarily, it is important that the motorbike you choose suites you the best. It is exactly like with a car purchase, ask for a test drive. There is nothing wrong with that. Every car dealer will allow you a 30 minute test drive around the block. If you cannot test it on exactly every variety of road, you can always turn to motorbike rental, rent it, and do the full test. After all, if you are planning on purchasing that mark of the motorcycle there is no such thing as over testing.

Learn to negotiate

Being that today we all live in the fast moving world that doesn’t allow us much free space, most us grab the first opportunity available. Join motorbike forums online and ask around for the costs of that bike you are willing to buy. You might find that the same bike, but its last year version may cost up to 15 % less. It is also advisable to check its specifications and on the road behavior such as the gas it spends or the price of the parts. This can save you a great amount of money. Keep these specs on paper or in your head. When you have this kind of information you will have no problem in negotiating for the best deals available.

Second Hand Deals

Many dealers with good background will offer you a second hand deal. These motorbikes are not stolen and have a great maintenance history. These are the deals that should not be rejected that easily if you don’t have a great amount of money to finance the brand new models. However a bike loan will surely cost less, as will the interest rates and monthly payments you will have to subdue to each month. Not all people ride brand new motorbikes that just came out of the factory. Many of the models that were made in the past years proved far better than the new models that were made today. And if you fall in love with the exact same motorcycle that was presented on the market five years ago, these dealers are a great place to start searching for it. If this is what most suits your budget feel free to look around, maybe you will find exactly what you need.

The motorbike loan comes after all this. As I mentioned, with an excellent credit report and some savings on the side you will not have troubles in getting a good loan. Feel free to do these checks so you know you will purchase what you truly wish, and the next step . . . is the open road.

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Finance and Law

Why Do So Many Couples Get Divorced

It is really very hard to determine why so many couple are getting divorced. There are plenty of reasons behind this growing divorce rate. Divorce reached its peak in the last 70s and in early 80s when almost every body was looking to get divorced. According to a survey, people do not feel the same way in which the earlier generations used to feel. The very meaning of marriage and life long relation has changed. Years ago when someone said “I do”, then they meant it and the marriage was forever. But now things have changed people do not truly mean what they say. The whole concept of marriage has changed. Today people get married with a mind set that if things don’t work out with their spouse, then they have a chance to get out of it. Relaxed divorce laws have made thing much easier than it used to be. Two decades back taking a divorce was like the toughest legal battle one can ever go through, but now divorce is nothing but a month long affair. You file the divorce papers and wait for the judge to give the decision.

couples getting divorced

There was a time when an individual was an integral part of a society, and they had to amend their wishes according to the society. Then the feeling of individuality started creeping in people and society was no longer an issue. If a person wanted divorce, they don’t even think twice before filing the divorce papers. Apart from this divorce laws were far more stringent than what they are today. With the introduction of new types of divorce and relaxation in divorce laws, it made things easier for strangled couples. Divorce like no fault divorce does not even need a reason to get the divorce done. You do not need to prove your spouse responsible for the break down of the marriages. Even families are getting more and more open toward the idea of divorce. People have lost the fear that they will face discrimination from the family if they take a divorce. They know that no matter how bad things turn up, they will always have a support system to fall back to.

People get carried away and take the decision of marriage. When two people fall in love, everything looks perfect and beautiful. They don’t realize the importance of understanding each other. They get carried away and get married. Soon they realize that the person whom they thought to be the love of their life, is not exactly the person they were looking for. This disappointment causes differences in the marriage and eventually bring the demon of divorce in the marriage.

Today the values associated with marriage has changed. People are no more faithful toward marriage as their parents or grandparents were. Now everything has to do with sex. You will find thousand of stories of marriages going down the drain because one of the partner was sleeping around.

Many a times marriage happen only for money. People get married for money. Its like “lets get married to that person. If things work out; well and good, and if not then will get divorced and take a big chunk of his money in divorce alimony.” There is not shortage of people getting divorced in a month of marriage. The latest being Kim Kardashian and Kris Humphries marriage which lasted for just 72 days. Log on to http://www.edivorcepapers.com/, get more information about why couples are getting a divorce.

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Finance and Law

Don’t Act Like a Government with Your Credit

gov'tThere have been many governments around the world, specifically governments located in Europe, that have had some serious problems with credit and debt over the past few years. Although these countries believed that everything was fine while they were borrowing money at low rates of interest, their problems became much larger once they started to miss a few payments. You should never use a government system as your own model for responsible borrowing because governments have always had problems when it comes to paying back their debts. Here are some of the major problems that can be see with both countries and individuals around the world right now.

People Like to Ignore Their Problems

The biggest issue when it comes to credit problems these days is that people do not want to face their problems. Everyone feels fine with kicking the can down the road because they do not see the direct impact of their actions right away. Whether it is an individual who decided to borrow to much money to buy a new HDTV or a government who borrowed to much money for war or welfare programs, the idea that you can ignore your problems and wait for them to go away is completely ridiculous. The only way to tackle your credit problems is to take action against them as soon as possible.

Nobody Wants to Put a Plan into Motion

One of the first things that you need to do when it comes to dealing with debt is to put together a plan. Without a plan of action, you will not be able to handle your credit problems in a way that actually takes care of the problem. By thinking about the debt problem and actually planning to put aside extra money on a monthly basis, it will be easier to find a path towards a debt-free lifestyle.

Think About the Fees and Extra Interest

The real problem with debt is that you are basically giving away free money to people who let you spend money that you do not have. There are only certain situations where you should go into debt for a purchase, and it is always better to pay with cash right away than to go deep into debt for something that you do not need to have right now. Whether you are trying to improve the quality of your kitchen by taking on some debt or the government is trying to take on more debt to pay for war, you have to realize that both instances of debt accumulation are wrong. Those fees and interest will begin to add up over time, so you have to be able to pick and choose the correct moments to take on debt. For an individual, there are very rare instances where taking on extra debt would be a good solution to your life’s problems. Buying a house or car is one thing, but you need to make sure that you are not throwing away money on something that you do not really need.

Image Credit: Office of Governor Patrick

Derek is currently blogging for a New Jersey credit unions company.

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Finance and Law

Online Share Trading – Simple basics for the beginners

The share market is considered as the unique financial market, where anyone including the NRIs, PIOs and OCIs can invest their money. The reason why a huge of amount of investments is made in this market is because the trader is in a position to trade the shares the same day and can gain some great returns within a day. These people who believe and do such type of trading are called as day traders. The risky thing is there are also equal chances of suffering from a huge loss.

In share trading, you can actually get hold of your invested money quickly when you make a decision to sell a share. This market is also the best liquid financial market in the entire world. The transactions are done electronically and make it more convenient and fast trading because a currency is transferred from one person to another in just few seconds. The biggest advantage of online trading is that you can have an access to it at the trading hours and from anywhere as per your convenience. Hence if you have a laptop and an internet connection, you can start trading via online.

online share trading

As a share trader you should be very careful of the time frames when you are trading online. If you would like to make some quick money, then you can be a day trader, or if you are ready to invest your money for a long term, then you must have patience to wait for few months to get the expected profit. But be it any time frame, you should know that each one has its own advantages and disadvantages and so you should be ready for any situation that may come in your way.

There are several sites on internet which offers online share trading systems. These trading systems are very essential, since it gives the trader a complete knowledge about the tools to gain maximum profit in online trading. However several online trading tools and applications available none of them gives you the guarantee for achieving hundred percent success in this market. Hence the trader needs a professional support such as a share trading agent. To start investing in this market, it is better opening an online share trading account with the share trading agents. As these agents were experienced enough to give you the right advice on investing on the market.

There are several traders exists to name it who were benefited from such advices from the agents. The services of these agents were wide on the online trading. They can help you with opening online share trading account and Demat account, pan card etc. If you are an NRI then they can help you on opening your NRI share trading account, nri Demat account, nri pan card, pio pan card or oci pan card etc. They can even take care of your share trading portfolio and can trade on behalf of you with prior intimations. It is better to get hold with an agent before starting your investments on online share trading.

Bio Line – Linda is a guest blogger who blogs on behalf of NRI Share Trading Account. One of the best among the leading online share trading service providers. To know more please visit their website. You can also check their tweets on twitter.

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Finance and Law

The New Global Economy Impact on Labor in US

The US worker is accustomed to expanding incomes and protections from government. Traditionally, the US worker does not have to compete with foreign labor markets which require more productivity, lower wages, and reduced benefits; in other words competition to be a less expensive source of labor. Globalization has had the effect of moving jobs to the locations which offer greater profitability by reducing labor costs.

Global and National Trends

Approximately five years ago the Brookings Institution did a comprehensive study on economic growth.  They found that nearly 90% of world economic growth was centered in three countries: Brazil, China and India. They challenge that they presented in their remarkable conclusions were for nations to align themselves with world growth such as developing underutilized resources by connecting them to world growth.  In the years since that study, growth has leveled in those nations and over the entire world as a general assessment.  Today, looking forward to 2013 and beyond, new engines for world growth will be needed if nations are to align with a path to create more jobs in the future.

A.  Impact of the Economy on US Labor

A quick glance at the federal and State labor law posters near the entrance or employee area at nearly any business will show a wide array of worker protections. These include minimum wages, nondiscrimination, safety and health, and many points of access to legal protection to enforce employee rights. The US labor movement once inspired by European guilds and craft unions has been an inspiration to labor groups around the world. But organized labor has been in retreat in the US since the 1980’s with the rise of the open shop and right to work philosophy among business owner groups. Now all groups of US employees seem to be under pressure of declining numbers of jobs.

1. Trends in the U.S.

The forces that have driven labor markets around the globe seem to be much more visible in the US than in recent decades.  Americans are not accustomed to competing for jobs on a global basis.  The US worker is also among the more valued consumer groups and this is a distinction that may prove to be a vital difference.  It may also be part of a counter-cycle. Employers also include retailers and manufacturers of consumer goods, the model of the US automakers is instructive- they sell millions of units to employees.

global economic crisis

There has been a trend line away from blue collar careers in the US and the loss of these jobs especially in the manufacturing sector has corresponded with the rise of Asian Republics and China as global leaders in manufactured goods.

2. U.S. Statistics Show Gradual Improvement

The current unemployment rate in the US is 7.8% after more than three years above 8% after the Great Recession which peaked six years ago.  Extremely high rates of youth unemployment, and millions of long term unemployed workers remain as the unfinished business of the US recovery. There are some new forces in the US labor market: self employment has trended upwards; and a healthy underground economy has emerged of barter services and goods.

However, it has been estimated that as much as $2 trillion in productive investment capital remains out of the marketplace.  Much of this has been moved into paper trades. Derivatives trading has become a preferences for investment capital over more risky  high tech ventures, brick and mortar retail, and manufacturing. This represents a challenge for public policy to encourage reinvestment.

3. Statistics do not tell the human story

Growth in jobs, unemployment data, none of these tell the human story of families in states of struggle. Compassion is balanced with concerns over structural national debt.

We see in India and China a growing middle class and demands of goods and services- new affluence creates markets. Wage demands will also increase and there is the point of friction.  Employers may wish to limit wages but as sellers in the marketplace they also have a common interest in increased disposable income. There is tension then on several fronts and this dynamic process will affect government policies in the foreseeable future.

B. The impact of global economy on Labor

Global economic slow growth is a drag on national economies.  However the dynamics are similar: a sharp increase in investment can translate directly into a sharp increase in employment. The cycle upward would begin with increased consumer demand following increased employment. Global impacts of climate change, international efforts to improve vital infrastructure, and trans-national efforts to improve health and deliver medical services all have potential to improve conditions in developing countries as opportunities for investment by developed countries and their international institutions.

Conclusion

There is a demonstrated need for concerted action by governments to rapidly increase job creation. As populations expand, the need grows and the gap widens between demands for employment and available jobs.  On a global basis, there is a widely recognized need to provide sustainable sources of food, water and energy.  This need can be translated into effort by deliberate plans and actions, but also by the individual actions of developed nations to grow their economies.  This would tend to increase demand for goods and materials from developing nations, therefore favorably impacting employment.

The US economy has not done so in a definite way, but it has the ability to reverse a pattern of three decades of job shrinkage.  It has the ability to fund infrastructure and needs to create employment in a mix of public and private sector jobs.  If one includes high speed rail, infrastructure maintenance and repair, and infrastructure and modernization in high risk areas for storm and flood there is an easily reached potential to create more than two million jobs plus an additional one million person years per year in construction jobs that will phase in and out over the period of five years.  The manufacturing impact will be felt in many ways including machinery, machine tools, energy related materials and equipment.  Technical innovations will be spurred to create redundancies in energy, food supplies, fuels and water resources in events such as Hurricane Sandy which devastated highly populated areas in the North east US.  The needs have been clearly shown, the economic impacts are severe and justify proactive efforts which in turn will create economic activity and jobs.

Author Bio:

As an employee herself, Ivy Liu pays primary attention to his employment rights and studies the employment laws whenever possible. Ivy Liu likes to share her findings and help those who are concerned on employment issues through writing articles on employment posters, minimum wage, workplace security and other topics. For more details, please pay attention to her twitter: https://twitter.com/MandatoryPoster.

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Finance and Law

Why Renting Is Not A Waste Of Money

You may think that renting an apartment is simply a waste of money. However, that is not true. There are many good reasons why your money is better spent on a rental as opposed to buying a home. Here are some things to think about before you lament writing another rent check.

You Need A Lot Of Money To Buy A House

Purchasing a house is not at all like buying a car or a new television. You have to have at least 10 percent of the purchase price upfront. On top of that, you have to have money to buy a lawn mower, new appliances and everything else that a home requires. Don’t forget that you also need to think about property taxes and things such as snow removal and lawn maintenance. That can cost thousands of dollars that you don’t have right now.

Can You Handle The Repairs?

When you rent, you can have a maintenance person replace the burnt out light or put in a new heater if the old one breaks. However, when you own your own home, you are responsible for all the maintenance that goes with it. Would you be able to afford the repairs as well as do them yourself? If not, that is going to be even more money spent on a plumber or electrician to properly make a repair.

What Happens If You Lose Your Job?

If you were to ever lose your job, you could always move into a less expensive apartment without a lot of effort. All you would have to do is find someone willing to take on the remainder of your lease. However, the same is not true when you own a home. If you can no longer afford your mortgage, you will have to find someone to buy the home while making sure that it sold for enough to cover the rest of your mortgage. Homeowners who cannot fulfill their mortgage obligations can’t just leave without taking a huge blow to their credit score and ability to ever purchase a home again.

buy rent

Your Apartment Complex May Have Amenities That A House Doesn’t

Many apartment complexes have amenities such as a fitness center, dog park and playground for the kids. Unless you have a lot of money on your hands, you probably can’t build a fitness center to rival what you get for free. There is also little chance that your own yard could double as a playground or dog park that allows you and your kids to interact with other people only a few feet from where you live. Those intangibles alone are reasons why rent is not a waste of money in most cases.

Purchasing a home is always a good goal. However, you should figure out if you can actually afford your home before you purchase it. There are many costs and downsides that come with purchasing a home. Unless you can afford those costs and overcome those downsides, you should stay in your apartment for another year.

Featured images:
  •  License: Royalty Free or iStock source: http://www.istockphoto.com/stock-photo-8221948-rent-buy-dice.php?st=34b6ee1

Lisa Smith once worked in the mortgage department of a major Canadian lender, and has gone on to build upon her experience. Lisa is an avid cyclist, and likes jogging and rollerblading in her spare time.  She also writes articles for those wishing to improve their financial situation.

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Finance and Law

Personal Finance and Investing – Choosing the Right Balance

When people work hard and are relatively careful with how they spend their money, they will usually end up with a decent sum of money in the bank. Saving up money over the years isn’t that big of a problem, it just requires a little patience and enough willpower to resist the temptation to blow all your money on shiny things. That is actually the most important thing to remember – you need to resist the temptation to “buy right now!” and think things through before committing a large portion of your hard earned money. The same applies to investments. People often feel compelled to invest their savings, seeing that as the only viable option, so they often make poor choices or simply fail to think ahead.

Before settling on a particular investment plan, you need to make sure that your budget can support it in the long run and that means that your personal finance is airtight. The level of the investment and its feasibility will be determined by various factors. Here is a quick list of things to take into account for a good reality check before making major financial decisions.

Evaluating income

You need to be aware of just how far your income will take you in terms of funding a project. Let’s say you are buying some investment property, an old house in a good neighborhood for instance, with the intent to renovate, put in some bells and whistles and sell for a good price. Or it can be a classic muscle car that you want to bring back to life and sell to an enthusiast for a quick buck. Well the first thing is estimating (as closely as possible) the total funds that you will need for the project and factor in some additional, unforeseen expenses. That way you will lower the chance of going over budget.

Secondly, you need to make a realistic evaluation of just how much of your income you can afford to allocate to the project. This means you still have enough left over to live comfortably while the project is underway. As for investing your savings, you need to know how much time it will realistically take before you will see any returns from your investment. You will be short on additional cash not only until the completion of the project, but until it has earned you enough money to cover the expenses, only then will you be making money. Last of all, you need to make sure that the investment won’t put you in too big of a hole for an extended period of time, especially if you are considering getting a loan to provide additional funding for the investment.

investment

Considering debt repayment

While we are on the subject of debt, you need to consider putting a part of the money you have in the bank towards repaying your debt. If you think that the investment is a sound one, with a low to moderate risk rate you will feel it justifies using up your funds to invest. The logic here being that once you make even more money it will be a lot easier to part with a big chunk of it and repay your debts. The best advice anyone can give you is to play it safe and limit your investment, so that there will be some money left on your account. If you are thinking of getting a loan from the bank for the specific purpose of funding your little investment, sit down at the computer and do some calculations first. Many of the issues outlined in the section on evaluating income will arise here as well. You will need to allocate a certain amount of your monthly earnings towards additional expenses that pop up, as well as towards repaying the debt at a steady rate.

All major investments can be a drain on your funds if you are not careful, and many supposedly savvy investors have dug themselves into holes so deep that they couldn’t get out. It is best to make smaller investments at first if you don’t have a lot of funds available, than to put all your eggs into one basket and risk bankruptcy. You need to walk the line, taking into account the costs of everyday life, things like car insurance, a retirement fund and paying off debts. Don’t bite of more than you can chew.

Featured images:
  •  License: Royalty Free or iStock source: http://www.123rf.com

Damian is a blogger and marketing consultant for simplehomeinvest.com.au. He mostly writes about business and finance. Damian is also a social media and online traffic expert.