Category: Personal Finance


How To Earn a Pretty Profit With Diamond Investing

November 8, 2019

Personal Finance

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People who are looking to invest and make money often do so by heading to the stock market. There is a definite risk in going that route, especially in recent years when the markets have been so volatile. If it’s a safer way to profits that you are looking for, investing in diamonds is the way to go. Investing in diamond is an excellent way to recover market losses, while also creating profits that are then available for other investing opportunities.When investing, you are essentially using your money to try and gain profits without any undue influence from the people or companies in which you are investing. There are definite terms and conditions in place in each transaction, which may differ in each investment. It is the type of work called for in the investment that plays a role in the agreement or contract set forth by the individual or company.

Let’s now take a moment to talk about how your investments are affected when a company starts to suffer losses. Companies seeking money from investors usually do so when they are in a tight financial spot that requires them to seek financial help. They turn to the general public when looking for that financial assistance. In these types of situations, the investments made are often in the form of shares, investment bonds, or debentures, with the investor receiving a share of profits if the financial tide turns for the company. These investments are a loan of sorts, with the advantage to the company being that they do not need to pay interest. Each investor, or shareholder, receives dividends and profit share that is dependent on the type of contract signed at the time of the investment. In the case of diamond investing, the investor receives a diamond in return for giving money to the company. They do not receive any interest or profits from the company after that transaction, but they are free to sell the diamond for a profit when the value of diamonds on the open market is on the rise.

One of the great benefits of owning a diamond, besides the status and luxury of the gem, is that it will never see its value decrease, even in cases where the demand for diamonds decreases during a particular period. The supply and demand elements that so often drive the stock market are simply not in play with diamonds, making this investment one where you simply cannot lose. Given the status and luxury of diamonds, which are very often held by kings and queens of many different countries, your investment will be one that is very wise indeed.

The diamond market never experiences a decrease in value. One thing to be aware of is that there are two kinds of diamonds out there: miners across the world dig for natural diamonds, but there are also some synthetic varieties that are hand-made in a laboratory, with the synthetic diamonds often on the market alongside the natural stones, which can help drive inflation. Diamond companies fall under the category of either a public or private limited company, with that distinction usually dependent upon the part of the world where the company resides. Some companies also fall into the semi-government category, which is where the company is owned in part by the government and in part by the residents of the country.


Top 5 Frugal Living Ideas to Save Money for Emergencies

November 8, 2019

Personal Finance

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Are you looking for ways to live frugally and save money? Frugal living means being resourceful and not spending more than required. In short, it implies that you are a careful spender and stay content living with less to save money for emergencies!

Benefits of Frugal Living

Practicing frugal living cannot only save you a lot of money but also help you in many other things, including:

  • Fast debt repayment
  • No paycheck to paycheck living
  • Safe early retirement
  • Fulfillment of dream vacation goals

Tips for Frugal Living

Here is a list of frugal living tips that will help you do away with some of the less significant things in life to save money for emergencies:

  1. Budget Your Finances: Having an effective budget is crucial if you want to achieve financial freedom. Know where your money is going and restrict where you are spending unnecessarily. Moreover, you cannot decrease your spending if you are clueless about your income and expenses! Therefore, creating a budget will reveal everything you need to know to cut back from your costs significantly!
  2. Learn to Appreciate Frugal Living: Being frugal helps you to take a look at your spending habits and reevaluate them. Previously you might have bought something that you thought you needed, but in reality, it’s not of any benefit and value at all to you. When you start to get rid of these unnecessary and expensive spending, you can learn to appreciate a more modest way of living.
  3. Quit Expensive and Unhealthy Habits: You should consider quitting expensive and unhealthy habits such as consumption of fast food, drinking excessive alcohol, smoking cigarettes, and more. These habits can be okay when done in moderation, but indulging too much in these unhealthy activities can be harmful.
  4. Save Money for Emergencies: According to a Bankrate report, 26% of Americans have no emergency fund at all. Everyone should have an emergency fund because it’s one of the best ways to prepare for any future financial crisis. Having an emergency fund can help you manage tough situations like loss of a job or an unexpected expense.
  5. Avoid Debt Wherever Possible: One of the great tips for frugal living is to avert any debt, which can be accomplished by purposely maintaining an emergency fund. Another tip is to utilize materials without owning them, like borrowing them from friends or using trading services. Make sure to think through your options to avoid piling up credit card debt for unnecessary purchases.

Conclusion

The above tips can help you begin your own frugal living journey. However, the first step towards your frugal living journey is to become debt-free. Also, securing a cash cushion accessible during emergencies will help get you to financial freedom.


Habits and Your Financial Health

November 8, 2019

Personal Finance

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There is a saying “you are what you eat”. There is another saying that is equally as important – “you are a product of your habits”. Using an analogy of an ocean liner – how would you steer it to change course in a meaningful way? Very slowly but consistently. If you can envision an ocean liner, you would turn the heading ever so slightly – fractions of a degree toward the direction you want to go. Someone watching the ship would not even realize that anything had happened. As time passes on, the effect of the small change in direction compounds and becomes larger and larger. By the time you reach your destination, you may be hundreds or thousands of miles from the original navigation. If you tried to steer that ocean liner all at once, would you succeed? You would likely overdo it and cause an accident, or get so far off course that you would lose time correcting the direction again.

What does this have to do with money and habits? Everything. If you have a goal of making or saving more money and get a ton of great ideas, and then try to implement them all at once, what would likely happen? Failure! None of the multitude of changes that you tried to do would stick and there would be no effect. What about going to a semi-nar and picking one change that you can make easily, and you make this change for a long period of time? You would likely be more successful. This is one of the secrets of changing money habits and letting time do its magic. If you make a change that is hardly perceptible (i.e. painless), then this method will hardly be a strain.

What are some examples of this? Have you heard of the latte factor? The latte factor is making one incremental change per day – not purchasing that cup of coffee and saving the money. Due to the frequency of how many cups of coffee someone would buy over years of their lifetime, this would add up to meaningful savings. Another version is instead of buying a latte, you buy a regular coffee and add your milk or cream to it. This would save you $2 per day as an example. After 365 days, you have saved over $700 per year from this one incremental habit change. The ocean liner analogy shows the effect of compounding the change to make it even larger. What would you do with the $700? Let’s say you invested it over 10 years. On top of the $700 x 10 years of contributions, you are also making a return on this investment. As a wild guess, let’s say you made $3500 in return over the 10 years – about 5% per year on average. Now the effect is compounded. You can then take this money and deposit it into an RRSP and get a tax refund which would amplify the effect a while longer.

The latte factor has been beaten to death in many blogs and financial circles. The point of the latte factor is an example of one small habit that can lead to large changes over a long period of time if applied consistently. There are many other habits that can achieve this result. How about saving $1 per day on buying bananas from your local grocery store? How about negotiating a slightly better rate on your cell phone plan? How about purchasing the basic gym membership instead of the deluxe one that includes less but would suit your needs exactly? How about wasting slightly less food each day and buying a little bit less? Maybe keeping the computer, cell phone or cars that you drive one year longer than you used to? Ask yourself what the trade-off may be in doing these things – but if there really isn’t anything lost then you have found a habit that will create more money.

There are techniques that say you need to do a routine for 21 days to make it stick. This is basically saying that by doing it for this long, you are making the habit automatic. It will get to the point that when you don’t do it, you will miss it! Why not be creative and see what habits you can change that add incremental effects over time?

Do you want to: Learn how the world of money really works without the need of a time consuming or expensive course of study? Discuss what you want to achieve according to your horizon? Restructure your finances to achieve your goals? Advice that is not affiliated with any institution or any product – an independent opinion?


Best Certificate of Deposit Rates: A Guide to the Different Types of CD Accounts and APY

November 8, 2019

Personal Finance

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Are you looking to start a savings account with a good yield? Perhaps the best place to get started is with an online bank. They are better able to offer the best certificate of deposit rates since they operate primarily online and don’t have physical branches to finance. CDs are often considered to be the “next level” up after a savings account. However, you will be required to keep your funds locked up for a set period of time. Depending on the bank, there might or might not be a penalty for an early-withdrawal.

Some banks offer a few different types of CD accounts, including Term CDs, in which the interest rate is locked without having to worry about the drama of market volatility, as well as a “no-penalty” CD, which allows you to still maintain access to your funds while still having the security of a certificate of a deposit. Some other CD types are designed to balance your investments and help maximum your return.

With a traditional CD, you might not be able to make additional deposits. If you want to add money later on down the road, the bank should provide the option to upgrade an existing account.

Best Certificate of Deposit Rates in Online Banks

The good thing about online banks is that they really do offer the best certificate of deposit rates, which can exceed 2.0% APY. It’s ideal to choose a bank that automatically renews the accounts at maturity. The more mature the account becomes, the higher the APY percentage. Ideally, there should be no fees for opening an account.

Consider your certificate of deposit term before starting an account. How long will you be able to afford to keep that money locked into the account? If you think you might need it in less than a year, look for a bank that offers a six or twelve month term, and won’t charge you a penalty for taking it out. On the other hand, if you are interested in saving for the long-term, such as for retirement or your child’s college tuition, then choose a bank that will keep increasing the APY % the longer the account matures.

Confirm that the CD will be insured. Avoid any bank that isn’t backed by the FDIC. Also, check a bank’s background to make sure that hasn’t experienced any financial problems in the past.