Chill Maadi

Tips to take care of your personal finances

When we talk about personal finances, we refer to the management of the economic resources you have, with an eye on future planning.

The financial risks, the goals, the savings instruments, and the net worth that you have available are the aspects that you must consider to organize your money.

Personal finances must be understood as a professional matter because we often make the mistake of seeing personal expenses as something of little importance. However, they are an area of our lives that we should tread carefully since our future depends on them.

The last thing we want is not to reach our goals or lose money in the face of any emergency, no matter how small.

But, how should you take care of your personal finances? Here are some tips to get you started:

➡️ Save and Invest Your Money

Saving is crucial for the conservation of one’s finances. One of the most effective ways to save is to keep at least 10% of your total income per month.

But, the key is also to invest. The money saved only keeps its value if the interest rate acquired is higher than the inflation rate.

Investing money is an excellent way to make your capital profitable and save it more effectively since it won’t lose real value with time.

➡️ Only keep assets that increase in value.

Most assets lose value over time, such as cars or appliances. To maintain your financial health so that the numbers do not get out of control, try to keep only those assets that increase their value.

These assets might be stocks, bonds, or other financial instruments or be subject to increases in price thanks to inflation. If we have one of these goods that increase in price over time, in the long run, if we decide to sell the good, we will make a profit.

Gold is an excellent hedge for inflation, to put a clear example. GLD is an ETF we normally recommend.

➡️ Use your credit card wisely.

Cards are a good financial resource if they are taken advantage of and used well.

Take advantage of your credit cards for those purchases that allow you to pay in installments without interest. For example, when buying some furniture for your home.

Try to look at the number of installments and the corresponding value and make sure that your personal finances allow you to assume that debt each month. On the other hand, we also advise you to learn to read the account statement, so you understand each of the concepts detailed.

The important thing is that you are regularly checking your expenses and available credit limits.

Never use your card as extra money, as it is a financing instrument that includes a price for using it (interest).

Trading and Forex Brokers for Beginners

“Forex” is derived from foreign exchange, is also used the term FX Market. “Foreign Exchange” is the buying of one currency and selling of another simultaneously through forex brokers.

Currencies are traded in pairs, for example, Euro / US Dollar (EUR / USD) or U.S. Dollar / Japanese Yen (USDJPY). FX Market – FX Exchange – is considered a market “over the counter” (OTC). Transactions are carried out either by telephone or by electronic networks. Unlike stocks or futures markets, forex trading is not centralized on an exchange.

You may have heard a lot of buzz recently about online forex trading but what exactly is an online forex broker? If you’re looking to get involved in international trading on your own, forex trading may be a great place for you to start because it is simple, global, and practically always available.

Forex brokers for beginners provide traders a Forex trading platform – an application, a working environment, where the trader buys and sells currencies, dealing online – in other words, he speculates to make money on the difference of currency rates.

Who trades currencies, and why?

Daily volume on the currency market comes from two sources:

Foreign trade (5%). Companies buy and sell items from/to abroad and convert profits from foreign trade into their own currency.
Speculation for profit (95%).

Most speculators focus on the most traded / liquid currency pairs, called “The majors – major. Today, more than 85% of daily transactions involve trading of major currencies, including the U.S. Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar, and Australian Dollar.
The Forex market is the most traded world market, with transactions 24 hours a day.

Certain parts of the world have part of their Saturday to trade, as it’s still Friday in other markets. Financial institutions in these countries may be dealing with the Forex market during their work hours, the Forex market is open and trading 24 hours, 5 days a week.

With an average daily trading volume of over 3.2 billion U.S. dollars, the forex market is traded in world markets. Open 24 hours from 24, started trading on the FOREX market every day in Sydney, and moves around the globe depending on the opening day in each financial center, first to Tokyo, then London and New York.

Unlike other financial markets, investors (speculators Forex) can respond to currency fluctuations caused by economic events, social and political, which would occur anytime – day or night.

It doesn’t take a large initial investment, and it doesn’t take any special training (although making yourself more knowledgeable is helpful!) and these are two of the reasons it is becoming more popular and gaining more attention. Using some of the most popular and easy-to-understand forex systems, a person can trade directly with real live forex markets, without the intervening middle-man influencing decisions.

One of the most popular methods in recent years is the use of Expert Advisor software (also known as “EAs,” “Electronic Advisors,” or “Robot traders”). This software is programmed to monitor the market for specific movements and conditions set by the user, then used to capture market opportunities. The most exciting thing about being your own online forex broker is that regardless of market conditions – whether the market is rising (“Bullish”) or falling (“Bearish”) an individual still has the potential to make a profit.

This huge, influential market allows for unlimited profit potential because it is based on market movement alone, not on positive or negative conditions specifically. So this means that as long as an individual is monitoring the movement of the market that person has the potential to make profits. Check this blackbull markets review to understand how a broker that cares for beginners in forex investment can be beneficial to your career as a forex trader.

Traditional Online Forex Broker

If you choose to use a traditional brokerage firm, which would act on your behalf and according to your direction when trading in the forex market, you will develop a relationship with an advisor or money manager. He or she is the contact go-between for you (the client) and the market and will watch the market very closely for price levels. Then, the advisor will execute your orders based on the direction you give them. It must be remembered that in this type of situation, the advisor cannot act to engage in trades with your money of their own accord and would have to have clearance from you to do so, and this also makes you solely responsible for the outcome of the trade.

When you’re beginning to find out more about being an online forex broker, you may be afraid that your EA software won’t be used properly, or that you might miss some valuable opportunities. Many people have the tendency to look at these situations as “mistakes” and can begin to second-guess what their software tells them, or the signals that they receive in regards to the parameters they set up for the software. The truth is, it is virtually impossible to “win” every trade, so even a trade that loses money can be seen as valuable if it increases your confidence in your software, or teaches you something about how to set the parameters of the software to your benefit.

The fact is, only 5% of all traders achieve the goal of being consistent with their profits, and that average is established by looking at both the high and the lows of trading. Learn from your mistakes, and don’t see these experiences as “failures” but instead, for what they are – chances to learn more and do better next time. The only real “mistake” would be to ignore the signals of your EA entirely. If you begin to second guess your own system, the entire thing can unravel.

The foreign exchange market began with the need to convert payments received in foreign currency to home currency, and an online forex broker helps large banks, small companies, and investors around the globe do this quickly and efficiently. This is why the market is available virtually all day, every day. The market is the most “fluid” (or “liquid”) because it is not based on “real money” and its value. Instead, it is based on the exchange rate between currencies with the purpose of cashing in on the value change between those currencies.

A currency speculator (someone who estimates the values and attempts to foresee what they will do) can benefit from endless trading opportunities because the number of members involved in forex trading is so high, the volume of money is so vast, and there is virtually no end to the demand. Currently, the daily transactions are reported to be in the trillions, meaning that a large amount of money flowing, and the solid foundation of the exchange, have created the forex market as an asset class of its own – not subject to the same troubles as “real world” commodities.

If you’re interested in learning more about becoming an online forex broker, it is wise to conduct additional research and learn all you can before dipping your toe in the market with an initial investment. Although it does not require any special training or certification, it is a fast-paced and constantly moving market, and having some initial knowledge will give you the advantage over other novices. If you have worked with an advisor or money manager before and have some knowledge of the basics, a good piece of advice to begin in your own investment portfolio is to start out speculating and becoming intimately familiar with two particular currencies and their exchanges and rates.

Once you have become a bit of an expert at those currencies, you can begin to expand and see what other currencies and foreign exchange rates seem to perform well and deserve your time, attention, and investment. It may take some time to become the successful online forex broker that you dream of, but with a little work and determination, you can make it be the most profitable investment in your life.

Don’t Wait for an Emergency to Call Your Local Plumber!

Plumbing emergencies are well documented. From a broken or burst pipe to water coming through the ceiling, we are all well aware of the major disasters that can affect the average home. But more often than not, there are one or two less major plumbing problems that affect us all from time to time, problems that often go unfixed year after year costing money.

Rather than suffering from annoying little problems, and if you reside in Sydney, it is best to call in the best plumber Sydney offers to sort these problems out once and for all and in some cases prevent these little problems from becoming major issues costing us more money.

But what are some of these problems and why is a plumber the best person to call?

Blocked Drains

Does your sink from time to time become blocked, resulting in the plunger being brought out more often than you would like? Blocked drains are a common problem that can be easily fixed by a qualified plumber. But not only will a plumber be able to fix it within a few minutes, but they will also be able to identify the problem and offer advice on how to prevent it from reoccurring.

Food scraps and fat are the most common causes of blocked drains, so the plumber will be able to identify what the cause was, and then advise on how to otherwise dispose of the troublesome items.

Noisy Water Systems

Does your water system make unusual noises? Does it keep you up at night? By calling a qualified Local plumber these noises can be identified and then rectified. Usually, a noisy system is due to the water traveling at a high velocity through the pipes.

Do not just assume these noises are natural; in most cases, they are not.

Toilet Trouble

Toilet blockages are relatively common and are mostly caused by objects being disposed of down there that shouldn’t be, such as sanitary towels and nappies. A plumber will be able to remove the blockage and leave your toilet in full working order. To a fully qualified local plumber, a blocked toilet will present no challenge, and whilst he is there he will usually also make sure that the toilet and drainage system are working to their full potential.

Instead of struggling with common plumbing problems, call a local plumber. They see these problems every day of the week, so do not suffer in silence. Not only will these problems be fixed, but you will also receive some much-needed advice on how to prevent them from returning.

Take profit: examples of profit taking on the stock exchange

What is profit-taking on the stock exchange?

In simple words, it is an exit from the current profitable transaction. While the transaction (position) is open, the profit on it is floating, it changes depending on the fluctuations of the quote. When a trader closes a trade, the profit is fixed.

Profit-taking in trading is the most pleasant process when, after closing a transaction, the balance increases due to the fact that floating profit is transferred to it as the financial result of the transaction. This scheme is the same in different markets. Profit-taking on stocks, futures, and cryptocurrencies occurs similarly.

At the same time, it is important to note that a trader can fix a floating profit both with the help of a take profit order (automatically) and manually.

What is take profit in trading?

This is a pending order that must be executed when the market price reaches a certain level. When this happens, a market order is sent to the exchange, which is directed against an open position, which leads to its closure.

For example. You have a long position open on the oil market, yesterday you bought it at 40.00. Today the price fluctuates around 41.00. You send a take profit to the broker at 42.00. This means that if the quote reaches 42.00 tomorrow, a market order for sale will be sent to the exchange. Thus, the take profit will work, your contracts will be sold, the position will be closed, and you will fix the profit from the transaction.

How can take profit be calculated?

In the most general case, there are 2 ways:

Mathematical. In this case, take profit is calculated according to formulas and proportions. For example, a trader sets a stop loss for 10 ticks. Then he can set a take profit for 15 or 20 ticks. Then the ratio of profit to risk will be 1:1.5 or 1:2 (excluding commissions). This is a rational ratio that you can work with.
Discretionary. In this case, the trader conducts an analysis, the purpose of which is to identify where it is better to set a take profit.

One of the effective ways is to use the volume analysis and functionality of the ATAS platform to track the activity of large market participants, and then come to a logical conclusion where to put take profit.

What is the difference between a take profit and a stop loss?

These are two very similar pending orders, they are both waiting for their time. In order for them to activate, you need a condition – the price reaches a certain level. Then they are triggered as triggers and send market orders to the exchange opposite to the open position, which leads to its closure.

An important difference is that a stop loss fixes a loss (so that it does not reach catastrophic proportions), a take profit fixes a profit.

There are still some differences between take profits and stop losses. It is believed that:

Take profits slow down the market, and stop losses accelerate the market;
Take profits are often placed before important levels, stop losses are placed behind important levels

How to set a take profit?

Take profit can be set:

during the opening of a position or after its opening;
manually or automatically;

There are defensive strategies in the ATAS trading platform. There you can set up a take profit so that it will be set automatically together with the opening of a position at a given distance.

How to set take profit

What happens when a large number of taking profits are triggered?

At the points where a large number of taking profits are triggered, the market slows down.

For example, large traders are in purchases. They placed take profits below an important peak. When the price reaches the take profit level, sell orders begin to enter the market to close previously opened purchases. As a result, the uptrend may slow down, or even reverse. Because of this, sometimes there are ”shortfalls” of the price to the previous important levels.

Where are take profits often placed?

A popular place to place take profits is a price zone located near some important level, but not reaching it.

Where to place take profits

Sellers at point 1 are likely to place their stop losses for the previous high. And buyers at point 2 are likely to place their take profits before the previous high.

Another place to place take profits may be the levels at which stop losses are presumably set. Then stop losses will be reduced to take profits.

Where to place Profit Taking

Take profits placed in this way to have increased profit potential, but also a lower probability of execution.

When taking profits and stop losses are triggered massively, you can see a noticeable drop in open interest.

How Profit Taking works

What do we see in the picture above? When the previous low was broken, a large number of market sales were sent to the market (this is evidenced by the red clusters). Obviously, numerous stop-losses of buyers have been triggered. Some of them were combined with the sellers’ take profits.

As a result, we are seeing a sharp drop in open interest, which indicates the exit of a large number of traders from the market.

Principles of Profit Taking

The general principle that will help in using take profit is“ “Cut losses, and let profits grow.”

The first part of this principle refers to the ”brother” of take profit – stop loss.

Stop loss should be clearly limited, and if the market goes against your position, then losses should be cut without regret, closing a losing trade. Sitting out losses, hoping for a price return, or emotionally averaging an open position, while also increasing the volume– is the way to lose the deposit. Losses need to be cut at the lowest possible level.

The second part of this principle already directly concerns take profit.

Place the take profit in such a way that the profit has the opportunity to grow. You need to give the market the opportunity to move in the direction of your transaction.

It is desirable that the take profit exceeds the stop loss several times. Give the market time to bring you a significant profit, set take profit at sufficiently remote levels.

Learn the trailing stop technique. This is a method of tracking a successful transaction, in which the trader moves the stop loss following the price going in his direction. So the trader protects the achieved profit, but does not limit the potential for its further growth.

Of course, there are different trading systems for exiting trades, but the main principle “cut losses and let profits grow” has passed the test of time and has been used by many well-known traders.

Conclusions

Correct profit taking is very important in trading. So don’t forget that:

Take profit (exit from a trade with a profit) should be clearly described in the trading system, and its effectiveness should be tested on history;

Indicators for volume analysis in the ATAS trading platform help to find levels for effective take profit setting;

It is desirable to set a take profit according to the general principle“ “Cut losses, and let profits grow.”

5 Qualities Essential For a Successful Stock Trader

All of us who venture into the stock market should possess certain basic qualities that will help us to be successful in trading. Without any exception, everyone who ventures into stock trading is interested in making some quick money. Here are some basic qualities that you must have to be a successful trader.

Patience

First, you should be patient with yourself and give yourself some time to learn the basics of stock investing. Many people when they begin their stock trading career, they try to plunge into it immediately in their enthusiasm to make money. However, by doing this you will be subjecting yourself to great financial risks.

Accept Losses

Secondly, when you enter into stock market, you are bound to make some wrong decisions in the beginning and this should not discourage you. Loss in the beginning is inevitable and you should be mentally prepared for it only then, you will be able to survive in this field. You must always keep long-term profit in mind. Even if you make a wrong decision in a particular instance, you will be able to make up for the loss at a later stage.

Research

Thirdly, you must never get to your trading desk without making thorough stock market research. You will have to be faithful to your market research daily. Lot of things could have happened when you closed the previous day and get back to your trading desk the next day morning. If you do not keep yourself informed of the latest developments in the market, your decisions for that day will not be sound stock investment decisions.

Speculation is the key to stock trading. However, speculation should be based on statistics and other facts. Any speculation that does not take into consideration factual details will only be random speculation and this will not help you in the long run. The prevailing market trends should guide your decisions.

Discipline

The next important quality for a successful stock trader is discipline. It is everyone’s weakness to give in to the temptation to wait longer to see a greater profit. But decisions that are postponed will push you to unnecessary loss. On the other hand, you must be content with your reasonable profit. To avoid loss, once you reach the cut-off that you set for yourself you must sell those stocks. This applies to day trading in particular.

Don’t Panic

Yet another crucial quality required is the ability to think clearly in the midst of stressful trading day. The market can be highly volatile and in the beginning when you see the stocks being so volatile you will tend to panic. Once you give into your fear, you will tend to make hasty decisions hoping to save the loss. If you give yourself some time, you will see the market stabilizing itself. You must not make investment decisions or selling decisions when you are tensed. Such decisions will often be faulty decisions because your reasoning faculty is no more supporting your decision-making efforts.

These are some of the essential qualities that will set you apart as a successful trader in this field.

Gas prices continue to rise on record, oil at fresh highs: what drives the markets?

What happened?

Oil

The jump occurred after the new agreement of the OPEC+ countries. An agreement was reached to increase oil production in November by 400 thousand barrels per day.

Oil prices have returned to the level of three years ago. Thus, the cost of a barrel of Brent for the first time since 2018 exceeded $ 81. WTI fuel also broke the record. More than $77 is being asked for it on the London Stock Exchange. This is generally the best result since 2014.

Such a jump occurred after the new agreement of the OPEC+ countries. They agreed to increase oil production in November by 400 thousand barrels per day.

At the same time, the participants of the meeting took into account all possible risks — the next waves of coronavirus and the possible launch of additional volumes of black gold from Iran to the market. This, according to experts, will help to stabilize the situation with fuel prices.

Gas

The price of gas futures contracts on October 7 broke another record and crossed the $1,900 mark, according to the ICE exchange platform. In just a few hours, it jumped by more than 20%, and then fell by $200 in 10 minutes.

What does it mean?

Oil

The energy crisis in Europe will intensify as utilities continued to outbid scarce supplies of natural gas as the winter heating season began.

Shale oil production will grow over the next 18 months, even if prices reach a multi-year high, leaving OPEC in a very weak position as the world cries out for more barrels.

The decision threatens to exacerbate tensions between the United States, Europe and China, which fear that rising energy prices could undermine the recovery of their economies.

Nevertheless, OPEC+ assures that in the event of a sharp increase in demand, they will be able to adjust production and prevent the oil market from overheating.

Gas

Gas prices have started to rise due to the European gas crisis, but it seems that new price records are now being achieved in the absence of obvious new reasons.

We are faced with the inability of the market to generate an adequate gas price. It does not reflect either the level of transactions or the state of the market in Europe. But this is only part of the truth. In addition to gas producers, traders are actively working on the market, but they have serious financial problems due to high gas prices.

Why should I know that?

The inflationary background may contribute to the growth of securities of companies from the electric power sector and consumer goods.

Given the current situation with gas prices in Europe, investors should pay attention to protective assets, as well as shares of companies exporting natural gas, coal, oil and polymers. An increase in inflationary pressure may have a positive impact on the profitability of grocery retailers, Walmart-type chains and consumer goods manufacturers such as Procter & gamble and Johnson & Johnson.

This week, Reuters reported another reason for the price increase – brokers and exchanges demanded that commodity traders increase financial guarantees for short contracts due to rising prices for gas futures contracts, margin calls were experienced by the largest commodity traders Glencore, Gunvor, Trafigura and Vitol, among others. The special drama of the situation is that operations with commodity futures themselves are an element of hedging or insuring financial risks for traders with sharp fluctuations in commodity prices, but no one expected such a sharp rise in prices.

The consequences of such high gas prices will continue to increase prices for other energy carriers, such as energy coal and petroleum products. If we recalculate the cost of a barrel of oil in Europe based on the energy value of alternative gas, then it should be above $200.

Now we can say that in the foreseeable future there are no serious reasons that can stop the gas crisis that has broken out. Supplies of liquefied natural gas, which can partially compensate for the imbalance in the European market, are reoriented to Asia, where there is still high demand, especially from China. Komlev said that due to the growing demand for LNG in Asia, where gas is sold more expensive, another 14 billion cubic meters of gas did not reach Europe. This is 4-5% of the volume of consumption, “it was enough for prices to go off the chain,” added the top manager of Gazprom Export.

It is obvious that without the intervention of the regulator, the process of price growth can be catastrophic.

How Can I Use a Loan Against Property Calculator?

Applying for a LAP or loan against property is somehow an ideal option to place your monetary worries. It can be a daunting chore when someone really wants to assess the monthly installments. However, you can resolve this matter smoothly by just utilizing a loan against a property calculator to compute your EMIs. Keep reading to understand how you can efficiently use an online EMI calculator and determine your monthly payment amount.

Before availing of a loan against property, the borrower needs to estimate his monthly installment worth, calculate interest charges and select a proper tenure period to pay off the loan amount. Now, you can solely utilize the EMI calculator for loan against property that provides accurate results instead of exercising the calculation manually.

Before we get into details of EMI or Equated Monthly Instalment calculator for LAP, let us make you understand what LAP or loan against property is.

What is Loan Against Property calculator?

A loan against property or LAP calculator is an online free tool that is available on most of the lender’s official sites. This free tool helps prospective customers to assess the monthly installments that he obliges to pay back to the lender within a specific tenure. So, when you enter all your required details like interest rates, total loan amount, loan tenure, etc., the tool suggests perfect results. Most importantly, you can get a concise idea regarding the financial planning, which you strongly require, and assess your loan repayment capacity using the online loan calculator.

Despite this, LAP enables the borrower to avail of finance by letting you mortgage a plot, land, own home or rented assets, house, etc. Hence, you can successfully satisfy your financial requirements. Nevertheless, a salaried or self-employed, or non-professional individual can avail of a maximum of 60% loan approved by the lender by mortgaging property.

Once you successfully repaid the whole amount, you can possess the property as your own. And, by any means, if you fail to repay the loan, the bank will hold the right to take possession of the property legally.

How can you use the EMI calculator?

· Firstly, enter the principal finance value

· After that, enter the interest rates provided by your lender

· Enter the tenure duration you are comfortable with, which is a culmination of 15 years in the case of LAP.

· Now click the calculate option to see the result.

You can use the calculator endless times just by feeding the details above-mentioned and receive the result instantly. Moreover, using this calculator is not rocket science. Additionally, you can use different combinations of the interest rates, principal loan value, and tenure period and get to know various prospective EMI amounts, and select the one that suits your ability. And, this online calculator is accessible 24×7.

Final verdict:

Now that you know how to use a loan against a property calculator, you can easily design your LAP plan through any authentic and suitable lender. Once you determine all these factors, you can apply for the loan. And fund your personal financial needs or business requirements sufficiently.

How to do my financial planning?

First off, there is no such thing as “financial planning”. There are many different types of plans depending on your needs and goals. You need to decide which type of plan best fits your current circumstances and then work backwards from there.

If you want to save up for retirement, start by calculating out exactly how old you will be when you retire and figure out how long you expect to live after retiring. Then calculate out how much income you’ll get per year during those years.

Once you’ve got an idea about how much money you’ll make each year, use these numbers to determine how much you need to put away every month until you reach your goal amount. This number may change over time based on inflation rates, tax changes, interest rate fluctuations, market conditions etc.. But at least you now have a starting point.

As far as websites go, I would recommend using Mint.com or Personal Capital. Both allow you to track your spending habits and see trends over time. They both give you access to tools like budgeting calculators and investment portfolios.

How is Financial Planning important?

Financial planning helps you avoid making bad decisions later down the road because you had all the information available to you before hand. It also gives you peace of mind knowing that you have done everything possible to prepare yourself financially for whatever life throws at you.

What kind of investments should I consider?

This depends entirely on your personal preferences and risk tolerance. The most common options include stocks, bonds, and mutual funds. Some people prefer real estate while others choose gold/silver coins. Whatever option you select, just remember that investing involves risks.

Even though the markets fluctuate wildly today, historically speaking, they tend to stay relatively stable. That said, you still run into volatility from time to time. Whereas, if you invest in something like gold, silver or other precious metals, you won’t experience wild swings in value due to supply & demand issues.

There are two main categories of investments – Stocks and Bonds. Each has its own pros and cons. For example, stocks provide higher returns than fixed-income securities but carry more risk. Fixed Income provides lower yields than equities but less risk.

Investing in Stocks

Pros: Chances of Higher Returns

Cons: More Risk

Investing in Bonds

Pros: Lower volatility

Cons: Less Return

What are the components of a financial plan?

A financial plan includes:

An understanding of where you stand with respect to debt, savings, and assets;
A projection of future earnings and expenses;
A calculation of what percentage of your annual salary goes towards taxes;
A determination of whether you’re saving enough for retirement;
A strategy for achieving your short term and long term goals;

1) Debt – How much do you owe? What’s your current balance? Are there any debts coming up soon? If so, when will they be paid off? Do you want to pay them off sooner rather than later?

2) Savings – Where does your money come from? Is it going somewhere else? Can you save more?

3) Assets – What are your assets worth right now? Have you saved anything recently? Has anyone given you an inheritance?

4) Taxes – How much tax do you need to pay each year? Will you get a refund next month?

5) Goals – What do you want out of life? Do you want to retire early? Save for college tuition? Buy a house? Travel the world? Pay off student loans? Start a business? All these things require different amounts of cash flow. You’ll also need to make sure you don’t spend too much.

How would someone go about getting started with financial planning?

Start by taking inventory of all your finances. This is called “financial fitness”. It helps you understand how well prepared you are financially. Once you know where you stand, then you can start making plans. Here are some steps to take:

Step 1 – Determine Your Current Financial Situation

Take a look at your monthly bills. Add everything together and divide by 12 months. Then multiply that number times 100%. The result should give you a rough idea of how much money you currently earn per hour. Divide that amount by 40 hours to determine how many years you’ve worked. Multiply that figure by $40/hour to find out how much you’d need to work full-time just to cover basic living costs. Now add up all your non-mortgage debt. Include credit card balances, car payments, etc. Also, include any outstanding medical bills. Finally, subtract your total net worth. That gives you your starting point.

Step 2 – Make a Plan

Use the information above as a guide. Decide if you want to increase your earning power through education or career advancement. Or maybe you want to cut back on spending. Maybe you want to invest in real estate. Whatever your goal may be, write down exactly what you intend to accomplish over the course of one year. Be realistic! Don’t expect to become rich overnight. But keep in mind that even small changes can have big results. For example, if you decide to put away 10% of your income every week instead of 5%, you could end up with thousands of dollars extra after five years.

Step 3 – Take Action

Once you’ve made your decision, set aside time to implement your plan. Write down specific dates and deadlines. And stick to those commitments. Remember, this isn’t easy stuff. So you’re not likely to succeed unless you really commit yourself.

What questions do you think we missed? Let us know in the comments below.

7 Ways to Manage Good and Easy Personal Finances

If you want to be rich, you have to be able to manage your personal finances well! It turns out that it is not complicated to be able to manage finances independently! Follow the method below!

Happy reading!

How to Manage Good Personal Finance is Easy

Everyone certainly hopes to have a significant income, but did you know that the most important thing is that you can enjoy it, right? It’s unfortunate if we have a large salary or income, let’s say above INR 20 million, but our debts and bills are more than 70 percent of our income, and we can’t save or invest.

Any amount of income will not guarantee the welfare of our lives if we do not manage sound personal finances. Even rich people will be stressed and frustrated if they don’t manage their finances and manage their income and expenses.

Financial problems will certainly make your head dizzy, and you can’t sleep. So before financial problems pile up, it’s better to fix one by one simple thing and move on to the next stage. Let’s follow these Seven ways in managing finances that will make your financial life better, even avoiding the trap of consumptive debt.

#1 Have Personal Financial Records

Without personal financial records, we will not be able to manage personal finances properly.

Personal financial records are instrumental. This is an essential step we have to take. If we don’t do this initial step well, even consistently, then our finances will still be messy and not well organized. By recording personal finances, we can track where the money we earn is spent.

In addition, we can find out what expenses we can reduce, or we need to increase the nominal according to need. Recording personal finances can also help design financial goals; we can find our financial strength to achieve our financial goals within a specific period.

For example, suppose we have a financial goal to buy a house with a mortgage of 300 million in the next five years. In that case, we can plan from now on by saving a minimum down payment of 30 percent, which is 90 million for a specific time, according to our financial capabilities.

Besides buying a house, what other financial goals can we achieve? Of course, the first step we have to do is to record personal finances.

#2 Create a Monthly Budget

In creating a monthly personal finance budget, here is a formula that you can use 40-30-20-10, in the form of a division:

Allocate 40 percent of your income for daily expenses, such as monthly bill fees, to daily shopping needs.
Next, allocate 30 percent of your income to pay off debt installments if you have one.
You can allocate 20 percent of your following income for investment savings for a better financial future.
Then, 10 percent of your income you allocate to donations, gifts, or charity.

Easy, right?

#3 Manage Expenditures Wisely

This is where the art of managing personal finances comes in. Everyone certainly has their strategy, including you, right?

The first expense we need to pay is taxes or deductions.

Usually, this tax will automatically be deducted from the salary for workers or employees each month to receive a net wage that the cost of paying taxes has deducted.

In addition, deductions for social security for workers have also been paid automatically.

The next expense that needs to be regulated in managing personal finances is donations or charity.

Usually, 5 to 10 percent of the income is received.

Furthermore, to build good financial strength, we need to prioritize savings through investment vehicles.

Saving in the bank alone is not enough. The average amount of interest received in one year is not comparable to the current monthly administrative discount, which is quite large, especially with the inflation rate increasing every year.

Therefore, it is highly recommended to invest through various investment instruments that are very profitable to build a personal finance printer and prepare for a better financial future.

From this investment savings, we can also increase our income by building a business from the investment income.

Thus, we will increase the financial income stream.

#4 Create an Emergency Fund from Investment Savings

An emergency fund is a significant fund to anticipate an emergency or urgent situation not to affect our financial condition.

There are many events or disasters that we cannot predict, so we need to have an emergency fund.

So, where can we collect emergency funds from? Did you know that we can collect emergency funds from investment savings funds?

Already know the number of emergency funds you have to prepare?

Usually, you need to collect six times the total expenditure per month for single or unmarried couples.
In contrast to those who are married but do not have dependent children. Ideally, they need to raise an emergency fund of 9 times their total monthly expenses.
Meanwhile, families with dependent children need to collect an emergency fund of 12 times their total monthly expenses .

#5 Have Health & Life Insurance

There are still many people who do not understand the usefulness and importance of having insurance.

They feel a loss because they have paid for insurance so far but have never received the benefits.

The question is: does anyone want to get sick or experience bad things? Insurance is used as an umbrella to protect us from rain or the scorching heat.

We don’t know when the rain will come, but we need to be prepared and on guard, correct?

Herein lies the importance of health and life insurance where we need to have it!

There are many benefits of having insurance, including:

The insurance premiums we pay can pay for treatment or care.
The insurance premiums we pay can protect assets and prevent loss of assets and debt.
The insurance premiums we pay can replace installment payments and debts
Increase funds for family needs.
Can focus on healing

#6 Pay Debt or Installment

If you have debts or installments, prioritize them first to pay them off one by one.

To get accurate advice and solutions to get out of debt that binds you and makes it difficult for you to sleep, immediately contacts my Financial Planning Consultant that you can rely on!

Did you know that hiring the services of a financial planner or financial consultant is very expensive?

But, no need to drain your wallet just by subscribing to the Financial Application for one year at a subscription price of Rp. 350 thousand/year, you can consult with a Certified Financial Consultant and get the right solution on managing personal finances and how to get rid of confusing debts.

#7 Avoid Consumptive Debt

Consumer debt will make your wallet tighter. However, financial planners and financial experts agree that consumer debt is not recommended.

On the other hand, productive debt can increase your income; for example, you borrow some money for business capital from the bank or make a vehicle loan where the vehicle is used to work or make money.

Managing Personal Finance is Easy & Fun

It turns out that managing personal finances is fun and not complicated, right!

Keeping track of personal finances is not complicated, you know! We can be assisted with financial recording application services and apps, many of which are free.

These apps make it easier for us to record daily finances. Not only taking notes, but this application can also help calculate the costs that must be collected per month to achieve a financial goal.

We can also consult with a Certified Financial Planner. So don’t forget to immediately record expenses and income transactions that occur at the same time, so you don’t forget to register or miss them.

Investing in cryptocurrencies is it worth it?

There is hardly a week that the topic of investing in cryptocurrencies such as Bitcoin or others does not come up in a conversation. Sometimes because they go up meteorically and others because they go down. There are opinions for all tastes.

Personally, I believe that we cannot ignore crypto assets or Bitcoin as if they did not exist. It would be a kind of denial of reality. It is a new type of asset, but one that falls within alternative investments. And as such, it can have a place in a portfolio to de-correlate, but for other reasons as well.

Investing in cryptocurrencies for the long term. My point of view

In my opinion, I think anyone could consider investing in cryptocurrencies for the long term. Obviously, not as a core investment asset of a portfolio, but as a complement or satellite investment.

As we have seen these weeks and in other moments, cryptocurrencies are a very volatile asset. Do not suitable for all audiences. Or of course, not suitable for a significant amount of money within our heritage.

But you can invest in cryptocurrencies with little money. For a $100,000 portfolio let’s say 1-5%. Depending on the ability to take risks and personal circumstances, I think that is the range of capital that I would assign to an estate of that amount. Each particular case would have to be seen.

If it goes wrong. Nothing that the global investment strategy sinks you. And if it goes well. Certainly, an asset to add alpha to the portfolio in the long term.

How to invest in cryptocurrencies

You have to look for a reliable and safe intermediary. With many users. Where you can contrast opinions and references of other people who have invested through these platforms.

The key, as always, is to diversify. Cryptocurrencies are still an unregulated asset, which is still surrounded by a lot of uncertainty. And when I talk about diversifying, I don’t just mean investing in different digital currencies. I also think about investing in 2 or 3 different brokerage platforms. Which can be brokers or directly specialized cryptocurrency platforms. I give you some examples.

Coinbase is perhaps the best-known platform, for having made the leap to the markets and starting to trade on the Nasdaq. It is one of the largest platforms. The volume of digital currencies traded on this platform is skyrocketing. Some say that you can end up dying of success. And the experiences of some clients have not been very good lately, due to the great collapse of new account openings that they have suffered recently. For that reason, it is not strange to read some bad opinions.

EToro – If you are in Spain then an eToro ad is almost ubiquitous on YouTube video. They come on at all hours. This is a very popular platform for buying and selling stocks at zero cost, but also for trading cryptocurrencies. Personally, it is not the one I like the most. I prefer other more specialized ones.

Bitpanda – those who know about these new alternative investments say that Bitpanda is one of the best platforms to invest in cryptocurrencies, due to its reliability and security. It is by the way also, one of the platforms in which you can invest in precious metals with physical support. Not just annotation.

Most cryptocurrency exchanges are preparing for the future leap to payments and have begun to offer cards with which to use digital currencies on a day-to-day basis.

And well, I could list many more cryptocurrency platforms or brokers such as Binance, Kraken, Bit2me, etc. There are quite a few wallets and exchanges. Here the key you have to look at is the differential between supply and demand that each applies. And then I would look at security a lot. Although that also depends on you as a user. But every time, news of robberies of digital currency warehouses is read. So be careful with passwords and security protocols.

Disadvantages of investing in cryptocurrencies

One of the worst things about any of the 6,000 digital currencies that you can invest in today is that you cannot calculate a fair value for it. Because they do not generate future flows. They are not backed by anything. They cannot be used (yet) in our day-to-day operations. It is simply the supply and demand that sets prices. That, and the tweets of an influential person. See Elon Musk.

This aspect makes cryptocurrencies a kind of long-term lottery ticket. Hence, yet another reason to diversify into different crypto assets.

It is not yet known how they will be regulated. If a digital currency has a virtue, it is that it is out of the control of central banks and traditional financial circuits. But that also makes them attractive as a hiding place for money from illicit activities.

It will end up being regulated, I’m sure. Regulatory development always lags behind innovation. At the time that money laundering control rules are put in place, it is regulated how to tax the profits in the sale of cryptocurrencies and the rest of legal varnishes, it will be one more asset, in which, probably, investment funds and others collective investment systems, can enter in a generalized way. And it will no longer be such an alternative market. Something that can happen in the next 3-5 years.

It is also unclear whether central banks will end up imposing their digital currencies ahead of Bitcoin, Ethereum and many others that have emerged from private initiatives. Some more serious than others. There is the risk, but also the opportunity. That is why I believe that investing in cryptocurrencies now that they have collapsed is a good time to sow for the future. The key: investing little money and diversification in every way.