Money makes the world go round...

This blog can help you about the right management of your finances, tips on staying how to stay away from debt, and so many more.

Money makes the world go round…

This is an old saying that people believe and so people have jobs to suffice their daily needs and wants. However, people just keep on spending money and sometimes it is spent on what it is not intended for. Good thing that there are people who are financially educated, especially in personal finance management. They want to share their thoughts on things and they want to educate and inform others as well.

This blog can help you with the right management of your finances, tips on staying how to stay away from debt, and so many more.

What We Do

Personal finance is an important thing that every person should know; however, it is one of the ones that is usually neglected. Some people have not found its importance because they do not know its importance.

This blog aims to help those people who do not know how to manage their personal finances. They will be reading about tips on how to budget, how to save, and even how to stay out of debt.

The author of this blog is a financial adviser who was also lost to spending too much on clothes and shoes. This time, she is willing to share what she has learned and she is willing to guide people to the right financial path.

Latest Articles

What You Need To Know About Forex Trading In 2018

Forex is a shortened way of saying Forex exchange. This refers to the act of buying or selling one country’s currency for another for different reasons including commerce, tourism or as a personal investment. Many businesses run on a global scale, as such it is important to translate with other countries using their own currency hence creating a niche for Forex trading. Countries, businesses and people from all walks of life all participate in Forex trading making it the number one traded market worldwide.

You have probably participated in this popular trade for instance when you went on vacation to another country. You probably had to exchange your currency to the currency of where you were visiting for instance US dollars for Euros. The demand on the market for certain currencies will either boost or slow down its value when compared to other currencies.

Until the internet came into the scene, Forex trading was limited to the interbanking systems trading on behalf of their clients. With time, banks set up their own proprietary desks so that they could trade using their own accounts. It was long after this that large corporations, hedge funds and high net worth people jumped on the trading Forex band wagon, and it has proven to be a great source of income. To put it in a nutshell, global market trades at about $22.4 billion per day, while the forex market trades about $5 trillion per day.

Keeping this in mind, it’s no surprise that there are a surge of individual traders looking to make a profit from trading. If you are one of those individuals who are keen on trading currencies, here are a few pros and cons on Forex trading:

Pros and Cons of Forex Trading

  • Forex trading is the biggest financial market in the globe. According to the last triennial survey of the Bank of International Settlement (BIS), the size of the forex market turnover was $5.2 trillion. This means that it can offer the most liquidity; therefore you can enter and exit within a second in any of the major global currencies.

 

  • Due to the impressive range of liquidity and the ease with which a trade can exit or enter the market, brokers and banks entice traders by offering them a large leverage. This gives traders the ability to control large positions having chipped in little money of their own. Of course in order to garner maximum benefits, traders have to understand how to use leverage cautiously and effectively and the risks imposed on the account should the leverage be misused.

 

  • Another key advantage to Forex trading is that it operates 24 hours, starting out in Australia and coming to a close in New York before the cycle starts out again. Some of the top cities to focus on in 2018 when it comes to trading include: Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London and New York.

 

How to Be a Successful Trader

Over the years, there have been reports of massive losses as a result of undisciplined and inexperienced traders who do not know how forex trading works and have ignored platforms and methodologies such as the Elliot Wave Trading Theory. Below we shall uncover the key things you need to know in order to be a successful trader in 2018 and recap big profits.

 

  • Make A Plan

To profit in trading, it’s not only important to be well versed in the trades of the market itself, but to be self aware as well. This means that you risk tolerance and capital allocation to the trading. You have to sit down and analyse your own financial goals and your account before engaging in Forex trading. Once you determine your Forex trading goals, you have to set a time frame and jot down a working plan, be it short term or long term for your trading career.

Having clear goals means asking yourself a few trivial questions such as what should be the time frame for trial and error process? How much time do you plan on devoting to Forex trading, or whether you are getting into the trade as a hobby or a means to generate technology stable income? Answering such questions will help you determine the risks vs. returns and should the risks overshadow the profits, then it might be wise to embark on another endeavour.

  • Pick A Reliable Broker Then Start Small

Prior to focusing on the intricacies of trading itself, it is important to choose a broker who is in tandem with your trading goals and is of good expertise. It is wise to enquire about the brokers’ client profile, their trading software, and even how efficient their customers’ service is. The next step is to choose an account package that suits your expertise level. As a general rule for beginners, it is best to start out with a lower leverage. This gives you the much needed grave period to learn and maybe make mistakes that are not too costly. Start small and add onto your account as it gradually generates profits.

  • Stick To A Single Currency Pair

The forex market is vast and has brought together central banks, investment banks, commercial banks, hedge funds, retail traders, technology providers, statisticians, quants, software developers, analysts, just to name a few. It is an increasing industry that supports over 20 other industries. As such it can get chaotic, and in the midst of this chaos it is hard to grasp the nitty-gritty of all the participants in the trade. As such, it’s ideal to focus on trading with one currency pair which you are familiar with and understand, preferably the currency of your own country. Alternatively you can start off with the most liquid and widely traded currency pairs that are an ideal choice.

  • Understand The Trade

Forex trading in a nutshell is about probability and risk analysis. There is no single strategy that can guarantee you profits all the time. However, proper money management can help you to maximize profits and reduce losses. It’s also important to study the every changing market both its macroeconomic and microeconomic aspects and technical factors that come into play. Most importantly don’t make decisions based on your emotions.

How to Plan a Holiday Overseas on a Budget

Everyone needs to take a break once in a while, and going on a holiday abroad is a brilliant way to get away from stressful work or just the grind of a routine. Holidays can get expensive though, so this guide is designed to help you take a break without breaking the bank.

Plan Ahead and Compare

This may sound obvious, but a large part of getting a holiday cheap is making sure you get to it ahead of time. Doing this makes it easier for you to find the right deal by comparing all the possible providers at every level of the holiday, from flights to hotels to activities.

Using comparison sites is the way to go when it comes to finding the deal you’re looking for. Starting with hotels, putting your dream hotel into sites like Trivago or TripAdvisor can save you a chunk of your budget. On top of this, contacting the hotel directly to see if they can beat the price is never a bad idea, and could get you an even bigger saving.

When it comes to flights, make sure you are using sites which give you the biggest range of comparisons. For example, if you’re looking for a flight to a popular package holiday destination make sure you’re using a site that includes charter flights on their lists, meaning you can see if there are spare seats on a package provider’s flight.

Another way to secure a cheaper flight is to fly indirectly. While waiting around for two hours in an airport halfway between your base and your destination might not sound appealing, it could significantly cut the cost of your flight.

Consider Package Holidays

While doing all of your bookings independently can save you a lot of money in some cases, it can also be a lot of work for the sake of very small savings. Depending on when and where you’re travelling, it’s a good idea to at least check the price of equivalent package holidays.

Package holidays can be especially useful when it comes to an activity-heavy holiday, as they will often cut down the overall cost of activities, even if a single activity would have been cheaper outside of the package.

Cut Out the Extras

Consider whether you actually need Priority Boarding and Seat Selection on your flight. As almost all airlines now offer allocated seating these are usually unnecessary costs which can be easily cut from your budget.

Another extra cost which can be easily cut is the cost of food (either at the airport or on the plane). This usually outrageous expense can be easily removed by taking your own packed lunch. If you do take a packed lunch, however, remember that liquids will not be allowed onto the plane, but you can get around this by taking empty bottles to fill with water in the departure lounge.

Time Your Trip Right

Obviously, a large part of working out the timing of your holiday is dependent on outside factors like fitting around work or your kids’ school terms, but it’s important to maximise deals within the range of times you have available to you.

Often, term-time holidays are much cheaper than those available during the school holidays, but school holidays might be the only time you can travel. If this is the case, booking your trip for the later end of the holiday period is usually the best idea, with the last week of August and the first week of September often much cheaper than the rest of the holidays.

Alternatively, October half-term can also be a good time to get away if your holidays are restricted by the school term, as trips then are usually in line with the rest of term time.

The time of travel on your days of departure and return can also affect the cost of flights or trains. Overnight trips can cost significantly less, so if you find it easy to fall asleep in transit you could use this to reduce cost of travel and to eliminate the cost of one night’s stay at your hotel from your budget.

Be Prepared

For your own protection, it’s always a good idea to get your travel insurance sorted as soon as possible after booking your trip. Otherwise, you could be caught out by any number of problems meaning you have to cancel and be left with no way to get your money back.

It’s also important to be prepared on the day of travel itself, particularly when it comes to weighing your bags. Make sure your bags are within the limits your airline sets on luggage, as the charges for excessive weight can be extreme.

Research Your Activities and Book Beforehand

While booking your excursions independently can seem like a lot of work compared to going with the trips organised by your hotel/campsite, it can mean a major difference in expense.

This is usually due to the fact that local public transport will be cheaper than the coaches used for organised excursions. Unfortunately, local buses rarely come with the guides provided on hotel organised coaches, but you could halve the cost of your sightseeing. You might also make savings from booking this transport far ahead of time.

You can increase the savings in most major cities through travel or sight-seeing passes. These generally get you savings as long as you make more than two or three journeys on local transport each day. In major cities this can quickly build up your savings as you cross the city to get from sight to sight.

Many of the older European cities, on the other hand, are easily walkable if you want to eliminate transport costs altogether. By researching the sights of a particular city you can often work out which ones are in the same geographical area as each other and plan your days around this.

The Basics of Personal Finance

Personal finance is simply the ability of a person to save and manage his finances. It is a fact that not all people find the importance of personal finance merely because they have not experienced something difficult in their life or probably they have not encountered something important in their lives yet.

Some people already find it stressful even when they are just thinking of budgeting their own money. Experts say that this is because there was no financial management education in college or even as early as high school. With this, people just get stressed as they start working because all that they do is spend their money and, after a few days, they need to wait for the next paycheck to come.

Since personal finance is extremely important, here are the basic tips that you can consider.

Learn how to budget
Budgeting is an essential part of personal finance. It is the stage where you have to earn money and so you work or you have a job and at the same time, you have to put the money in the right cause. A lot of people like to write down their budget so that they can somehow see on how they earn and spend their money. If you want to use technology, you can always use your mobile phone to do the budgeting.

When you budget, you need to make sure that you include what gets in and what gets out. This includes your monthly bills. You should also put something for an emergency fund or even for traveling.

The purpose of having a budget is you know how you get the money and how you spend it as well.

Save some of what you earn
People usually do not know how to save money. There are so many suggestions that experts give. For instance, saving ten percent of your monthly earnings is a good way to start. It is not a good idea to save what is left over because sometimes it does not work. However, if you do not have the discipline to do so, you can search for saving money challenges in the internet. Your goal is to complete the challenge of saving money in different and unique ways. At the end of the year, you get a big amount of money.

Cut some Expenses
You are free to use your hard-earned money but you should know that there is also a limit to spending. You should live within your means and you just cannot spend what you do not have. You need to get rid of unnecessary spending just like you can commute using the subway instead of riding the taxi every day. By cutting your expenses, you have more money to spend on better things, and you can even save more money.

Stay away from Debt
People usually like to use their credit cards, but they do not pay the whole amount. They end up paying a lot of interest and worst when they cannot pay anymore, they leave their bills rising month per month. If you can stay away from debt, you have more money to use and save.

Invest
Investing is another way of earning money in a passive way. You can ask a financial adviser to help you. You will not be forced to pay for something that you cannot keep up with.

Overall, personal finance is important especially that it can help you in your daily life. Even during retirement, you surely will still have money that you can use. You will thank yourself for saving for the future.

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