Do you love your job?

There are a number of things I’ve learned over the past few years that I keep in mind and remind my love ones of. One of those things is the following…

quote-on-job-confucius

Confucius said that if you enjoy what you are doing, it stops being a job, a chore, a responsibility. What you enjoy doing becomes a normal part of your daily routine, your life. I do believe that.

You know when I was still in high school, I wanted to become a journalist. I am not a great writer but I love writing with a passion! I knew then that if I could get the proper education, I would be fairly decent in my writing skills. My mom had other plans for my future. She told me that it would be better for me to take up Accountancy. She said that there would be more jobs waiting for me if I become an Accountant. She’s right! I got a lot of job offers even before I graduated. I was able to start as soon as I passed the board exams. I forgot that I wanted to become a journalist for a while because I learned to love my profession.

But you know what? My love for writing was not diminished. It is still here even though I am writing numbers more than words. I am still an accountant but I went back to my first love which is writing. I realized that there are just some things in life that can make you happy even though you are not getting as much financially as you want to. That’s writing for me. I love it so much that it doesn’t feel like work even when I am spending hours and hours laboring over a paper. I also felt this way in doing accounting work but maybe because it wasn’t really my first love, it diminished over time.

Do you love your job? This is a simple test that you can do to know for sure. Spend more than eight hours doing your job and if you are not smiling anymore by the end of the day, you better find something else to do. Or stop and look into yourself if what you’re doing is still worth it.

Continue Reading

Mistakes Or Not, These Financial Issues Can Be Crippling

money
Image Credit

How did your finances get in such a dire state? I made a mistake! You cry out in the hope that admitting you made an error will solve the problem. But of course, it doesn’t, and that’s why you need to avoid making the mistakes in the first place. There are various errors in judgement that will end up costing you a fortune and will put your finances in a difficult, somewhat dicey position of recovery. So, what mistakes are we talking about here? We’re glad you asked because once you realise what these errors are you should be able to completely avoid them.

Blood In The Water

money-bills
Image Credit

Do you know where loan sharks get their name from? Sharks are attracted in the wild by blood in the water. Supposedly, they can smell it from miles away. The name is particularly apt for a loan shark because they too feast on someone who is in desperate need of help and support. The difference is of course that a shark doesn’t pretend to offer first aid whereas a loan shark does. They’ll tell you how much the loan could help you providing you with the support that they can see you desperately need. They’ll offer you reassuring words about how it’s completely affordable and even give you friendly tips about how to make sure you can pay it back.

The problem is that this is a business and for a loan shark, it’s actually better if you pay it back later. This rises the interest to the point where they get big bucks from you and a lot more than you previously borrowed. A lot of people falsely assume that those who borrow from loan sharks do so for silly reasons such as a family trip to Hawaii. However, that’s not true, and most instead do it so they can cover the expense that they didn’t see coming but that they do have to pay. Or, they simply use it to pay off the bills that were a little larger than normal monthly charges. It’s easy to slip into a trap like this and far more difficult to climb out.

Before you turn to a short-term loan company, do make sure that you have exhausted every other possible option. Even paying on a credit card may be better than spending money on a loan company because at least with a credit card, you’ll typically know what type of interest you’re looking at before it grows out of control.

I’m Fine

money-doctor
Image Credit

Arguably two of the most dangerous words in the English language and not just because they are often uttered moments before someone explodes in anger. To explain how these two words can impact your finances, we need to explore an example. Let’s say that you are involved in a car accident. Now, for many people, the first thing most people would do is either contact their lawyer or head to the doctor, particularly if the incident wasn’t their fault. However, some people don’t like to make a fuss, or they just don’t like these kind of jolts out of their daily schedule. And, if the insurance company is going to cover the cost of the car, there’s nothing to worry about right? After all, you feel fine apart from an aching in your back, but that’s nothing. That will surely go away in a couple of months right?

calendar
Image Credit

Perhaps it does but then a year or two later it returns, worse than ever. Now, at this point, you might put two and two together, realising that the accident did cause a problem with your back. It is only then you decide to contact a lawyer. Firms like Lopez & Humphries PA see this all the time. The problem is that by this stage there’s not a lot they can do. A back injury could have been caused by a variety of incidents, and it’s very difficult to prove it was a result of the crash. Particularly, if you didn’t go and see a doctor. You see the problem? That’s why you should always contact both a legal rep and a doctor after an accident, typically in that order.

You might say, okay I’ve been injured, and it’s clearly long term but how is that going to impact my finances? Well, people suffering from serious long-term injuries often need more medical care which costs more money. On top of this, there’s the issue of debt. You may not realise this, but people with serious long-term injuries are far more likely to experience debt at some point in their life.

No Service History? No Sweat

luxury-car
Image Credit

Finally, sometimes, a crippling blow to your finances can just be due to a bad financial investment, and that’s certainly true in the case of second-hand cars. If you speak to a financial expert, they will usually tell you that buying a brand new car is always a bad monetary move. The reason? Well, it’s the depreciation. After owning a car for just a couple of years, the price of the vehicle drops far below what you bought it for. The only exception to this rule is if you accidentally buy a car destined to be a classic. But then the car is only valuable if you keep it in good condition. This means it can’t be a runaround vehicle.

This might all be true, but if you buy a car second hand, you run the risk of purchasing a dud. A vehicle that will cost you a fortune over the years in repairs and other problems. Eventually, that vehicle becomes a financial nightmare that you just want to get rid of. You can’t think of course because then you’ll have no car at all.

That’s why you always need to consider a second-hand car purchase carefully. Check around and make sure that it hasn’t been damaged seriously and that there are no signs of severe problems. If in doubt, hire a guy from a repair shop to check it for you, and they’ll tell you whether it’s going to be a money pit.

savings
Image Credit

Continue Reading

Investment options for the self-employed

As a self-employed person, finding a suitable option for a financial pension is indispensable. Government and corporate funds offer a wealth of choice. Here are some other investment options you can consider.

Stocks are the star of the market

This security is the best known in the market. Blue chips are suitable as a beginner-entry and long-term investment option.

Stocks also offer dividends. This is distributed annually. Stocks could be used to generate a passive additional income. Careful adherence to principles and strategies can minimise risk and generate profits. Particular attention should be paid to IPO’s something of a double edged sword a company’s Initial Public Offering is often an incredible opportunity but one fraught with risk, the until now private company has clearly been doing well enough that it anticipates a positive reception however it is not uncommon for bounces early as the market has no historic trend data making technical analysis impossible.

Stock CFDs

With CFDs, (contracts for difference), you take a position on the value of the underlying asset such as a stock, currency pair or commodity.

When you trade CFDs, you do not physically own the underlying instrument. You only speculate on whether the financial instrument you are investing in will rise or fall. For this reason, CFDs are generally free from Stamp Duty. As a rule, CFDs are traded off-exchange.

CFDs can be a superb opportunity for the self-employed investor as they require only a small start up fund to make large trades due to the power of leverage, simply put you can keep the bulk of your money in your savings or other investments and still use it to trade. However it should be noted that with the potential for big risk there is also a potentially huge reward. If you’re left holding a bet when the market moves against you you can end up losing far more than your initial holding deposit.

Diversifying your portfolio: funds

Funds have the advantage of diversification. Many investors put their money in a variety of securities. A distinction must be made between active and passive funds. With active funds, your portfolio will actively be managed by a fund manager who will be able to respond appropriately to the prevailing economic climate. Passive funds on the other hand, have the advantage of lower costs and the chance of a long-term high return.

Exchange-traded funds

Exchange-traded funds (ETFs), for example, invest the collected assets in a specific index, such as the DAX, Dow Jones or Nikkei 225. This purchases the stocks that are in the corresponding index, ie the performance of the ETF is equal to that of the index. Savings plans make it possible to pay a fixed amount at regular intervals.

The ups and downs of the stock market are important in determining your profit. At low prices, the investor buys more shares for the same money than at high prices. If the index or market should collapse, there is the opportunity of a manual purchase at favourable prices. Nevertheless, risk cannot be switched off, and losses are always possible.

Bonds are an alternative to credit

Companies use investment bonds when they need capital and the sum cannot be borne by a single financial institution. The money needed is divided into many small bonds and offered for sale to the public in the market. In addition to annual interest gains, price gains are possible upon payment of the debt at the end of the term.

Creditworthy companies with an attractive interest yield are viewed by many as a potential investment opportunity, especially when market interest rates are low.

Finding the right product

Ultimately the level of risk steps up in hand with the level of reward, for a self employed person you may find that you’re asset rich, but cash poor for this reason margin products often look attractive, however these are inherently risky, other product fads such as cryptocurrency trading carry even more risk.

Continue Reading

Curb Your Spending With These Simple Tips

cash-coins
(Source)

In this consumerist society, it can be extremely easy to get carried away with your disposable income each month. It can even be easy to get carried away with money which you don’t have. It is incredibly easy to get items on finance nowadays, and banks are all too happy to offer out loans with interest so high it can only be described as extortion. You may have fallen into this trap in the past and be looking at options like consolidate payday loans just to climb back up the credit score ladder and above the red line. Everyone either knows someone that has been ins this position or has been in the same position themselves – and it is extremely common nowadays. Even though we know it’s not worth it, through constant encouragement to spend, and being told we need luxury items – which incidentally we don’t need – we are led to the financial hole that many people don’t realise they’re in until they hit the bottom. Saving and paying debts off is not easy – if it was the banks wouldn’t have so many loan options, and no one would need them due to the extensive amount of money in their bank accounts. Alas, that is not the case, and we are encouraged to spend, spend, spend. Here are a few tips to help you keep on top of your spending and take back control of your finances.

Declutter

One of the best ways of not spending money is to throw things that you don’t need away. It opens your eyes to how much junk you had in the first place and shows you the extent of how money is wasted by spontaneous purchases. Yes, the sorting hat from Harry Potter World was severely overpriced, yet you said you’d treasure it forever, and now it is collecting dust. It happens to everyone. Your eyes become bigger than your wallet and before you know it you’re travelling home with three full bags of things you really didn’t need. Those three bags have now become bin bags – and it really gives you a new perspective on purchasing – a perspective that will be invaluable to your savings account.You already have enough things you didn’t need – you don’t need more.

Change Your Mindset

When it comes to thinking about your money, how do you measure it? By the amount that is in your bank? The amount of your monthly income that is disposable? The amount you owe to debt companies? Whichever way you think of it, it may be time to take on a new perspective. Whenever you’re out shopping, think of the price of an item as the number of hours you had to work to earn the amount of money. If you had to work all those hours again just for this item, would you still want it at the end of the shift? If the answer is no, then the item is not worth it. If yes, it still doesn’t mean you take it to the counter straight away. You then have to ask yourself if it is something you need or just something you desperately want that is going to collect dust like the previously mentioned Harry Potter souvenir? If it is the latter, you need to put it back on the shelf and walk away. Though out of your comfort zone, you will feel good for doing it. If you are still thinking about it in a few days time, you may be able to justify going back and buying it. But, the chances are that the impulse to buy would have worn out by then, and you will have forgotten all about it. When you are addicted to spending it is not the item that matters, it is the act of paying for something that is so addictive. Controlling that urge is the only thing that is going to help you to start breaking the habit.

Are Sales Actually Bargains?

Sales can be an extreme money grabber for people who like to spend because it is driven into you that you are getting a really good deal. However, at the end of the day, how good is the deal you are getting? You will also save more money by not spending any at all, no matter what the percentage off. Rarely items in sales are things you actually want or need; it is just the excitement of saving a bit of money that people radiate towards. It is important when shopping in a sale to go back to the mindset previously mentioned. The item may have 20% off, but may still cost you two full days at work – is the little bit of money you’re saving really worth it? Probably not.

Hopefully, this has given you some food for thought on how best to go about curbing your urge to spend and helping you to keep your pennies in your wallet, rather than in the hands of the commercial world.

Continue Reading

Common Mistakes to Avoid When Buying Insurance

insurance
Image Source

No matter whether you are looking to buy car insurance or a life insurance policy, there is no denying that the process can be somewhat overwhelming. After all, there are so many different options to choose from, and there is the industry jargon to contend with too. Irrespective of the type of insurance you are interested in, it is vital to approach the process with care. This involves avoiding the common mistakes made by others, which are explained in further detail.

Choosing the wrong type of insurance policy – Nowadays, there are so many different types of insurance policies to choose from. This can lead people to be confused when determining what type of policy is right for them. One good example of this is choosing between critical illness cover and income protection policies. A lot of people assume that these are the same thing, but that is not the case. Critical illness cover will only cover you for a number of serious conditions, which will be outlined in your policy. Every plan is different, though, so you need to read your contract to determine the exact list of illnesses that are covered. With income protection, you will be covered if you are out of work for a valid reason for a set period of time. For example, your policy may pay out after four weeks of being out of work if you have broken your leg while scaffolding. A broken leg is likely to be something that isn’t covered in a critical insurance plan.

Continue Reading