Category Archives: Finance

How and where to invest your money as a student?

Before we start evaluating the methods in which a student can invest his money, we will start by explaining why is it necessary to start saving from an early age. For the last few decades, the economic market has been going through a tumultuous phase and under no circumstances can we guarantee that the value of money today will remain the same tomorrow. Thus, to steer away from a situation like this, and make all ends meet, a student must start saving from the rags and attempt to grow it through investment. Investing will not simply multiply the funds that you are starting with; it will further enhance your understanding of the market and render strapping strategies to wisely capitalize your resources. In the following section, we will be jotting down the wisest ways of investing your money as a student.

invest your money as a student

  • Invest in assets

Your plan of investing in assets must be a well-calculated one; rather than resorting to materials that are bound to be intervened by technological advancements and will thereby, alter their characteristics over time, a student should opt for assets whose value will increase with time. Additionally, apart from cryptocurrencies, there are no other forms of currencies whose value will rise in the forthcoming years. When you start trading currency, there will always be another individual involved in the mechanism and on some level, you will be asked to compromise with their terms. However, the only mindful path to choose from here would be investing in banks that depend on the commission spreads from the sale and purchase for their revenue. The source of reliability is enough to intrigue the young generation and bear unprecedented benefits for the brokerages conducting the transaction.

  • Shares and equities

Shares and equities refer to your stake in a company; meaning, once you invest in them, you will be granted an equal share in their ownership and voting rights with one vote per share. Once you have invested in, you will start receiving the dividend from the company at least two times a year; although certain firms generate dividends four times throughout a year. The best part about these shares, say for instance in investment casting, is that they will furnish you with the predicted amount once your investment starts growing. Additionally, you will also have access to their income as shares in these companies usually increase and guarantee portions of the increasing dividend. Nonetheless, if you have doubts regarding the results, you can invest in equities that require much smaller amounts and are cheaper to hold.

  • Cash in bank

Lastly, the safest option to invest your money as a student would seemingly be the bank; but investing cash isn’t the most profitable idea given its low rate of return. The interest rates are higher around the inflation which directly reinforces the fact that your money is gradually losing its value. Nonetheless, if you are planning for the long-term ahead, you can either deposit it in the savings account or a fixed deposit account. Keeping your money in the fixed account for at least 4-5 years will generate escalated rates of interest; but, you will not be able to access that stipulated period.

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student loans

Starting a business with student loan debt

A student loan can make you feel like it is taking over your life and your life will never be the same again if you don’t repay the loan. But you should not feel like that because it is still very possible to start a business when you still have the loan and if it will be of any consolation, you are not alone. Student loan stands at 1.3 trillion dollars and the credit card loans are on the rise but people are still starting new businesses. To make it possible, follow the following tips and keep your debt in control and manage your business. For any type of help please check moneyloanforu.com.

Get the student loan debt under control

Getting your debt in control should be the first thing you should do. In most cases, you will feel that you don’t have enough cash flow for your business if you make payments to the loan provider every month. To free up the cash flow, you will need to consider other options of repaying a debt like:

Consider income-driven repayment for your federal student loans

student loans

Most loans providers don’t provide you with all the options for repaying your loan and you might end up incurring penalties for defaulting the loan that adds up to 50, 000 dollars. Most people don’t know their repayment options and if that’s you, you need to do some research about it. For example, you can be eligible for income-driven plans. The plan is offered through the department of education and the payments are capped at a percentage of the discretionary income. If your income is capped, you will be able to free some money that you can invest in your business. And once your business has picked and you are making some good money, you can consider putting more towards your student loan.

Refinance your student loan

If your credit score is not that bad, you can be able to refinance your student loan whether it is private or Federal loan. By refinancing your loan to a lower rate and making it a longer-term, you will be able to free up some money to invest in your business. Student loans interest rates are deductible so refinancing your loan is one perfect way of lowering the interests and get a tax break that will allow you to concentrate on your business.

Consolidate your credit card debt

Credit cards debt has higher interest rates and this could be a problem for you especially when you are trying to start a business. The interest for credit card debts can be as high as 100 dollars in a year depending on your rate. I bet you can agree with me that is a lot of money, money that you can use to contribute to your startup. Consolidating your credit card debt is one good way of managing your debt. Maybe you can use a no-fee transfer to save on interest. Or you can even get a personal loan to manage your credit card debt and you will settle the personal loan later as they don’t have much interest as credit card debts.

Find more ways to cut your other costs

Once you manage to keep your debts under control, find for more ways to manage your other costs. For example, you can decide to move to a location that has a lower cost of living where you will be able to manage your monthly cash flow without much strain. You will save more money and you can put the money into your business idea. But you don’t have to move to cut your other costs, there are plenty of things you can do to lower your costs. You can cut your spending on entertainment and transportation.

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Students Loans Advice: The Best Wonga Alternative For You

If you have already fallen into such a problem or a moment of emergency that you need money at that instant and you have already look for a small term loan for a payday loan then you probably have come across wonga. so wonga here is basically a lender organization that is FCA approved and one of the most popular landing organizations in the region of UK and Spain and many other parts of the world. Of course, this is a really good solution to a problem but there are also some people who are facing a lot more difficult situation that is not quite helpful with the APR ratio of wonga.com. So, in a situation similar to this you are probably going to need an alternative to Wonga loans in terms of short term loan or payday loan.

What exactly is a short term loan and why is it necessary for you?

Students Loans Advice

Credits: Latina Moms

Just suppose you are a working man with a happy and sweet family. All of a sudden because of a storm or any other natural phenomena, or in such a situation where your child needs to be paying some more amount of money in their school, or even that you are facing a situation where yourself or any member of your family have fallen sick all of a sudden and needs to pay the hospital bills right away. You already have all your monthly expenses on top of you and there is yet another 10 to 12 days to go for your employer to provide you your next monthly payment. And right now you don’t have that sufficient amount of money you are going to be needing to get out of this emergency situation or to tackle the way it is. Just sitting down on the ground and having your hairs ripped off from your head while bursting out in stress is not just the solution right? At this moment what you are probably going to do is look for a short term loan for a payday loan so that you can have all your emergency expenses be paid for and also have the ability to pay off the loan as soon as you get the next month’s payment from your employer respectively. Basically here it means that a short term loan is more likely to be used for a number of reasons which are more of an unexpected emergency. And also for those who have a bad credit report on their financial statement may face some significant amount of difficulty to obtain or to approve a loan from a bank or other lending organizations because they have strict criteria that they apply all the time. Now you understand that a short term loan is also known as a payday loan is basically designed for the needs of your which will prefer to a perfect solution to the help of your financial emergency when you need it the most with just a blink of an eye.

The low APR rate, along with the flexible payment plans and also very loan amounts and quick application decisions and many much more extra facility and friendly, flexible attitude of loanski is going to be helpful to the financial situation that you are facing right now. The interest rate of wonga has some difficulties to be paid back. And there is exactly why it is time for you to choose a proper alternative solution to wonga loans. As considering this Loans like Wonga can be found at https://www.loanski.co.uk if you choose loanski then it is one thing that is to be sure that you are not going to be disappointed by the performance or even the service provided towards you by loanski.

Always have your research prepared before you take a loan

As this is a short term loan so that means you won’t have to keep mortgage any of your property or any other security amount of money or other properties to ensure that you are not going to run away with the loan. Short term loans are always there to help you in the moment of your eminent need and aside from wonga, the loanski is to be considered the best wonga alternative ever.

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How Paper Trading Options can prepare you for Success

It has long been said that in order to become an expert, you will first need 10,000 hours of practice. Though this number is obviously a rough estimate—and will vary tremendously depending on what you are doing—there is no doubt that practice is a very valuable thing.

In the world of trading, the need for practice is especially important. Without a strong familiarity with market mechanics, various financial assets, and technical indicators, you will quickly find yourself losing money. Even if you don’t have 10,000 hours to spend practicing and fine-tuning your trading strategies, making a conscious effort to familiarize yourself with the market in advance will pay off in the long-run.

trading strategy

Credits: AlphaBeta FX

In order to prepare for big trades and maximize their average rates of return, many traders will begin by trading in a simulated environment that allows them to experiment without actually risking any capital. Then, once they believe their trading strategies are ready, these strategies can be tested out on the actual market.

This form of practice trading is frequently referred to as “paper trading”. In this article, we will discuss the importance and meaning of paper trading, how to efficiently use your time as a paper trader, and how paper trading can be specifically applied to the options market. By taking the time to hone your trading skills in advance, you will put yourself in a position for success.

What is paper trading?

Paper trading is a term used to describe various methods of simulating a trading environment, without requiring traders to commit any actual money. There are multiple different uses of paper trading. Some individuals will trade on paper in order to familiarize themselves with trading as a whole. Others will use this technique to test different trading strategies.

The best paper trading systems will make it easy for traders to backtest their approach using the historical record. This way, instead of waiting for new data to emerge, traders can immediately see how a position would have fared if it had been entered into at a specific point in time.

For example, a paper trader might have a new swing trading strategy that wants to make sure is protected against the risks of a pending recession. While paper trading, they can “go back in time”, pretend to purchase shares of a specific stock in 2007 (following a swing), and see if that stock would have increased or decreased in value. This will signal to traders whether their strategy is moving in a productive direction or if they need to go back to the drawing board.

How can I get started paper trading?

There are many different paper trading platforms available for you to choose from. When comparing the paper trading options you have available, make sure that there is a sizable dataset available that allows for backtesting. Other features to look for while comparing include the use of live market data, the ability to test different price points (opening, closing, midday, etc.), the use of different financial assets (such as options), and the ability to hold positions of different sizes.

Most paper trading platforms are similar to one another, though it will still be worth your time to compare your options. We recommend using the platform Thinkorswim. ThinkorSwim has an innovative, free (for 60 days) platform that is easy to use and is incredibly flexible. The platform is supported by TD Ameritrade, allowing it to have access to the historical data it needs in order to be useful.

How can I effectively use the time I spend paper trading?

Because the window for free paper trading on platforms like Thinkorswim is usually limited, you will want to use your time as efficiently as possible. In order to develop an effective paper trading strategy, you will need to do a considerable amount of planning in advance.

  • Identify Potential Trading Constraints: things such as the marginal cost of trading, time constraints, and capital restrictions should all be identified in advance.
  • Choose a Few Favorite Technical Indicators: technical indicators are a crucial part of almost every trading strategy. When trading options, paying attention to the relative strength index, Bollinger Bands, and moving averages will be very important.
  • Open Realistic Positions: the purpose of paper trading is to prepare you for the real world. Though it can be tempting to be reckless when you’re not risking real money, opening realistic positions will help you develop a more productive skillset.
  • Back Test your Strategy in Multiple Scenarios: even if purchasing 10,000 shares of XYZ stock in 2002 would have been a good idea, that doesn’t necessarily mean your strategy is fool-proof. Testing your strategies in multiple settings can help you be more confident in your final approach.
trading strategy

Credits: stockmarkethacks.com

There are no substitutes for experience and education. The more time you can commit to paper trading, the more prepared you will be once it’s time to actually enter the market.

What are the nuances for paper trading options?

Options are contracts that allow you (but don’t require you) to purchase or sell an asset at a specific price at a specific point in the future. Options contracts typically move along with their underlying asset, though the options market itself is still unique in many ways.

The best paper trading platforms will make trading options as easy as trading stocks or any other financial assets. However, there are still quite a few nuances that need to be accounted for:

  • Options Markets are Inherently Volatile: options experience wider price swings than their underlying assets, resulting in higher risks and higher potential rewards.
  • Options can be used for Hedging: options can be used for limiting the potential downside of a position and are excellent risk-management tools.
  • Options come in Many Different Forms: call options, put options, hybrid options, and other options all cause this particular market to be inherently more complicated.

Options trading is generally more difficult than stock trading, meaning you may need to spend some extra time trading on paper. Don’t let FOMO deter you from getting the experience you need to be successful.

Conclusion

Just as you wouldn’t let a doctor, a pilot, or any other professional operate without any experience, traders require experience as well. Though there may not be a “trading school” like there are med schools and law schools, paper trading gives aspiring traders the experience they need. After testing your strategies on paper and making an effort to better understand markets, you will find yourself in a position to succeed.

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Consider Before Lending

Things To Consider Before Lending

If you are reading this post, I assume you have an amount of money in store and you are considering lending it out as a form of instalment loans or perhaps any other kind. The thing is lending is quite a lucrative business based on the fact that for every penny you lend, you will be expecting a return on each of the penny in form of interest. It should be noted that whatever cash you will be lending to people must be your extra amount plus the fact that you won’t be needing it urgently. Lending is quite risky due to the fact that many borrow and fails to pay back as at when due. Nevertheless, the risk is worth it and there is absolutely no way you will be losing your money unless you are not smart with it. This article tries to posit a few things to consider before lending money:

Consider Before Lending

Know your borrower

            It is very important to know the financial and mental status of your borrower based on the fact that if he’s financially unstable, you risk losing your money and if he’s mentally unstable, you are definitely going to lose your money. As such it is very important to ask necessary questions such as income weekly, monthly and per annum, Also in the course of the discussion, it is very important to pay attention to your potential borrower’s response to answers in order to be able to evaluate his mental status. Alternatively, you could request for last mental evaluation amidst the documents you’ll be requesting (although, many see this offensive).  In addition, be sure that your borrower is capable enough to payback with interest of whatever amount he/she will be borrowing from you.

Consider your interest rate

Interest rate is the amount paid together with the initially loaned amount. In most cases, it is a notable percentage of the initial amount borrowed from you as a lender. When considering lending, it is very important to have a certain percentage of posited for your borrowers and clearly state the percentage clearly in the agreement form. Most times, interest rates are sometimes between 10% to 20% of the amount borrowed. Bottom line is that carefully consider the amount requested and fix the interest rate at an amount you feel is credible enough for such lent money. Most times, instalment loans attract high-interest rates (it all depends on you).

Mode of payment

            It is quite pertinent to posit in the contract agreement, the means via which payment will be made, probably via open check, bank transfer, deposit or perhaps via the debt collector agency. It is very important that this criterion is clearly spelled in order to avoid cumbersome situations when payment time is up. Under several circumstance, when mode of payment isn’t clearly stated the possible outcome is that; you as a lender wouldn’t the mode of payment to anticipate plus the fact that there will be no written evidence stating a particular mode of payment and you are bound to lose a particular court proceeding peradventure a court issue ensues between you and your borrower.

Period of payment

It is a given that loan refund is at intervals, whether weekly, bi-weekly, monthly or yearly is all based on the lender’s discretion. Beyond reasonable doubt, every lender must have a particular focus as to when in particular a proportion or perhaps the whole payment with interest would be made. Many lenders make the mistake of not clearly spelling when the whole payment will be made as such when the borrow didn’t come to terms with the payment agreement term due to oblivion, problems will begin to ensue. As such as a lender, it is very important you strategically consider the period you need your payment made.

Personal interest

            Although unforeseen circumstance may arise which will, therefore, warrant that you make use of your cash, well, irrespective of unforeseen circumstances which you’ll definitely tackle later, deal with the present. Before lending out cash, be very sure you won’t be needing the cash to carry out personal or business task. It is very important to carefully look through your plans and be sure you won’t be needing the money anytime soon, Once this criterion has been fulfilled and you found out there is no other thing left, go ahead and lend out your money.

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