Category: Bank Accounts

  • Personal Online Loans – Everything You Need To Know

    Personal Online Loans – Everything You Need To Know

    Personal Online Loans - Everything You Need To Know
    The lending process is much faster if you are taking out a personal loan online. The whole process can be made from your home. Very often, you’ll get the funds deposited into your account within one or two days.

    By Guy Avtalyon

    Personal online loans can be easy to apply for. Online lenders usually offer low-interest rates, so it is important to note when you have to decide should you do or not that. The other benefit of personal online loans is that it is so easy to compare different offers from different lenders. Easy and quick. Besides specialized online lenders, many others are allowing you to apply for a personal online loan. Sometimes, you may get a loan under better conditions using their services.

    A personal loan from some online lender can bring money into your account instantly. Sometimes during the same working day.
    Also, for personal online loans, you can apply through solely online lenders or through some financial companies or institutions that also have online loans as an offer.

    What is a personal loan? 

    It is a loan that you, as a private person, take out for a short, limited time. It can be between two and five years. The time is fixed and doesn’t vary, which is different from the line of credit or a credit card. For most US residents personal loan amounts are from $1.000 and $100.000. This depends on your demands and your creditworthiness. Banks and lenders have individual limitations, a set of rules, on how long and how much someone can borrow for a personal loan.

    One of the characteristics of personal loans is that they are typically unsecured. And that is an advantage of this kind of loan because you don’t need to provide some kind of collateral. For example, you don’t need a house as collateral backing the loan. 

    There are many lenders that offer personal loans. Lenders could be traditional brick-and-mortar banks or online-only. They accept borrowers with various credit scores, income, and other conditions needed to get personal online loans.

    We will walk you through the process of how you can find the right lender for you depending on your income, credit history, interest rates. We will explain to you what you can’t use the loan for. Picking the right lender may save you a lot of time but, as more important, a lot of money.

    Personal online loans offer a handy solution

    For example, you need cash and you need it quickly. The main advantage of online lenders is that they can give you a quick answer to your request. So, online lenders are a quick, suitable choice, maybe more than banks or credit unions. 

    The other benefit is that online lenders usually offer lower rates but there are also some other things, very important and useful if you choose to apply for personal online loans.

    First of all, the majority of online lenders allow you to pre-qualify. That is a unique offer because you can compare rates from different lenders by pre-qualifying online and find the lowest. The other benefit is that they can fund a loan very quickly, the approval will come on the same day, sometimes in the space of several minutes. The loan will be funded inside a day or two. 

    Those are important things that make online loans different from others.

    The purposes to get personal online loans

    Personal loans are not an answer to all financial circumstances. Yes, sometimes they are simply a band-aid on incorrect money management. But it can help you if you have credit card debt with high-interest rates, for example, that is almost 25% per year. If you succeed to get a personal loan with a lower interest rate, you’ll be able to pay off your credit card debt faster and pay less on interest.
    Such refinancing is a good example of the purpose to spend your personal loan.

    But we have bad purposes too.

    Don’t try to get a personal online loan if you want to invest in stocks, for example. For that kind of purpose, it is better to save and then invest.

    Maybe the worst purpose of getting a personal loan is for vacations, expenses such as a wedding, expensive rings, or similar. Also, it is better to save for that.

    Someone would like to repair a home and think the personal loan is the best solution. Well, it couldn’t be more wrong. For that purpose, it is better to use a home equity loan since it has a lower interest rate.

    Steps to take before applying for personal online loans

    Before you start the process, decide how much money you really need. The sum you want to borrow should be based on the debt you have to cover and your income. Avoid stretching yourself too thin. If you take out a too-small loan it wouldn’t cover your needs, but also, the too-large loan will put you into paying interest on a larger amount than needed. So, you have to calculate the amount you can handle and do it before applying.
    Also, pick the right type of lender.

    Banks and credit unions take much longer to process your request than online lenders. They also require fewer documents and the application itself is less complicated. And sometimes the speed is most important in getting personal loans.

    The advantages of personal online loans

    Personal online loans have a big advantage – they are comfortable. 

    Doesn’t matter if you choose an online-only or branch-based lender. Both will provide you the loan application online and the possibility to upload verification documents. For example, you’ll need a driver’s license. Well, some branch-based lenders will require your signature on the final documents at a real branch. That is a kind of disadvantage since you would like to apply online. You will not have such a problem with online-only lenders. The whole loan application process will be done online for sure. 

    Prequalification will not hurt your credit score. Moreover, you can submit several prequalification forms to expand the list of possible lenders. 

    The next step is to complete a loan application and agreement to a hard check on your credit reports. Both types of online lenders, online-only or branch-based, require a hard credit check before you sign for a loan. Generally, these inquiries could affect your credit score. But one inquiry will have a small influence on your overall credit score and shouldn’t discourage you from applying for a loan.

    The particularly great advantage of personal online loans is that you can easily compare all your options. The benefit is that you could get the best rates and loan terms for your needs this way. 

    If you want to compare lenders, find a website that allows you to instantly classify and match lenders and loan options based on your situation, and wanted loan sum.

    Disadvantages 

    Online loans may cost you. They are not cheap and usually, they are costlier than loans from credit unions. The problem can arise with different formulas for underwriting because almost every online lender has its own. Also, sometimes it can be difficult to go through the application process for some types of personal online loans. For example, secured personal loans or co-sign loans have complex processes. 

    Also, if you want a loan under $2.000 it might be hard to find a lender since most of them have a minimum at that sum. 

    The main problem is to find reputable online lenders. You can see the ads of some lenders that they don’t care about your credit score or something else that may sound very lucrative at first sight. In most cases they are scammers. Legitimate online lenders will always check your capability to pay the loan. Yes, they will charge you the annual rate from 10% to 30%. The rates will differ based on your creditworthiness, the period of the loan, the loan amount, and, of course, the lender. 

    So, you must be very careful when choosing the lender.

    How to shop for personal online loans? 

    Here are several questions that you’ll need to find the answers for while looking for lenders.

    Online lenders examine extra factors, for example, your education, profession; but only those information related to your credit score and credit history. If you have a bad credit score, you’ll need to fix it first. But remember, it isn’t impossible to get a loan even with a bad credit score.

    What you have to know is the annual percentage rate (short APR) below 36%. That is the amount of the interest rate and all fees. If it is below 36%, financial experts agree it is reasonable for you as a borrower. If some online lender offers APR over 36% you can be certain the loan is unreasonable even if your budget can afford it.

    Do you have all your documentation ready? You can get rate quotes by providing several personal data. But when you decide to apply for a loan, lenders will expect documentation. That is ID form and proof of income, a pay stub or W-2. Still, you can easily upload all documentation, some lenders will accept screenshots, PDFs, scanned documents, or photos taken by your phone.

    The cost of personal online loans depends on your credit score. If you have a better score, you’ll pay the lower rate and less interest. Pay attention to interest rate since it can influence your complete monthly payment as well as the term of payment. If you get a longer-term loan you’ll pay less per month, but the interest amount can be bigger.

  • The Low-Interest Rates Could Lead You to Great Earnings

    The Low-Interest Rates Could Lead You to Great Earnings

    3 min read

    The Low-Interest Rates Could Lead You to Great Earnings

    When interest rates are low you may think:  Oh, what a good opportunity. Loans are cheaper, banks or and peer to peer sites will fight for loan clients. Yes, at some point of view and for a short time it is favorable.

    But on the other side, the low-interest rate means lowering returns for lenders. If interest rates are low for a long time, where is the benefit for lenders? That is the very clear relationship between demand and supply. Low-interest rates can damage lenders, and the borrowers can be damaged too because borrowing money becomes difficult.

    In periods when the interest rate is low, banks are in a difficult situation. They don’t have a strong deposit base, the income from loans is lower too which causes the banks to don’t want to take a risk by giving cheap loans to borrowers with the lower credit rating.

    And here we come to the point. It is difficult to finance, for example, small businesses, and investing becomes more difficult too. But not impossible yet.

    Low-interest rates inhibit investors from putting money in savings accounts. They rather use the funds to pay their debts or use their money to invest in shares or buy some property. 

    For example, if the interest rate on deposit is about 1%, why would you put your money on savings? The better choice is to buy shares, the return is bigger.

    Instead to put your money on your saving account, invest it

    The Low-Interest Rates Could Lead You to Great Earnings

    When the interest rate is low, investing is a great opportunity for many people. The truth is, if you put your money in the bank, the returns will not follow the inflation rate. Investing demand more risk, that’s the fact. But the returns, if not defeat the inflation, will follow the speed of it.

    You don’t want to miss this: Economic downturn – How to prepare for it

    The point is that you will take more risks to get bigger returns. How much risk you should take and stay calm? You can decrease risk by diversifying your investment portfolio. Investing in higher-risk assets gives higher returns. 

    So, where to invest when you withdraw your money from the bank account? 

    The most popular are bonds and stocks that are paying dividends.

    The yield is what every single investor wants, no matter if it is an individual investor or institutional. The aim is the same.

    Invest in fixed income assets, that will give you a high return. But if you invest in different asset classes, meaning you build a diversified portfolio which is the best strategy, you may be sure you will have increased yields.

    In any case, bigger than if you leave your money in the bank while the interest rate is low.

    The stock market is one of the best long term capital raising opportunities. 

    Yes, the stock market levels are high at this moment. To explain this. When interest rate drops, people will think they are safe and accumulate their capital or savings into stocks.

    This action is driving the markets higher. The demand is bigger and the prices are high.

    Increased stock markets are a difficulty for many people. So, what you have to do is to keep your money for a while, just wait for the market correction or invest for the long term. The long-term investing is a good choice because how could you know the market will weaken. 

    The stock market doesn’t like high-interest rates but likes the low-interest rates. High-interest rates can boost costs for companies which can lead to lower profits, hence lower stock prices. But it is a great opportunity for everyone who wants to buy. Low-interest rate rises the price of the stocks because the people will rather invest in stocks than to keep their money in the banks. So, the demand is bigger, hence stocks prices are higher.

    The worse scenario is to leave the money in the bank during the period of low-interest rate or inflation. You don’t want to watch how smart people defeated inflation and you were the victim. Don’t be the looker-on, take your place in the game.

  • Financial Matters Before Getting Married

    Financial Matters Before Getting Married

    Financial matters before getting married
    Talk to your partner about the personal finances, financial goals even before getting married
    By Guy Avtalyon

    Financial matters before getting married are always a risky topic. Getting married isn’t as simple as it seems. Yes, you love each other, but some financial issues must come to the table before you put rings on the fingers. Talking about future finances can lead to the break of your relationship but you have to have one thing in your mind: When poverty comes to the door, love might fly out the window. That’s why you must have a clear situation before getting married. You must consider some questions with your partner. 

    Financial matters very often can give you the right picture of future life. What if you are not compatible with that field?

    First of all, you must have at least a basic idea about your partner’s financial goals for the future. Has your partner any idea to change the job? Does your partner plan savings and how? Where you will be after 20 years? Compare the answers with your personal financial goals. 

    What is your most important financial intention?

    The financial intentions can run the range from paying off all debts to buying a house. Maybe your partner is planning some several-months traveling to the far East to find itself or to purchase the car. What is about you? Can you place yourself in that image? So, you have to discuss some financial matters before getting married.

    Financial matters before getting married: Is your partner a saver like you are?

    It’s necessary to have a sense of how your partner manages money. Are you similar or two different worlds? Don’t avoid talking about this. What if you are raised from your childhood to put aside for example 10% of your earnings as savings and your partner is more willing to live largely, spending today no matter what will come tomorrow? If you don’t open this question you may find yourself disappointed and frustrated later in your life. 

    What are your priorities for spending money on?

    You must discuss this before getting married. Your priority may be buying home and save for that, but your partner’s priority could be traveling every year to some exotic place. Nothing is wrong with that. The main point is to understand each other and find where you can or cannot support your partner’s financial goals and respect that. Understanding a partner’s financial goals is a good base for the future.

    Is it crucial for you to have what your friends have?

    Financial issues before getting married can be inspired by other people’s habits. Maybe you want something that others already do or have. So, take care. You must set your own financial goals, not copy others. Do you really need those high-tech gadgets your friend already has? Does your partner plan to travel with its friends or with you or both? How will you share the costs?

    How much your partner earns?

    Some surveys showed that 4 in 10 couples don’t know how big their partner’s income is. Why is important to know about your partner’s salary? Because of future financial plans. For example, your partner’s salary is $2.000 per month but plans to purchase a house worth $300,000 in the next several months. Is he/she serious? To be sure your partner has realistic expectations about finances, you have to discuss financial matters before getting married.

    How stable are you in your profession?

    Any conversation about the future should involve some issues about job security. Maybe your partner is considering changing the profession. maybe wants to continue the education. You have to be prepared for similar occasions. Some survey showed that 42% of millennials want to leave their jobs in the next two years. If your partner is one of them that will influence your finances. 

    Do you or your partner favor financially independent?

    If you want to move in together money is a big issue. Will you share your funds? Maybe you want to share a part of it? Will you open a joint account? The other study revealed that almost 1/3 millennials prefer to keep their money separated from the partner’s account. Among Gen X-ers it is the case with 11% and among Baby Boomers 13%. You have to talk about this.

    A healthy relationship is based, besides love, honesty, respect to each other’s desires, understanding the differences. When it comes to money, spending habits can be crucial for the quality of together life.

    As we said at the beginning of this article: When poverty comes to the door, love might fly out the window. So, discuss financial matters before getting married.

  • Why Zero Bond Yields Happen

    Why Zero Bond Yields Happen

    Why Zero Bond Yields Happen
    Bond yields in high-level markets are declining for the last 20 years. What is happening with negative or zero bond yield?

    By Guy Avtalyon

    Zero bond interest rates mean that the yields of the bonds are 0%. This indicates a monetary policy that aims to stimulate the economy but is approaching its short term limits as the short term interest rates can’t be negative. This situation indicates that monetary-policy makers and markets see increased deflationary pressure on the currency of the country.

    This leads to long term bonds’ interest rates to be negative. For example, in Germany the ten-year bond yield is negative, it is minus 0.02 percent. Actually, $13 trillion worth of bonds is giving negative rates. This interest rate will be accruing nominal losses to investors until 2030.

    In Japan, low-interest rates on a bond are predicted to stay zero or negative even longer. The 10-year bond yields in the US are a bit above 1% and the UK about 2.4%. Both countries suggest a minimum or no tendency of raises in the near future.

    Moreover, bond yields in high-level markets are decreasing for the last 20 years which was unbelievable just 2 decades ago.

    Why zero bond yields happen now?

    The financial crisis in 2008 loan growth shifted negative and continued to be depressed for a long time. It happened because households and companies had too much debt and they wanted to pay down debt. They wanted to have no debts even when the central banks started cutting the interest rates closer and closer to 0%.

    The same case was seen in Japan in the 1990s during the Lost Decade.

    Bonds interest rates are market prices, meaning they are a measure of the supply and demand of bonds. The demand is driven by a desire for low-risk assets. And bonds are a less risky asset than stocks because they offer fixed payments for an exactly fixed time. The bondholders will take something even if the country or company that issued bonds experience the crash. The interesting thing about bonds is that the riskier bond is, the pay-out is higher because investors are compensated for accepting the higher risk.

    Today, the bonds are less risky than ever. The investors are buying bonds with lower yields. Low-risk assets are exceptionally good-looking when markets are unpredictable or uncertain. For example, today in the US you have investors worry that a recession caused by a trade war with China could crash the stock markets. 

    That’s why even negative bond yield rates are more desirable than the other choices.

    Moreover, pension funds usually are buying bonds, no matter how high or low is the rate. Either from prudency of fund managers or the regulation. For instance, German pension funds hold bonds more than other assets because they can invest only 35% in risky securities.

    How does this impact your investments?

    Well, it depends on what is your outlook as an investor, meaning are you, borrower or saver. That will determine your benefit from zero bond yield.

    Low rates can be very bad for retirees. They more often hold more bonds. Retirement investment expenses have grown amazingly costly. Baby boomers may have profited from economic increase and growing stock markets. But their retirement is much more costly also. Anyway, savers and pensioners are punished when the nominal value of their investment falls.

    Actually, everyone will get a lower return on investments, or be forced to take more risk to generate a higher return. 

    If stock prices decline that will cause more economic instability. On the other hand, a lower cost of capital can boost investment and push more growth. That will be the benefit of everyone. And this possibility is the driver behind the policy of cutting interest rates by central banks.

    Why a zero bond yield is bad? 

    If the price is zero, savers will accumulate less and get less return on prior savings.

    Imagine this deal as an example of zero bond yields. You borrowed to some company $1,000 today and it will return $900 or $1,000 with no interest rate to you in a decade.
    What?
    This is exactly what is happening with negative or zero bond yield. That is not how it should work. You have to make a profit when you put your money in the market or the bank.

    Nicholas Colas, the co-founder of DataTrek, explained: “Bonds are supposed to pay the owner of capital something to pry the money out of their hands.”

    But, some really wise investors have invested almost $15 trillion in government bonds that offer negative interest rates, per a report of Deutsche Bank. That is approximately a quarter of the overall bond market.
    Negative interest rates of long term bonds in a situation of the zero-bound interest rates allow politicians to give more promises waiting the day when interest rates return to rational levels, and taxes rise to pay for it all.

  • Money Management

    Money Management

    Money Management
    Hans Stam

    by Hans Stam

    A little off topic but well received within my group how I manage money.

    So I decided to put this in writing to your benefit. 

    Many don’t know where all the money went at the end of their month. 

    Usually, they have a bit of month left at the end of their money. 

    Others make a lot of money but always seem to have a shortage anyway. 

    Some are doing just fine but don’t seem to get ahead in their finances. 

    The process of Money Management

    Here is the process I went through personally.

    I had one account at my bank as most people have. 

    All my money came in on that account and all payments were made from that account. 

    I started to write down all my expenses.

    Then I noticed I was overpaying for some services like my phone, so I contacted the phone company for a better deal and instantly got more than 50% discount. That was my first step in money management. 

    Same with other bills, I noticed some things I spent but didn’t really need or that could be done differently. 

    When I had a complete picture of all my expenses per month, I divided it into daily portions. 

    2nd Account in the process of Money Management?

    I opened a second bank account at another bank, and whatever income I had I placed at that central account. 

    Not only the usual income but also whatever money I got like tax returns or bonuses, etc.

    Then I set up automated daily payments from that central bank account to the initial bank account where most bills were deducted automatically. 

    The way it was set up plus perhaps a few bucks a day was taking care of the bills and it grew a bit every day. 

    Why another bank? 

    Anything can happen, and when it hits the fan, you better keep control yourself instead of letting the bank decide for you!

    3rd Account?! 

    Then I set up a third Bank account. I decided on a number I needed to do groceries on a daily bases.

    So from my central account, I got daily payments to use for shopping.

    Now I knew what was there every day to use and not overspend.

    4rth Account!!

    I also got Gas money from jobs I do.

    So I opened a Fourth Bank account.

    Every time I’m getting gas money, I deposit it in that account. 

    Most times I’m getting more than needed so all other car bills like taxes and maintenance are being paid from that account. 

    Central Account for Better Money Management

    When I did set it up that way, all I needed to focus on was the central bank account and I knew exactly what I needed a day, week, month. 

    I noticed at first it wasn’t easy but I was determined to get it right.

    So then I realized I needed a buffer of 3-6 months based on my daily payments. 

    I knew what I needed to survive 3-6 months without any income in case something happens. 

    This has saved me several times as I do not have a steady income. 

    Interest

    I noticed I was paying interest on open balances.

    So how did that happen? 

    I was in need of a car, and that’s a huge sum for most people. 

    So that had to be paid from the Gas account, but there wasn’t enough. 

    So I had to loan from a bank, but I paid more due to interest. 

    I decided to calculate the interest and paid the same interest amount into my central account as well. 

    Basically, I was paying back the bank, and now also myself. 

    Over time I needed more money on bigger spendings.

    So I loaned from the central account and paid it back from the account I needed it for with interest!

    How does that work?

    When I saw something in the shops I really wanted to have, I just paid it from the central account to my Groceries account. 

    Same goes for Gas-account when in need of more cash instantly like buying another car.

    Then by the daily income, I was getting on those accounts, I paid it back to the central account with interest.  

    It also made me aware that at times I did not really have to buy whatever it was I wanted, so it kept me from buying the item. 

    All I need to watch for is the buffer on the Central bank account to keep my internal economy going. 

    But before there was a buffer, I took care of small bills that were past due and made them disappear quickly. 

    Doing that gave me more and more control to work towards my buffer.

    Investments as the best way for Money Management

    When I wanted to start investing, I didn’t really have much money to do it with. 

    So I loaned money from my central account, and whatever money went out, I paid back with interest from my income. 

    So even if that investment was not working out, it was covered by future manageable income, bit by bit. 

    Whatever the investment did produce was placed back into the central account which also helped to pay off the initial loan. 

    If the investment made more, I was free to either let it grow or to fund the central account after the internal loan was settled. 

    When I invested more I considered it to be a separate loan which re-entered the process. 

    No logic

    It doesn’t seem logical to work with your money like that, it seems too complicated.

    But what it did do for me was that it gave me control over my bills which all happens automatically and it made me think twice before spending outside the balance on the cards. 

    So in a way, it made me focus and I know what I have to do next. 

    If my investments are not providing enough for my buffer, I know I need to get another job and quickly maintain my Central Account.

    Anything can happen in life, and I never really valued stability really going day by day without much thought until the day came I got stuck financially.

    So through desperation and a whole lot of debt, I decided to set it up to the way I have it now. 

    And although it did not help me overnight, the action alone to contact another bank and set up the accounts gave me a feeling of control.

    It also made me go look for other ways to make an income like another job to maintain the central account. 

    This got me moving with a plan in action and it has given me many benefits in my financial life.

    Back on control

    I took back control, and I crawled back from a deep hole which made me an investor and Trader. 

    Hopefully, you are not facing that mountain of debt in your life and you might not give this a second thought as long as you always have enough, but even millionaires can go bankrupt if they don’t pay attention. 

    Be wise, don’t let money become a problem where it doesn’t have to be. 

    I surely hope this off-topic article will benefit you, as money is not everything and it should not control your life. 

    Yes, we need it, so let’s deal with it and go on with other important things in life. 

    If you can support my work as a Mentor, please click here for a donation

    I really appreciate your encouragement. 

    Also, any support you like to show through PayPal is very much appreciated!

    to your success,

    Hans Stam

  • Best money apps for 2019

    Best money apps for 2019

    Best money apps for 2019Traders-Paradise presents you the best money apps that we examined, and use.

    By Guy Avtalyon

    Today everyone is looking for the best money apps. That’s a great help in money management. The principle is the same as before, everything else is nuance. Also, the development of advanced technologies is a great help. We all remember how our parents did that. They didn’t have an app to manage their money, they had to do all alone. Several envelopes “loan” “electricity” “heat” “phone” etc. were usually on the table with slips filled.  

    The pile of bills and a checkbook on one side, envelopes on the other. And a notebook where they wrote everything they spent. As the envelopes became fatter, the bunch of bills would become tiny.

    Today it is completely different. We have apps for almost everything. Also, we have automated payments. So, it is easy to track all payments and where our money goes. So, we can know our net worth in a second.

    Traders Paradise came across numerous reviews to find the best money apps. Of course, our personal experiences were valuable too.  

    So, here are some of the best money apps we estimated. All available to download for Android and iOS, which was the very first criteria. The second criterion was a free download.

    Mint is a free money app. It comes from Intuit (the creator of TurboTax and QuickBooks). Mint provides you to set up and link all your accounts and cards into one place.

    The app automatically classifies banking and credit card transactions and its Trends feature provides you to track your credit cards, spending, cash, net worth. Also, you are able to set your financial goals or payment reminder, bill reminder, or receive suggestions on how to reduce fees and save some money. Mint will signal you when you are going over your stated budget.
    Mint has over  20 million users.

    The app will automatically classify banking and credit card transactions and there is a Trends feature that allows you to track credit cards, cash, spending, income, and net worth over time, along with the ability to set up financial goals.

    This app is available for iPhone or iPad, as well as  Android and Windows devices.

     

    Goodbudget is previously known as Easy Envelope Budget Aid or EEBA. You can download the free app on iOS and Android devices from the App Store and Google Play store.

    This is an automated version of the old envelopes. The idea is to split up your money into digital “envelopes” based on your wants or needs. You can pick from pre-labeled envelopes or design your own.

    Start by adding your income and listing a financial “account” like a checking account or savings account, credit card, or cash.
    Customize your envelopes.

    You should log to your Goodbudget every time you send or receive the money,  allocate some amount to each of your envelopes. For example, you allocated $200 per month to your hygiene. Every time you bought something from that kind of supplies you should click “add a transaction”, insert the store name, and the value you spent. That value will be taken out of a certain envelope. And you will see how much you can spend on hygiene more.

    You can pick one of two Goodbudget offered plans. A free plan and a paid Plus plan that costs $5 per month or $45 per year. The envelope’s balance is colored: green means you have money to spend, red means you have gone over the budget.

    This isn’t only a money budgeting app. This app is the best if you have a lot of subscriptions or memberships and you wanted to cancel them. Trim helps you save on all subscriptions you don’t apply that are still cost you money.

    This app employs your credit card and bank transactions to warn you of forgotten subscriptions. Trim will load only the transactions linked to subscriptions. Then you will receive a text message with all your subscriptions so you can cancel them if you want.

    Trim is a truly assistant. It can send your certified letter telling you aren’t coming to some event. There is no need for phone calls. Also, Trim will negotiate your cable or Internet bill down for you.

    It operates with Comcast, Time Warner, Charter, or any other provider.

     

    With MoneyStrands you’ll get prompt access to your account balances, transactions, budgets, saving goals, and more.
    All you need to win smart financial decisions today. Moreover, you don’t need to link it with your bank accounts. There is a possibility to do that but it isn’t necessary.
    Millennials like it very much. And you have a calendar. Well, it is easier to see when your bills are expected if you have a calendar in front of you. You can set goals and track how much you’ve saved.

    This app suits those who need a good money app but don’t like to link bank accounts. When you plan your money you can see where your money goes and save more. You can observe your spending for some time and then rearrange the budget if it is necessary. Also, you can secure your payments on time and never go over the limit on credit card fees.

    These money apps are very helpful, especially if you never update your budgeting skills. We recommend you best money apps from our own experience.

    Don’t waste your money!

  • Economic Downturn – How to Prepare

    Economic Downturn – How to Prepare

    2 min read

    Economic Downturn - How to Prepare
    Foretelling an economic downturn can seem as mystical and convoluted as reading the horoscope charts. However, financial experts are warning that the economic winds are changing.

    There are some economic indicators causing financial analysts to prognosticate slim financial time. First, economic growth is postponed. The rate of salary increase has stagnated. As the economy continues to slow down, consumer interest rates will rise and investment earnings will lose momentum, possibly even losing money.

    We have to be honest, there’s no magical way to predict just how bad things will get. Anyway, burying the head in the sand is a terrible idea. Here are a few things you can do to protect your finances against the coming economic downturn.

    Economic Downturn - How to Prepare 1

    Dow Jones Industrial Average Market index

    When the storm is approaching, the first thing you do is preparing your home for that attack. You cover windows and surround your home with sandbags. An emergency fund does the same thing financially. It’s the added layer of protection that can assist you when the economy drops. Also, it provides you a fighting chance to protect what you’ve increased.

    Grow your emergency fund

    The emergency fund is anywhere from three to six months’ worth of daily living expenses. During the meager economic time, you want to have more than the standard recommended amount.

    Under normal circumstances, the average period of unemployment lasts roughly three to six months. But experts assume that number is sneaking and could double in an indolent economy.

    To be more clear, when it comes, you have to plan

    To be unemployed at least one month per every $10,000 you earn. So if you earn $80,000 a year, you should plan for unemployment that lasts at least 8 months. This formula is a great measure in helping you discover how much you need in your emergency fund.

    Balance your budget and allocate debt

    In anticipation of a natural disaster, people buy supplies and lasting food items. Balancing your budget by reducing expenses in preparation for a financial collapse follows the same principal.

    Your holiday and home renovation may have to pause. The key is to prioritize your expenses. You have to recognize what you can skip. Also, you have to stop living on overtime, bonuses, and side-gig money. It is better to put that money into your emergency fund.

    You must be focused on quickly paying down debt. Get rid of some of your smaller debts fast. If you reduce debt, you owe less and have more money at your control. It can be your care package during a downturn.

    Increase professional skills

    This is a nonfinancial thing. Let’s say you have a primary job, but you also have a bunch of hobbies. These things can be turned into job opportunities.

    Take time to renew your resume and hone or add to your skill set. There are a lot of companies out there offering training.

    Take those opportunities now, don’t hesitate.

    Evaluate your investment portfolio

    The stock market usually becomes extremely volatile during an economic downturn. Financial experts recommend not to remove your money off an investment while you panicking. Fear should never encourage your decisions.

    Look at your investment portfolio now. Try to find if there are any additions you’d like to change. Generally speaking, risky funds will probably lose money during a downturn. But truth is, they also rebound instantly during an economic restoration. Safer investments may not lose a lot, but you will not earn much too.

    One method or investment technique isn’t superior over another. They all have pros and cons. The key is to evaluate yourself. Do you have a weak stomach? If so, go with something less risky. But if you’re convinced you can manage the turbulence of a risky investment, stay seated. Don’t forget to take financial advice before you decide, anyway. And remember, the knee-jerk attitude is the fastest way to lose big when it comes to investing.
    Stay in control!

    The bottom line

    These are just a few of the small steps you can take to prepare yourself and your family for potentially difficult times, for the economic downturn.

    The economy has been expanding since hitting bottom in mid-2009. That makes this recovery three years longer than the average growth cycle since 1945. If it reaches 10 years, it will match the record for the longest expansion. We have a few months to see that.

    Maybe the slow pace of the recovery will allow it to run longer than usual. The odds of it ending get stronger as time goes on.

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